DHL GROUP (DHL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DHL - DE0005552004 - Common Stock
46.88 EUR
+0.48 (+1.03%)
DHL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 16 industry peers in the Air Freight & Logistics industry. DHL has an average financial health and profitability rating. DHL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- DHL had positive earnings in the past year.
- In the past year DHL had a positive cash flow from operations.
- In the past 5 years DHL has always been profitable.
- Each year in the past 5 years DHL had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 5.15%, DHL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- DHL has a Return On Equity (16.43%) which is in line with its industry peers.
- With a decent Return On Invested Capital value of 9.06%, DHL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DHL is in line with the industry average of 9.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 16.43% | ||
| ROIC | 9.06% |
ROA(3y)6.03%
ROA(5y)6.29%
ROE(3y)17.81%
ROE(5y)20.32%
ROIC(3y)10.22%
ROIC(5y)10.65%
1.3 Margins
- DHL's Profit Margin of 4.24% is in line compared to the rest of the industry. DHL outperforms 56.25% of its industry peers.
- In the last couple of years the Profit Margin of DHL has remained more or less at the same level.
- With a decent Operating Margin value of 7.27%, DHL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- DHL's Operating Margin has improved in the last couple of years.
- DHL has a Gross Margin (50.49%) which is comparable to the rest of the industry.
- DHL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 4.24% | ||
| GM | 50.49% |
OM growth 3Y-10.95%
OM growth 5Y3.29%
PM growth 3Y-13.81%
PM growth 5Y-0.9%
GM growth 3Y2.61%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
- DHL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- DHL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DHL has been reduced compared to 5 years ago.
- The debt/assets ratio for DHL is higher compared to a year ago.
2.2 Solvency
- DHL has an Altman-Z score of 2.50. This is not the best score and indicates that DHL is in the grey zone with still only limited risk for bankruptcy at the moment.
- DHL's Altman-Z score of 2.50 is fine compared to the rest of the industry. DHL outperforms 62.50% of its industry peers.
- DHL has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as DHL would need 3.91 years to pay back of all of its debts.
- DHL has a better Debt to FCF ratio (3.91) than 62.50% of its industry peers.
- A Debt/Equity ratio of 0.94 indicates that DHL is somewhat dependend on debt financing.
- DHL has a Debt to Equity ratio of 0.94. This is comparable to the rest of the industry: DHL outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.48
WACC6.12%
2.3 Liquidity
- DHL has a Current Ratio of 0.92. This is a bad value and indicates that DHL is not financially healthy enough and could expect problems in meeting its short term obligations.
- DHL's Current ratio of 0.92 is on the low side compared to the rest of the industry. DHL is outperformed by 62.50% of its industry peers.
- A Quick Ratio of 0.87 indicates that DHL may have some problems paying its short term obligations.
- With a Quick ratio value of 0.87, DHL is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.79% over the past year.
- DHL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.10% yearly.
- The Revenue has been growing slightly by 0.77% in the past year.
- Measured over the past years, DHL shows a small growth in Revenue. The Revenue has been growing by 5.85% on average per year.
EPS 1Y (TTM)15.79%
EPS 3Y-11.47%
EPS 5Y6.1%
EPS Q2Q%19.05%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y0.98%
Revenue growth 5Y5.85%
Sales Q2Q%-2.25%
3.2 Future
- The Earnings Per Share is expected to grow by 8.48% on average over the next years. This is quite good.
- DHL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.55% yearly.
EPS Next Y10.07%
EPS Next 2Y9.49%
EPS Next 3Y9.69%
EPS Next 5Y8.48%
Revenue Next Year-0.97%
Revenue Next 2Y0.63%
Revenue Next 3Y1.69%
Revenue Next 5Y2.55%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 15.22, which indicates a correct valuation of DHL.
- Based on the Price/Earnings ratio, DHL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, DHL is valued a bit cheaper.
- DHL is valuated correctly with a Price/Forward Earnings ratio of 13.92.
- Based on the Price/Forward Earnings ratio, DHL is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. DHL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DHL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DHL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of DHL may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)2.5
EPS Next 2Y9.49%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
- DHL has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
- DHL's Dividend Yield is a higher than the industry average which is at 2.93.
- DHL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
- On average, the dividend of DHL grows each year by 10.08%, which is quite nice.
Dividend Growth(5Y)10.08%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- DHL pays out 60.01% of its income as dividend. This is not a sustainable payout ratio.
- DHL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.01%
EPS Next 2Y9.49%
EPS Next 3Y9.69%
DHL GROUP / DHL.DE FAQ
Can you provide the ChartMill fundamental rating for DHL GROUP?
ChartMill assigns a fundamental rating of 5 / 10 to DHL.DE.
What is the valuation status for DHL stock?
ChartMill assigns a valuation rating of 5 / 10 to DHL GROUP (DHL.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for DHL GROUP?
DHL GROUP (DHL.DE) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for DHL stock?
The Price/Earnings (PE) ratio for DHL GROUP (DHL.DE) is 15.22 and the Price/Book (PB) ratio is 2.5.
How financially healthy is DHL GROUP?
The financial health rating of DHL GROUP (DHL.DE) is 4 / 10.