CPSE:DEMANT

Stock Analysis Report

Executive Summary

Demant A/S, a hearing healthcare company, develops, manufactures, and sells products and equipment to enhance people’s hearing in Europe, North America, the Pacific, Asia, and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Demant's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DEMANT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.3%

DEMANT

4.3%

DK Medical Equipment

11.1%

DK Market


1 Year Return

-24.0%

DEMANT

13.2%

DK Medical Equipment

3.1%

DK Market

Return vs Industry: DEMANT underperformed the Danish Medical Equipment industry which returned 10.4% over the past year.

Return vs Market: DEMANT underperformed the Danish Market which returned 1.7% over the past year.


Shareholder returns

DEMANTIndustryMarket
7 Day7.3%4.3%11.1%
30 Day-27.1%-1.1%-5.1%
90 Day-28.2%8.3%-7.5%
1 Year-24.0%-24.0%14.6%13.2%6.3%3.1%
3 Year2.5%2.5%81.4%72.9%34.9%23.6%
5 Year30.1%30.1%110.4%92.9%29.2%12.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Demant undervalued compared to its fair value and its price relative to the market?

15.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DEMANT (DKK150.6) is trading below our estimate of fair value (DKK178.29)

Significantly Below Fair Value: DEMANT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DEMANT is good value based on its PE Ratio (25.1x) compared to the Medical Equipment industry average (37.1x).

PE vs Market: DEMANT is poor value based on its PE Ratio (25.1x) compared to the Danish market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: DEMANT is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: DEMANT is good value based on its PB Ratio (4.7x) compared to the DK Medical Equipment industry average (6.1x).


Next Steps

Future Growth

How is Demant forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEMANT's forecast earnings growth (14.7% per year) is above the savings rate (-0.3%).

Earnings vs Market: DEMANT's earnings (14.7% per year) are forecast to grow faster than the Danish market (11.9% per year).

High Growth Earnings: DEMANT's earnings are forecast to grow, but not significantly.

Revenue vs Market: DEMANT's revenue (8.5% per year) is forecast to grow faster than the Danish market (6% per year).

High Growth Revenue: DEMANT's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DEMANT's Return on Equity is forecast to be high in 3 years time (24%)


Next Steps

Past Performance

How has Demant performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEMANT has high quality earnings.

Growing Profit Margin: DEMANT's current net profit margins (9.8%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: DEMANT's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: DEMANT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DEMANT had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (-17.2%).


Return on Equity

High ROE: DEMANT's Return on Equity (19.2%) is considered low.


Next Steps

Financial Health

How is Demant's financial position?


Financial Position Analysis

Short Term Liabilities: DEMANT's short term assets (DKK6.9B) do not cover its short term liabilities (DKK8.8B).

Long Term Liabilities: DEMANT's short term assets (DKK6.9B) exceed its long term liabilities (DKK5.3B).


Debt to Equity History and Analysis

Debt Level: DEMANT's debt to equity ratio (105%) is considered high.

Reducing Debt: DEMANT's debt to equity ratio has increased from 62.8% to 105% over the past 5 years.

Debt Coverage: DEMANT's debt is well covered by operating cash flow (26.8%).

Interest Coverage: DEMANT's interest payments on its debt are well covered by EBIT (15.6x coverage).


Balance Sheet

Inventory Level: DEMANT has a high level of physical assets or inventory.

Debt Coverage by Assets: DEMANT's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Demant's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DEMANT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DEMANT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DEMANT'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 DEMANT's dividend in 3 years as they are not forecast to pay a notable one for the Danish market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average board tenure


CEO

Søren Nielsen (49yo)

2.83s

Tenure

ø14,700,000

Compensation

Mr. Søren Nielsen has been the Chief Executive Officer and President of William Demant Holding A/S since April 1, 2017 and has been its Member of Executive Board since September 1, 2015 and President of Ot ...


CEO Compensation Analysis

Compensation vs Market: Søren's total compensation ($USD2.17M) is about average for companies of similar size in the Danish market ($USD2.36M).

Compensation vs Earnings: Søren's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Niels Jacobsen
Deputy Chairman2.83yrsno data0.42% DKK150.8m
Niels Christiansen
Chairman3.17yrsno data0.0034% DKK1.2m
Lars Rasmussen
Independent Director4.17yrsno data0.0094% DKK3.4m
Jørgen Nielsen
Director3yrsno data0.00015% DKK54.3k
Benedikte Leroy
Independent Director6.17yrsno data0.0013% DKK452.9k
Thomas Duer
Director5.17yrsno data0.00055% DKK199.3k
Casper Jensen
Director1.17yrsno data0.00021% DKK76.1k
Anja Madsen
Directorno datano datano data

3.2yrs

Average Tenure

51yo

Average Age

Experienced Board: DEMANT's board of directors are considered experienced (3.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Demant A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Demant A/S
  • Ticker: DEMANT
  • Exchange: CPSE
  • Founded: 1904
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: ø36.229b
  • Shares outstanding: 240.56m
  • Website: https://www.demant.com

Number of Employees


Location

  • Demant A/S
  • Kongebakken 9
  • Smørum
  • Capital Region of Denmark
  • 2765
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WILL.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDMay 1995
DEMANTCPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKMay 1995
WDH1DB (Deutsche Boerse AG)YesShare CapitalDEEURMay 1995
0RGTLSE (London Stock Exchange)YesShare CapitalGBDKKMay 1995
WILY.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDNov 2008

Biography

Demant A/S, a hearing healthcare company, develops, manufactures, and sells products and equipment to enhance people’s hearing in Europe, North America, the Pacific, Asia, and internationally. Its products include hearing devices and implants; diagnostic products; and communication systems, such as headsets and solutions for the professional call center and office market, as well as headsets for the gaming and mobile music segments. The company was formerly known as William Demant Holding A/S and changed its name to Demant A/S in March 2019. Demant A/S was founded in 1904 and is headquartered in Smørum, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 20:43
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.