DSV A/S (CPH:DSV): Commentary On Fundamentals

In this article:

I’ve been keeping an eye on DSV A/S (CPH:DSV) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe DSV has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on DSV here.

Outstanding track record with excellent balance sheet

DSV delivered a bottom-line expansion of 37% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 25%. which is what investors like to see! DSV’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that DSV has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. DSV seems to have put its debt to good use, generating operating cash levels of 0.63x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

CPSE:DSV Income Statement Export December 21st 18
CPSE:DSV Income Statement Export December 21st 18

Next Steps:

For DSV, there are three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for DSV’s future growth? Take a look at our free research report of analyst consensus for DSV’s outlook.

  2. Valuation: What is DSV worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DSV is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DSV? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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