DWS Group GmbH & Co KGaA (DWS) AI Stock Analysis

• Market Cap: €11.03B
• Dividend Yield: 3.91%
• Average Volume (3M): 73.09K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.29
• Revenue Growth: -6.82%
• EPS Growth: 30.45%
• Country: DE
• Employees: 4,598
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.48
• Shares Outstanding: 200,000,000
• 10 Day Avg. Volume: 90,743
• 30 Day Avg. Volume: 73,088
• PEG Ratio: 0.28
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 19.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €63.54
• Price Target Upside: 16.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.97
• Revenue Forecast (FY): €3.20B

• Rating: 67 Neutral
• Price Target: €59.00 ▲(7.96% Upside)
• Action: Downgraded Date: 03/15/26
• Date: Action: Downgraded 03/15/26

The score is mainly supported by strong financial performance (high profitability and very low leverage), partially offset by a 2025 pullback in operating/free cash flow. Technical signals are the biggest drag due to weak momentum and price trading below key moving averages, while valuation and dividend yield provide a meaningful cushion.

Positive Factors

Conservative Balance Sheet

Very low financial leverage provides lasting resilience: with minimal debt relative to equity DWS can better absorb AUM outflows, support liquidity needs, and fund investments or client initiatives without immediate refinancing risk. This structural strength preserves strategic optionality over months.

High Reported Profitability

Substantially higher margins in 2025 indicate strong fee economics and operating leverage in the core asset management business. Durable higher profitability supports internal reinvestment, client servicing and capacity to sustain distributions, provided margins remain structurally supported by product mix and fee rates.

Distribution & ESG Demand Tailwind

Long-term distribution access via Deutsche Bank plus a diversified product set (equities, fixed income, alternatives, ETFs) and focus on ESG create structural advantages for AUM growth. Stable channels and secular ESG demand improve persistent inflow prospects and client diversification over months.

Negative Factors

2025 Cash Flow Decline

A marked drop in operating and free cash flow despite reported profit gains weakens cash conversion. This can constrain discretionary capital allocation (buybacks, strategic M&A, or higher payouts) and signals potential timing or structural issues in fee receipts or expense conversion that may persist beyond a quarter.

Margin & Growth Volatility

Historic swings in revenue and margins reduce earnings predictability and complicate asset-liability planning. For an AUM-dependent model, volatility undermines confidence in recurring fee baselines and can amplify sensitivity to flows, making medium-term forecast and capital allocation decisions more uncertain.

Moderate Historical ROE / Incomplete Efficiency Signal

Moderate historical ROE implies limited capital efficiency relative to higher-return peers. The missing 2025 return metric also hinders assessment of whether recent profit gains translate into sustained shareholder returns, complicating evaluation of long-term competitiveness and capital deployment effectiveness.

DWS Group GmbH & Co KGaA Business Overview & Revenue Model

Company Description

DWS Group GmbH & Co. KGaA offers asset management services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company's products and solutions cover equities, fixed income, cash, real estate, infrastructure, and private equity, as well as a range of sustainable investments. Within private equity, the firm specializes in co-investment, emerging markets, small and medium-sized companies, direct buyout, secondaries PE markets and structured capital solutions to private equity firms. The firm typical private equity investments include follow-on equity capital to fund M&A for an existing portfolio company, taking a minority interest in a portfolio company to allow for partial liquidity or providing flexible capital for continuation situations around a single asset. The firm also takes majority stakes in its portfolio companies. Within private equity, the firm typically invests in North America and Europe in seasoned, performing assets. It serves retail and institutional investors. The company is based in Frankfurt am Main, Germany. DWS Group GmbH & Co. KGaA is a subsidiary of DB Beteiligungs-Holding GmbH.

How the Company Makes Money

DWS generates revenue primarily through management fees charged on the assets it manages. These fees are typically calculated as a percentage of the total assets under management (AUM) and can vary based on the type of investment product or services provided. Additionally, DWS earns performance fees from certain funds when they exceed specified benchmarks or performance targets. The company also benefits from advisory fees, commissions, and transaction fees associated with investment services. Strategic partnerships, such as those with Deutsche Bank, enhance DWS's distribution capabilities and broaden its access to clients. Furthermore, the increasing demand for sustainable investment options has contributed positively to its revenue growth as clients increasingly seek ESG-focused products.

DWS Group GmbH & Co KGaA Financial Statement Overview

Summary

Strong profitability and a conservatively positioned balance sheet (very low debt vs. equity). Offsets are uneven growth/margin volatility across years and a notable 2025 decline in operating and free cash flow despite stronger reported profits.

Income Statement

Revenue accelerated meaningfully in 2025 (annual: +24.1%) after a largely flat 2024 (+0.03%) and a small dip in 2023 (-0.6%). Profitability is strong for the industry, with net margin improving from ~16.3% (2024) to ~29.4% (2025) and EBIT margin expanding to ~42.0% (2025) from ~24.3% (2024). The key weakness is margin volatility and uneven growth over the period (notably weaker trajectory in 2023–2024 before the 2025 step-up), which reduces predictability.

Balance Sheet

The balance sheet looks conservatively positioned: total debt remains very low (~€153M in 2025) versus a large equity base (~€7.46B), implying minimal financial leverage. Total assets are stable around €11.4–€11.9B over the period, supporting balance-sheet resilience. A limitation is that returns on equity appear moderate in historical years (~7.1%–10.5% in 2020–2024) and the 2025 return metric is not available (reported as 0.0), so the latest-year efficiency signal is incomplete.

Cash Flow

Cash generation is solid, with positive operating cash flow each year and free cash flow generally high relative to earnings (about 0.86–0.96x of net income in 2020–2024). However, free cash flow declined materially in 2025 (annual free cash flow growth: -24.6%), and operating cash flow also fell from 2024 (€705M) to 2025 (€571M). The main watch item is this recent downturn in cash conversion versus the prior year despite stronger reported profits in 2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.34B	3.98B	3.88B	3.90B	3.86B
Gross Profit	2.81B	1.86B	1.76B	2.51B	2.54B
EBITDA	1.68B	1.02B	833.00M	1.21B	1.34B
Net Income	927.00M	649.00M	551.00M	594.00M	780.00M
Balance Sheet
Total Assets	11.78B	11.87B	11.68B	11.41B	11.61B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.47B	3.08B	1.98B	2.19B
Total Debt	153.00M	148.00M	160.00M	160.00M	211.00M
Total Liabilities	4.29B	4.38B	3.87B	3.58B	4.17B
Stockholders Equity	7.46B	7.47B	7.79B	7.80B	7.42B
Cash Flow
Free Cash Flow	567.00M	675.00M	454.00M	668.00M	780.00M
Operating Cash Flow	571.00M	705.00M	528.00M	708.00M	824.00M
Investing Cash Flow	-444.00M	530.00M	-609.00M	-521.00M	-478.00M
Financing Cash Flow	-466.00M	-1.25B	-447.00M	-473.00M	-379.00M

DWS Group GmbH & Co KGaA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DWS, the sentiment is Neutral. The current price of 54.65 is below the 20-day moving average (MA) of 57.31, below the 50-day MA of 58.43, and above the 200-day MA of 54.05, indicating a neutral trend. The MACD of -1.19 indicates Positive momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DWS.

DWS Group GmbH & Co KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPCK	73 Outperform	€172.37M	4.34	13.05%	5.53%	1.42%	8.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DWS	67 Neutral	€11.03B	12.18	10.11%	3.91%	-6.82%	30.45%
MLP	65 Neutral	€784.88M	13.57	9.65%	5.21%	2.33%	1.58%
MUX	61 Neutral	€626.50M	0.68	4.72%	6.77%	14.56%	―
DBAN	60 Neutral	€473.89M	6.87	3.88%	4.99%	-17.47%	76.28%
A7A	48 Neutral	€126.16M	0.71	95.29%	―	―	―