AP MOLLER-MAERSK A/S-A (DP4A.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DP4A - DK0010244425 - Common Stock
2016 EUR
+41 (+2.08%)
Overall DP4A gets a fundamental rating of 5 out of 10. We evaluated DP4A against 17 industry peers in the Marine Transportation industry. While DP4A has a great health rating, its profitability is only average at the moment. DP4A has a correct valuation and a medium growth rate. Finally DP4A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year DP4A was profitable.
- DP4A had a positive operating cash flow in the past year.
- DP4A had positive earnings in each of the past 5 years.
- In the past 5 years DP4A always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 5.50%, DP4A is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- DP4A's Return On Equity of 8.65% is on the low side compared to the rest of the industry. DP4A is outperformed by 70.59% of its industry peers.
- The Return On Invested Capital of DP4A (4.53%) is worse than 64.71% of its industry peers.
- DP4A had an Average Return On Invested Capital over the past 3 years of 12.03%. This is above the industry average of 8.74%.
- The 3 year average ROIC (12.03%) for DP4A is well above the current ROIC(4.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 8.65% | ||
| ROIC | 4.53% |
ROA(3y)14.25%
ROA(5y)14.53%
ROE(3y)21.15%
ROE(5y)22.66%
ROIC(3y)12.03%
ROIC(5y)12.93%
1.3 Margins
- The Profit Margin of DP4A (8.83%) is worse than 70.59% of its industry peers.
- In the last couple of years the Profit Margin of DP4A has declined.
- DP4A has a Operating Margin of 8.67%. This is comparable to the rest of the industry: DP4A outperforms 41.18% of its industry peers.
- In the last couple of years the Operating Margin of DP4A has grown nicely.
- Looking at the Gross Margin, with a value of 24.95%, DP4A is doing worse than 76.47% of the companies in the same industry.
- In the last couple of years the Gross Margin of DP4A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.67% | ||
| PM (TTM) | 8.83% | ||
| GM | 24.95% |
OM growth 3Y-30.14%
OM growth 5Y23.97%
PM growth 3Y-27.62%
PM growth 5YN/A
GM growth 3Y-15.74%
GM growth 5Y5.88%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DP4A is creating some value.
- Compared to 1 year ago, DP4A has less shares outstanding
- DP4A has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for DP4A is higher compared to a year ago.
2.2 Solvency
- DP4A has an Altman-Z score of 2.58. This is not the best score and indicates that DP4A is in the grey zone with still only limited risk for bankruptcy at the moment.
- DP4A has a Altman-Z score (2.58) which is in line with its industry peers.
- The Debt to FCF ratio of DP4A is 3.05, which is a good value as it means it would take DP4A, 3.05 years of fcf income to pay off all of its debts.
- DP4A has a Debt to FCF ratio of 3.05. This is amongst the best in the industry. DP4A outperforms 82.35% of its industry peers.
- DP4A has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
- DP4A has a Debt to Equity ratio of 0.26. This is amongst the best in the industry. DP4A outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.62
WACC7.27%
2.3 Liquidity
- DP4A has a Current Ratio of 2.16. This indicates that DP4A is financially healthy and has no problem in meeting its short term obligations.
- DP4A has a better Current ratio (2.16) than 82.35% of its industry peers.
- A Quick Ratio of 2.05 indicates that DP4A has no problem at all paying its short term obligations.
- DP4A has a Quick ratio of 2.05. This is in the better half of the industry: DP4A outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 37.28% over the past year.
- DP4A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.06% yearly.
- The Revenue has been growing slightly by 4.98% in the past year.
- DP4A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
EPS 1Y (TTM)37.28%
EPS 3Y-25.55%
EPS 5Y70.06%
EPS Q2Q%-64.25%
Revenue 1Y (TTM)4.98%
Revenue growth 3Y-3.52%
Revenue growth 5Y7.37%
Sales Q2Q%-9.87%
3.2 Future
- The Earnings Per Share is expected to decrease by -21.08% on average over the next years. This is quite bad
- DP4A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.39% yearly.
EPS Next Y-47.17%
EPS Next 2Y-90.94%
EPS Next 3Y-59.19%
EPS Next 5Y-21.08%
Revenue Next Year-2.71%
Revenue Next 2Y-4.02%
Revenue Next 3Y-1.73%
Revenue Next 5Y0.39%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.68, the valuation of DP4A can be described as very cheap.
- The rest of the industry has a similar Price/Earnings ratio as DP4A.
- DP4A is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 756.66, DP4A can be considered very expensive at the moment.
- DP4A's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DP4A is more expensive than 76.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, DP4A is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 756.66 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DP4A indicates a somewhat cheap valuation: DP4A is cheaper than 76.47% of the companies listed in the same industry.
- 88.24% of the companies in the same industry are more expensive than DP4A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 4.54 |
4.3 Compensation for Growth
- DP4A's earnings are expected to decrease with -59.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-90.94%
EPS Next 3Y-59.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.53%, DP4A is a good candidate for dividend investing.
- DP4A's Dividend Yield is a higher than the industry average which is at 8.35.
- DP4A's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
5.2 History
- On average, the dividend of DP4A grows each year by 29.66%, which is quite nice.
Dividend Growth(5Y)29.66%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- DP4A pays out 52.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
- DP4A's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP52.19%
EPS Next 2Y-90.94%
EPS Next 3Y-59.19%
AP MOLLER-MAERSK A/S-A / DP4A.DE FAQ
Can you provide the ChartMill fundamental rating for AP MOLLER-MAERSK A/S-A?
ChartMill assigns a fundamental rating of 5 / 10 to DP4A.DE.
What is the valuation status for DP4A stock?
ChartMill assigns a valuation rating of 4 / 10 to AP MOLLER-MAERSK A/S-A (DP4A.DE). This can be considered as Fairly Valued.
What is the profitability of DP4A stock?
AP MOLLER-MAERSK A/S-A (DP4A.DE) has a profitability rating of 4 / 10.
What is the expected EPS growth for AP MOLLER-MAERSK A/S-A (DP4A.DE) stock?
The Earnings per Share (EPS) of AP MOLLER-MAERSK A/S-A (DP4A.DE) is expected to decline by -47.17% in the next year.
How sustainable is the dividend of AP MOLLER-MAERSK A/S-A (DP4A.DE) stock?
The dividend rating of AP MOLLER-MAERSK A/S-A (DP4A.DE) is 6 / 10 and the dividend payout ratio is 52.19%.