CPSE:DEMANT

Stock Analysis Report

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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. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


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 is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 5% a week.

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


Market Performance


7 Day Return

5.9%

DEMANT

3.5%

DK Medical Equipment

1.4%

DK Market


1 Year Return

8.4%

DEMANT

18.9%

DK Medical Equipment

25.3%

DK Market

Return vs Industry: DEMANT underperformed the Danish Medical Equipment industry which returned 17.8% over the past year.

Return vs Market: DEMANT underperformed the Danish Market which returned 23.5% over the past year.


Shareholder returns

DEMANTIndustryMarket
7 Day5.9%3.5%1.4%
30 Day3.3%-0.04%3.0%
90 Day12.2%1.1%9.5%
1 Year8.4%8.4%20.3%18.9%27.7%25.3%
3 Year30.6%30.6%79.9%73.4%54.1%42.1%
5 Year98.1%98.1%136.2%116.8%71.6%49.6%

Long-Term 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?

70.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DEMANT (DKK239.5) is trading above our estimate of fair value (DKK168.17)

Significantly Below Fair Value: DEMANT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DEMANT is poor value based on its PE Ratio (70.6x) compared to the DK Medical Equipment industry average (68.7x).

PE vs Market: DEMANT is poor value based on its PE Ratio (70.6x) compared to the Danish market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: DEMANT is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: DEMANT is good value based on its PB Ratio (7.7x) compared to the DK Medical Equipment industry average (9.9x).


Next Steps

Future Growth

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

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEMANT's forecast earnings growth (21.6% per year) is above the savings rate (0.2%).

Earnings vs Market: DEMANT's earnings (21.6% per year) are forecast to grow faster than the Danish market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DEMANT's revenue (9.2% per year) is forecast to grow faster than the Danish market (6.8% per year).

High Growth Revenue: DEMANT's revenue (9.2% 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 (21.7%)


Next Steps

Past Performance

How has Demant performed over the past 5 years?

-0.06%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEMANT has high quality earnings.

Growing Profit Margin: DEMANT's current net profit margins (6%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: DEMANT's earnings have declined by 0.06% 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 (-51.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (-23.9%).


Return on Equity

High ROE: DEMANT's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Demant's financial position?


Financial Position Analysis

Short Term Liabilities: DEMANT's short term assets (DKK6.4B) do not cover its short term liabilities (DKK9.5B).

Long Term Liabilities: DEMANT's short term assets (DKK6.4B) exceed its long term liabilities (DKK5.1B).


Debt to Equity History and Analysis

Debt Level: DEMANT's debt to equity ratio (112.6%) is considered high.

Reducing Debt: DEMANT's debt to equity ratio has increased from 60% to 112.6% over the past 5 years.

Debt Coverage: DEMANT's debt is well covered by operating cash flow (21.8%).

Interest Coverage: DEMANT's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Demant 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 recent payouts.

High Dividend: Unable to evaluate DEMANT'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 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?

3.8yrs

Average management tenure


CEO

Søren Nielsen (50 yo)

3.75yrs

Tenure

kr.14,700,000

Compensation

Mr. Søren Nielsen has been the Chief Executive Officer and President of Demant A/S (formerly known as William Demant Holding A/S) since April 1, 2017 and has been its Member of Executive Board since Septem...


CEO Compensation Analysis

Compensation vs Market: Søren's total compensation ($USD2.39M) is about average for companies of similar size in the Danish market ($USD2.39M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Søren Nielsen
CEO, President & Member of Executive Board3.75yrskr.14.70m0.0077%
DKK 4.3m
René Schneider
CFO & Member of Executive Board5.33yrskr.6.50m0.0050%
DKK 2.8m
Mathias Møller
Director of Investor Relations0.83yrno datano data
Trine Kromann-Mikkelsen
Vice President of Corporate Communication & Relationsno datano datano data
Finn Mohring
Senior Vice President of R&Dno datano datano data
Jes Olsen
President of Oticon Medicalno datano datano data
Christian Lange
Investor Relations Officerno datano datano data

3.8yrs

Average Tenure

Experienced Management: DEMANT's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Niels Jacobsen
Deputy Chairman3.75yrsno data0.42%
DKK 233.3m
Niels Christiansen
Independent Chairman4yrsno data0.0034%
DKK 1.9m
Lars Rasmussen
Independent Director5yrsno data0.0094%
DKK 5.2m
Jørgen Nielsen
Director3.92yrsno data0.00015%
DKK 83.8k
Benedikte Leroy
Independent Director7yrsno data0.0013%
DKK 698.0k
Thomas Duer
Director6yrsno data0.00056%
DKK 312.7k
Casper Jensen
Director2yrsno data0.00021%
DKK 117.3k
Anja Madsen
Director0.83yrno datano data

4.0yrs

Average Tenure

52yo

Average Age

Experienced Board: DEMANT's board of directors are considered experienced (4 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: kr.55.842b
  • Shares outstanding: 239.67m
  • 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
DEMANCBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBDKKMay 1995
DEMAWBAG (Wiener Boerse AG)YesShare CapitalATEURMay 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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 18:06
End of Day Share Price2021/01/19 00:00
Earnings2020/06/30
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.