As with peer Kuehne + Nagel on April 23, narrow-moat DSV’s first-quarter results contained some bright spots but not enough to avoid disappointing investors, with the shares down midsingle digits on the day. Revenue was down just 6% over the period, but profits fell by almost 30%. We reiterate our DKK 1,120 fair value estimate and see moderate upside from the prevailing share price.
DSV is now the third-largest third-party logistics provider in the world, handling around 5% of global trade in a fragmented industry.
Investors are now looking beyond the current capabilities of the company to the next acquisition, which could prove dangerous, should these not materialise as hoped.
|
Metric
|
DSV
|
EXPD
|
CHRW
|
|---|---|---|---|
Price/Earnings (Normalized) | 19.14 | 22.73 | 27.09 |
Price/Book Value | 3.21 | 7.73 | 6.87 |
Price/Sales | 1.51 | 1.99 | 0.58 |
Price/Cash Flow | 14.58 | 21.82 | 21.93 |
|
Metric
|
DSV
|
EXPD
|
CHRW
|
|---|---|---|---|
Quick Ratio | 0.99 | 1.79 | 1.30 |
Current Ratio | 1.11 | 2.02 | 1.37 |
Interest Coverage | 10.61 | 197.79 | 18.50 |
|
Metric
|
DSV
|
EXPD
|
CHRW
|
|---|---|---|---|
Return on Assets (Normalized) | 8.29% | 16.17% | 7.18% |
Return on Equity (Normalized) | 18.02% | 29.03% | 28.44% |
Return on Invested Capital (Normalized) | 12.19% | 22.87% | 13.64% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
UPS
| United Parcel Service Inc Class B | Hhslsdxz | Mcgd | $118.9 Bil | |
FDX
| FedEx Corp | Tzyhwzj | Tjcxt | $62.5 Bil | |
DPSTF
| DHL Group | — | Gsnpjs | $49.5 Bil | |
DHLGY
| DHL Group ADR | Zqhynhch | Ynfns | $49.0 Bil | |
ZTO
| ZTO Express (Cayman) Inc ADR | Hqwktmqqlj | Tqsnmfv | $18.6 Bil | |
EXPD
| Expeditors International of Washington Inc | Rdvmbwgfm | Gkb | $16.8 Bil | |
JBHT
| JB Hunt Transport Services Inc | Tybtqgc | Mslqbvr | $16.6 Bil | |
CHRW
| C.H. Robinson Worldwide Inc | Gykdxknytw | Fbwft | $9.9 Bil | |
LSTR
| Landstar System Inc | Qgtbwrglzy | Jdc | $6.4 Bil | |
HUBG
| Hub Group Inc Class A | Kxhczwzw | Lzmkftj | $2.7 Bil |
