ENXTAM:DSM

Stock Analysis Report

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Executive Summary

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and sustainable living businesses in the Netherlands, rest of Europe, North America, Latin America, China, India, Japan, rest of Asia, and internationally.

Rewards

Earnings are forecast to grow 11.11% per year

Pays a reliable dividend of 1.86%

Risk Analysis

No risks detected for DSM from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DSM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

DSM

0.9%

NL Chemicals

-0.07%

NL Market


1 Year Return

12.9%

DSM

-1.4%

NL Chemicals

-11.6%

NL Market

Return vs Industry: DSM exceeded the Dutch Chemicals industry which returned -1.4% over the past year.

Return vs Market: DSM exceeded the Dutch Market which returned -11.6% over the past year.


Shareholder returns

DSMIndustryMarket
7 Day2.6%0.9%-0.07%
30 Day9.2%8.6%5.2%
90 Day16.9%21.5%16.5%
1 Year15.4%12.9%0.7%-1.4%-8.8%-11.6%
3 Year115.8%101.3%48.9%25.5%8.5%-2.6%
5 Year168.2%136.1%60.0%31.1%25.6%2.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DSM (€128.75) is trading above our estimate of fair value (€60.55)

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


Price To Earnings Ratio

PE vs Industry: DSM is poor value based on its PE Ratio (31.1x) compared to the NL Chemicals industry average (29.8x).

PE vs Market: DSM is poor value based on its PE Ratio (31.1x) compared to the Dutch market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: DSM is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: DSM is overvalued based on its PB Ratio (2.9x) compared to the NL Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Koninklijke DSM forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSM's forecast earnings growth (11.1% per year) is above the savings rate (0.4%).

Earnings vs Market: DSM's earnings (11.1% per year) are forecast to grow slower than the Dutch market (20.1% per year).

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

Revenue vs Market: DSM's revenue (5.5% per year) is forecast to grow slower than the Dutch market (7% per year).

High Growth Revenue: DSM's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DSM's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Koninklijke DSM performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSM has high quality earnings.

Growing Profit Margin: DSM's current net profit margins (8%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: DSM's earnings have grown significantly by 25.7% per year over the past 5 years.

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

Earnings vs Industry: DSM had negative earnings growth (-22.6%) over the past year, making it difficult to compare to the Chemicals industry average (-22%).


Return on Equity

High ROE: DSM's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Koninklijke DSM's financial position?


Financial Position Analysis

Short Term Liabilities: DSM's short term assets (€5.6B) exceed its short term liabilities (€2.7B).

Long Term Liabilities: DSM's short term assets (€5.6B) exceed its long term liabilities (€3.5B).


Debt to Equity History and Analysis

Debt Level: DSM's debt to equity ratio (35%) is considered satisfactory.

Reducing Debt: DSM's debt to equity ratio has reduced from 60.5% to 35% over the past 5 years.

Debt Coverage: DSM's debt is well covered by operating cash flow (54.8%).

Interest Coverage: DSM's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Koninklijke DSM current dividend yield, its reliability and sustainability?

1.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DSM's dividend (1.86%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.21%).

High Dividend: DSM's dividend (1.86%) is low compared to the top 25% of dividend payers in the Dutch market (6.35%).


Stability and Growth of Payments

Stable Dividend: DSM's dividends per share have been stable in the past 10 years.

Growing Dividend: DSM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58%), DSM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DSM's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Dimitri de Vreeze (53yo)

0.42

Tenure

€2,175,000

Compensation

Mr. Dimitri de Vreeze serves as President of DSM Resins at DSM-AGI Corporation. Mr. de Vreeze has been a Member of Management Board at Koninklijke DSM N.V., (also known as Royal DSM N.V.) since September 1 ...


CEO Compensation Analysis

Compensation vs Market: Dimitri's total compensation ($USD2.48M) is below average for companies of similar size in the Dutch market ($USD4.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dimitri de Vreeze
Co-CEO & Member of the Managing Board0.42yr€2.18m0.062% 13.5m
Geraldine Matchett
Co-CEO & Member of the Managing Board0.42yr€2.18m0.061% 13.4m
Helen Mets
EVP-Materials0.33yrno datano data
Patricia Malarkey
Chief Innovation Officer & Member of Executive Committee0.92yrno datano data
Jos Heij
Senior VP of Corporate Control & Accounting and Group Controller7.92yrsno datano data
Marcus Remmers
Chief Technology Officer3.25yrsno datano data
Dave Huizing
Vice President of Investor Relations8yrsno datano data
Cees Los
Director of Legal Affairs and General Counsel8.25yrsno datano data
Judith Wiese
Executive VP of Group People & Organisation2.5yrsno datano data
Rob Atsma
Head of Energie Beheer Nederlandno datano datano data
Paul Gilgen
Head of Manufacturing & Purchasing of DSM Nutritional Productsno datano datano data
Manfred Eggersdorfer
Senior Vice President of Nutrition Science & Advocacyno datano datano data

2.5yrs

Average Tenure

64yo

Average Age

Experienced Management: DSM's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frits van Paasschen
Independent Member of Supervisory Board3.17yrs€114.13kno data
Feike Sijbesma
Honorary Chairman0.33yr€3.35m0.15% 32.8m
Robert Routs
Independent Chairman of Supervisory Board9.25yrs€123.13kno data
John Ramsay
Independent Member of Supervisory Board3.17yrs€97.00k0.00062% 135.5k
Pauline Françoise van der Meer Mohr
Deputy Chairwoman of Supervisory Boardno data€95.21k0.00090% 196.7k
Paul Gilding
Member of External Sustainability Advisory Boardno datano datano data
David King
Member of External Sustainability Advisory Boardno datano datano data
Eileen Kennedy
Independent Member of Supervisory Board8.17yrs€110.29kno data
Pradeep Pant
Independent Member of Supervisory Board4.25yrs€109.13kno data
Ye Qi
Member of External Sustainability Advisory Boardno datano datano data
Ndidi Nwuneli
Member of Sustainability Advisory Board4.42yrsno datano data
Christopher Voigt
Member of Scientific Advisory Boardno datano datano data

4.3yrs

Average Tenure

63yo

Average Age

Experienced Board: DSM's board of directors are considered experienced (4.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Koninklijke DSM N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koninklijke DSM N.V.
  • Ticker: DSM
  • Exchange: ENXTAM
  • Founded: 1902
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €21.858b
  • Shares outstanding: 169.77m
  • Website: https://www.dsm.com

Number of Employees


Location

  • Koninklijke DSM N.V.
  • Het Overloon 1
  • Heerlen
  • Limburg
  • 6411 TE
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DSMENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
DSM2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
DSMSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
KDSK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0NPPLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
DSMABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
RDSMWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
DSM NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
DSM2ETLX (Eurotlx)YesOrdinary SharesITEURJan 1992
RDSM.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDSep 1995

Biography

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and sustainable living businesses in the Netherlands, rest of Europe, North America, Latin America, China, India, Japan, rest of Asia, and internationally. It operates through Nutrition, Materials, and Innovation Center segments. The Nutrition segment offers animal nutrition and health products, including vitamins, enzymes, eubiotics, carotenoids, lipids, and minerals; human nutrition and health products comprising carotenoids, digestive enzymes, nutritional lipids, nutraceuticals, probiotic and prebiotics, and vitamins; and skin and sun care, hair care, and aroma ingredients. It also provides vitamin and lipid active pharmaceutical ingredients; omega-3 fatty acids; specialty enzymes, cultures, probiotics, bio-preservation, sugar reduction, and savory taste solutions; and specialty hydrocolloid solutions. The Materials segment provides thermoplastics used in automotive, electrical and electronics, building and construction, medical, food packaging, and consumer goods; coating resins and functional materials; Dyneema, a fiber solution for use in aviation, personal protection, marine, fishing, heavy lifting, and sports and lifestyle industries; and additives. The Innovation Center segment offers biomedical materials, and medical device and material manufacturing technologies in the areas of cardiovascular, dental, diabetes management, gynecology, neurology, ophthalmology, orthopedic, plastic and reconstructive surgery, soft tissue, and wound management. It also provides anti-reflective (AR) coatings for solar glass, retrofit AR and anti-soiling coatings, and conductive and PV backsheets; and yeast and enzymes for the conversion of starch, corn fiber, and biomass. The company has a partnership with Strait Access Technologies to develop trans-catheter replacement heart valves with polymeric leaflets. Koninklijke DSM N.V. was founded in 1902 and is headquartered in Heerlen, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 20:47
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
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.