Downer EDI
Market Cap
AU$3.9b
Last Updated
2020/11/26 07:01 UTC
Data Sources
Company Financials +
Executive Summary
Downer EDI Limited operates as a 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 +/- 6% a week.
Volatility Over Time: DOW's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
DOW
0.2%
AU Commercial Services
2.4%
AU Market
1 Year Return
-36.0%
DOW
-13.7%
AU Commercial Services
-0.6%
AU Market
Return vs Industry: DOW underperformed the Australian Commercial Services industry which returned -13.7% over the past year.
Return vs Market: DOW underperformed the Australian Market which returned -0.6% over the past year.
Shareholder returns
| DOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 0.2% | 2.4% |
| 30 Day | 16.5% | 7.3% | 8.0% |
| 90 Day | 23.7% | 2.2% | 8.8% |
| 1 Year | -33.4%-36.0% | -11.5%-13.7% | 2.7%-0.6% |
| 3 Year | -13.8%-23.3% | 8.9%-2.3% | 24.3%9.0% |
| 5 Year | 89.1%52.8% | 36.4%13.7% | 56.9%25.7% |
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 Is Downer EDI's (ASX:DOW) CEO Getting Paid?1 month ago | Simply Wall St
What Kind Of Investors Own Most Of Downer EDI Limited (ASX:DOW)?2 months ago | Simply Wall St
Downer EDI's (ASX:DOW) Shareholders Are Down 44% On Their SharesValuation
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$5.38) is trading below our estimate of fair value (A$10.83)
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 (2.1x).
Next Steps
Future Growth
How is Downer EDI forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
40.5%
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 (2.3%).
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 (5.7% per year) is forecast to grow faster than the Australian market (5.1% per year).
High Growth Revenue: DOW's revenue (5.7% 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 (11%).
Next Steps
Past Performance
How has Downer EDI performed over the past 5 years?
-12.6%
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 12.6% 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 (2.6%).
Return on Equity
High ROE: DOW has a negative Return on Equity (-5.94%), as it is currently unprofitable.
Next Steps
Financial Health
How is Downer EDI's financial position?
Financial Position Analysis
Short Term Liabilities: DOW's short term assets (A$3.4B) exceed its short term liabilities (A$3.2B).
Long Term Liabilities: DOW's short term assets (A$3.4B) exceed its long term liabilities (A$2.9B).
Debt to Equity History and Analysis
Debt Level: DOW's debt to equity ratio (79.1%) is considered high.
Reducing Debt: DOW's debt to equity ratio has increased from 24.4% to 79.1% over the past 5 years.
Debt Coverage: DOW's debt is not well covered by operating cash flow (8.6%).
Interest Coverage: DOW is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Downer EDI current dividend yield, its reliability and sustainability?
4.33%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DOW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DOW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DOW's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DOW's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: DOW is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DOW's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Grant Fenn (55 yo)
10.33yrs
Tenure
AU$3,073,225
Compensation
Mr. Grant Anthony Fenn, B Ec, CA has been the Chief Executive Officer and Managing Director of Downer EDI Limited since July 30, 2010. Mr. Fenn has experience in operational management, strategic developme...
CEO Compensation Analysis
Compensation vs Market: Grant's total compensation ($USD2.26M) is about average for companies of similar size in the Australian market ($USD1.88M).
Compensation vs Earnings: Grant's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 10.33yrs | AU$3.07m | 0.29% A$ 11.4m | |
| Chief Financial Officer | 4.08yrs | AU$1.29m | 0.00029% A$ 11.3k | |
| Chief Operating Officer of Australian Operations | 5.75yrs | AU$1.66m | 0.038% A$ 1.5m | |
| Chief Executive Officer of New Zealand Business | 3.83yrs | AU$1.28m | 0.0022% A$ 86.1k | |
| Group Head of Corporate Affairs & Investors Relations | no data | no data | no data | |
| Group General Counsel & Company Secretary | 1.83yrs | no data | no data | |
| Group Head of Human Resources & Industrial Relations | 3.25yrs | no data | no data | |
| Group Head of Strategy | 5.75yrs | AU$2.37m | no data | |
| Group Head of Zero Harm | 5.83yrs | no data | no data | |
| Company Secretary | 9.33yrs | no data | no data | |
| Chief Operating Officer of Downer Austrilia Specialist Services | no data | no data | no data | |
| Chief Operating Officer of Major Projects - Downer Infrastructure | no data | no data | no data |
5.8yrs
Average Tenure
Experienced Management: DOW's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 10.33yrs | AU$3.07m | 0.29% A$ 11.4m | |
| Independent Non-Executive Director | 1.5yrs | AU$161.33k | 0.0026% A$ 99.7k | |
| Independent Non Executive Chairman | 10yrs | AU$359.30k | 0.0049% A$ 188.9k | |
| Independent Non-Executive Director | 2.42yrs | AU$187.38k | 0.0019% A$ 75.3k | |
| Independent Non-Executive Director | 9yrs | AU$167.12k | 0.0034% A$ 130.7k | |
| Independent Non-Executive Director | 4.17yrs | AU$167.12k | 0.0029% A$ 111.3k |
4.2yrs
Average Tenure
60.5yo
Average Age
Experienced Board: DOW's board of directors are considered experienced (4.2 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.1%.
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$3.880b
- Shares outstanding: 699.06m
- Website: https://www.downergroup.com
Number of Employees
Location
- Downer EDI Limited
- Triniti Business Campus
- Level 2
- Sydney
- New South Wales
- 2113
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DOW | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jun 1998 |
| DNE | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 1998 |
| DOW | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jun 1998 |
Biography
Downer EDI Limited operates as a services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa. Its Transport segment provides road network management and road, asset ma...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 07:01 |
| End of Day Share Price | 2020/11/26 00:00 |
| Earnings | 2020/06/30 |
| 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.