ASX:DOW

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Executive Summary

Downer EDI Limited operates as a services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa. More Details


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

DOWIndustryMarket
7 Day2.3%0.2%2.4%
30 Day16.5%7.3%8.0%
90 Day23.7%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 Year89.1%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

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$5.38) 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

NamePositionTenureCompensationOwnership
Grant Fenn
MD, CEO & Director10.33yrsAU$3.07m0.29%
A$ 11.4m
Michael Ferguson
Chief Financial Officer4.08yrsAU$1.29m0.00029%
A$ 11.3k
Sergio Cinerari
Chief Operating Officer of Australian Operations5.75yrsAU$1.66m0.038%
A$ 1.5m
Steve Killeen
Chief Executive Officer of New Zealand Business3.83yrsAU$1.28m0.0022%
A$ 86.1k
Michael Sharp
Group Head of Corporate Affairs & Investors Relationsno datano datano data
Robert Regan
Group General Counsel & Company Secretary1.83yrsno datano data
Steve Schofield
Group Head of Human Resources & Industrial Relations3.25yrsno datano data
David Cattell
Group Head of Strategy5.75yrsAU$2.37mno data
Julie Wills
Group Head of Zero Harm5.83yrsno datano data
Peter Lyons
Company Secretary9.33yrsno datano data
John MacLellan
Chief Operating Officer of Downer Austrilia Specialist Servicesno datano datano data
Peter Short
Chief Operating Officer of Major Projects - Downer Infrastructureno datano datano data

5.8yrs

Average Tenure

Experienced Management: DOW's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Grant Fenn
MD, CEO & Director10.33yrsAU$3.07m0.29%
A$ 11.4m
Peter Watson
Independent Non-Executive Director1.5yrsAU$161.33k0.0026%
A$ 99.7k
Richard Harding
Independent Non Executive Chairman10yrsAU$359.30k0.0049%
A$ 188.9k
Nicole Hollows
Independent Non-Executive Director2.42yrsAU$187.38k0.0019%
A$ 75.3k
Philip Garling
Independent Non-Executive Director9yrsAU$167.12k0.0034%
A$ 130.7k
Teresa Handicott
Independent Non-Executive Director4.17yrsAU$167.12k0.0029%
A$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DOWASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1998
DNEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1998
DOWCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 07:01
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.