DWS GROUP GMBH & CO KGAA (DWS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DWS - DE000DWS1007 - Common Stock
58.5 EUR
-0.85 (-1.43%)
Overall DWS gets a fundamental rating of 7 out of 10. We evaluated DWS against 121 industry peers in the Capital Markets industry. DWS gets an excellent profitability rating and is at the same time showing great financial health properties. DWS may be a bit undervalued, certainly considering the very reasonable score on growth This makes DWS very considerable 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.
- In the past 5 years DWS has always been profitable.
- In the past 5 years DWS always reported a positive cash flow from operatings.
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 has a Return On Equity of 10.85%. This is in the better half of the industry: DWS outperforms 61.16% of its industry peers.
- With a decent Return On Invested Capital value of 5.96%, DWS is doing good in 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 8.43%.
- The last Return On Invested Capital (5.96%) for DWS is above the 3 year average (4.47%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (27.35%) than 73.55% of its industry peers.
- DWS's Profit Margin has improved in the last couple of years.
- DWS has a better Operating Margin (33.88%) than 76.86% of its industry peers.
- In the last couple of years the Operating Margin of DWS has remained more or less at the same level.
- DWS has a better Gross Margin (93.11%) than 92.56% of its industry peers.
- 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 2.74 indicates that DWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DWS (2.74) is better than 78.51% of its industry peers.
- DWS has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.27, DWS belongs to the top of the industry, outperforming 97.52% of the companies in the same industry.
- DWS has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.03, DWS belongs to the best of the industry, outperforming 89.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 2.74 |
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.
- With an excellent Current ratio value of 5.79, DWS belongs to the best 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
- 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.
- The Earnings Per Share has been growing slightly by 5.08% on average over the past years.
- The Revenue has been growing slightly by 7.53% in the past year.
- 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
- The Earnings Per Share is expected to grow by 10.35% on average over the next years. This is quite good.
- DWS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
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.
- 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
- DWS is valuated correctly with a Price/Earnings ratio of 14.37.
- Based on the Price/Earnings ratio, DWS is valued a bit cheaper than the industry average as 76.86% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.32. DWS is valued slightly cheaper when compared to this.
- DWS is valuated reasonably with a Price/Forward Earnings ratio of 11.94.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DWS indicates a rather cheap valuation: DWS is cheaper than 84.30% of the companies listed in the same industry.
- DWS is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DWS indicates a rather cheap valuation: DWS is cheaper than 80.17% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, DWS is valued a bit cheaper than the industry average as 77.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.08 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
- DWS's 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.
- A more expensive valuation may be justified as DWS's earnings are expected to grow with 17.05% in the coming years.
PEG (NY)0.37
PEG (5Y)2.83
EPS Next 2Y22.23%
EPS Next 3Y17.05%
5. Dividend
5.1 Amount
- DWS has a Yearly Dividend Yield of 3.74%.
- Compared to an average industry Dividend Yield of 3.07, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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.
- 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 8 / 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%.