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 Peers
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$5.71|
|52 Week High||AU$6.87|
|52 Week Low||AU$4.79|
|1 Month Change||4.96%|
|3 Month Change||6.13%|
|1 Year Change||1.78%|
|3 Year Change||-27.81%|
|5 Year Change||-10.64%|
|Change since IPO||252.47%|
Recent News & Updates
|DOW||AU Commercial Services||AU Market|
Return vs Industry: DOW exceeded the Australian Commercial Services industry which returned -2.8% over the past year.
Return vs Market: DOW exceeded the Australian Market which returned 0.5% over the past year.
|DOW Average Weekly Movement||4.6%|
|Commercial Services Industry Average Movement||7.5%|
|Market Average Movement||9.4%|
|10% most volatile stocks in AU Market||16.5%|
|10% least volatile stocks in AU Market||4.3%|
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.
About the Company
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|
Is DOW overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DOW income statement (TTM)|
|Cost of Revenue||AU$9.91b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 17, 2022
|Earnings per share (EPS)||0.28|
|Net Profit Margin||1.70%|
How did DOW perform over the long term?See historical performance and comparison
4.2%Current Dividend Yield
How is Downer EDI forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DOW's forecast earnings growth (13.4% per year) is above the savings rate (1.8%).
Earnings vs Market: DOW's earnings (13.4% per year) are forecast to grow faster than the Australian market (6.1% per year).
High Growth Earnings: DOW's earnings are forecast to grow, but not significantly.
Revenue vs Market: DOW's revenue (3.5% per year) is forecast to grow slower than the Australian market (4.8% per year).
High Growth Revenue: DOW's revenue (3.5% 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 (9.8%).
How has Downer EDI performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DOW has a large one-off gain of A$106.1M impacting its December 31 2021 financial results.
Growing Profit Margin: DOW became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DOW's earnings have declined by 15.6% 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 (3.7%).
Return on Equity
High ROE: DOW's Return on Equity (6.8%) is considered low.
How is Downer EDI's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: DOW's short term assets (A$2.9B) exceed its short term liabilities (A$2.7B).
Long Term Liabilities: DOW's short term assets (A$2.9B) exceed its long term liabilities (A$1.7B).
Debt to Equity History and Analysis
Debt Level: DOW's net debt to equity ratio (19.8%) is considered satisfactory.
Reducing Debt: DOW's debt to equity ratio has increased from 29.2% to 43.2% over the past 5 years.
Debt Coverage: DOW's debt is well covered by operating cash flow (50.4%).
Interest Coverage: DOW's interest payments on its debt are not well covered by EBIT (2.1x coverage).
What is Downer EDI current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DOW's dividend (4.2%) is higher than the bottom 25% of dividend payers in the Australian market (2.57%).
High Dividend: DOW's dividend (4.2%) is low compared to the top 25% of dividend payers in the Australian market (6.13%).
Stability and Growth of Payments
Stable Dividend: DOW has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: DOW's dividend payments have increased, but the company has only paid a dividend for 9 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (87.6%), DOW's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (47%), DOW's dividend payments are well covered by cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Grant Fenn (56 yo)
Mr. Grant Anthony Fenn, BEc, CA has been the Chief Executive Officer and Managing Director of Downer EDI Limited since July 30, 2010. Mr. Fenn has experience in operational management, strategic developmen...
CEO Compensation Analysis
Compensation vs Market: Grant's total compensation ($USD2.29M) is about average for companies of similar size in the Australian market ($USD2.00M).
Compensation vs Earnings: Grant's compensation has been consistent with company performance over the past year.
Experienced Management: DOW's management team is considered experienced (2.1 years average tenure).
Experienced Board: DOW's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Downer EDI Limited's employee growth, exchange listings and data sources
- Name: Downer EDI Limited
- Ticker: DOW
- Exchange: ASX
- Founded: 1989
- Industry: Diversified Support Services
- Sector: Commercial Services
- Implied Market Cap: AU$3.851b
- Shares outstanding: 674.48m
- Website: https://www.downergroup.com
Number of Employees
- Downer EDI Limited
- Triniti Business Campus
- Level 2
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/16 00:00|
|End of Day Share Price||2022/05/16 00:00|
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.