XTRA:DB1

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 9.34% per year

Earnings grew by 21.8% over the past year

Pays a high and reliable dividend of 1.74%

Risk Analysis

No risks detected for DB1 from our risk checks.


Snowflake Analysis

Established dividend payer with solid track record.


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


Market Performance


7 Day Return

0.9%

DB1

-2.2%

DE Capital Markets

-0.9%

DE Market


1 Year Return

38.5%

DB1

31.0%

DE Capital Markets

12.8%

DE Market

Return vs Industry: DB1 exceeded the German Capital Markets industry which returned 31% over the past year.

Return vs Market: DB1 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

DB1IndustryMarket
7 Day0.9%-2.2%-0.9%
30 Day4.9%11.5%0.6%
90 Day13.5%22.9%2.9%
1 Year41.7%38.5%33.8%31.0%16.3%12.8%
3 Year103.9%90.2%6.2%-6.4%15.8%5.7%
5 Year142.1%113.0%-20.3%-32.7%19.7%3.3%

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?

28.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DB1 (€155.25) is trading above our estimate of fair value (€153.31)

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 (28.4x) compared to the Capital Markets industry average (27.8x).

PE vs Market: DB1 is poor value based on its PE Ratio (28.4x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: DB1 is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: DB1 is overvalued based on its PB Ratio (5.2x) compared to the DE Capital Markets industry average (1.8x).


Next Steps

Future Growth

How is Deutsche Börse forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DB1's forecast earnings growth (9.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: DB1's earnings (9.3% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: DB1's revenue (3.8% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: DB1'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: DB1's Return on Equity is forecast to be high in 3 years time (20.4%)


Next Steps

Past Performance

How has Deutsche Börse performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DB1 has high quality earnings.

Growing Profit Margin: DB1's current net profit margins (30.4%) are higher than last year (28.5%).


Past Earnings Growth Analysis

Earnings Trend: DB1's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: DB1's earnings growth over the past year (21.8%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: DB1 earnings growth over the past year (21.8%) exceeded the Capital Markets industry -2.7%.


Return on Equity

High ROE: DB1's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Deutsche Börse's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DB1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: DB1's debt is covered by short term assets (assets are 76.3x debt).


Financial Institutions Analysis

Asset Level: DB1's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if DB1 has a sufficient allowance for bad loans.

Low Risk Liabilities: DB1 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DB1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DB1 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DB1 has an appropriate level of bad loans.


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Deutsche Börse before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%1.3%markettop25%3.6%industryaverage1.6%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: DB1's dividend (1.74%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: DB1's dividend (1.74%) is low compared to the top 25% of dividend payers in the German market (3.63%).


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 (49.4%), 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 (48.7% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Theodor Weimer (60yo)

2.1yrs

Tenure

€5,700,700

Compensation

Dr. Theodor Weimer has been Chief Executive Officer of Deutsche Börse AG since January 1, 2018 and serves as its Member of Executive Board and has been its Chairman of Executive Board since January 01, 201 ...


CEO Compensation Analysis

Compensation vs Market: Theodor's total compensation ($USD6.19M) is above average for companies of similar size in the German market ($USD4.38M).

Compensation vs Earnings: Insufficient data to compare Theodor's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Theodor Weimer
CEO & Chairman of Executive Board2.1yrs€5.70mno data
Gregor Pottmeyer
CFO & Member of Executive Board10.3yrs€2.73mno data
Hauke Stars
Human Resources/Labour Director & Member of Executive Board7.2yrs€2.49mno data
Thomas Book
Head of Derivatives Markets Trading & Member of the Executive Board1.6yrs€1.80mno data
Stephan Leithner
Member of the Executive Board1.6yrs€1.86mno data
Christoph Böhm
Chief Information Officer1.3yrs€1.16mno data
Richard Green
Interim Chief Technology Officer6.3yrsno datano data
Jan Strecker
Head of Investor Relations0yrsno datano data
James Freis
Chief Compliance Officer5.8yrsno datano data
Sabine Roeckl-Schmidt
Head of Human Resources4.1yrsno datano data

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: DB1's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joachim Faber
Chairman of Supervisory Board7.8yrsno datano data
Gerd Tausendfreund
Employee Representative Member of the Supervisory Board1.8yrsno datano data
Yok Tak Yip
Member of Supervisory Board4.8yrsno datano data
Joachim Nagel
Supervisory Board Member1.8yrsno datano data
Martin Jetter
Supervisory Board Member1.8yrsno datano data
Karl-Heinz Flöther
Member of Supervisory Board7.8yrsno datano data
Jutta Stuhlfauth
Deputy Chairperson of Supervisory Board1.8yrsno datano data
Barbara Lambert
Supervisory Board Member1.8yrsno datano data
Nadine Absenger
Employee Representative Member of the Supervisory Board1.8yrsno datano data
Markus Beck
Employee Representative Member of Supervisory Board1.5yrsno datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: DB1's board of directors are not considered experienced ( 1.8 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: 1992
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: €28.457b
  • Shares outstanding: 183.30m
  • Website: https://www.deutsche-boerse.com

Number of Employees


Location

  • Deutsche Börse AG
  • Frankfurt
  • Hessen
  • 60485
  • 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)UNSPONSORD ADRUSUSDOct 2008
63DADB (Deutsche Boerse AG)UNSPONSORD ADRDEEUROct 2008
A2FG4TDB (Deutsche Boerse AG)NAV MA JAPAN Q 150 EUR INAVDEJPYJun 2017

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 (Cash Equities), Clearstream (Post-Trading), IFS (Investment Fund Services) and GSF (Collateral Management), STOXX (Index Business), and Data. The company engages in the electronic trading of European derivatives, power and gas products, 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 traded spot and derivative products. 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 admission of securities to listing services. In addition, the company offers custody and settlement services for securities; investment and hedge funds services; global securities financing services; collateral management services; and repos and securities lending services. Further, it develops and sells indices; distributes licenses for trading and market signals; provides technology and reporting solutions for external customers; and trades in participant connectivity. Deutsche Börse AG was founded in 1992 and is headquartered in Frankfurt, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:41
End of Day Share Price2020/02/21 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.