Diversey Holdings (NasdaqGS:DSEY) - Share price, News & Analysis

DSEY fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

DSEY Stock Overview

Diversey Holdings, Ltd., through its subsidiaries, provides infection prevention and cleaning solutions worldwide.

Rewards

Earnings are forecast to grow 95.85% per year

Earnings have grown 4.7% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

Diversey Holdings Competitors

Ecolab

NYSE:ECL

US$46.3b

Price History & Performance

Summary of all time highs, changes and price drops for Diversey Holdings
Historical stock prices
Current Share Price	US$8.94
52 Week High	US$18.61
52 Week Low	US$6.89
Beta	0
1 Month Change	15.21%
3 Month Change	-13.46%
1 Year Change	-47.47%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-40.32%

Recent News & Updates

Apr 27

Diversey Holdings Aims For Normalization Amid Inflation Pressures

Diversey Holdings went public in March 2021, raising around $692 million in gross proceeds in an IPO. The firm provides cleaning and infection prevention solutions globally. DSEY has been hampered by the pandemic and now significant inflation and supply chain pressures. I'm on Hold until we see growth return and inflationary pressures abate.

Shareholder Returns

	DSEY	US Chemicals	US Market
7D	15.1%	-0.8%	-2.5%
1Y	-47.5%	-6.2%	-10.4%

Return vs Industry: DSEY underperformed the US Chemicals industry which returned -6.2% over the past year.

Return vs Market: DSEY underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is DSEY's price volatile compared to industry and market?
DSEY volatility
DSEY Average Weekly Movement	10.9%
Chemicals Industry Average Movement	7.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: DSEY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: DSEY's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1923	8,700	Phil Wieland	https://www.diversey.com

Diversey Holdings, Ltd., through its subsidiaries, provides infection prevention and cleaning solutions worldwide. It operates in two segments, Institutional, and Food & Beverage. The Institutional segment offers products, solutions, equipment, and machines, including infection prevention and personal care products, floor and building care chemicals, kitchen and mechanical ware wash chemicals and machines, dosing and dispensing equipment, and floor care machines, as well as engineering, consulting, and training services related to productivity management, water and energy management, and risk management.

Diversey Holdings Fundamentals Summary

How do Diversey Holdings's earnings and revenue compare to its market cap?
DSEY fundamental statistics
Market Cap	US$2.90b
Earnings (TTM)	-US$118.20m
Revenue (TTM)	US$2.65b

1.1x

P/S Ratio

-24.5x

P/E Ratio

Is DSEY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSEY income statement (TTM)
Revenue	US$2.65b
Cost of Revenue	US$1.63b
Gross Profit	US$1.01b
Other Expenses	US$1.13b
Earnings	-US$118.20m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.36
Gross Margin	38.33%
Net Profit Margin	-4.46%
Debt/Equity Ratio	258.2%

How did DSEY perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

3.74x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: DSEY ($8.94) is trading above our estimate of fair value ($3.44)

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

Price To Earnings Ratio

PE vs Industry: DSEY is unprofitable, so we can't compare its PE Ratio to the US Chemicals industry average.

PE vs Market: DSEY is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DSEY's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: DSEY is overvalued based on its PB Ratio (3.7x) compared to the US Chemicals industry average (2.1x).

Future Growth

How is Diversey Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

95.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSEY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: DSEY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DSEY's is expected to become profitable in the next 3 years.

Revenue vs Market: DSEY's revenue (5.1% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: DSEY's revenue (5.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DSEY's Return on Equity is forecast to be low in 3 years time (19.7%).

Past Performance

How has Diversey Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DSEY is currently unprofitable.

Growing Profit Margin: DSEY is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: DSEY is unprofitable, but has reduced losses over the past 5 years at a rate of 4.7% per year.

Accelerating Growth: Unable to compare DSEY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DSEY is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (34.5%).

Return on Equity

High ROE: DSEY has a negative Return on Equity (-15.25%), as it is currently unprofitable.

Financial Health

How is Diversey Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: DSEY's short term assets ($1.2B) exceed its short term liabilities ($927.1M).

Long Term Liabilities: DSEY's short term assets ($1.2B) do not cover its long term liabilities ($2.6B).

Debt to Equity History and Analysis

Debt Level: DSEY's net debt to equity ratio (230.3%) is considered high.

Reducing Debt: Insufficient data to determine if DSEY's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DSEY has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if DSEY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate DSEY'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 DSEY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DSEY's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DSEY has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

2.5yrs

Average management tenure

CEO

Phil Wieland (47 yo)

2.33yrs

Tenure

US$2,301,518

Compensation

Mr. Philip Robert Wieland, also known as Phil, serves as the Chief Executive Officer at Diversey Holdings, Ltd. since July 14, 2020 and serves as its Director. He joined the Diversey Holdings, Ltd.in Janu...

CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD2.30M) is below average for companies of similar size in the US market ($USD6.90M).

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

Leadership Team

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

Board Members

Experienced Board: DSEY's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.

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 been diluted in the past year, with total shares outstanding growing by 7.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31