XTRA:DLX

Stock Analysis Report

Executive Summary

Delignit AG develops, manufactures, and sells ecological materials and system solutions based on renewable natural resources in Germany.

Rewards

PE ratio (20.4x) is below the German market (20.7x)

Earnings are forecast to grow 20.16% per year

Risk Analysis

Debt is not well covered by operating cash flow

Does not have a meaningful market cap (€41M)



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DLX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.9%

DLX

-0.3%

DE Forestry

0.2%

DE Market


1 Year Return

-26.5%

DLX

12.8%

DE Forestry

13.6%

DE Market

Return vs Industry: DLX underperformed the German Forestry industry which returned 12.8% over the past year.

Return vs Market: DLX underperformed the German Market which returned 13.6% over the past year.


Shareholder returns

DLXIndustryMarket
7 Day-12.9%-0.3%0.2%
30 Day-3.8%-2.9%-0.08%
90 Day2.0%8.3%6.0%
1 Year-26.0%-26.5%17.8%12.8%17.1%13.6%
3 Year4.9%3.1%45.4%-1.7%19.6%9.0%
5 Year30.9%26.5%132.6%46.8%38.9%20.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DLX (€5) is trading above our estimate of fair value (€2.85)

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


Price To Earnings Ratio

PE vs Industry: DLX is poor value based on its PE Ratio (20.4x) compared to the Forestry industry average (11.7x).

PE vs Market: DLX is good value based on its PE Ratio (20.4x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: DLX is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: DLX is overvalued based on its PB Ratio (2.2x) compared to the XE Forestry industry average (1.2x).


Next Steps

Future Growth

How is Delignit forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLX's forecast earnings growth (20.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: DLX's earnings (20.2% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DLX's revenue (9.6% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: DLX's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLX's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Delignit performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLX has high quality earnings.

Growing Profit Margin: DLX's current net profit margins (3.2%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: DLX's earnings have grown by 16.6% per year over the past 5 years.

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

Earnings vs Industry: DLX had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Forestry industry average (-8.6%).


Return on Equity

High ROE: DLX's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Delignit's financial position?


Financial Position Analysis

Short Term Liabilities: DLX's short term assets (€24.7M) exceed its short term liabilities (€14.4M).

Long Term Liabilities: DLX's short term assets (€24.7M) exceed its long term liabilities (€11.3M).


Debt to Equity History and Analysis

Debt Level: DLX's debt to equity ratio (55.6%) is considered high.

Reducing Debt: DLX's debt to equity ratio has increased from 0.4% to 55.6% over the past 5 years.

Debt Coverage: DLX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DLX's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: DLX's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

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

1.00%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.3%markettop25%3.6%industryaverage4.1%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: DLX's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.34%).

High Dividend: DLX's dividend (1%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

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

Growing Dividend: DLX'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 (20.4%), DLX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DLX's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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


CEO

Markus Scher (47yo)

0yrs

Tenure

0

Mr. Markus Büscher Scher serves as the President of the Management Board, Chief Executive Officer and Head of the Strategic Development, Controlling, Legal, Purchasing, IT, Production, Research & Developme ...


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

  • Thorsten Duray (51yo)

    Chief Sales Officer

    • Tenure: 0yrs
  • Markus Scher (47yo)

    President of the Mgmt Board

    • Tenure: 0yrs

Board Members

  • Christof Nesemeier (54yo)

    Chairman of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €20.00k
  • Gert-Maria Freimuth (54yo)

    Vice-Chairman of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €15.00k
  • Anton Breitkopf (57yo)

    Member of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €10.00k

Company Information

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


Key Information

  • Name: Delignit AG
  • Ticker: DLX
  • Exchange: XTRA
  • Founded: 1799
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: €40.970m
  • Shares outstanding: 8.19m
  • Website: https://www.delignit-ag.de

Number of Employees


Location

  • Delignit AG
  • Königswinkel 2-6
  • Blomberg
  • North Rhine-Westphalia
  • 32825
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLXDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2007
DLXXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 2007

Biography

Delignit AG develops, manufactures, and sells ecological materials and system solutions based on renewable natural resources in Germany. The company offers interior safety features and loading area protect ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 21:19
End of Day Share Price2019/12/11 00:00
Earnings2019/06/30
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.