DEME GROUP (DEME.BR) Stock Fundamental Analysis
EBR:DEME - Euronext Brussels - BE0974413453 - Common Stock - Currency: EUR
DEME gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Construction & Engineering industry. DEME has an average financial health and profitability rating. DEME is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year DEME was profitable.
DEME had a positive operating cash flow in the past year.
In the past 5 years DEME has always been profitable.
DEME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.16%, DEME is doing good in the industry, outperforming 70.00% of the companies in the same industry.
DEME has a Return On Equity (13.71%) which is comparable to the rest of the industry.
DEME has a Return On Invested Capital of 8.97%. This is comparable to the rest of the industry: DEME outperforms 52.50% of its industry peers.
DEME had an Average Return On Invested Capital over the past 3 years of 5.35%. This is significantly below the industry average of 20.73%.
The last Return On Invested Capital (8.97%) for DEME is above the 3 year average (5.35%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 13.71% | ||
| ROIC | 8.97% |
ROA(3y)2.92%
ROA(5y)2.64%
ROE(3y)7.4%
ROE(5y)6.87%
ROIC(3y)5.35%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 7.34%, DEME is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DEME has declined.
DEME has a better Operating Margin (8.82%) than 62.50% of its industry peers.
DEME's Operating Margin has been stable in the last couple of years.
DEME has a Gross Margin of 34.74%. This is comparable to the rest of the industry: DEME outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of DEME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.82% | ||
| PM (TTM) | 7.34% | ||
| GM | 34.74% |
OM growth 3YN/A
OM growth 5Y0.53%
PM growth 3Y29.23%
PM growth 5Y-3.37%
GM growth 3Y3.03%
GM growth 5Y1.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEME is still creating some value.
DEME has about the same amout of shares outstanding than it did 1 year ago.
DEME has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, DEME has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.87 indicates that DEME is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DEME (1.87) is comparable to the rest of the industry.
The Debt to FCF ratio of DEME is 1.65, which is an excellent value as it means it would take DEME, only 1.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DEME (1.65) is better than 80.00% of its industry peers.
DEME has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
DEME has a Debt to Equity ratio of 0.31. This is in the better half of the industry: DEME outperforms 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.41
WACC6.36%
2.3 Liquidity
A Current Ratio of 0.88 indicates that DEME may have some problems paying its short term obligations.
The Current ratio of DEME (0.88) is worse than 82.50% of its industry peers.
DEME has a Quick Ratio of 0.88. This is a bad value and indicates that DEME is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.87, DEME is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 164.83% over the past year.
DEME shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.91% yearly.
DEME shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.29%.
DEME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)164.83%
EPS 3Y47.8%
EPS 5Y0.91%
EPS Q2Q%367.49%
Revenue 1Y (TTM)31.29%
Revenue growth 3Y14.38%
Revenue growth 5Y4.43%
Sales Q2Q%29.89%
3.2 Future
DEME is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.74% yearly.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y122.93%
EPS Next 2Y48.47%
EPS Next 3Y33.71%
EPS Next 5Y23.74%
Revenue Next Year32.75%
Revenue Next 2Y16.5%
Revenue Next 3Y11.22%
Revenue Next 5Y8.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.78, DEME is valued correctly.
DEME's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DEME to the average of the S&P500 Index (29.35), we can say DEME is valued rather cheaply.
The Price/Forward Earnings ratio is 11.62, which indicates a very decent valuation of DEME.
DEME's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DEME to the average of the S&P500 Index (22.10), we can say DEME is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
DEME's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DEME is valued a bit cheaper than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.7 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
DEME's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DEME may justify a higher PE ratio.
A more expensive valuation may be justified as DEME's earnings are expected to grow with 33.71% in the coming years.
PEG (NY)0.1
PEG (5Y)14.08
EPS Next 2Y48.47%
EPS Next 3Y33.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, DEME has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.65, DEME has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, DEME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y48.47%
EPS Next 3Y33.71%
EBR:DEME (3/7/2025, 7:00:00 PM)
138.2
-1.6 (-1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners7.01%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.50B
Analysts82.86
Price Target186.92 (35.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend1.05
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.68%
PT rev (3m)0.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.4%
EPS NY rev (3m)10.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)4.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.78 | ||
| Fwd PE | 11.62 | ||
| P/S | 0.94 | ||
| P/FCF | 6.7 | ||
| P/OCF | 4.01 | ||
| P/B | 1.75 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)10.81
EY7.82%
EPS(NY)11.89
Fwd EY8.6%
FCF(TTM)20.62
FCFY14.92%
OCF(TTM)34.45
OCFY24.93%
SpS147.23
BVpS78.87
TBVpS77.49
PEG (NY)0.1
PEG (5Y)14.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 13.71% | ||
| ROCE | 11.48% | ||
| ROIC | 8.97% | ||
| ROICexc | 10.91% | ||
| ROICexgc | 11.07% | ||
| OM | 8.82% | ||
| PM (TTM) | 7.34% | ||
| GM | 34.74% | ||
| FCFM | 14.01% |
ROA(3y)2.92%
ROA(5y)2.64%
ROE(3y)7.4%
ROE(5y)6.87%
ROIC(3y)5.35%
ROIC(5y)N/A
ROICexc(3y)6.52%
ROICexc(5y)N/A
ROICexgc(3y)6.64%
ROICexgc(5y)N/A
ROCE(3y)6.85%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-1.19%
ROICexc growth 3YN/A
ROICexc growth 5Y-1.25%
OM growth 3YN/A
OM growth 5Y0.53%
PM growth 3Y29.23%
PM growth 5Y-3.37%
GM growth 3Y3.03%
GM growth 5Y1.72%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 102.32% | ||
| Cap/Sales | 9.39% | ||
| Interest Coverage | 25.94 | ||
| Cash Conversion | 130% | ||
| Profit Quality | 190.71% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.87 |
F-Score7
WACC6.36%
ROIC/WACC1.41
Cap/Depr(3y)121.86%
Cap/Depr(5y)116.67%
Cap/Sales(3y)13.87%
Cap/Sales(5y)13.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.83%
EPS 3Y47.8%
EPS 5Y0.91%
EPS Q2Q%367.49%
EPS Next Y122.93%
EPS Next 2Y48.47%
EPS Next 3Y33.71%
EPS Next 5Y23.74%
Revenue 1Y (TTM)31.29%
Revenue growth 3Y14.38%
Revenue growth 5Y4.43%
Sales Q2Q%29.89%
Revenue Next Year32.75%
Revenue Next 2Y16.5%
Revenue Next 3Y11.22%
Revenue Next 5Y8.14%
EBIT growth 1Y95.98%
EBIT growth 3YN/A
EBIT growth 5Y4.97%
EBIT Next Year267.8%
EBIT Next 3Y60.37%
EBIT Next 5Y34.97%
FCF growth 1Y1756.06%
FCF growth 3Y-32.11%
FCF growth 5YN/A
OCF growth 1Y116.42%
OCF growth 3Y6.42%
OCF growth 5Y15.67%