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%)
Taking everything into account, DWS scores 7 out of 10 in our fundamental rating. DWS was compared to 121 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making DWS a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on DWS. 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.
- DWS had positive earnings in each of the past 5 years.
- 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.
- DWS's Return On Invested Capital of 5.96% is fine compared to the rest of the industry. DWS outperforms 74.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DWS is below the industry average of 8.43%.
- 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
- The Profit Margin of DWS (27.35%) is better than 73.55% of its industry peers.
- DWS's Profit Margin has improved in the last couple of years.
- The Operating Margin of DWS (33.88%) is better than 76.86% of its industry peers.
- DWS's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 93.11%, DWS belongs to the top of the industry, outperforming 92.56% 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.
- The number of shares outstanding for DWS remains at a similar level compared to 5 years ago.
- The debt/assets ratio for DWS has been reduced compared to a year ago.
2.2 Solvency
- DWS has an Altman-Z score of 2.74. 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.
- With a decent Altman-Z score value of 2.74, DWS is doing good in the industry, outperforming 78.51% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 0.27, DWS belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
- A Debt/Equity ratio of 0.03 indicates that DWS is not too dependend on debt financing.
- DWS has a Debt to Equity ratio of 0.03. This is amongst the best in the industry. DWS outperforms 89.26% of its industry peers.
| 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.
- The Current ratio of DWS (5.79) is better than 94.21% of its industry peers.
- 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.
- With an excellent Quick ratio value of 5.79, DWS belongs to the best of the industry, outperforming 95.04% 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%.
- Measured over the past years, DWS shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
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.
- 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
- 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.
- 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
- A Price/Earnings ratio of 14.37 indicates a correct valuation of DWS.
- Based on the Price/Earnings ratio, DWS is valued a bit cheaper than 76.86% of the companies in the same industry.
- DWS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 11.94, the valuation of DWS can be described as very reasonable.
- 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DWS is valued cheaply inside the industry as 80.17% of the companies are valued more expensively.
- 77.69% of the companies in the same industry are more expensive than DWS, based on the Price/Free Cash Flow ratio.
| 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.
- DWS's earnings are expected to grow with 17.05% in the coming years. This may justify a more expensive valuation.
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%. Purely for dividend investing, there may be better candidates out there.
- 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 1.82.
| 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
- 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%.