OTCPK:WILY.Y

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

Fundamentals

Proven track record with reasonable growth potential.


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


Market Performance


7 Day Return

0%

WILY.Y

3.2%

US Medical Equipment

3.4%

US Market


1 Year Return

-24.0%

WILY.Y

10.0%

US Medical Equipment

5.4%

US Market

Return vs Industry: WILY.Y underperformed the US Medical Equipment industry which returned 10% over the past year.

Return vs Market: WILY.Y underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

WILY.YIndustryMarket
7 Day0%3.2%3.4%
30 Day-18.9%-1.8%-1.0%
90 Day-17.6%-0.4%-0.4%
1 Year-24.0%-24.0%10.9%10.0%7.7%5.4%
3 Year23.8%23.8%69.9%64.8%46.2%36.8%
5 Year60.3%60.3%128.2%102.9%65.6%47.5%

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

No news available

Valuation

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

25.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WILY.Y ($12.21) is trading above our estimate of fair value ($10.09)

Significantly Undervalued: WILY.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WILY.Y is good value based on its PE Ratio (25.3x) compared to the Medical Equipment industry average (40.6x).

PE vs Market: WILY.Y is poor value based on its PE Ratio (25.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WILY.Y is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: WILY.Y is overvalued based on its PB Ratio (5.6x) compared to the US Medical Equipment industry average (3.6x).


Next Steps

Future Growth

How is Demant forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WILY.Y's forecast earnings growth (16.1% per year) is above the savings rate (2.7%).

Earnings vs Market: WILY.Y's earnings (16.1% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: WILY.Y's revenue (9.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WILY.Y's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WILY.Y's Return on Equity is forecast to be high in 3 years time (25.2%)


Next Steps

Past Performance

How has Demant performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WILY.Y's earnings have grown by 7.8% per year over the past 5 years.

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

Earnings vs Industry: WILY.Y had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: WILY.Y's Return on Equity (22.4%) is considered high.


Return on Assets

ROA vs Industry: WILY.Y has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: WILY.Y has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Demant's financial position?


Financial Position Analysis

Short Term Liabilities: WILY.Y's short term assets (DKK6.4B) do not cover its short term liabilities (DKK9.2B)

Long Term Liabilities: WILY.Y's short term assets (6.4B) exceeds its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: WILY.Y's debt to equity ratio (95.3%) is considered high

Reducing Debt: WILY.Y's debt to equity ratio has increased from 61.8% to 95.3% over the past 5 years.

Debt Coverage: WILY.Y's debt is well covered by operating cash flow (24%).

Interest Coverage: WILY.Y's interest payments on its debt are well covered by EBIT (21.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: WILY.Y'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

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

What is the CEO of Demant's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Søren Nielsen (49yo)

2.5yrs

Tenure

ø13,400,000

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 ($USD1.98M) is about average for companies of similar size in the US market ($USD6.81M).

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


Board Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: WILY.Y's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Søren Nielsen (49yo)

    CEO, President & Member of Executive Board

    • Tenure: 2.5yrs
    • Compensation: ø13.40m
  • Søren Andersson (42yo)

    Vice President of Investor Relations & Corporate Strategy

    • Tenure: 0yrs
  • René Schneider (46yo)

    CFO & Member of Executive Board

    • Tenure: 4.1yrs
    • Compensation: ø6.00m
  • Trine Kromann-Mikkelsen

    Vice President of Corporate Communication & Relations

    • Tenure: 0yrs
  • Mathias Møller

    Investor Relations Officer

    • Tenure: 0yrs
  • Jes Olsen

    President of Oticon Medical

    • Tenure: 0yrs

Board Members

  • Niels Jacobsen (62yo)

    Deputy Chairman

    • Tenure: 2.5yrs
  • Niels Christiansen (53yo)

    Chairman

    • Tenure: 2.8yrs
  • Lars Rasmussen (60yo)

    Director

    • Tenure: 3.8yrs
  • Peter Foss (63yo)

    Director

    • Tenure: 12.8yrs
  • Jørgen Nielsen (57yo)

    Director

    • Tenure: 2.7yrs
  • Benedikte Leroy (49yo)

    Director

    • Tenure: 5.8yrs
  • Thomas Duer (46yo)

    Director

    • Tenure: 4.8yrs
  • Casper Jensen (40yo)

    Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Demant A/S
  • Ticker: WILY.Y
  • Exchange: OTCPK
  • Founded: 1904
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: ø42.827b
  • Listing Market Cap: ø6.327b
  • Shares outstanding: 245.29m
  • Website: https://www.demant.com

Number of Employees


Location

  • Demant A/S
  • Kongebakken 9
  • Smørum
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:16
End of Day Share Price2019/10/08 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.