XTRA:DB1

Stock Analysis Report

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Executive Summary

Deutsche Börse AG operates as an exchange organization in Europe, the United States, and the Asia-Pacific.


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DB1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

DB1

4.2%

DE Capital Markets

3.5%

DE Market


1 Year Return

30.1%

DB1

30.5%

DE Capital Markets

3.0%

DE Market

Return vs Industry: DB1 exceeded the German Capital Markets industry which returned 25.2% over the past year.

Return vs Market: DB1 exceeded the German Market which returned 0.2% over the past year.


Shareholder returns

DB1IndustryMarket
7 Day4.3%4.2%3.5%
30 Day7.3%5.2%-0.08%
90 Day27.2%32.0%21.0%
1 Year32.6%30.1%32.1%30.5%5.2%3.0%
3 Year86.5%75.1%0.7%-3.5%4.5%-4.0%
5 Year125.9%100.6%-22.1%-32.8%11.5%-3.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DB1 (€167.15) is trading above our estimate of fair value (€145.6)

Significantly Below Fair Value: DB1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DB1 is poor value based on its PE Ratio (28x) compared to the Capital Markets industry average (22.1x).

PE vs Market: DB1 is poor value based on its PE Ratio (28x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: DB1 is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: DB1 is overvalued based on its PB Ratio (5x) compared to the DE Capital Markets industry average (2.1x).


Next Steps

Future Growth

How is Deutsche Börse forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DB1's forecast earnings growth (5.7% per year) is above the savings rate (0.2%).

Earnings vs Market: DB1's earnings (5.7% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: DB1's earnings are forecast to grow, but not significantly.

Revenue vs Market: DB1's revenue (2.8% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: DB1's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DB1's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Deutsche Börse performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DB1 has high quality earnings.

Growing Profit Margin: DB1's current net profit margins (31.2%) are higher than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: DB1's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: DB1's earnings growth over the past year (28.8%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: DB1 earnings growth over the past year (28.8%) exceeded the Capital Markets industry 18.3%.


Return on Equity

High ROE: DB1's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is Deutsche Börse's financial position?


Financial Position Analysis

Short Term Liabilities: DB1's short term assets (€220.1B) exceed its short term liabilities (€217.4B).

Long Term Liabilities: DB1's short term assets (€220.1B) exceed its long term liabilities (€17.4B).


Debt to Equity History and Analysis

Debt Level: DB1's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: DB1's debt to equity ratio has increased from 35.9% to 37% over the past 5 years.

Debt Coverage: DB1's debt is well covered by operating cash flow (38.6%).

Interest Coverage: DB1 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Deutsche Börse current dividend yield, its reliability and sustainability?

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DB1's dividend (1.73%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: DB1's dividend (1.73%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: DB1's dividends per share have been stable in the past 10 years.

Growing Dividend: DB1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), DB1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DB1's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Theodor Weimer (61yo)

2.5yrs

Tenure

€5,493,000

Compensation

Dr. Theodor Weimer has been Member of the Supervisory Board at Knorr-Bremse Aktiengesellschaft since June 30, 2020. Dr. Theodor Weimer has been Chief Executive Officer of Deutsche Börse AG since January 1, ...


CEO Compensation Analysis

Compensation vs Market: Theodor's total compensation ($USD6.18M) is about average for companies of similar size in the German market ($USD5.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Theodor Weimer
CEO & Chairman of Executive Board2.5yrs€5.49mno data
Gregor Pottmeyer
CFO & Member of Executive Board10.75yrs€2.73mno data
Thomas Book
Head of Derivatives Markets Trading & Member of the Executive Board2yrs€2.62mno data
Stephan Leithner
Member of the Executive Board2yrs€2.83mno data
Christoph Bohm
Chief Information Officer1.67yrs€2.89mno data
Richard Green
Interim Chief Technology Officer6.75yrsno datano data
Jan Strecker
Head of Investor Relationsno datano datano data
James Freis
Chief Compliance Officer6.25yrsno datano data
Martin Reck
Managing Director of Group Functionalityno datano datano data
Holger Wohlenberg
Managing Director of Market Data & Analytics16yrsno datano data

4.4yrs

Average Tenure

54yo

Average Age

Experienced Management: DB1's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerd Tausendfreund
Employee Representative Member of the Supervisory Board2.17yrs€107.00kno data
Yok Tak Yip
Member of Supervisory Board5.17yrs€129.50kno data
Joachim Nagel
Supervisory Board Member2.17yrs€156.00kno data
Martin Jetter
Chairman of Supervisory Board0.17yr€143.70kno data
Karl-Heinz Flöther
Member of Supervisory Board8.17yrs€146.00kno data
Jutta Stuhlfauth
Employee Representative Deputy Chairperson of Supervisory Board2.17yrs€181.00kno data
Barbara Lambert
Supervisory Board Member2.17yrs€171.00kno data
Nadine Absenger
Employee Representative Member of the Supervisory Board2.17yrs€114.00kno data
Markus Beck
Employee Representative Member of Supervisory Board1.92yrs€147.00kno data
Achim Karle
Employee Representatives Member of Supervisory Board1.92yrs€138.00kno data

2.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DB1's board of directors are not considered experienced ( 2.2 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

Deutsche Börse AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deutsche Börse AG
  • Ticker: DB1
  • Exchange: XTRA
  • Founded:
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: €30.660b
  • Shares outstanding: 183.43m
  • Website: https://www.deutsche-boerse.com

Number of Employees


Location

  • Deutsche Börse AG
  • The Cube
  • Mergenthalerallee 61
  • Eschborn
  • Hessen
  • 65760
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBOE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2001
DB1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2001
0H3TLSE (London Stock Exchange)YesOrdinary SharesGBEURFeb 2001
DB1XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURFeb 2001
DB1DBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURFeb 2001
DBOWBAG (Wiener Boerse AG)YesOrdinary SharesATEURFeb 2001
DB1BIT (Borsa Italiana)YesOrdinary SharesITEURFeb 2001
DB1 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2001
DB1SWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFFeb 2001
DBOE.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.10 ORDUSUSDOct 2008
63DADB (Deutsche Boerse AG)UNSP ADR EACH REPR 0.10 ORDDEEUROct 2008

Biography

Deutsche Börse AG operates as an exchange organization in Europe, the United States, and the Asia-Pacific. The company operates through nine segments: Eurex (Financial Derivatives), EEX (Commodities), 360T (Foreign Exchange), Xetra (Securities Trading), Clearstream (Post-Trading), IFS (Investment Fund Services), GSF (Collateral Management), Qontigo (index and analytics business), and Data (data business). The company engages in the electronic trading of derivatives, electricity and gas products, emission rights, and foreign exchange; operating Eurex Repo over the counter (OTC) trading platform and electronic clearing architecture; and operating as a central counterparty for on-and-off exchange derivatives, repo transactions, and OTC and exchange-traded derivatives. It also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; operates as a central counterparty for equities and bonds; and provides listing services. In addition, the company offers custody and settlement services for securities; investment fund services; global securities financing services; collateralized money market transaction services; and repos and securities lending services. Further, it develops and markets indices, as well as portfolio management and risk analysis software; markets licenses for trading and market signals; provides technology and reporting solutions for external customers; and offers link-up of trading participants. Deutsche Börse AG is headquartered in Eschborn, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 20:47
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
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.