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1. Company Snapshot

1.a. Company Description

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific.It operates through three segments: Air & Sea, Road, and Solutions.The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers.


It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops.In addition, the company provides logistics solutions for automotive, consumer products, healthcare, high-tech, and industrial sectors; and inventory management solutions.Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services.


The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021.DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.

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1.b. Last Insights on DSV

DSV A/S faced challenges due to a slowdown in trade caused by tariffs, particularly along the U.S.-Mexico border. The company paused investments in cross-border trucking expansion and slowed other investments pending clarity on U.S. trade policy. However, DSV reported stable financial performance in Q3 2025, with EBIT before special items of DKK 5,434 million, driven by the integration of Schenker. The acquisition contributed DKK 1,463 million to earnings. Despite market uncertainty, DSV made progress on Schenker's integration, commencing country integrations in August.

1.c. Company Highlights

2. DSV's Q3 2025 Earnings: Strong Momentum on Schenker Integration

DSV A/S reported a mixed Q3 2025, with revenues and gross profit showing a positive trend, while EBITDA was down due to increased productivity needs. The company's EPS came in at 12.21, below estimates of 14.01. Gross profit margin stood at 19.7%, with the company expecting a full-year GP margin of 19.5-20.5%. The Schenker integration is progressing well, with minimal customer attrition and positive feedback.

Publication Date: Oct -24

📋 Highlights
  • Strong Schenker Integration Momentum: DSV achieved DKK 800 million synergy target for 2025, with DKK 300 million cost savings in Q3 and no customer attrition dis-synergies.
  • Debt Reduction & Cash Flow: Reduced debt by DKK 4 billion and reported 96% cash conversion ratio, demonstrating robust liquidity despite integration costs of DKK 1.1 billion in Q3.
  • Segment Performance: Contract Logistics (CL) generated DKK 1.1 billion, driven by Schenker, while Road division showed progress with strong Asia Pacific and Europe results.
  • Guidance & Synergy Growth: Narrowed full-year GP margin guidance to 19.5-20.5%, with DKK 3 billion 2024 and DKK 4 billion 2026 synergy targets, up from prior DKK 9 billion annual goal.
  • Margin Pressures & Outlook: Air & Sea division faced EBIT decline due to lower productivity, while Road EBIT margin remains on track for double digits amid structural cost reductions.

Segment-wise Performance

The Air & Sea division saw a GP increase, while EBIT decreased due to lower productivity and conversion ratios. The Road division made progress, with a strong performance in Asia Pacific and Europe. Contract Logistics produced DKK 1.1 billion, with Schenker contributing significantly to the division. The company's Road business is expected to achieve a double-digit EBIT margin, driven by structural cost reduction and potentially changes in business mix.

Cash Flow and Debt Reduction

The company reported strong cash flow, with a cash conversion ratio of 96% and a reduction in debt by DKK 4 billion. DSV has increased its expected synergies for the full year to DKK 800 million and is committed to delivering DKK 9 billion in yearly savings. The company's net debt to EBITDA ratio stands at 4.05, indicating a significant leverage.

Guidance and Outlook

The company guided Q4 revenues to be between DKK 19.5 billion and DKK 20.5 billion. The low end of the guidance range implies a significant increase in earnings, with DKK 1.6 billion more needed in Q4 compared to last year. DSV expects around DKK 4 billion in synergies by 2026 and plans to roll out a uniform digital platform, Star, which will drive productivity gains.

Valuation

DSV's current P/E Ratio is 32.08, indicating a relatively high valuation. The EV/EBITDA ratio stands at 18.5, suggesting a significant premium. The company's ROE is 9.83%, while ROIC is 5.47%. Analysts estimate next year's revenue growth at 18.5%, which may justify the current valuation. However, the actual EPS miss and guidance may put pressure on the stock.

3. NewsRoom

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3 European Stocks That May Be Undervalued By Up To 46.9%

Nov -26

Source:

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DSV, 1162 - MAJOR SHAREHOLDER ANNOUNCEMENT

Oct -30

Source:

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DSV, 1161 - INTERIM FINANCIAL REPORT Q3 2025

Oct -23

Source:

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3 European Stocks That May Be Trading At Discounts Of Up To 49.6%

Oct -17

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DSV – Q3 2025 analyst conference call

Sep -25

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European Value Stocks: 3 Companies Trading Below Estimated Intrinsic Worth

Sep -15

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3 TSX Growth Stocks With High Insider Ownership And 18% Earnings Growth

Aug -18

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3 TSX Growth Stocks With High Insider Ownership And Up To 74 Percent Earnings Growth

Aug -15

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.87%)

6. Segments

Air & Sea - Air Freight

Expected Growth: 4.5%

Increasing e-commerce demand, trade agreements and DSV A⁄S's expanding network and capacity investments drive growth in air freight services, ensuring fast and reliable transportation globally.

Air & Sea - Sea Freight

Expected Growth: 5.6%

Growing demand for logistics solutions, increasing focus on sea freight forwarding and strategic expansion through acquisitions drive DSV A/S's growth.

Road

Expected Growth: 4.3%

Growing e-commerce demand and increasing focus on supply chain resilience drive growth in DSV A/S's Road segment, which provides trucking and haulage solutions for land transportation of goods.

Solutions

Expected Growth: 5.5%

Increasing demand for customized logistics and supply chain services across various industries, automotive, and e-commerce drives growth. DSV A/S's Solutions segment benefits from rising complexity in global supply chains, prompting clients to outsource logistics operations.

Non-Allocated Items and Eliminations

Expected Growth: 7.3%

DSV's growth is driven by increasing demand for logistics services, especially in the e-commerce and automotive industries, as well as its strategic acquisitions and investments in digitalization and sustainability.

7. Detailed Products

Air Freight

DSV A/S provides air freight services, offering fast and reliable transportation of goods by air, with a global network of air freight experts and a range of services tailored to meet specific customer needs.

Ocean Freight

DSV A/S offers ocean freight services, providing a comprehensive range of services for the transportation of goods by sea, including FCL, LCL, and project cargo solutions.

Road Freight

DSV A/S provides road freight services, offering a range of transportation solutions for goods by road, including full truckload, less than truckload, and groupage services.

Contract Logistics

DSV A/S offers contract logistics services, providing customized warehousing, inventory management, and distribution solutions tailored to meet specific customer needs.

Supply Chain Solutions

DSV A/S provides supply chain solutions, offering a range of services to optimize and streamline customers' supply chains, including consulting, design, and implementation.

8. DSV A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for DSV A/S is medium due to the presence of alternative logistics and transportation services. While there are some substitutes available, they may not offer the same level of quality and reliability as DSV A/S.

Bargaining Power Of Customers

The bargaining power of customers for DSV A/S is low due to the company's strong market position and the lack of concentration among its customers. Customers have limited bargaining power to negotiate prices or terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers for DSV A/S is medium due to the presence of multiple suppliers in the market. While suppliers have some bargaining power, DSV A/S's large scale of operations and strong relationships with suppliers mitigate this power.

Threat Of New Entrants

The threat of new entrants for DSV A/S is low due to the high barriers to entry in the logistics and transportation industry. New entrants would need to invest heavily in infrastructure, technology, and personnel to compete with DSV A/S.

Intensity Of Rivalry

The intensity of rivalry for DSV A/S is high due to the competitive nature of the logistics and transportation industry. The company faces intense competition from established players and new entrants, which drives down prices and increases the need for innovation and differentiation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.85%
Debt Cost 4.74%
Equity Weight 63.15%
Equity Cost 8.61%
WACC 7.19%
Leverage 58.35%

11. Quality Control: DSV A/S passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1533.0$

Current Price

1533$

Potential

-0.00%

Expected Cash-Flows