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DHL Group (DHLGY)
OTHER OTC:DHLGY
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DHL Group
(OTC:DHLGY)
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Rating:76Outperform
Price Target:
$51.00
▲(13.92% Upside)
DHL Group's overall stock score reflects strong financial performance and positive earnings call sentiment, indicating effective management and strategic growth. While technical analysis shows mixed signals, the company's valuation remains attractive with a solid dividend yield. The stock is well-positioned for long-term growth despite short-term market challenges.
DHL Group (DHLGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.42B
Dividend Yield4.67%
Average Volume (3M)61.30K
Price to Earnings (P/E)13.8
Beta (1Y)0.75
Revenue Growth3.37%
EPS Growth8.19%
CountryUS
Employees580,580
SectorIndustrials
Sector Strength72
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)0.83
Shares Outstanding1,200,000,000
10 Day Avg. Volume90,803
30 Day Avg. Volume61,302
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit7.47
Enterprise Value/Ebitda8.00
Forecast
1Y Price Target
$51.00Price Target Upside13.92% Upside
Rating ConsensusHold
Number of Analyst Covering1
DHL Group Business Overview & Revenue Model
Company DescriptionDeutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. The Supply Chain segment delivers customized logistics services and supply chain solutions to its customers based on modular components, including warehousing and transport services, as well as value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce segment provides parcel delivery and non-time definite international cross-border services. The Post & Parcel Germany segment transports, sorts, and delivers mail communication, physical and hybrid letters, and goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG is headquartered in Bonn, Germany.
How the Company Makes MoneyDHL Group generates revenue through a diversified model that includes several key streams. The primary revenue sources are derived from its express delivery services, freight forwarding, and contract logistics. DHL Express, which focuses on time-sensitive international shipping, contributes significantly to revenue through premium pricing for expedited delivery. DHL Global Forwarding and DHL Freight capitalize on global trade by providing air and ocean freight services, as well as road transportation, catering to both full truckload and less-than-truckload shipments. Additionally, DHL Supply Chain offers warehousing and distribution services, creating long-term contracts that ensure stable revenue. The company has strategic partnerships with airlines, shipping lines, and technology firms that enhance its service offerings and operational efficiency. Factors such as e-commerce growth, global trade dynamics, and increased demand for logistics solutions have further bolstered DHL Group's earnings.
DHL Group Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of DHL's performance, with strong EBIT growth and effective cost management amidst challenges in global trade volumes and specific segment declines. The company remains committed to seizing growth opportunities while navigating market uncertainties.Q2-2025 Updates
Positive Updates
Strong EBIT Growth
DHL Group achieved a 6% year-over-year increase in Q2 EBIT, driven by effective cost management and structural measures under the Fit for Growth program.
Express Segment Performance
Express segment achieved the fourth consecutive quarter of EBIT increase despite underlying volume decline, thanks to cost flexibility and yield management.
Resilient Supply Chain Margin
Supply Chain division maintained a resilient EBIT margin of 7% after adjusting for positive M&A one-offs.
Strong Cash Generation
Continued strong cash generation enabled targeted investments, with significant shareholder returns through EUR 3 billion spent on dividends and share buybacks in the first half of the year.
Targeted Inorganic Growth
Pursued strategic M&A focusing on life sciences, healthcare, geographic tailwinds, and e-commerce to enhance capabilities and market presence.
Negative Updates
Global Trade Volume Decline
Lower volumes in global trade impacted results, with significant volatility across trade lanes.
Challenges in DGFF Segment
DGFF experienced lower EBIT conversion due to volatility and weaker demand, impacted by booked one-off costs related to the Fit for Growth program.
B2C Volume Decline in Express
B2C volumes in Express declined by 20% due to the de minimis exemption abolishment for China, Hong Kong to the U.S., contributing to a 10% overall TDI volume decline.
De Minimis Exemption Impact
The abolishment of the de minimis exemption for shipments from China to the U.S. poses a potential worst-case scenario risk of up to EUR 200 million on full-year '25 EBIT.
Company Guidance
During the DHL Group's Q2 2025 conference call, the company outlined its financial performance and strategic guidance amidst challenging global trade conditions. Notably, DHL achieved a 6% year-over-year increase in EBIT despite facing lower volumes in global trade, attributed to effective cost management and structural adjustments under the Fit for Growth program. The company highlighted a strong cash generation, with a free cash flow effect of approximately EUR 100 million from M&A activities, and a EUR 4 million net positive impact from nonrecurring effects. The Express division excelled with a fourth consecutive quarter of EBIT increase, aided by a 7% reduction in air capacity and effective yield management. DHL reiterated its full-year guidance, acknowledging potential risks from changes in tariffs and trade conflicts, particularly concerning the de minimis exemption. The strategic focus remains on investing in structural growth opportunities, as outlined in Strategy 2030, while maintaining a balanced approach to cost control and organic investments.DHL Group Financial Statement Overview
Summary
DHL Group demonstrates strong financial health with consistent revenue growth and efficient operations. While the Net Profit Margin and ROE have slightly decreased, the company maintains a stable balance sheet with moderate leverage. Cash flows are healthy, supporting operational needs and potential future growth.Income Statement
DHL Group has shown robust revenue growth over the years, with Total Revenue increasing from €63.34 billion in 2019 to €84.77 billion in 2024. The Gross Profit Margin has been stable, with a slight decrease from 17.10% in 2023 to 16.44% in 2024. The Net Profit Margin decreased from 4.50% in 2023 to 3.93% in 2024, indicating some pressure on profitability. However, EBIT and EBITDA margins remain strong, highlighting operational efficiency. Revenue growth is positive, suggesting a healthy expansion trajectory.85
Very Positive
Balance Sheet
The Debt-to-Equity Ratio increased slightly from 0.93 in 2023 to 1.02 in 2024, reflecting a moderate level of leverage. Return on Equity (ROE) decreased from 16.36% in 2023 to 14.00% in 2024, indicating a slight decline in shareholder returns. The Equity Ratio stands at 34.04%, showing a solid equity base compared to total assets. Overall, the balance sheet is stable with manageable debt levels.78
Positive
Cash Flow
Operating Cash Flow remains strong at €8.72 billion in 2024, though slightly down from €9.26 billion in 2023. Free Cash Flow showed a minor decline from €5.88 billion in 2023 to €5.79 billion in 2024, but it remains robust. The Operating Cash Flow to Net Income Ratio is favorable, indicating efficient cash generation from operations. The Free Cash Flow to Net Income Ratio is also solid, supporting operational sustainability.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.52B | 84.77B | 81.76B | 94.44B | 81.75B | 66.81B |
| Gross Profit | 10.58B | 13.93B | 14.21B | 16.55B | 15.44B | 11.77B |
| EBITDA | 9.88B | 7.57B | 10.81B | 12.73B | 11.69B | 8.54B |
| Net Income | 3.45B | 3.33B | 3.68B | 5.36B | 5.05B | 2.98B |
Balance Sheet | ||||||
| Total Assets | 67.38B | 69.88B | 66.81B | 68.28B | 63.59B | 55.31B |
| Cash, Cash Equivalents and Short-Term Investments | 4.01B | 2.19B | 2.08B | 3.19B | 4.71B | 5.80B |
| Total Debt | 0.00 | 24.21B | 20.83B | 20.22B | 19.02B | 18.35B |
| Total Liabilities | 46.30B | 45.66B | 43.92B | 44.58B | 44.09B | 41.23B |
| Stockholders Equity | 20.64B | 23.79B | 22.48B | 23.24B | 19.04B | 13.78B |
Cash Flow | ||||||
| Free Cash Flow | 6.14B | 5.79B | 5.88B | 7.05B | 6.26B | 4.78B |
| Operating Cash Flow | 9.00B | 8.72B | 9.26B | 10.96B | 9.99B | 7.70B |
| Investing Cash Flow | -2.69B | -2.39B | -2.18B | -3.18B | -4.82B | -3.64B |
| Financing Cash Flow | -5.79B | -6.35B | -6.90B | -7.41B | -6.22B | -2.25B |
DHL Group Technical Analysis
Neutral
44.77
Price Trends
46.03
Negative
45.63
Negative
41.86
Positive
Market Momentum
-0.51
Positive
45.53
Neutral
38.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHLGY, the sentiment is Neutral. The current price of 44.77 is below the 20-day moving average (MA) of 44.98, below the 50-day MA of 46.03, and above the 200-day MA of 41.86, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DHLGY.
DHL Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $51.42B | 13.79 | 15.65% | 4.67% | 3.37% | 8.19% | |
74 Outperform | $56.11B | 13.90 | 14.84% | 2.38% | 1.14% | 4.99% | |
72 Outperform | $16.54B | 19.88 | 38.85% | 1.23% | 23.70% | 31.33% | |
72 Outperform | $15.02B | 13.21 | 14.21% | 3.63% | 14.40% | 2.41% | |
69 Neutral | $70.96B | 12.45 | 34.59% | 7.82% | 0.94% | 9.62% | |
67 Neutral | $14.84B | 43.60 | 19.37% | ― | -0.11% | -4.28% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
DHLGY
DHL Group
44.77
1.61
3.73%
EXPD
Expeditors International
121.84
-7.88
-6.07%
XPO
XPO
126.05
18.54
17.24%
FDX
FedEx
237.82
-29.58
-11.06%
UPS
United Parcel
83.72
-44.49
-34.70%
ZTO
ZTO Express
19.31
-4.99
-20.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.