Downer EDI
Market Cap
AU$3.9b
Last Updated
2021/05/07 12:50 UTC
Data Sources
Company Financials +
Executive Summary
Downer EDI Limited operates as an integrated services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential and fair value.
Similar Companies
Share Price & News
How has Downer EDI's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DOW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DOW's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-0.7%
DOW
0.4%
AU Commercial Services
0.3%
AU Market
1 Year Return
37.7%
DOW
17.6%
AU Commercial Services
35.9%
AU Market
Return vs Industry: DOW exceeded the Australian Commercial Services industry which returned 17.6% over the past year.
Return vs Market: DOW matched the Australian Market which returned 37.3% over the past year.
Shareholder returns
| DOW | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | 0.4% | 0.3% |
| 30 Day | 6.9% | 4.6% | 1.8% |
| 90 Day | 1.6% | 2.7% | 2.8% |
| 1 Year | 42.6%37.7% | 21.0%17.6% | 39.9%35.9% |
| 3 Year | -12.6%-21.8% | 8.8%2.8% | 30.1%14.7% |
| 5 Year | 74.8%44.4% | 11.2%4.1% | 60.1%29.9% |
Long-Term Price Volatility Vs. Market
How volatile is Downer EDI's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Much Of Downer EDI Limited (ASX:DOW) Do Institutions Own?3 weeks ago | Simply Wall St
Does Downer EDI (ASX:DOW) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
Did You Miss Downer EDI's (ASX:DOW) 86% Share Price Gain?Valuation
Is Downer EDI undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DOW (A$5.59) is trading below our estimate of fair value (A$12.15)
Significantly Below Fair Value: DOW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DOW is unprofitable, so we can't compare its PE Ratio to the AU Commercial Services industry average.
PE vs Market: DOW is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DOW's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: DOW is good value based on its PB Ratio (1.4x) compared to the AU Commercial Services industry average (2.6x).
Future Growth
How is Downer EDI forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
27.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DOW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: DOW is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: DOW's is expected to become profitable in the next 3 years.
Revenue vs Market: DOW's revenue (5.8% per year) is forecast to grow faster than the Australian market (5.3% per year).
High Growth Revenue: DOW's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DOW's Return on Equity is forecast to be low in 3 years time (12%).
Past Performance
How has Downer EDI performed over the past 5 years?
-28.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DOW is currently unprofitable.
Growing Profit Margin: DOW is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: DOW is unprofitable, and losses have increased over the past 5 years at a rate of 28.7% per year.
Accelerating Growth: Unable to compare DOW's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DOW is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.2%).
Return on Equity
High ROE: DOW has a negative Return on Equity (-5.83%), as it is currently unprofitable.
Financial Health
How is Downer EDI's financial position?
Financial Position Analysis
Short Term Liabilities: DOW's short term assets (A$3.6B) exceed its short term liabilities (A$3.0B).
Long Term Liabilities: DOW's short term assets (A$3.6B) exceed its long term liabilities (A$2.4B).
Debt to Equity History and Analysis
Debt Level: DOW's debt to equity ratio (58.1%) is considered high.
Reducing Debt: DOW's debt to equity ratio has increased from 31% to 58.1% over the past 5 years.
Debt Coverage: DOW's debt is well covered by operating cash flow (31.2%).
Interest Coverage: DOW is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Dividend
What is Downer EDI current dividend yield, its reliability and sustainability?
3.22%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DOW's dividend (3.22%) is higher than the bottom 25% of dividend payers in the Australian market (2.03%).
High Dividend: DOW's dividend (3.22%) is low compared to the top 25% of dividend payers in the Australian market (5.25%).
Stability and Growth of Payments
Stable Dividend: DOW's dividend payments have been volatile in the past 10 years.
Growing Dividend: DOW's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: DOW is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: DOW's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Grant Fenn (55 yo)
10.83yrs
Tenure
AU$3,073,225
Compensation
Mr. Grant Anthony Fenn, B Ec, CA has been the Chief Executive Officer and Managing Director of Downer EDI Limited since July 30, 2010. Mr. Fenn has experience in operational management, strategic developme...
CEO Compensation Analysis
Compensation vs Market: Grant's total compensation ($USD2.39M) is above average for companies of similar size in the Australian market ($USD1.72M).
Compensation vs Earnings: Grant's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DOW's management team is seasoned and experienced (6.3 years average tenure).
Board Members
Experienced Board: DOW's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DOW insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.2%.
Top Shareholders
Company Information
Downer EDI Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Downer EDI Limited
- Ticker: DOW
- Exchange: ASX
- Founded: 1989
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: AU$3.941b
- Shares outstanding: 700.04m
- Website: https://www.downergroup.com
Number of Employees
Location
- Downer EDI Limited
- Triniti Business Campus
- Level 2
- Sydney
- New South Wales
- 2113
- Australia
Listings
Biography
Downer EDI Limited operates as an integrated services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa. Its Transport segment provides road network management; routi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 12:50 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.