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DHL Group (DHLGY)
OTHER OTC:DHLGY

DHL Group (DHLGY) AI Stock Analysis

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DH

DHL Group

(OTC:DHLGY)

Rating:76Outperform
Price Target:
$52.00
▲(10.95%Upside)
DHL Group's strong financial performance and strategic growth initiatives significantly contribute to its stock score. While technical indicators show potential overbought conditions, the company's stable valuation and positive earnings outlook provide a balanced perspective, positioning DHLGY favorably for continued growth.

DHL Group (DHLGY) vs. SPDR S&P 500 ETF (SPY)

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 its diverse portfolio of logistics services, with key revenue streams coming from its express delivery services, freight transportation, and supply chain management solutions. DHL Express provides time-sensitive international shipping, which is a major revenue driver, especially with the growing demand for fast and reliable delivery in the e-commerce sector. DHL Global Forwarding and DHL Freight handle air, ocean, and overland freight transportation, offering customized solutions for large shipments, which contribute significantly to the company's earnings. DHL Supply Chain offers contract logistics, including warehousing and distribution services, tailored to specific industry needs. DHL eCommerce Solutions supports the growing online shopping market by providing domestic and international parcel delivery services. Strategic partnerships and investments in technology and infrastructure enhancements also play a crucial role in expanding DHL Group's capabilities and competitiveness, thereby contributing to its overall revenue growth.

DHL Group Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 14.74%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
DHL's earnings call reflected a balanced perspective with strong performance in several segments and strategic growth initiatives offset by challenges in road freight and trade policy volatility.
Q1-2025 Updates
Positive Updates
Q1 2025 Earnings Growth
DHL reported a 5% growth in earnings for Q1 2025, with slight growth in revenue and strong free cash flow.
Express Segment Success
The Express segment showed EBIT improvements due to effective capacity management and pricing strategies, despite volume declines.
Supply Chain Stability
DHL Supply Chain division experienced solid EBIT growth, driven by high-quality service and operational excellence with automation and robotics.
Life Science and Healthcare Expansion
DHL announced acquisitions in the life science and healthcare space to enhance capabilities and leverage scale across its network.
Fit for Growth Program
The Fit for Growth program is delivering increasing benefits, contributing to cost improvements across divisions.
Negative Updates
Challenges in Road Freight
The DHL Freight road freight business underperformed due to challenging European industrial markets and additional costs from system rollouts.
Trade Policy Volatility
The macro environment remains subdued with induced volatility from changing U.S. trade policies impacting operations and customer confidence.
Reduced Exposure to Transpacific Trade
DHL has reduced its exposure to the Transpacific trade lane, particularly in the B2C space, leading to a decline in shipments.
Company Guidance
During the DHL Group's Q1 2025 conference call, the company reported a 5% growth in earnings and slight revenue growth. They highlighted improvements in EBIT across their Express, supply chain, and P&P Germany divisions. DHL's strategy included acquisitions in the life sciences and healthcare sectors and a continued focus on e-commerce. The call acknowledged the challenges posed by fluctuating U.S. trade policies, but DHL remained optimistic due to its diversified global footprint. The company emphasized executing their growth strategy and cost management initiatives, such as the Fit for Growth program, which contributed to their solid Q1 performance. Despite the volatile environment, DHL maintained its full-year 2025 guidance, confident in their capacity management and strategic initiatives to drive future growth.

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, reflecting a well-managed company with a positive growth trajectory.
Income Statement
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue84.77B81.76B94.44B81.75B66.81B
Gross Profit13.93B14.21B16.55B15.44B11.77B
EBITDA7.57B10.81B12.73B11.69B8.54B
Net Income3.33B3.68B5.36B5.05B2.98B
Balance Sheet
Total Assets69.88B66.81B68.28B63.59B55.31B
Cash, Cash Equivalents and Short-Term Investments4.24B2.08B3.19B4.71B5.80B
Total Debt24.21B20.83B20.22B19.02B18.35B
Total Liabilities45.66B43.92B44.58B44.09B41.23B
Stockholders Equity23.79B22.48B23.24B19.04B13.78B
Cash Flow
Free Cash Flow5.79B5.88B7.05B6.26B4.78B
Operating Cash Flow8.72B9.26B10.96B9.99B7.70B
Investing Cash Flow-2.39B-2.18B-3.18B-4.82B-3.64B
Financing Cash Flow-6.35B-6.90B-7.41B-6.22B-2.25B

DHL Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.87
Price Trends
50DMA
43.85
Positive
100DMA
41.84
Positive
200DMA
39.65
Positive
Market Momentum
MACD
0.58
Positive
RSI
59.87
Neutral
STOCH
38.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHLGY, the sentiment is Positive. The current price of 46.87 is above the 20-day moving average (MA) of 46.21, above the 50-day MA of 43.85, and above the 200-day MA of 39.65, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHLGY.

DHL Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$51.81B14.3714.13%4.68%3.47%-2.88%
FDFDX
75
Outperform
$53.19B13.1814.69%2.62%0.27%
UPUPS
74
Outperform
$85.19B14.4935.96%6.52%1.30%-0.76%
73
Outperform
$15.75B19.0937.70%1.35%24.07%27.40%
ZTZTO
72
Outperform
$14.02B11.3215.68%3.97%13.41%10.00%
70
Neutral
$11.01B22.1532.11%2.66%-0.22%65.52%
67
Neutral
€8.43B18.516.19%2.70%2.33%-39.06%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DHLGY
DHL Group
46.87
6.74
16.80%
CHRW
CH Robinson
96.66
11.98
14.15%
EXPD
Expeditors International
114.99
-4.33
-3.63%
FDX
FedEx
228.91
-63.36
-21.68%
UPS
United Parcel
101.18
-27.44
-21.33%
ZTO
ZTO Express
17.78
-2.22
-11.10%
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.Date of analysis: Jun 05, 2025