MORGAN STANLEY (DWD.DE) Stock Fundamental Analysis
FRA:DWD - Deutsche Boerse Ag - US6174464486 - Common Stock - Currency: EUR
Overall DWD gets a fundamental rating of 4 out of 10. We evaluated DWD against 102 industry peers in the Capital Markets industry. There are concerns on the financial health of DWD while its profitability can be described as average. DWD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DWD was profitable.
In the past year DWD had a positive cash flow from operations.
Each year in the past 5 years DWD has been profitable.
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
With a Return On Assets value of 1.05%, DWD perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.25%, DWD is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
DWD has a Return On Invested Capital of 1.34%. This is comparable to the rest of the industry: DWD outperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DWD is significantly below the industry average of 8.29%.
The last Return On Invested Capital (1.34%) 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 | 12.25% | ||
| ROIC | 1.34% |
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
DWD has a better Profit Margin (11.93%) than 61.90% of its industry peers.
DWD's Profit Margin has declined in the last couple of years.
DWD has a better Operating Margin (16.40%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of DWD has declined.
DWD's Gross Margin of 53.71% is fine compared to the rest of the industry. DWD outperforms 73.33% of its industry peers.
DWD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.4% | ||
| PM (TTM) | 11.93% | ||
| GM | 53.71% |
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.
The debt/assets ratio for DWD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.08, we must say that DWD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.08, DWD perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
DWD has a Debt/Equity ratio of 6.99. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DWD (6.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.30 indicates that DWD may have some problems paying its short term obligations.
DWD has a Current ratio (0.30) which is comparable to the rest of the industry.
DWD has a Quick Ratio of 0.30. This is a bad value and indicates that DWD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.30, DWD is in line with its industry, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.53% 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.
Looking at the last year, DWD shows a quite strong growth in Revenue. The Revenue has grown by 11.53% in the last year.
Measured over the past years, DWD shows a quite strong growth in Revenue. The Revenue has been growing by 14.79% on average per year.
EPS 1Y (TTM)49.53%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%124.24%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%25.8%
3.2 Future
Based on estimates for the next years, DWD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.85% on average per year.
The Revenue is expected to grow by 6.42% on average over the next years.
EPS Next Y11.91%
EPS Next 2Y11.01%
EPS Next 3Y10.24%
EPS Next 5Y10.85%
Revenue Next Year10%
Revenue Next 2Y7.88%
Revenue Next 3Y6.42%
Revenue Next 5YN/A
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.
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
The Price/Earnings ratio is 14.62, which indicates a correct valuation of DWD.
71.43% of the companies in the same industry are more expensive than DWD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. DWD is valued rather cheaply when compared to this.
DWD is valuated correctly with a Price/Forward Earnings ratio of 13.05.
DWD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DWD is cheaper than 74.29% of the companies in the same industry.
DWD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DWD is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.23 |
4.3 Compensation for Growth
DWD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.23
PEG (5Y)1.65
EPS Next 2Y11.01%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
DWD has a Yearly Dividend Yield of 3.10%. Purely for dividend investing, there may be better candidates out there.
DWD's Dividend Yield is a higher than the industry average which is at 6.34.
DWD's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
DWD pays out 47.95% of its income as dividend. 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.
DP47.95%
EPS Next 2Y11.01%
EPS Next 3Y10.24%
FRA:DWD (3/7/2025, 7:00:00 PM)
106.84
-6.06 (-5.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners62.19%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap172.32B
Analysts72.9
Price Target135.34 (26.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend3.5
Dividend Growth(5Y)18.94%
DP47.95%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.16%
Min EPS beat(2)15.26%
Max EPS beat(2)27.07%
EPS beat(4)4
Avg EPS beat(4)16.98%
Min EPS beat(4)7.49%
Max EPS beat(4)27.07%
EPS beat(8)7
Avg EPS beat(8)9.28%
EPS beat(12)9
Avg EPS beat(12)6.46%
EPS beat(16)13
Avg EPS beat(16)7.97%
Revenue beat(2)2
Avg Revenue beat(2)4.23%
Min Revenue beat(2)3.68%
Max Revenue beat(2)4.78%
Revenue beat(4)4
Avg Revenue beat(4)3.09%
Min Revenue beat(4)1.95%
Max Revenue beat(4)4.78%
Revenue beat(8)5
Avg Revenue beat(8)8.56%
Revenue beat(12)9
Avg Revenue beat(12)12.37%
Revenue beat(16)12
Avg Revenue beat(16)10.47%
PT rev (1m)4.06%
PT rev (3m)14.3%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)7.59%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)9.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.31%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 13.05 | ||
| P/S | 1.74 | ||
| P/FCF | N/A | ||
| P/OCF | 137.36 | ||
| P/B | 1.79 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 17.23 |
EPS(TTM)7.31
EY6.84%
EPS(NY)8.18
Fwd EY7.66%
FCF(TTM)-1.2
FCFYN/A
OCF(TTM)0.78
OCFY0.73%
SpS61.27
BVpS59.68
TBVpS46.46
PEG (NY)1.23
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 12.25% | ||
| ROCE | 3.05% | ||
| ROIC | 1.34% | ||
| ROICexc | 1.5% | ||
| ROICexgc | 1.58% | ||
| OM | 16.4% | ||
| PM (TTM) | 11.93% | ||
| GM | 53.71% | ||
| 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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.08 | ||
| Cap/Depr | 67.08% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 0.38 | ||
| Cash Conversion | 5.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.3 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | -0.08 |
F-Score7
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)49.53%
EPS 3Y-0.38%
EPS 5Y8.88%
EPS Q2Q%124.24%
EPS Next Y11.91%
EPS Next 2Y11.01%
EPS Next 3Y10.24%
EPS Next 5Y10.85%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y20.63%
Revenue growth 5Y14.79%
Sales Q2Q%25.8%
Revenue Next Year10%
Revenue Next 2Y7.88%
Revenue Next 3Y6.42%
Revenue Next 5YN/A
EBIT growth 1Y41.98%
EBIT growth 3Y-3.64%
EBIT growth 5Y9.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y104.06%
OCF growth 3Y-65.77%
OCF growth 5Y-49.33%