DHL Group DHL.DE
What does DHL Group do?
DHL Group is a globally active logistics group headquartered in Bonn. The company transports parcels, documents and freight, organizes international supply chains and provides letter and parcel services in Germany. Revenue comes from five segments: Express, Global Forwarding, Supply Chain, eCommerce, and Post & Parcel Germany.
In the express business, the group operates a worldwide air freight and delivery network and serves both business and private customers. Global Forwarding organizes air, sea and land transport, while Supply Chain handles warehousing and contract logistics for industry, retail and healthcare. In terms of competition, DHL is one of the largest logistics providers in the world. Its strong presence in Europe, Asia and the Middle East, its dense network and its home market of Germany, where it holds a strong position in letters and parcels, are key features. Major competitors include UPS, FedEx, DSV and Kühne+Nagel.
Score profile
Rank vs. Integrated Freight & Logistics (14 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, DHL Group ranks in the middle in the group Integrated Freight & Logistics (5.4/10). On growth, the company ranks above average in the group Integrated Freight & Logistics (6.1/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Integrated Freight & Logistics (4.6/10). On financial strength, DHL Group ranks in the middle in the group Integrated Freight & Logistics (4.2/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 14.9x | 15.8x | better than 68 % |
| Trailing P/E | 17.7x | 23.2x | better than 73 % |
| PEG ratio | 2.6x | 1.4x | better than 4 % |
| EV/EBITDA | 10.1x | 10.4x | better than 54 % |
| Price/sales | 0.8x | 0.8x | better than 61 % |
| Price/book | 2.8x | 3.8x | better than 59 % |
| Revenue growth | 12.6% | 7.4% | better than 68 % |
| Earnings growth | 9.5% | 6.5% | better than 54 % |
| Gross margin | 18.0% | 18.3% | better than 46 % |
| Operating margin | 7.6% | 6.1% | better than 68 % |
| Net margin | 4.3% | 4.0% | better than 54 % |
| Return on equity | 17.9% | 17.9% | better than 50 % |
| Debt/equity | 118.1% | 69.3% | better than 39 % |
| Current ratio | 1.0x | 1.3x | better than 25 % |
| Free cash flow yield | 7.1% | 6.1% | better than 61 % |
| Dividend yield | 3.2% | 2.0% | – |
| Payout ratio | 56.9% | 40.0% | – |
| Beta | 1.11 | 1.09 | – |
Valuation: what is DHL Group worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give DHL Group a model range of 60.68 EUR to 118.88 EUR per share.
19 analysts, average rating “Hold”, average price target 58.85 EUR (+0.2%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The volume of international trade and cross-border goods traffic largely determines capacity utilization and earnings in Express and freight forwarding.
- Online retail and the number of parcels delivered drive revenue in the eCommerce and parcel businesses.
- Network density, economies of scale and pricing in the express business determine profitability, as does the efficiency of sorting and delivery processes.
Risks
- Economic downturns, trade conflicts and tariffs can noticeably weigh on transport volumes and freight rates, particularly in the freight forwarding business.
- High personnel, energy and fuel costs as well as wage disputes can put pressure on margins.
- Regulation, price competition and high investment in networks and climate protection permanently affect the group's earnings power.
What to look for with DHL Group
Operating profit (EBIT) by segment shows which business areas carry profitability, since Express, freight forwarding and postal services are subject to very different cycles.