DEUTZ Aktiengesellschaft engages in the development, production, distribution, and servicing of diesel and gas engines in Europe, the Middle East, Africa, the Asia Pacific, and the Americas.
The last earnings update was 11 days ago.
Discounted Cash Flow Calculation for XTRA:DEZ using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
XTRA:DEZ DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
DEUTZ's share price is below the future cash flow value, and at a moderate discount (> 20%).
DEUTZ's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
DEUTZ's earnings available for a low price, and how does
this compare to other companies in the same industry?
DEUTZ's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
DEUTZ's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
DEUTZ's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Dr. Ing. Frank Hiller has been the Chairman of the Managing Board at F.X. MEILLER Fahrzeug- und Maschinenfabrik since 2005. Dr. Ing. Hiller has been Chairman of Management Board at DEUTZ Aktiengesellschaft since January 1, 2017. Dr. Ing. Hiller served as Head of Wiring Systems Division at LEONI AG since January 1, 2016 until January 01, 2017. He served as an Executive Director for Marketing Sales and Services of MAN Truck & Bus AG (also known as MAN Nutzfahrzeuge AG) since October 1, 2009. He served as Head of The Wire & Cable Solutions Division at LEONI AG from April 1, 2014 to January 1, 2016. He served as Member of Management Board at LEONI AG since April 1, 2014 until January 01, 2017. He served as Member of Management Board of MAN Truck & Bus AG (also known as MAN Nutzfahrzeuge AG). He serves as Chairman of The Supervisory Board at LEONI Kerpen GmbH. Dr. Ing. Hiller serves as a Member of the Advisory Board at MAN Finance International GmbH. He received a Diploma degree in mechanical engineering from University Kaiserslautern, Germany in 1992 and received a Doctorate in Mechanical Engineering from University Kaiserslautern, Germany in 1997.
Frank's compensation has been consistent with company performance over the past year.
Frank's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the DEUTZ management team is less than 2 years, this suggests a new team.
Chairman of Management Board
CFO, Human Resource Director & Member of the Board of Management
Member of Management Board
Senior Vice President Communications & Investor Relations
Head of Legal & Patents
Head of Asia Region
Head of Finance & Controlling
Head of Research & Development
Head of Strategy
Head of Electrification
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the DEUTZ board of directors is less than 3 years, this suggests a new board.
Board of Directors
Supervisory Board Chairman
Deputy Chairwoman of Supervisory Board & Employee Representative Member
DEUTZ Aktiengesellschaft engages in the development, production, distribution, and servicing of diesel and gas engines in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company’s DEUTZ Compact Engines segment provides liquid-cooled engines with capacities of up to 8 liters. Its DEUTZ Customised Solutions segment offers air-cooled engines and liquid-cooled engines with a capacity of exceeding approximately 8 liters. This segment also provides customer specific solutions; and supplies reconditioned exchange parts and engines. The company’s Other segment is involved in manufacturing of electric drives for boats under the Torqeedo brand name, as well as electrification of drive systems; and offers the customer advice and support service for installation and operation of drive systems, and repair and maintenance services for engines. The company’s products are used in various applications, such as construction equipment, agricultural machinery, lifting and material handling equipment, stationery equipment, commercial vehicles, rail vehicles, and other applications. DEUTZ Aktiengesellschaft was founded in 1864 and is headquartered in Cologne, Germany.
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