DEME GROUP (DEME.BR) Stock Fundamental Analysis
Europe - EBR:DEME - BE0974413453 - Common Stock
127.6 EUR
-1.4 (-1.09%)
Taking everything into account, DEME scores 5 out of 10 in our fundamental rating. DEME was compared to 46 industry peers in the Construction & Engineering industry. DEME has an average financial health and profitability rating. DEME may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make DEME a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year DEME was profitable.
In the past year DEME had a positive cash flow from operations.
DEME had positive earnings in each of the past 5 years.
DEME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DEME has a Return On Assets (5.60%) which is in line with its industry peers.
DEME has a Return On Equity (15.02%) which is comparable to the rest of the industry.
DEME has a Return On Invested Capital (9.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DEME is significantly below the industry average of 11.79%.
The 3 year average ROIC (6.73%) for DEME is below the current ROIC(9.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 15.02% | ||
| ROIC | 9.9% |
ROA(3y)3.73%
ROA(5y)3.06%
ROE(3y)9.52%
ROE(5y)7.85%
ROIC(3y)6.73%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 7.58%, DEME is doing good in the industry, outperforming 65.22% of the companies in the same industry.
DEME's Profit Margin has improved in the last couple of years.
DEME's Operating Margin of 9.70% is fine compared to the rest of the industry. DEME outperforms 60.87% of its industry peers.
In the last couple of years the Operating Margin of DEME has grown nicely.
The Gross Margin of DEME (36.46%) is comparable to the rest of the industry.
DEME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.58% | ||
| GM | 36.46% |
OM growth 3Y10.59%
OM growth 5Y10.87%
PM growth 3Y15.48%
PM growth 5Y8.06%
GM growth 3Y-2.5%
GM growth 5Y0.62%
2. Health
2.1 Basic Checks
DEME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DEME remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DEME has about the same amount of shares outstanding.
The debt/assets ratio for DEME has been reduced compared to a year ago.
2.2 Solvency
DEME has an Altman-Z score of 1.85. This is not the best score and indicates that DEME is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.85, DEME is in line with its industry, outperforming 52.17% of the companies in the same industry.
The Debt to FCF ratio of DEME is 1.77, which is an excellent value as it means it would take DEME, only 1.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DEME (1.77) is better than 80.43% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that DEME is not too dependend on debt financing.
DEME's Debt to Equity ratio of 0.40 is fine compared to the rest of the industry. DEME outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.52
WACC6.53%
2.3 Liquidity
DEME has a Current Ratio of 0.85. This is a bad value and indicates that DEME is not financially healthy enough and could expect problems in meeting its short term obligations.
DEME has a Current ratio of 0.85. This is amonst the worse of the industry: DEME underperforms 84.78% of its industry peers.
A Quick Ratio of 0.84 indicates that DEME may have some problems paying its short term obligations.
DEME's Quick ratio of 0.84 is on the low side compared to the rest of the industry. DEME is outperformed by 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
DEME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.33%, which is quite good.
DEME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.20% yearly.
The Revenue has grown by 15.44% in the past year. This is quite good.
The Revenue has been growing by 9.36% on average over the past years. This is quite good.
EPS 1Y (TTM)19.33%
EPS 3Y36.04%
EPS 5Y18.2%
EPS Q2Q%27.1%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y17.77%
Revenue growth 5Y9.36%
Sales Q2Q%10.47%
3.2 Future
DEME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.33% yearly.
DEME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.04% yearly.
EPS Next Y-2.63%
EPS Next 2Y-1.71%
EPS Next 3Y2.86%
EPS Next 5Y5.33%
Revenue Next Year5.18%
Revenue Next 2Y3.53%
Revenue Next 3Y4.05%
Revenue Next 5Y4.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DEME is valuated reasonably with a Price/Earnings ratio of 9.89.
Based on the Price/Earnings ratio, DEME is valued a bit cheaper than 78.26% of the companies in the same industry.
DEME is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.98, the valuation of DEME can be described as reasonable.
65.22% of the companies in the same industry are more expensive than DEME, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DEME to the average of the S&P500 Index (22.27), we can say DEME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEME is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEME indicates a rather cheap valuation: DEME is cheaper than 89.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.06 | ||
| EV/EBITDA | 4.53 |
4.3 Compensation for Growth
The decent profitability rating of DEME may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-1.71%
EPS Next 3Y2.86%
5. Dividend
5.1 Amount
DEME has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
DEME's Dividend Yield is comparable with the industry average which is at 3.64.
Compared to an average S&P500 Dividend Yield of 2.38, DEME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DEME pays out 29.44% of its income as dividend. This is a sustainable payout ratio.
DP29.44%
EPS Next 2Y-1.71%
EPS Next 3Y2.86%
EBR:DEME (11/4/2025, 7:00:00 PM)
127.6
-1.4 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners5.94%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.23B
Revenue(TTM)4.30B
Net Income(TTM)326.11M
Analysts81.43
Price Target172.51 (35.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend2.1
Dividend Growth(5Y)N/A
DP29.44%
Div Incr Years2
Div Non Decr Years2
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)-0.93%
PT rev (3m)-3.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 10.98 | ||
| P/S | 0.75 | ||
| P/FCF | 5.06 | ||
| P/OCF | 3.59 | ||
| P/B | 1.49 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)12.9
EY10.11%
EPS(NY)11.62
Fwd EY9.11%
FCF(TTM)25.23
FCFY19.77%
OCF(TTM)35.52
OCFY27.83%
SpS169.97
BVpS85.81
TBVpS84.75
PEG (NY)N/A
PEG (5Y)0.54
Graham Number157.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 15.02% | ||
| ROCE | 12.83% | ||
| ROIC | 9.9% | ||
| ROICexc | 12.66% | ||
| ROICexgc | 12.79% | ||
| OM | 9.7% | ||
| PM (TTM) | 7.58% | ||
| GM | 36.46% | ||
| FCFM | 14.84% |
ROA(3y)3.73%
ROA(5y)3.06%
ROE(3y)9.52%
ROE(5y)7.85%
ROIC(3y)6.73%
ROIC(5y)N/A
ROICexc(3y)8.73%
ROICexc(5y)N/A
ROICexgc(3y)8.86%
ROICexgc(5y)N/A
ROCE(3y)8.72%
ROCE(5y)N/A
ROICexgc growth 3Y26.09%
ROICexgc growth 5Y21.73%
ROICexc growth 3Y26.39%
ROICexc growth 5Y21.66%
OM growth 3Y10.59%
OM growth 5Y10.87%
PM growth 3Y15.48%
PM growth 5Y8.06%
GM growth 3Y-2.5%
GM growth 5Y0.62%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 65.77% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 27.52 | ||
| Cash Conversion | 110.56% | ||
| Profit Quality | 195.82% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.85 |
F-Score7
WACC6.53%
ROIC/WACC1.52
Cap/Depr(3y)113.69%
Cap/Depr(5y)101.76%
Cap/Sales(3y)12.45%
Cap/Sales(5y)11.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.33%
EPS 3Y36.04%
EPS 5Y18.2%
EPS Q2Q%27.1%
EPS Next Y-2.63%
EPS Next 2Y-1.71%
EPS Next 3Y2.86%
EPS Next 5Y5.33%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y17.77%
Revenue growth 5Y9.36%
Sales Q2Q%10.47%
Revenue Next Year5.18%
Revenue Next 2Y3.53%
Revenue Next 3Y4.05%
Revenue Next 5Y4.04%
EBIT growth 1Y26.93%
EBIT growth 3Y30.25%
EBIT growth 5Y21.25%
EBIT Next Year130.11%
EBIT Next 3Y36.01%
EBIT Next 5Y22.84%
FCF growth 1Y1082.16%
FCF growth 3Y79.17%
FCF growth 5YN/A
OCF growth 1Y119.99%
OCF growth 3Y36.94%
OCF growth 5Y22.61%
DEME GROUP / DEME.BR FAQ
What is the ChartMill fundamental rating of DEME GROUP (DEME.BR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DEME.BR.
What is the valuation status of DEME GROUP (DEME.BR) stock?
ChartMill assigns a valuation rating of 7 / 10 to DEME GROUP (DEME.BR). This can be considered as Undervalued.
What is the profitability of DEME stock?
DEME GROUP (DEME.BR) has a profitability rating of 6 / 10.
What is the valuation of DEME GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DEME GROUP (DEME.BR) is 9.89 and the Price/Book (PB) ratio is 1.49.
How sustainable is the dividend of DEME GROUP (DEME.BR) stock?
The dividend rating of DEME GROUP (DEME.BR) is 3 / 10 and the dividend payout ratio is 29.44%.