DHL Group
Note: This is a daily stock update and the information stands true as of 06/03/25, 09:00 CET.
Company Update:
Expert Opinion:
The incoming trade war is likely to hurt all transport and logistics group and despite its intrinsic qualities, DHL will be impacted. Valuation appears decent (although we suspect it will marginally increase as consensus will likely adjust down on the guidance) but considering the uncertainties, we feel safer waiting on the sideline. We would stay away from the name for the time being.
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Company Update:
Results were better than expected with a marginal beat on the topline (€84.19bn vs €84.04bn estimated) but a 4% beat to estimates on EBIT at €5.89bn.
Shareholder return improved: while dividend is maintained, the company increased its SBB program by another €2bn which is good news.
Guidance is below consensus as the company now forecasts EBIT at least at EUR6bn when consensus is currently at €6.35 bn (AV at €6.42bn). FCF expected at around €3bn, better than the €2.7bn forecast by consensus.
The company announced it was launching a significant cost cutting plan in Germany with 8000 positions cut in its Post and Parcel division, with savings eventually targeted above €1bn.
Expert Opinion:
The incoming trade war is likely to hurt all transport and logistics group and despite its intrinsic qualities, DHL will be impacted. Valuation appears decent (although we suspect it will marginally increase as consensus will likely adjust down on the guidance) but considering the uncertainties, we feel safer waiting on the sideline. We would stay away from the name for the time being.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Solid start of 2025 with signs of recovery in key markets.