Downer EDI Limited operates as a services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa.
Undervalued established dividend payer.
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: DNE's share price has been volatile over the past 3 months.
7 Day Return
DE Commercial Services
1 Year Return
DE Commercial Services
Return vs Industry: DNE matched the German Commercial Services industry which returned -6.5% over the past year.
Return vs Market: DNE underperformed the German Market which returned 13.7% over the past year.
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
No news available
Is Downer EDI undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DNE (€4.16) is trading below our estimate of fair value (€6.95)
Significantly Below Fair Value: DNE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DNE is good value based on its PE Ratio (19.8x) compared to the Commercial Services industry average (31.8x).
PE vs Market: DNE is good value based on its PE Ratio (19.8x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: DNE is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: DNE is good value based on its PB Ratio (1.5x) compared to the DE Commercial Services industry average (3.3x).
How is Downer EDI forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DNE's forecast earnings growth (14.1% per year) is above the savings rate (-0.4%).
Earnings vs Market: DNE's earnings (14.1% per year) are forecast to grow faster than the German market (13.1% per year).
High Growth Earnings: DNE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DNE's revenue (2.2% per year) is forecast to grow slower than the German market (5% per year).
High Growth Revenue: DNE's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DNE's Return on Equity is forecast to be low in 3 years time (10.3%).
How has Downer EDI performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DNE has high quality earnings.
Growing Profit Margin: DNE's current net profit margins (1.6%) are lower than last year (1.7%).
Past Earnings Growth Analysis
Earnings Trend: DNE's earnings have grown by 0.2% per year over the past 5 years.
Accelerating Growth: DNE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DNE had negative earnings growth (-1.2%) over the past year, making it difficult to compare to the Commercial Services industry average (10.9%).
Return on Equity
High ROE: DNE's Return on Equity (7.6%) is considered low.
Return on Assets
Return on Capital Employed
How is Downer EDI's financial position?
Financial Position Analysis
Short Term Liabilities: DNE's short term assets (A$3.2B) exceed its short term liabilities (A$2.9B).
Long Term Liabilities: DNE's short term assets (A$3.2B) exceed its long term liabilities (A$2.8B).
Debt to Equity History and Analysis
Debt Level: DNE's debt to equity ratio (63%) is considered high.
Reducing Debt: DNE's debt to equity ratio has increased from 28.2% to 63% over the past 5 years.
Debt Coverage: DNE's debt is not well covered by operating cash flow (14.4%).
Interest Coverage: DNE's interest payments on its debt are well covered by EBIT (4.4x coverage).
Inventory Level: DNE has a high level of physical assets or inventory.
Debt Coverage by Assets: DNE's debt is covered by short term assets (assets are 1.7x debt).
What is Downer EDI's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: DNE's dividend (4.06%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: DNE's dividend (4.06%) is in the top 25% of dividend payers in the German market (3.65%)
Stability and Growth of Payments
Stable Dividend: DNE's dividend payments have been volatile in the past 10 years.
Growing Dividend: DNE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (80.4%), DNE's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DNE's dividends in 3 years are forecast to be covered by earnings (58.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Grant Fenn (54yo)
Mr. Grant Anthony Fenn, B Ec, CA has been the Chief Executive Officer and Managing Director of Downer EDI Limited since July 30, 2010. Mr. Fenn has over 30 years’ experience in operational management, stra ...
CEO Compensation Analysis
Compensation vs Market: Grant's total compensation ($USD3.13M) is above average for companies of similar size in the German market ($USD2.27M).
Compensation vs Earnings: Grant's compensation has been consistent with company performance over the past year.
|MD, CEO & Director||9.6yrs||AU$4.73m||0.27% A$6.7m|
|Chief Financial Officer||3.3yrs||AU$1.79m||0.0012% A$30.1k|
|Chief Operating Officer of Australian Operations||5yrs||AU$2.53m||0.018% A$450.1k|
|Chief Operating Officer of Corporate Services||1.1yrs||AU$2.09m||0.0026% A$64.4k|
|Chief Executive Officer of New Zealand Business||3.1yrs||AU$1.54m||0.00045% A$11.3k|
|Group Head of Corporate Affairs & Investors Relations||0yrs||no data||no data|
|Group General Counsel & Company Secretary||1.1yrs||no data||no data|
|Group Head of Human Resources & Industrial Relations||2.5yrs||no data||no data|
|Group Head of Strategy||5yrs||AU$2.37m||no data|
|Group Head of Zero Harm||5.1yrs||no data||no data|
Experienced Management: DNE's management team is considered experienced (3.3 years average tenure).
|MD, CEO & Director||9.6yrs||AU$4.73m||0.27% A$6.7m|
|Independent Non-Executive Director||0.8yrs||AU$18.58k||0.0011% A$26.8k|
|Independent Non Executive Chairman||9.3yrs||AU$410.63k||0.0049% A$122.0k|
|Independent Non-Executive Director||1.7yrs||AU$179.42k||0.00051% A$12.8k|
|Independent Non-Executive Director||8.3yrs||AU$180.68k||0.0034% A$84.4k|
|Independent Non-Executive Director||9.6yrs||AU$197.10k||0.014% A$350.7k|
|Independent Non-Executive Director||3.4yrs||AU$180.68k||0.0029% A$71.9k|
Experienced Board: DNE's board of directors are considered experienced (5.8 years average tenure).
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 company bio, employee growth, exchange listings and data sources
- Name: Downer EDI Limited
- Ticker: DNE
- Exchange: DB
- Founded: 1989
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: AU$4.088b
- Listing Market Cap: AU$2.505b
- Shares outstanding: 592.47m
- Website: https://www.downergroup.com
Number of Employees
- Downer EDI Limited
- Triniti Business Campus
- Level 2
- New South Wales
|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|
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 management, spray sealing, asphalt laying, landfill diversion, and intelligent transport system services; and manufactures bitumen based 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 asset operation and overhaul services. The company’s Utilities segment plans, designs, constructs, operates, maintains, manages, and decommissions power and gas network assets; provides water and wastewater treatment, and network construction and rehabilitation services; and designs, constructs, and maintains renewable assets in the wind, solar, and power system storage sectors. This segment also offers technology and communications solutions, including design, civil construction, network construction, operation, and maintenance services for fiber, copper, and radio networks. Its Facilities segment offers outsourced facility, catering and laundry, technical and engineering, and maintenance and asset management services, as well as refrigeration solutions. The company’s Engineering, Construction and Maintenance segment provides design, engineering, construction, shutdown, turnaround and outage delivery, operation, maintenance, and ongoing management services for various projects; and designs and manufactures mineral process equipment. Its Mining segment provides resource definition, exploration drilling, and mine feasibility studies; open cut and underground mining services; and drilling, blasting, crushing, asset management, tire management, and mine closure and rehabilitation services, as well as manufactures explosives. The company was incorporated in 1989 and is headquartered in Sydney, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 21:44|
|End of Day Share Price||2020/02/20 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.