DRAEGERWERK AG (DRW8.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DRW8 - DE0005550602 - Common Stock
72 EUR
+3.6 (+5.26%)
DRW8 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Health Care Equipment & Supplies industry. DRW8 has only an average score on both its financial health and profitability. DRW8 is valued quite cheap, while showing a decent growth score. This is a good combination! DRW8 also has an excellent dividend rating. These ratings could make DRW8 a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- DRW8 had positive earnings in the past year.
- In the past year DRW8 had a positive cash flow from operations.
- Of the past 5 years DRW8 4 years were profitable.
- DRW8 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- DRW8's Return On Assets of 3.99% is fine compared to the rest of the industry. DRW8 outperforms 60.32% of its industry peers.
- Looking at the Return On Equity, with a value of 8.02%, DRW8 is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
- The Return On Invested Capital of DRW8 (7.67%) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 8.02% | ||
| ROIC | 7.67% |
ROA(3y)1.84%
ROA(5y)3.09%
ROE(3y)3.69%
ROE(5y)7.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- DRW8 has a Profit Margin (3.54%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DRW8 has grown nicely.
- The Operating Margin of DRW8 (6.02%) is worse than 60.32% of its industry peers.
- In the last couple of years the Operating Margin of DRW8 has grown nicely.
- DRW8's Gross Margin of 45.35% is on the low side compared to the rest of the industry. DRW8 is outperformed by 69.84% of its industry peers.
- In the last couple of years the Gross Margin of DRW8 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | 3.54% | ||
| GM | 45.35% |
OM growth 3Y-13.99%
OM growth 5Y11.88%
PM growth 3Y-2.93%
PM growth 5Y32.71%
GM growth 3Y-1.06%
GM growth 5Y0.96%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DRW8 is still creating some value.
- The number of shares outstanding for DRW8 has been reduced compared to 1 year ago.
- DRW8 has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DRW8 has been reduced compared to a year ago.
2.2 Solvency
- DRW8 has an Altman-Z score of 2.72. This is not the best score and indicates that DRW8 is in the grey zone with still only limited risk for bankruptcy at the moment.
- DRW8 has a Altman-Z score (2.72) which is in line with its industry peers.
- The Debt to FCF ratio of DRW8 is 2.16, which is a good value as it means it would take DRW8, 2.16 years of fcf income to pay off all of its debts.
- DRW8 has a Debt to FCF ratio of 2.16. This is in the better half of the industry: DRW8 outperforms 77.78% of its industry peers.
- DRW8 has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.10, DRW8 is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.12
WACC6.86%
2.3 Liquidity
- DRW8 has a Current Ratio of 1.76. This is a normal value and indicates that DRW8 is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.76, DRW8 is doing good in the industry, outperforming 60.32% of the companies in the same industry.
- A Quick Ratio of 1.03 indicates that DRW8 should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.03, DRW8 perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.68% over the past year.
- Measured over the past years, DRW8 shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.42% on average per year.
- The Revenue has been growing slightly by 2.14% in the past year.
- The Revenue has been growing slightly by 3.92% on average over the past years.
EPS 1Y (TTM)6.68%
EPS 3Y-2.51%
EPS 5Y36.42%
EPS Q2Q%143.82%
Revenue 1Y (TTM)2.14%
Revenue growth 3Y0.42%
Revenue growth 5Y3.92%
Sales Q2Q%7.58%
3.2 Future
- DRW8 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
- Based on estimates for the next years, DRW8 will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
EPS Next Y6.71%
EPS Next 2Y10.8%
EPS Next 3Y11.15%
EPS Next 5Y7.93%
Revenue Next Year2.84%
Revenue Next 2Y3.51%
Revenue Next 3Y3.67%
Revenue Next 5Y2.85%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.16, the valuation of DRW8 can be described as very reasonable.
- Based on the Price/Earnings ratio, DRW8 is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- DRW8 is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.87, the valuation of DRW8 can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DRW8 indicates a rather cheap valuation: DRW8 is cheaper than 93.65% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DRW8 to the average of the S&P500 Index (25.96), we can say DRW8 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
- DRW8's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DRW8 is cheaper than 96.83% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DRW8 is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
- DRW8's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)0.31
EPS Next 2Y10.8%
EPS Next 3Y11.15%
5. Dividend
5.1 Amount
- DRW8 has a Yearly Dividend Yield of 2.94%.
- Compared to an average industry Dividend Yield of 0.96, DRW8 pays a better dividend. On top of this DRW8 pays more dividend than 93.65% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DRW8 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
- The dividend of DRW8 is nicely growing with an annual growth rate of 51.02%!
Dividend Growth(5Y)51.02%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- DRW8 pays out 31.13% of its income as dividend. This is a sustainable payout ratio.
- The dividend of DRW8 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.13%
EPS Next 2Y10.8%
EPS Next 3Y11.15%
DRAEGERWERK AG / DRW8.DE FAQ
Can you provide the ChartMill fundamental rating for DRAEGERWERK AG?
ChartMill assigns a fundamental rating of 6 / 10 to DRW8.DE.
What is the valuation status of DRAEGERWERK AG (DRW8.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to DRAEGERWERK AG (DRW8.DE). This can be considered as Undervalued.
What is the profitability of DRW8 stock?
DRAEGERWERK AG (DRW8.DE) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for DRW8 stock?
The Price/Earnings (PE) ratio for DRAEGERWERK AG (DRW8.DE) is 11.16 and the Price/Book (PB) ratio is 0.9.
What is the expected EPS growth for DRAEGERWERK AG (DRW8.DE) stock?
The Earnings per Share (EPS) of DRAEGERWERK AG (DRW8.DE) is expected to grow by 6.71% in the next year.