In news on major German stocks, shares of Deutsche Post AG (DE:DHL) (or DHL Group) fell 7% as of writing after the company reported a 25% slump in its EBIT (earnings before interest and tax) to €6.3 billion in 2023. The company further stated that it expects operating profit in the range of €6 billion to €6.6 billion in 2024. Despite the year-over-year decline, the company’s performance was in line with analysts’ forecasts.
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Deutsche Post or DHL stands among the largest logistics firms globally, providing postal and logistics solutions both domestically and internationally.
Key Insights
In its annual results for 2023, DHL reported a 13.4% decrease in its full-year revenue of €81.76 billion. The top line was mainly hit by the slowdown in the global economy. Among its segments, Global Forwarding saw a significant drop of 36% in its revenue. The segment was impacted by reduced volumes and a slump in shipping rates globally.
Speaking of shareholder returns, DHL intends to suggest a dividend of €1.85 per share at the upcoming annual general meeting in May. This equates to a dividend payout ratio of 59%, which is near the upper range of the company’s target of 40% to 60%. Moreover, the company has extended its buyback program to 2025, originally planned from 2022 to 2024. It also boosted the buyback amount to €4 billion, adding an additional €1 billion. DHL repurchased shares worth €925 million in 2023.
Is DHL Stock a Buy?
According to TipRanks’ rating consensus, DHL stock has received a Strong Buy rating, backed by eight Buy and two Hold recommendations. The DHL share price forecast is €49.17, indicating an upside of 25.4% from current levels.
