| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
DOW Stock Overview
Downer EDI Limited operates as an integrated services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa.
Downer EDI Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$5.40 |
| 52 Week High | AU$6.87 |
| 52 Week Low | AU$4.93 |
| Beta | 1.58 |
| 1 Month Change | -8.48% |
| 3 Month Change | -16.54% |
| 1 Year Change | 0.19% |
| 3 Year Change | -25.82% |
| 5 Year Change | -16.41% |
| Change since IPO | 233.33% |
Recent News & Updates
There Are Reasons To Feel Uneasy About Downer EDI's (ASX:DOW) Returns On Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Is There Now An Opportunity In Downer EDI Limited (ASX:DOW)?
While Downer EDI Limited ( ASX:DOW ) might not be the most widely known stock at the moment, it saw significant share...
We Think The Compensation For Downer EDI Limited's (ASX:DOW) CEO Looks About Right
Performance at Downer EDI Limited ( ASX:DOW ) has been reasonably good and CEO Grant Fenn has done a decent job of...
Downer EDI (ASX:DOW) Has A Pretty Healthy Balance Sheet
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Shareholder Returns
| DOW | AU Commercial Services | AU Market | |
|---|---|---|---|
| 7D | -6.6% | -3.2% | -2.8% |
| 1Y | 0.2% | 0.3% | 5.8% |
Return vs Industry: DOW matched the Australian Commercial Services industry which returned 0.3% over the past year.
Return vs Market: DOW underperformed the Australian Market which returned 5.8% over the past year.
Price Volatility
| DOW volatility | |
|---|---|
| DOW Average Weekly Movement | 3.1% |
| Commercial Services Industry Average Movement | 8.9% |
| Market Average Movement | 8.6% |
| 10% most volatile stocks in AU Market | 15.4% |
| 10% least volatile stocks in AU Market | 3.7% |
Stable Share Price: DOW is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: DOW's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 44,000 | Grant Fenn | https://www.downergroup.com |
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; routine road maintenance; asset management systems; spray sealing; asphalt laying; and manufacture and supply of bitumen-based products and asphalt products. This segment also engages in the design and construction of light and heavy rail networks, signaling works, track and station works, and bridges; and provides rail safety technology, fleet maintenance, and overhaul services.
Downer EDI Fundamentals Summary
| DOW fundamental statistics | |
|---|---|
| Market Cap | AU$3.69b |
| Earnings (TTM) | AU$175.80m |
| Revenue (TTM) | AU$11.54b |
21.0x
P/E Ratio0.3x
P/S RatioIs DOW overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DOW income statement (TTM) | |
|---|---|
| Revenue | AU$11.54b |
| Cost of Revenue | AU$10.18b |
| Gross Profit | AU$1.37b |
| Expenses | AU$1.19b |
| Earnings | AU$175.80m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 10, 2022
| Earnings per share (EPS) | 0.26 |
| Gross Margin | 11.84% |
| Net Profit Margin | 1.52% |
| Debt/Equity Ratio | 51.0% |
How did DOW perform over the long term?
See historical performance and comparisonDividends
4.4%
Current Dividend Yield83%
Payout RatioValuation
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$5.4) is trading below our estimate of fair value (A$15.78)
Significantly Below Fair Value: DOW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DOW is poor value based on its PE Ratio (21x) compared to the Australian Commercial Services industry average (20.8x).
PE vs Market: DOW is poor value based on its PE Ratio (21x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: DOW is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: DOW is good value based on its PB Ratio (1.3x) compared to the AU Commercial Services industry average (2.3x).
Future Growth
How is Downer EDI forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
14.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DOW's forecast earnings growth (14.4% per year) is above the savings rate (1.9%).
Earnings vs Market: DOW's earnings (14.4% per year) are forecast to grow faster than the Australian market (11.1% per year).
High Growth Earnings: DOW's earnings are forecast to grow, but not significantly.
Revenue vs Market: DOW's revenue (2.4% per year) is forecast to grow slower than the Australian market (4.8% per year).
High Growth Revenue: DOW's revenue (2.4% 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 (10.6%).
Past Performance
How has Downer EDI performed over the past 5 years?
-26.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DOW has high quality earnings.
Growing Profit Margin: DOW became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DOW's earnings have declined by 26.5% per year over the past 5 years.
Accelerating Growth: DOW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DOW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.5%).
Return on Equity
High ROE: DOW's Return on Equity (6.2%) is considered low.
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$3.3B).
Long Term Liabilities: DOW's short term assets (A$3.4B) exceed its long term liabilities (A$1.8B).
Debt to Equity History and Analysis
Debt Level: DOW's net debt to equity ratio (23.5%) is considered satisfactory.
Reducing Debt: DOW's debt to equity ratio has increased from 29.9% to 51% over the past 5 years.
Debt Coverage: DOW's debt is well covered by operating cash flow (47%).
Interest Coverage: DOW's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Dividend
What is Downer EDI current dividend yield, its reliability and sustainability?
4.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DOW's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Australian market (2.25%).
High Dividend: DOW's dividend (4.44%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).
Stability and Growth of Payments
Stable Dividend: DOW has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: DOW's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (82.8%), DOW's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DOW's dividends in 3 years are forecast to be covered by earnings (62.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Grant Fenn (56 yo)
11.5yrs
Tenure
AU$3,313,168
Compensation
Mr. Grant Anthony Fenn, B Ec, CA has been the Chief Executive Officer and Managing Director of Downer EDI Limited since July 30, 2010. Mr. Fenn has experience in operational management, strategic developme...
CEO Compensation Analysis
Compensation vs Market: Grant's total compensation ($USD2.39M) is above average for companies of similar size in the Australian market ($USD1.73M).
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 not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
Experienced Board: DOW's board of directors are considered experienced (3.6 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Downer EDI Limited's 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
- Implied Market Cap: AU$3.685b
- Shares outstanding: 682.47m
- Website: https://www.downergroup.com
Number of Employees
Location
- Downer EDI Limited
- Triniti Business Campus
- Level 2
- Sydney
- New South Wales
- 2113
- Australia
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 07:02 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.