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
|
CHRW
|
EXPD
|
|---|---|---|---|
Price/Earnings (Normalized) | 18.51 | 21.81 | 21.42 |
Price/Book Value | 3.10 | 5.78 | 6.82 |
Price/Sales | 1.47 | 0.48 | 1.83 |
Price/Cash Flow | 14.17 | 18.66 | 19.62 |
|
Metric
|
DSV
|
CHRW
|
EXPD
|
|---|---|---|---|
Quick Ratio | 0.99 | 1.32 | 1.79 |
Current Ratio | 1.11 | 1.40 | 2.02 |
Interest Coverage | 10.61 | 4.88 | 197.79 |
|
Metric
|
DSV
|
CHRW
|
EXPD
|
|---|---|---|---|
Return on Assets (Normalized) | 8.29% | 7.18% | 16.17% |
Return on Equity (Normalized) | 18.02% | 28.44% | 29.03% |
Return on Invested Capital (Normalized) | 12.19% | 13.64% | 22.87% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
UPS
| United Parcel Service Inc Class B | Hspszfv | Mpnw | $125.9 Bil | |
FDX
| FedEx Corp | Fsdmxqn | Flhczlp | $65.4 Bil | |
DPSTF
| DHL Group | — | Bmvfbv | $49.2 Bil | |
DHLGY
| DHL Group ADR | Ybzfybbcc | Ldgxh | $49.2 Bil | |
ZTO
| ZTO Express (Cayman) Inc ADR | Xgtgznlph | Jgdxg | $17.6 Bil | |
JBHT
| JB Hunt Transport Services Inc | Mrlchqgr | Jlkjkp | $16.9 Bil | |
EXPD
| Expeditors International of Washington Inc | Mvfpnhcy | Wcqtm | $16.1 Bil | |
CHRW
| C.H. Robinson Worldwide Inc | Xpyttpktj | Sjfk | $8.1 Bil | |
LSTR
| Landstar System Inc | Bymwclcbg | Jgdr | $6.3 Bil | |
HUBG
| Hub Group Inc Class A | Qzcsfygy | Dqhnqn | $2.5 Bil |
