DEME GROUP (DEME.BR) Stock Fundamental Analysis
EBR:DEME - Euronext Brussels - BE0974413453 - Common Stock - Currency: EUR
Overall DEME gets a fundamental rating of 5 out of 10. We evaluated DEME against 42 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of DEME get a neutral evaluation. Nothing too spectacular is happening here. DEME has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DEME had positive earnings in the past year.
In the past year DEME had a positive cash flow from operations.
DEME had positive earnings in each of the past 5 years.
Each year in the past 5 years DEME had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.26%, DEME is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DEME has a Return On Equity (13.61%) which is comparable to the rest of the industry.
DEME has a Return On Invested Capital (9.57%) which is in line with its industry peers.
DEME had an Average Return On Invested Capital over the past 3 years of 6.73%. This is below the industry average of 10.44%.
The last Return On Invested Capital (9.57%) for DEME is above the 3 year average (6.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 13.61% | ||
| ROIC | 9.57% |
ROA(3y)3.73%
ROA(5y)3.06%
ROE(3y)9.52%
ROE(5y)7.85%
ROIC(3y)6.73%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.03%, DEME is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
DEME's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.73%, DEME is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Operating Margin of DEME has grown nicely.
Looking at the Gross Margin, with a value of 34.52%, DEME is in line with its industry, outperforming 45.24% of the companies in the same industry.
DEME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.73% | ||
| PM (TTM) | 7.03% | ||
| GM | 34.52% |
OM growth 3Y10.59%
OM growth 5Y10.87%
PM growth 3Y15.48%
PM growth 5Y8.06%
GM growth 3Y-2.5%
GM growth 5Y0.62%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DEME is creating some value.
The number of shares outstanding for DEME remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DEME has about the same amount of shares outstanding.
Compared to 1 year ago, DEME has an improved debt to assets ratio.
2.2 Solvency
DEME has an Altman-Z score of 1.97. This is not the best score and indicates that DEME is in the grey zone with still only limited risk for bankruptcy at the moment.
DEME's Altman-Z score of 1.97 is in line compared to the rest of the industry. DEME outperforms 59.52% of its industry peers.
DEME has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
The Debt to FCF ratio of DEME (0.96) is better than 92.86% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that DEME is not too dependend on debt financing.
DEME has a better Debt to Equity ratio (0.25) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.47
WACC6.52%
2.3 Liquidity
DEME has a Current Ratio of 0.92. This is a bad value and indicates that DEME is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.92, DEME is doing worse than 78.57% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that DEME may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.92, DEME is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
DEME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.16%, which is quite impressive.
The Earnings Per Share has been growing by 18.20% on average over the past years. This is quite good.
The Revenue has grown by 24.83% in the past year. This is a very strong growth!
DEME shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.36% yearly.
EPS 1Y (TTM)77.16%
EPS 3Y36.04%
EPS 5Y18.2%
EPS Q2Q%11.05%
Revenue 1Y (TTM)24.83%
Revenue growth 3Y17.77%
Revenue growth 5Y9.36%
Sales Q2Q%20.7%
3.2 Future
DEME is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.03% yearly.
DEME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y0.8%
EPS Next 2Y2.68%
EPS Next 3Y3.61%
EPS Next 5Y1.03%
Revenue Next Year3.23%
Revenue Next 2Y2.79%
Revenue Next 3Y3.55%
Revenue Next 5Y2.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DEME is valuated correctly with a Price/Earnings ratio of 12.03.
DEME's Price/Earnings ratio is a bit cheaper when compared to the industry. DEME is cheaper than 64.29% of the companies in the same industry.
DEME's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 11.30 indicates a reasonable valuation of DEME.
DEME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEME is cheaper than 66.67% of the companies in the same industry.
DEME's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEME indicates a somewhat cheap valuation: DEME is cheaper than 76.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DEME is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.38 | ||
| EV/EBITDA | 4.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DEME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)15.13
PEG (5Y)0.66
EPS Next 2Y2.68%
EPS Next 3Y3.61%
5. Dividend
5.1 Amount
DEME has a Yearly Dividend Yield of 1.93%.
DEME's Dividend Yield is comparable with the industry average which is at 3.65.
Compared to an average S&P500 Dividend Yield of 2.38, DEME has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DEME pays out 18.44% of its income as dividend. This is a sustainable payout ratio.
DP18.44%
EPS Next 2Y2.68%
EPS Next 3Y3.61%
EBR:DEME (6/4/2025, 7:00:00 PM)
137
-1.4 (-1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners7.01%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.47B
Analysts82.86
Price Target185.26 (35.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend2.1
Dividend Growth(5Y)N/A
DP18.44%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.85 | ||
| P/FCF | 4.38 | ||
| P/OCF | 3.22 | ||
| P/B | 1.64 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)11.39
EY8.31%
EPS(NY)12.12
Fwd EY8.85%
FCF(TTM)31.25
FCFY22.81%
OCF(TTM)42.57
OCFY31.07%
SpS162.04
BVpS83.68
TBVpS82.57
PEG (NY)15.13
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 13.61% | ||
| ROCE | 12.41% | ||
| ROIC | 9.57% | ||
| ROICexc | 13.59% | ||
| ROICexgc | 13.78% | ||
| OM | 8.73% | ||
| PM (TTM) | 7.03% | ||
| GM | 34.52% | ||
| FCFM | 19.29% |
ROA(3y)3.73%
ROA(5y)3.06%
ROE(3y)9.52%
ROE(5y)7.85%
ROIC(3y)6.73%
ROIC(5y)N/A
ROICexc(3y)8.73%
ROICexc(5y)N/A
ROICexgc(3y)8.86%
ROICexgc(5y)N/A
ROCE(3y)8.72%
ROCE(5y)N/A
ROICexcg growth 3Y26.09%
ROICexcg growth 5Y21.73%
ROICexc growth 3Y26.39%
ROICexc growth 5Y21.66%
OM growth 3Y10.59%
OM growth 5Y10.87%
PM growth 3Y15.48%
PM growth 5Y8.06%
GM growth 3Y-2.5%
GM growth 5Y0.62%
F-Score8
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 72.36% | ||
| Cap/Sales | 6.98% | ||
| Interest Coverage | 27.12 | ||
| Cash Conversion | 142.92% | ||
| Profit Quality | 274.43% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.97 |
F-Score8
WACC6.52%
ROIC/WACC1.47
Cap/Depr(3y)113.69%
Cap/Depr(5y)101.76%
Cap/Sales(3y)12.45%
Cap/Sales(5y)11.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.16%
EPS 3Y36.04%
EPS 5Y18.2%
EPS Q2Q%11.05%
EPS Next Y0.8%
EPS Next 2Y2.68%
EPS Next 3Y3.61%
EPS Next 5Y1.03%
Revenue 1Y (TTM)24.83%
Revenue growth 3Y17.77%
Revenue growth 5Y9.36%
Sales Q2Q%20.7%
Revenue Next Year3.23%
Revenue Next 2Y2.79%
Revenue Next 3Y3.55%
Revenue Next 5Y2.15%
EBIT growth 1Y51.8%
EBIT growth 3Y30.25%
EBIT growth 5Y21.25%
EBIT Next Year121.3%
EBIT Next 3Y34.43%
EBIT Next 5Y20.43%
FCF growth 1Y1345.75%
FCF growth 3Y79.17%
FCF growth 5YN/A
OCF growth 1Y137.5%
OCF growth 3Y36.94%
OCF growth 5Y22.61%