DWS GROUP GMBH & CO KGAA (DWS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DWS - DE000DWS1007 - Common Stock
62.85 EUR
+5.5 (+9.59%)
Taking everything into account, DWS scores 7 out of 10 in our fundamental rating. DWS was compared to 118 industry peers in the Capital Markets industry. DWS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DWS may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- Each year in the past 5 years DWS has been profitable.
- DWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 6.77%, DWS belongs to the best of the industry, outperforming 82.20% of the companies in the same industry.
- DWS has a Return On Equity of 10.85%. This is in the better half of the industry: DWS outperforms 60.17% of its industry peers.
- DWS has a better Return On Invested Capital (5.96%) than 72.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DWS 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
- Looking at the Profit Margin, with a value of 27.35%, DWS is in the better half of the industry, outperforming 72.88% of the companies in the same industry.
- DWS's Profit Margin has improved in the last couple of years.
- DWS has a Operating Margin of 33.88%. This is in the better half of the industry: DWS outperforms 75.42% of its industry peers.
- 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 92.37% of the companies in the same industry.
- In the last couple of years the Gross Margin of DWS has remained more or less at the same level.
| 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
- The number of shares outstanding for DWS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, DWS has about the same amount of shares outstanding.
- The debt/assets ratio for DWS has been reduced compared to a year ago.
2.2 Solvency
- DWS has an Altman-Z score of 2.68. This is not the best score and indicates that DWS is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of DWS (2.68) is better than 79.66% of its industry peers.
- 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 97.46% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that DWS is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.03, DWS belongs to the top of the industry, outperforming 89.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 2.68 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- DWS has a Current Ratio of 5.79. This indicates that DWS is financially healthy and has no problem in meeting its short term obligations.
- DWS has a Current ratio of 5.79. This is amongst the best in the industry. DWS outperforms 94.07% of its industry peers.
- A Quick Ratio of 5.79 indicates that DWS has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 5.79, DWS belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.79 | ||
| Quick Ratio | 5.79 |
3. Growth
3.1 Past
- DWS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.44%, which is quite impressive.
- DWS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.08% yearly.
- DWS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
- The Revenue has been growing slightly by 2.33% on average over the past years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.44, which indicates a correct valuation of DWS.
- 77.12% of the companies in the same industry are more expensive than DWS, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.39. DWS is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 12.83 indicates a correct valuation of DWS.
- Based on the Price/Forward Earnings ratio, DWS is valued cheaply inside the industry as 84.75% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, DWS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DWS is valued cheaply inside the industry as 82.20% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DWS is valued a bit cheaper than 79.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.35 | ||
| EV/EBITDA | 10.59 |
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.
- The decent profitability rating of DWS 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)0.39
PEG (5Y)3.04
EPS Next 2Y22.23%
EPS Next 3Y17.05%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.71%, DWS has a reasonable but not impressive dividend return.
- DWS's Dividend Yield is a higher than the industry average which is at 3.08.
- DWS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
- 58.36% of the earnings are spent on dividend by DWS. This is a bit on the high side, but may be sustainable.
- The dividend of DWS is growing, but the earnings are growing slower. 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%.