XTRA:DEZ

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has DEUTZ's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DEZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

DEZ

0.3%

DE Machinery

-0.6%

DE Market


1 Year Return

-60.7%

DEZ

-32.3%

DE Machinery

-20.9%

DE Market

Return vs Industry: DEZ underperformed the German Machinery industry which returned -32.2% over the past year.

Return vs Market: DEZ underperformed the German Market which returned -20.6% over the past year.


Shareholder returns

DEZIndustryMarket
7 Day-6.1%0.3%-0.6%
30 Day-17.7%-18.8%-20.0%
90 Day-41.9%-30.1%-26.3%
1 Year-60.0%-60.7%-30.3%-32.3%-18.6%-20.9%
3 Year-47.8%-50.1%-42.3%-46.4%-19.0%-25.8%
5 Year-20.7%-26.5%-30.9%-38.6%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is DEUTZ's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DEUTZ undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DEZ (€3.22) is trading below our estimate of fair value (€10.49)

Significantly Below Fair Value: DEZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DEZ is good value based on its PE Ratio (7.4x) compared to the Machinery industry average (9.9x).

PE vs Market: DEZ is good value based on its PE Ratio (7.4x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: DEZ is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: DEZ is good value based on its PB Ratio (0.6x) compared to the DE Machinery industry average (1.1x).


Next Steps

Future Growth

How is DEUTZ forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEZ's forecast earnings growth (9.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: DEZ's earnings (9.1% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: DEZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: DEZ's revenue (3.8% per year) is forecast to grow slower than the German market (4% per year).

High Growth Revenue: DEZ's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DEZ's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has DEUTZ performed over the past 5 years?

36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEZ has high quality earnings.

Growing Profit Margin: DEZ's current net profit margins (2.8%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: DEZ's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: DEZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DEZ had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Machinery industry average (-19.9%).


Return on Equity

High ROE: DEZ's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is DEUTZ's financial position?


Financial Position Analysis

Short Term Liabilities: DEZ's short term assets (€613.1M) exceed its short term liabilities (€423.6M).

Long Term Liabilities: DEZ's short term assets (€613.1M) exceed its long term liabilities (€225.2M).


Debt to Equity History and Analysis

Debt Level: DEZ's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: DEZ's debt to equity ratio has reduced from 17.2% to 4.4% over the past 5 years.

Debt Coverage: DEZ's debt is well covered by operating cash flow (404.2%).

Interest Coverage: DEZ's interest payments on its debt are well covered by EBIT (123x coverage).


Balance Sheet

Inventory Level: DEZ has a high level of physical assets or inventory.

Debt Coverage by Assets: DEZ's debt is covered by short term assets (assets are 21.4x debt).


Next Steps

Dividend

What is DEUTZ's current dividend yield, its reliability and sustainability?

4.66%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DEZ's dividend (4.66%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: DEZ's dividend (4.66%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DEZ has been paying a dividend for less than 10 years.

Growing Dividend: DEZ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.7%), DEZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DEZ's dividends in 3 years are forecast to be well covered by earnings (34.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Frank Hiller (53yo)

no data

Tenure

€1,879,000

Compensation

Dr. Frank Hiller has been the Chairman of the Managing Board at F.X. MEILLER Fahrzeug- und Maschinenfabrik since 2005. Dr. Hiller has been Chairman of Management Board at DEUTZ Aktiengesellschaft since Jan ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD2.03M) is above average for companies of similar size in the German market ($USD1.09M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Hiller
Chairman of Management Boardno data€1.88mno data
Andreas Strecker
CFO, Human Resource Director & Member of the Board of Managementno data€1.25mno data
Michael Wellenzohn
Member of Management Board7.08yrs€1.19mno data
Leslie Iltgen
Senior Vice President Communications & Investor Relations1.42yrsno datano data
Herbert Vossel
Head of Legal & Patentsno data€9.31kno data
Alexander Stadtler
Head of Asia Regionno datano datano data
Christian Krupp
Head of Finance & Controllingno datano datano data
Markus Schwaderlapp
Head of Research & Developmentno datano datano data
Christoph Ballin
Head of Strategy2.58yrsno datano data
Ralf Plieninger
Head of Electrification2.58yrsno datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: DEZ's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernd Bohr
Supervisory Board Chairman1.25yrs€36.00kno data
Karl-Heinz Müller
Vice Chairman of Khd Humboldt Wedag Ag Cologneno data€8.11kno data
Alois Ludwig
Member of Supervisory Board5yrs€64.00kno data
Sabine Beutert
Member of Supervisory Board7yrs€71.00kno data
Hans Finken
Member of Supervisory Board5.17yrs€48.00kno data
Patricia Geibel-Conrad
Member of Supervisory Board2.25yrs€55.00kno data
Sophie Albrecht
Member of Supervisory Board2yrs€40.00kno data
Corinna Töpfer-Hartung
Deputy Chairwoman of Supervisory Board & Employee Representative Member2yrs€81.00kno data
Yavuz Büyükdag
Member of Supervisory Board2yrs€36.00kno data
Ali Yener
Member of Supervisory Board2yrs€41.00kno data

2.0yrs

Average Tenure

Experienced Board: DEZ's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DEUTZ Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DEUTZ Aktiengesellschaft
  • Ticker: DEZ
  • Exchange: XTRA
  • Founded: 1864
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €388.933m
  • Shares outstanding: 120.86m
  • Website: https://www.deutz.com

Number of Employees


Location

  • DEUTZ Aktiengesellschaft
  • Ottostrasse 1
  • Porz-Eil
  • Cologne
  • North Rhine-Westphalia
  • 51149
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DEZDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1986
DEZXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 1986
0E4KLSE (London Stock Exchange)YesBearer SharesGBEURJan 1986
DEUZ.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 1986
DEZDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 1986
DEZSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1986
DEZWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 1986
DEZETLX (Eurotlx)YesBearer SharesITEURJan 1986

Biography

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 Customized Solutions segment offers air-cooled engines and liquid-cooled engines with a capacity of exceeding approximately 8 liters. This segment also supplies reconditioned exchange parts and engines. The company’s Other segment is involved in manufacturing electric drives for boats under the Torqeedo brand, as well as electrification of drive systems. It also offers 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, ground support equipment, stationary equipment, commercial vehicles, rail vehicles, boats, and other applications. DEUTZ Aktiengesellschaft was founded in 1864 and is headquartered in Cologne, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 01:49
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.