ASX:DEM

Stock Analysis Report

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Market Cap

AU$62.8m

Last Updated

2021/08/01 08:02 UTC

Data Sources

Company Financials +

Executive Summary

De.mem Limited designs, builds, owns, and operates de-centralized water and waste water treatment systems for its customers in industrial, municipal, and residential sectors in Singapore, Australia, and Germany. More Details


Snowflake Analysis

High growth potential with excellent balance sheet.

Share Price & News

How has De.mem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DEM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DEM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.5%

DEM

-0.1%

AU Water Utilities

-0.1%

AU Market


1 Year Return

81.3%

DEM

-2.4%

AU Water Utilities

27.3%

AU Market

Return vs Industry: DEM exceeded the Australian Water Utilities industry which returned -2.4% over the past year.

Return vs Market: DEM exceeded the Australian Market which returned 27.3% over the past year.


Shareholder returns

DEMIndustryMarket
7 Day5.5%-0.1%-0.1%
30 Day1.8%1.8%1.5%
90 Day3.6%-0.2%4.4%
1 Year81.3%81.3%2.2%-2.4%31.9%27.3%
3 Year113.2%107.1%31.8%18.3%32.7%16.8%
5 Yearn/a27.5%8.5%62.5%31.0%

Long-Term Price Volatility Vs. Market

How volatile is De.mem's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is De.mem undervalued compared to its fair value and its price relative to the market?

7.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DEM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DEM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DEM is unprofitable, so we can't compare its PE Ratio to the Global Water Utilities industry average.

PE vs Market: DEM 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 DEM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DEM is overvalued based on its PB Ratio (7.6x) compared to the XX Water Utilities industry average (1.2x).


Future Growth

How is De.mem forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

76.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: DEM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DEM's is expected to become profitable in the next 3 years.

Revenue vs Market: DEM's revenue (26.1% per year) is forecast to grow faster than the Australian market (5.4% per year).

High Growth Revenue: DEM's revenue (26.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DEM's Return on Equity is forecast to be low in 3 years time (17.9%).


Past Performance

How has De.mem performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEM is currently unprofitable.

Growing Profit Margin: DEM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DEM is unprofitable, and losses have increased over the past 5 years at a rate of 7.5% per year.

Accelerating Growth: Unable to compare DEM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DEM is unprofitable, making it difficult to compare its past year earnings growth to the Water Utilities industry (11.4%).


Return on Equity

High ROE: DEM has a negative Return on Equity (-52.7%), as it is currently unprofitable.


Financial Health

How is De.mem's financial position?


Financial Position Analysis

Short Term Liabilities: DEM's short term assets (A$7.5M) exceed its short term liabilities (A$4.1M).

Long Term Liabilities: DEM's short term assets (A$7.5M) exceed its long term liabilities (A$422.2K).


Debt to Equity History and Analysis

Debt Level: DEM's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DEM's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DEM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: DEM has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of 9.8% each year.


Dividend

What is De.mem current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DEM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DEM'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 DEM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DEM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DEM'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?

1.3yrs

Average management tenure


CEO

Andreas Kroell

5.5yrs

Tenure

AU$387,764

Compensation

Mr. Andreas Richard Kroell has been Chief Executive Officer of De.mem Limited since 2016. Mr. Kroell has been a Partner of New Asia Investments Pte. Ltd. since 2012. Mr. Kroell is the Chief Financial Offic...


CEO Compensation Analysis

Compensation vs Market: Andreas's total compensation ($USD284.87K) is about average for companies of similar size in the Australian market ($USD271.02K).

Compensation vs Earnings: Andreas's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DEM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: DEM'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: 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 23.4%.


Top Shareholders

Company Information

De.mem Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: De.mem Limited
  • Ticker: DEM
  • Exchange: ASX
  • Founded: 2013
  • Industry: Water Utilities
  • Sector: Utilities
  • Market Cap: AU$62.829m
  • Shares outstanding: 216.65m
  • Website: https://www.demembranes.com

Location

  • De.mem Limited
  • 96-100 Albert Road
  • Level 4
  • Melbourne
  • Victoria
  • 3205
  • Australia

Listings


Biography

De.mem Limited designs, builds, owns, and operates de-centralized water and waste water treatment systems for its customers in industrial, municipal, and residential sectors in Singapore, Australia, and Ge...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 08:02
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.