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.

Rewards

Trading at 44.3% below its fair value

Earnings are forecast to grow 6.81% per year

Risk Analysis

Unstable dividend track record

Profit margins (4.8%) are lower than last year (8%)



Snowflake Analysis

Flawless balance sheet and undervalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

DEZ

-0.7%

DE Machinery

-0.3%

DE Market


1 Year Return

-2.2%

DEZ

-5.6%

DE Machinery

14.9%

DE Market

Return vs Industry: DEZ exceeded the German Machinery industry which returned -5.6% over the past year.

Return vs Market: DEZ underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

DEZIndustryMarket
7 Day4.9%-0.7%-0.3%
30 Day-5.1%-0.9%-0.6%
90 Day6.3%7.2%7.5%
1 Year-0.5%-2.2%-2.6%-5.6%18.5%14.9%
3 Year9.9%5.0%-9.2%-15.7%20.0%9.5%
5 Year61.2%49.3%21.5%7.6%38.0%19.3%

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?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DEZ (€5.71) is trading below our estimate of fair value (€10.25)

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 (7.7x) compared to the Machinery industry average (16.7x).

PE vs Market: DEZ is good value based on its PE Ratio (7.7x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: DEZ is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: DEZ is good value based on its PB Ratio (1x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is DEUTZ forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEZ's forecast earnings growth (6.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: DEZ's earnings (6.8% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: DEZ's revenue (2.6% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: DEZ's revenue (2.6% 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 (11.2%).


Next Steps

Past Performance

How has DEUTZ performed over the past 5 years?

40.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEZ has high quality earnings.

Growing Profit Margin: DEZ's current net profit margins (4.8%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: DEZ's earnings have grown significantly by 40.5% 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 (-33.5%) over the past year, making it difficult to compare to the Machinery industry average (-0.6%).


Return on Equity

High ROE: DEZ's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DEUTZ's financial position?


Financial Position Analysis

Short Term Liabilities: DEZ's short term assets (€654.8M) exceed its short term liabilities (€405.7M).

Long Term Liabilities: DEZ's short term assets (€654.8M) exceed its long term liabilities (€234.7M).


Debt to Equity History and Analysis

Debt Level: DEZ's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: DEZ's debt to equity ratio has reduced from 17.5% to 4.3% over the past 5 years.

Debt Coverage: DEZ's debt is well covered by operating cash flow (341.9%).

Interest Coverage: DEZ's interest payments on its debt are well covered by EBIT (66.7x 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 23.6x debt).


Next Steps

Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.6%industryaverage2.2%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: DEZ's dividend (2.63%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: DEZ's dividend (2.63%) is low compared to the top 25% of dividend payers in the German market (3.57%).


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 low payout ratio (20.2%), 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 (29.8% payout ratio).


Next Steps

Management

What is the CEO of DEUTZ's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Frank Hiller (53yo)

0yrs

Tenure

€1,879,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD2.08M) is above average for companies of similar size in the German market ($USD1.17M).

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


Management Age and Tenure

2.3yrs

Average Tenure

53yo

Average Age

Experienced Management: DEZ's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.7yrs

Average Tenure

Experienced Board: DEZ's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Andreas Strecker (58yo)

    CFO, Human Resource Director & Member of the Board of Management

    • Tenure: 0yrs
    • Compensation: €1.25m
  • Christoph Ballin

    Head of Strategy

    • Tenure: 2.3yrs
  • Markus Schwaderlapp

    Head of Research & Development

    • Tenure: 0yrs
  • Herbert Vossel

    Head of Legal & Patents

    • Tenure: 0yrs
    • Compensation: €9.31k
  • Alexander Stadtler

    Head of Asia Region

    • Tenure: 0yrs
  • Christian Krupp

    Head of Finance & Controlling

    • Tenure: 0yrs
  • Frank Hiller (53yo)

    Chairman of Management Board

    • Tenure: 0yrs
    • Compensation: €1.88m
  • Ralf Plieninger

    Head of Electrification

    • Tenure: 2.3yrs
  • Michael Wellenzohn (53yo)

    Member of Management Board

    • Tenure: 6.8yrs
    • Compensation: €1.19m
  • Leslie Iltgen

    Senior Vice President Communications & Investor Relations

    • Tenure: 1.1yrs

Board Members

  • Bernd Bohr (63yo)

    Supervisory Board Chairman

    • Tenure: 0.9yrs
    • Compensation: €36.00k
  • Karl-Heinz Müller

    Vice Chairman of Khd Humboldt Wedag Ag Cologne

    • Tenure: 0yrs
    • Compensation: €8.11k
  • Alois Ludwig

    Member of Supervisory Board

    • Tenure: 4.7yrs
    • Compensation: €64.00k
  • Sabine Beutert

    Member of Supervisory Board

    • Tenure: 6.7yrs
    • Compensation: €71.00k
  • Hans Finken

    Member of Supervisory Board

    • Tenure: 4.8yrs
    • Compensation: €48.00k
  • Patricia Geibel-Conrad (57yo)

    Member of Supervisory Board

    • Tenure: 1.9yrs
    • Compensation: €55.00k
  • Sophie Albrecht

    Member of Supervisory Board

    • Tenure: 1.7yrs
    • Compensation: €40.00k
  • Corinna Töpfer-Hartung

    Deputy Chairwoman of Supervisory Board & Employee Representative Member

    • Tenure: 1.7yrs
    • Compensation: €81.00k
  • Yavuz Büyükdag

    Member of Supervisory Board

    • Tenure: 1.7yrs
    • Compensation: €36.00k
  • Ali Yener

    Member of Supervisory Board

    • Tenure: 1.7yrs
    • Compensation: €41.00k

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: €696.164m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 21:06
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.