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) | 18.11 | 22.39 | 21.04 |
Price/Book Value | 3.03 | 5.93 | 6.70 |
Price/Sales | 1.43 | 0.49 | 1.80 |
Price/Cash Flow | 13.80 | 19.15 | 19.27 |
|
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
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FDX
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DPSTF
| DHL Group | — | Gxjdnh | $50.6 Bil | |
DHLGY
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ZTO
| ZTO Express (Cayman) Inc ADR | Xcwsymnz | Rntjq | $17.2 Bil | |
JBHT
| JB Hunt Transport Services Inc | Qctjxpbpc | Hslzkf | $16.9 Bil | |
EXPD
| Expeditors International of Washington Inc | Vfbprnnkt | Skqrd | $15.9 Bil | |
CHRW
| C.H. Robinson Worldwide Inc | Vgbdmqwrp | Crb | $8.3 Bil | |
LSTR
| Landstar System Inc | Wndtrfcjpl | Cpfnn | $6.2 Bil | |
HUBG
| Hub Group Inc Class A | Tzkpsktl | Dlqlsfn | $2.6 Bil |
