DWS GROUP GMBH & CO KGAA (DWS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DWS - DE000DWS1007 - Common Stock
58.7 EUR
-0.65 (-1.1%)
DWS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 118 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making DWS a very profitable company, without any liquidiy or solvency issues. DWS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, DWS could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year DWS was profitable.
- DWS had a positive operating cash flow in the past year.
- DWS had positive earnings in each of the past 5 years.
- DWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DWS has a Return On Assets of 6.77%. This is amongst the best in the industry. DWS outperforms 81.82% of its industry peers.
- DWS's Return On Equity of 10.85% is fine compared to the rest of the industry. DWS outperforms 61.16% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.96%, DWS is in the better half of the industry, outperforming 74.38% of the companies in the same industry.
- DWS had an Average Return On Invested Capital over the past 3 years of 4.47%. This is below the industry average of 8.65%.
- The 3 year average ROIC (4.47%) for DWS is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 10.85% | ||
| ROIC | 5.96% |
ROA(3y)5.13%
ROA(5y)5.49%
ROE(3y)7.8%
ROE(5y)8.43%
ROIC(3y)4.47%
ROIC(5y)4.87%
1.3 Margins
- DWS's Profit Margin of 27.35% is fine compared to the rest of the industry. DWS outperforms 73.55% of its industry peers.
- In the last couple of years the Profit Margin of DWS has grown nicely.
- With a decent Operating Margin value of 33.88%, DWS is doing good in the industry, outperforming 76.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of DWS has remained more or less at the same level.
- With an excellent Gross Margin value of 93.11%, DWS belongs to the best of the industry, outperforming 92.56% of the companies in the same industry.
- DWS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.88% | ||
| PM (TTM) | 27.35% | ||
| GM | 93.11% |
OM growth 3Y-5.59%
OM growth 5Y0.32%
PM growth 3Y-6.47%
PM growth 5Y2.51%
GM growth 3Y0.28%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, DWS has about the same amount of shares outstanding.
- DWS has about the same amout of shares outstanding than it did 5 years ago.
- DWS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.72 indicates that DWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.72, DWS is doing good in the industry, outperforming 77.69% of the companies in the same industry.
- The Debt to FCF ratio of DWS is 0.27, which is an excellent value as it means it would take DWS, only 0.27 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DWS (0.27) is better than 97.52% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that DWS is not too dependend on debt financing.
- DWS has a better Debt to Equity ratio (0.03) than 89.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 2.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 5.79 indicates that DWS has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 5.79, DWS belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
- DWS has a Quick Ratio of 5.79. This indicates that DWS is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of DWS (5.79) is better than 95.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.79 | ||
| Quick Ratio | 5.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.44% over the past year.
- Measured over the past 5 years, DWS shows a small growth in Earnings Per Share. The EPS has been growing by 5.08% on average per year.
- The Revenue has been growing slightly by 7.53% in the past year.
- Measured over the past years, DWS shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
EPS 1Y (TTM)33.44%
EPS 3Y-5.69%
EPS 5Y5.08%
EPS Q2Q%32.53%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y0.56%
Revenue growth 5Y2.33%
Sales Q2Q%10.07%
3.2 Future
- Based on estimates for the next years, DWS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
- Based on estimates for the next years, DWS will show a small growth in Revenue. The Revenue will grow by 3.99% on average per year.
EPS Next Y39.28%
EPS Next 2Y22.23%
EPS Next 3Y17.05%
EPS Next 5Y10.35%
Revenue Next Year10.95%
Revenue Next 2Y7.35%
Revenue Next 3Y6.35%
Revenue Next 5Y3.99%
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 accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.42 indicates a correct valuation of DWS.
- Compared to the rest of the industry, the Price/Earnings ratio of DWS indicates a somewhat cheap valuation: DWS is cheaper than 76.86% of the companies listed in the same industry.
- DWS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 11.98 indicates a reasonable valuation of DWS.
- DWS's Price/Forward Earnings ratio is rather cheap when compared to the industry. DWS is cheaper than 85.12% of the companies in the same industry.
- DWS is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DWS is valued cheaper than 80.17% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DWS indicates a somewhat cheap valuation: DWS is cheaper than 79.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- DWS has a very decent profitability rating, which may justify a higher PE ratio.
- DWS's earnings are expected to grow with 17.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)2.84
EPS Next 2Y22.23%
EPS Next 3Y17.05%
5. Dividend
5.1 Amount
- DWS has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.08, DWS pays a bit more dividend than its industry peers.
- DWS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
- On average, the dividend of DWS grows each year by 34.81%, which is quite nice.
Dividend Growth(5Y)34.81%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- DWS pays out 58.36% of its income as dividend. This is a bit on the high side, but may be sustainable.
- DWS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.36%
EPS Next 2Y22.23%
EPS Next 3Y17.05%
DWS GROUP GMBH & CO KGAA / DWS.DE FAQ
What is the fundamental rating for DWS stock?
ChartMill assigns a fundamental rating of 7 / 10 to DWS.DE.
Can you provide the valuation status for DWS GROUP GMBH & CO KGAA?
ChartMill assigns a valuation rating of 7 / 10 to DWS GROUP GMBH & CO KGAA (DWS.DE). This can be considered as Undervalued.
How profitable is DWS GROUP GMBH & CO KGAA (DWS.DE) stock?
DWS GROUP GMBH & CO KGAA (DWS.DE) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for DWS stock?
The Earnings per Share (EPS) of DWS GROUP GMBH & CO KGAA (DWS.DE) is expected to grow by 39.28% in the next year.
How sustainable is the dividend of DWS GROUP GMBH & CO KGAA (DWS.DE) stock?
The dividend rating of DWS GROUP GMBH & CO KGAA (DWS.DE) is 6 / 10 and the dividend payout ratio is 58.36%.