Why DEUTZ Aktiengesellschaft (FRA:DEZ) Could Be Your Next Investment

Attractive stocks have exceptional fundamentals. In the case of DEUTZ Aktiengesellschaft (FRA:DEZ), there’s is a financially-robust company with a a great history of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on DEUTZ here.

Outstanding track record with flawless balance sheet and pays a dividend

In the past couple of years, DEZ has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 20.12%, which is what investors like to see! DEZ is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that DEZ has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. DEZ seems to have put its debt to good use, generating operating cash levels of 1.65x 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.

DB:DEZ Income Statement June 24th 18

DEZ’s share price is trading below its true value according to its price-to-equity ratio of 6.78x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.

DB:DEZ PE PEG Gauge June 24th 18

Next Steps:

For DEUTZ, there are three important aspects you should further examine:

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

2. Dividend Income vs Capital Gains: Does DEZ return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from DEZ as an investment.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DEZ? 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 pass 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.