WBAG:RDSM

Stock Analysis Report

Executive Summary

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and materials businesses in the Netherlands, North America, the United Kingdom, France, Germany, Switzerland, the Asia-Pacific, and internationally..

Rewards

Earnings are forecast to grow 10.5% per year

Pays a high and reliable dividend of 2.07%

Risk Analysis

No risks detected for RDSM from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Koninklijke DSM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RDSM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

RDSM

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

25.7%

RDSM

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: RDSM exceeded the Austrian Chemicals industry which returned 9.5% over the past year.

Return vs Market: RDSM exceeded the Austrian Market which returned 3.5% over the past year.


Shareholder returns

RDSMIndustryMarket
7 Day0.3%-0.6%-1.3%
30 Day4.6%2.9%0.4%
90 Day-0.8%2.9%-1.2%
1 Year28.5%25.7%12.9%9.5%7.2%3.5%
3 Yearn/a18.6%7.9%27.3%15.8%
5 Yearn/a30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

How volatile is Koninklijke DSM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Koninklijke DSM undervalued compared to its fair value and its price relative to the market?

27.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RDSM (€115.9) is trading above our estimate of fair value (€88.23)

Significantly Below Fair Value: RDSM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RDSM is poor value based on its PE Ratio (27.2x) compared to the Chemicals industry average (16.3x).

PE vs Market: RDSM is poor value based on its PE Ratio (27.2x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: RDSM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: RDSM is overvalued based on its PB Ratio (2.6x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Koninklijke DSM forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDSM's forecast earnings growth (10.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: RDSM's earnings (10.5% per year) are forecast to grow faster than the Austrian market (2.3% per year).

High Growth Earnings: RDSM's earnings are forecast to grow, but not significantly.

Revenue vs Market: RDSM's revenue (4% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: RDSM's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDSM's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Koninklijke DSM performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDSM has high quality earnings.

Growing Profit Margin: RDSM's current net profit margins (8.3%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: RDSM's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: RDSM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RDSM had negative earnings growth (-29.8%) over the past year, making it difficult to compare to the Chemicals industry average (2.5%).


Return on Equity

High ROE: RDSM's Return on Equity (9.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Koninklijke DSM's financial position?


Financial Position Analysis

Short Term Liabilities: RDSM's short term assets (€5.2B) exceed its short term liabilities (€2.2B).

Long Term Liabilities: RDSM's short term assets (€5.2B) exceed its long term liabilities (€3.4B).


Debt to Equity History and Analysis

Debt Level: RDSM's debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: RDSM's debt to equity ratio has reduced from 52.9% to 30.5% over the past 5 years.

Debt Coverage: RDSM's debt is well covered by operating cash flow (57.9%).

Interest Coverage: RDSM's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet

Inventory Level: RDSM has a high level of physical assets or inventory.

Debt Coverage by Assets: RDSM's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Koninklijke DSM's current dividend yield, its reliability and sustainability?

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.6%markettop25%4.6%industryaverage3.0%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: RDSM's dividend (2.07%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: RDSM's dividend (2.07%) is low compared to the top 25% of dividend payers in the Austrian market (4.58%).


Stability and Growth of Payments

Stable Dividend: RDSM's dividends per share have been stable in the past 10 years.

Growing Dividend: RDSM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.2%), RDSM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDSM's dividends in 3 years are forecast to be well covered by earnings (43.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Dimitri de Vreeze (52yo)

€2,188,000

Compensation

Mr. Dimitri de Vreeze serves as President of DSM Resins at DSM-AGI Corporation. Mr. de Vreeze has been a Member of Management Board at Koninklijke DSM N.V., (also known as Royal DSM N.V.) since September 1 ...


CEO Compensation Analysis

Compensation vs Market: Dimitri's total compensation ($USD2.38M) is below average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Dimitri's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dimitri de Vreeze
Co-CEO & Member of the Managing Board0yrs€2.19m0.059% 11.4m
Geraldine Matchett
Co-CEO & Member of the Managing Board0yrs€2.27m0.057% 11.0m
Feike Sijbesma
Executive Officer0yrs€3.38m0.16% 30.4m
Patricia Malarkey
Chief Innovation Officer & Member of Executive Committee0.5yrsno datano data
Jos Heij
Senior VP of Corporate Control & Accounting and Group Controller7.5yrsno datano data
Marcus Remmers
Chief Technology Officer2.8yrsno datano data
Dave Huizing
Vice President of Investor Relations7.6yrsno datano data
Cees Los
Director of Legal Affairs and General Counsel7.8yrsno datano data
Judith Wiese
Executive VP of Group People & Organisation2.1yrsno datano data
Rob Atsma
Head of Energie Beheer Nederland0yrsno datano data

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: RDSM's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Victoria Haynes
Member of Supervisory Board7.8yrs€94.25k0.00018% 34.8k
Robert Routs
Chairman of Supervisory Board8.8yrs€107.25kno data
John Ramsay
Member of Supervisory Board2.8yrs€82.45k0.00063% 122.0k
Pauline Françoise van der Meer Mohr
Deputy Chairwoman of Supervisory Board0yrs€82.25k0.00092% 178.1k
Paul Gilding
Member of External Sustainability Advisory Board0yrsno datano data
David King
Member of External Sustainability Advisory Board0yrsno datano data
Eileen Kennedy
Member of Supervisory Board7.8yrs€90.25kno data
Pradeep Pant
Member of Supervisory Board3.8yrs€98.25kno data
Ye Qi
Member of External Sustainability Advisory Board0yrsno datano data
Ndidi Nwuneli
Member of Sustainability Advisory Board4yrsno datano data

5.9yrs

Average Tenure

69yo

Average Age

Experienced Board: RDSM's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Koninklijke DSM N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koninklijke DSM N.V.
  • Ticker: RDSM
  • Exchange: WBAG
  • Founded: 1902
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €19.361b
  • Shares outstanding: 166.83m
  • Website: https://www.dsm.com

Number of Employees


Location

  • Koninklijke DSM N.V.
  • Het Overloon 1
  • PO Box 6500
  • Heerlen
  • Limburg
  • 6411 TE
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DSMENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
DSM2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
DSMSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
KDSK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0NPPLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
DSMABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
RDSMWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
DSM NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
DSM2ETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
RDSM.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDSep 1995

Biography

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and materials businesses in the Netherlands, North America, the United Kingdom, France, Germany, Switzerland, the Asia-Pacific, and internationally.. The company operates through Nutrition, Materials, and Innovation Center segments. The Nutrition segment offers nutrients, such as vitamins, carotenoids, nutritional lipids, and other ingredients to feed, food, pharmaceutical, and personal care industries; and food enzymes, cultures, yeast extracts, savory flavors, hydrocolloids, and other specialty ingredients for dairy, baking, beverage, and savory applications. The Materials segment provides specialty plastics for the electrical and electronics, automotive, flexible food packaging, and consumer goods industries; Dyneema, a fiber solution for protective solutions and commercial marine applications; and resins solutions for paints and industrial, and optical fiber coatings. The Innovation Center segment offers cellulosic and starch-based bio-ethanol, and bio-based succinic acids; anti-reflective coatings for solar glass; and anti-soiling coatings for use in cleaning and maintaining solar farms in desert-like conditions. This segment also produces biomedical materials and technologies that enable medical device manufacturers to enhance care across various medical specialties. Koninklijke DSM N.V. has a collaboration with Strait Access Technologies to develop transcatheter replacement heart valves with polymeric leaflets. The company was founded in 1902 and is headquartered in Heerlen, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:09
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.