DEME GROUP (DEME.BR) Stock Fundamental Analysis
EBR:DEME - Euronext Brussels - BE0974413453 - Common Stock - Currency: EUR
DEME gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Construction & Engineering industry. DEME has only an average score on both its financial health and profitability. DEME has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, DEME could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
DEME had positive earnings in the past year.
In the past year DEME had a positive cash flow from operations.
DEME had positive earnings in each of the past 5 years.
Each year in the past 5 years DEME had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DEME (5.16%) is better than 73.68% of its industry peers.
DEME has a Return On Equity (13.71%) which is comparable to the rest of the industry.
DEME has a Return On Invested Capital (8.97%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DEME is significantly below the industry average of 11.05%.
The 3 year average ROIC (5.35%) for DEME is below the current ROIC(8.97%), indicating increased profibility in the last year.
| 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 73.68% of the companies in the same industry.
DEME's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.82%, DEME is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
DEME's Operating Margin has been stable in the last couple of years.
DEME has a Gross Margin (34.74%) which is in line with 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DEME is 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.
DEME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.85 indicates that DEME is not a great score, but indicates only limited risk for bankruptcy at the moment.
DEME has a Altman-Z score (1.85) which is in line with its industry peers.
DEME has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
The Debt to FCF ratio of DEME (1.65) is better than 86.84% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that DEME is not too dependend on debt financing.
The Debt to Equity ratio of DEME (0.31) is better than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.47
WACC6.1%
2.3 Liquidity
A Current Ratio of 0.88 indicates that DEME may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, DEME is doing worse than 81.58% of the companies in the same industry.
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.
DEME's Quick ratio of 0.87 is on the low side compared to the rest of the industry. DEME is outperformed by 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
DEME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.84%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.91% on average over the past years.
Looking at the last year, DEME shows a very strong growth in Revenue. The Revenue has grown by 31.29%.
The Revenue has been growing slightly by 4.43% on average over the past years.
EPS 1Y (TTM)164.84%
EPS 3Y47.8%
EPS 5Y0.91%
EPS Q2Q%367.51%
Revenue 1Y (TTM)31.29%
Revenue growth 3Y14.38%
Revenue growth 5Y4.43%
Sales Q2Q%29.89%
3.2 Future
The Earnings Per Share is expected to grow by 23.74% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y122.03%
EPS Next 2Y48.15%
EPS Next 3Y33.63%
EPS Next 5Y23.74%
Revenue Next Year32.37%
Revenue Next 2Y15.57%
Revenue Next 3Y11.37%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DEME is valuated correctly with a Price/Earnings ratio of 12.10.
DEME's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.47. DEME is valued rather cheaply when compared to this.
DEME is valuated reasonably with a Price/Forward Earnings ratio of 11.05.
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 (92.74), we can say DEME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEME is valued a bit cheaper than 63.16% of the companies in the same industry.
DEME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DEME is cheaper than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
The 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.
DEME's earnings are expected to grow with 33.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)13.33
EPS Next 2Y48.15%
EPS Next 3Y33.63%
5. Dividend
5.1 Amount
DEME has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
DEME's Dividend Yield is slightly below the industry average, which is at 3.72.
Compared to an average S&P500 Dividend Yield of 2.28, DEME's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y48.15%
EPS Next 3Y33.63%
DEME GROUP
EBR:DEME (2/5/2025, 1:35:10 PM)
130.8
-3.2 (-2.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners7.3%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.31B
Analysts82.86
Price Target188.19 (43.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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%
PT rev (3m)2.64%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)10.36%
EPS NY rev (3m)10.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.74%
Revenue NY rev (3m)3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.89 | ||
| P/FCF | 6.34 | ||
| P/OCF | 3.8 | ||
| P/B | 1.66 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)10.81
EY8.26%
EPS(NY)11.84
Fwd EY9.05%
FCF(TTM)20.62
FCFY15.77%
OCF(TTM)34.45
OCFY26.34%
SpS147.23
BVpS78.87
TBVpS77.49
PEG (NY)0.1
PEG (5Y)13.33
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 | 1.85 |
F-Score7
WACC6.1%
ROIC/WACC1.47
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)164.84%
EPS 3Y47.8%
EPS 5Y0.91%
EPS Q2Q%367.51%
EPS Next Y122.03%
EPS Next 2Y48.15%
EPS Next 3Y33.63%
EPS Next 5Y23.74%
Revenue 1Y (TTM)31.29%
Revenue growth 3Y14.38%
Revenue growth 5Y4.43%
Sales Q2Q%29.89%
Revenue Next Year32.37%
Revenue Next 2Y15.57%
Revenue Next 3Y11.37%
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%