MORGAN STANLEY (DWD.DE) Stock Fundamental Analysis
FRA:DWD - Deutsche Boerse Ag - US6174464486 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to DWD. DWD was compared to 107 industry peers in the Capital Markets industry. While DWD is still in line with the averages on profitability rating, there are concerns on its financial health. DWD has a correct valuation and a medium growth rate. DWD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DWD was profitable.
DWD had a negative operating cash flow in the past year.
DWD had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: DWD reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.05%, DWD is in line with its industry, outperforming 51.40% of the companies in the same industry.
DWD has a Return On Equity of 12.82%. This is in the better half of the industry: DWD outperforms 68.22% of its industry peers.
DWD has a Return On Invested Capital of 1.35%. This is comparable to the rest of the industry: DWD outperforms 52.34% of its industry peers.
DWD had an Average Return On Invested Capital over the past 3 years of 1.17%. This is significantly below the industry average of 8.40%.
The last Return On Invested Capital (1.35%) for DWD is above the 3 year average (1.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.82% | ||
| ROIC | 1.35% |
ROA(3y)0.89%
ROA(5y)0.97%
ROE(3y)10.46%
ROE(5y)11.1%
ROIC(3y)1.17%
ROIC(5y)1.28%
1.3 Margins
With a Profit Margin value of 12.43%, DWD perfoms like the industry average, outperforming 57.01% of the companies in the same industry.
DWD's Profit Margin has declined in the last couple of years.
DWD's Operating Margin of 17.02% is fine compared to the rest of the industry. DWD outperforms 61.68% of its industry peers.
In the last couple of years the Operating Margin of DWD has declined.
The Gross Margin of DWD (54.40%) is better than 68.22% of its industry peers.
DWD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 12.43% | ||
| GM | 54.4% |
OM growth 3Y-20.12%
OM growth 5Y-4.82%
PM growth 3Y-20.6%
PM growth 5Y-5.48%
GM growth 3Y-16.51%
GM growth 5Y-5.78%
2. Health
2.1 Basic Checks
Compared to 1 year ago, DWD has less shares outstanding
The number of shares outstanding for DWD has been increased compared to 5 years ago.
DWD has a worse debt/assets ratio than last year.
2.2 Solvency
DWD has an Altman-Z score of -0.11. This is a bad value and indicates that DWD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DWD (-0.11) is worse than 60.75% of its industry peers.
A Debt/Equity ratio of 7.22 is on the high side and indicates that DWD has dependencies on debt financing.
With a Debt to Equity ratio value of 7.22, DWD is not doing good in the industry: 69.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.11 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
DWD has a Current Ratio of 0.26. This is a bad value and indicates that DWD is not financially healthy enough and could expect problems in meeting its short term obligations.
DWD has a Current ratio of 0.26. This is comparable to the rest of the industry: DWD outperforms 40.19% of its industry peers.
A Quick Ratio of 0.26 indicates that DWD may have some problems paying its short term obligations.
The Quick ratio of DWD (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.33% over the past year.
Measured over the past years, DWD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.88% on average per year.
The Revenue has grown by 10.79% in the past year. This is quite good.
DWD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.79% yearly.
EPS 1Y (TTM)51.33%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%28.71%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
3.2 Future
The Earnings Per Share is expected to grow by 6.26% on average over the next years.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y11.7%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
EPS Next 5Y6.26%
Revenue Next Year8.97%
Revenue Next 2Y6.77%
Revenue Next 3Y5.95%
Revenue Next 5Y3.1%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DWD is valuated correctly with a Price/Earnings ratio of 16.84.
Based on the Price/Earnings ratio, DWD is valued a bit cheaper than 67.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.18. DWD is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.86, DWD is valued correctly.
Based on the Price/Forward Earnings ratio, DWD is valued a bit cheaper than 73.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.34. DWD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
DWD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DWD is cheaper than 74.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.62 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.44
PEG (5Y)1.9
EPS Next 2Y10.26%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.24%, DWD is a good candidate for dividend investing.
DWD's Dividend Yield is rather good when compared to the industry average which is at 5.87. DWD pays more dividend than 92.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, DWD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
5.2 History
On average, the dividend of DWD grows each year by 18.94%, which is quite nice.
Dividend Growth(5Y)18.94%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
45.71% of the earnings are spent on dividend by DWD. This is a bit on the high side, but may be sustainable.
DWD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.71%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
FRA:DWD (7/15/2025, 7:00:00 PM)
122.92
+0.08 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.74%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap197.20B
Analysts72.9
Price Target112.88 (-8.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
Yearly Dividend3.25
Dividend Growth(5Y)18.94%
DP45.71%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.77%
Min EPS beat(2)14.48%
Max EPS beat(2)27.07%
EPS beat(4)4
Avg EPS beat(4)16.07%
Min EPS beat(4)7.49%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)10.85%
EPS beat(12)9
Avg EPS beat(12)6.29%
EPS beat(16)13
Avg EPS beat(16)7.3%
Revenue beat(2)2
Avg Revenue beat(2)4.34%
Min Revenue beat(2)3.91%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.58%
Min Revenue beat(4)1.95%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)1.47%
Revenue beat(12)9
Avg Revenue beat(12)12.39%
Revenue beat(16)12
Avg Revenue beat(16)10.02%
PT rev (1m)-0.18%
PT rev (3m)-12.09%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-4.95%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 14.86 | ||
| P/S | 2.09 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.15 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 19.62 |
EPS(TTM)7.3
EY5.94%
EPS(NY)8.27
Fwd EY6.73%
FCF(TTM)-16.21
FCFYN/A
OCF(TTM)-14.41
OCFYN/A
SpS58.86
BVpS57.07
TBVpS44.77
PEG (NY)1.44
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.82% | ||
| ROCE | 3.09% | ||
| ROIC | 1.35% | ||
| ROICexc | 1.48% | ||
| ROICexgc | 1.55% | ||
| OM | 17.02% | ||
| PM (TTM) | 12.43% | ||
| GM | 54.4% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.97%
ROE(3y)10.46%
ROE(5y)11.1%
ROIC(3y)1.17%
ROIC(5y)1.28%
ROICexc(3y)1.31%
ROICexc(5y)1.45%
ROICexgc(3y)1.39%
ROICexgc(5y)1.52%
ROCE(3y)2.71%
ROCE(5y)2.94%
ROICexcg growth 3Y-6.85%
ROICexcg growth 5Y1.53%
ROICexc growth 3Y-6.8%
ROICexc growth 5Y1.26%
OM growth 3Y-20.12%
OM growth 5Y-4.82%
PM growth 3Y-20.6%
PM growth 5Y-5.48%
GM growth 3Y-16.51%
GM growth 5Y-5.78%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.42 | ||
| Cap/Depr | 66.5% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | -0.11 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)74.75%
Cap/Depr(5y)63.46%
Cap/Sales(3y)3.81%
Cap/Sales(5y)3.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.33%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%28.71%
EPS Next Y11.7%
EPS Next 2Y10.26%
EPS Next 3Y10.52%
EPS Next 5Y6.26%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%17.2%
Revenue Next Year8.97%
Revenue Next 2Y6.77%
Revenue Next 3Y5.95%
Revenue Next 5Y3.1%
EBIT growth 1Y43.88%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-54.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-63.47%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%