DHL Group
DHL: XETR (DEU)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€25.00 | Ldmjnn | Svpmgskz |
Global Package and Forwarding Markets Remain Sluggish for DHL Group
Business Strategy and Outlook
DHL Group is the leading postal operator in Europe, among the top three international express package carriers, and the world's largest air and ocean forwarder. Its legacy German postal operations (roughly 12% of total revenue) face secular demand declines and are heavily regulated. However, we expect growth in the DHL segments and growth in the German (and international-domestic) parcel delivery operations to continue to offset declines in traditional mail-related activity (on average) over the freight cycle, and despite normalization of B2C package demand and an overall soft freight and logistics backdrop in 2023.