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
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
| RDSM | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | -0.6% | -1.3% |
| 30 Day | 4.6% | 2.9% | 0.4% |
| 90 Day | -0.8% | 2.9% | -1.2% |
| 1 Year | 28.5%25.7% | 12.9%9.5% | 7.2%3.5% |
| 3 Year | n/a | 18.6%7.9% | 27.3%15.8% |
| 5 Year | n/a | 30.4%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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-CEO & Member of the Managing Board | 0yrs | €2.19m | 0.059% €11.4m | |
| Co-CEO & Member of the Managing Board | 0yrs | €2.27m | 0.057% €11.0m | |
| Executive Officer | 0yrs | €3.38m | 0.16% €30.4m | |
| Chief Innovation Officer & Member of Executive Committee | 0.5yrs | no data | no data | |
| Senior VP of Corporate Control & Accounting and Group Controller | 7.5yrs | no data | no data | |
| Chief Technology Officer | 2.8yrs | no data | no data | |
| Vice President of Investor Relations | 7.6yrs | no data | no data | |
| Director of Legal Affairs and General Counsel | 7.8yrs | no data | no data | |
| Executive VP of Group People & Organisation | 2.1yrs | no data | no data | |
| Head of Energie Beheer Nederland | 0yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Member of Supervisory Board | 7.8yrs | €94.25k | 0.00018% €34.8k | |
| Chairman of Supervisory Board | 8.8yrs | €107.25k | no data | |
| Member of Supervisory Board | 2.8yrs | €82.45k | 0.00063% €122.0k | |
| Deputy Chairwoman of Supervisory Board | 0yrs | €82.25k | 0.00092% €178.1k | |
| Member of External Sustainability Advisory Board | 0yrs | no data | no data | |
| Member of External Sustainability Advisory Board | 0yrs | no data | no data | |
| Member of Supervisory Board | 7.8yrs | €90.25k | no data | |
| Member of Supervisory Board | 3.8yrs | €98.25k | no data | |
| Member of External Sustainability Advisory Board | 0yrs | no data | no data | |
| Member of Sustainability Advisory Board | 4yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DSM | ENXTAM (Euronext Amsterdam) | Yes | Ordinary Shares | NL | EUR | Jan 1992 |
| DSM2 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| DSM | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 1992 |
| KDSK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| 0NPP | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| DSMA | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Jan 1992 |
| RDSM | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Jan 1992 |
| DSM N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jan 1992 |
| DSM2 | ETLX (Eurotlx) | Yes | Ordinary Shares | IT | EUR | Jan 1992 |
| RDSM.Y | OTCPK (Pink Sheets LLC) | SPON ADR | US | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 23:09 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.