DEME GROUP (DEME.BR) Stock Fundamental Analysis
EBR:DEME - Euronext Brussels - BE0974413453 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DEME. DEME was compared to 48 industry peers in the Construction & Engineering industry. DEME has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on DEME. These ratings could make DEME a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year DEME was profitable.
In the past year DEME had a positive cash flow from operations.
In the past 5 years DEME has always been profitable.
Each year in the past 5 years DEME had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DEME (5.26%) is better than 66.67% of its industry peers.
With a Return On Equity value of 13.61%, DEME perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
DEME's Return On Invested Capital of 9.57% is in line compared to the rest of the industry. DEME outperforms 58.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DEME is below the industry average of 10.61%.
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
DEME has a better Profit Margin (7.03%) than 68.75% of its industry peers.
DEME's Profit Margin has improved in the last couple of years.
DEME's Operating Margin of 8.73% is fine compared to the rest of the industry. DEME outperforms 62.50% of its industry peers.
DEME's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 34.52%, DEME perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
In the last couple of years the Gross Margin of DEME has remained more or less at the same level.
| 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
DEME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
DEME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.94 indicates that DEME is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.94, DEME is in line with its industry, outperforming 52.08% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.96, DEME belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
DEME has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
DEME has a better Debt to Equity ratio (0.25) than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.49
WACC6.43%
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.
With a Current ratio value of 0.92, DEME is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.92 indicates that DEME may have some problems paying its short term obligations.
DEME has a Quick ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.16% over the past year.
The Earnings Per Share has been growing by 18.20% on average over the past years. This is quite good.
DEME shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.83%.
Measured over the past years, DEME shows a quite strong growth in Revenue. The Revenue has been growing by 9.36% on average per year.
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
The Earnings Per Share is expected to grow by 0.44% on average over the next years.
DEME is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y0.8%
EPS Next 2Y2.68%
EPS Next 3Y3.61%
EPS Next 5Y0.44%
Revenue Next Year3.84%
Revenue Next 2Y3.01%
Revenue Next 3Y3.8%
Revenue Next 5Y3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 11.59 indicates a reasonable valuation of DEME.
Compared to the rest of the industry, the Price/Earnings ratio of DEME indicates a rather cheap valuation: DEME is cheaper than 81.25% of the companies listed in the same industry.
DEME's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 10.89 indicates a reasonable valuation of DEME.
77.08% of the companies in the same industry are more expensive than DEME, based on the Price/Forward Earnings ratio.
DEME is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEME is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DEME is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.22 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DEME does not grow enough to justify the current Price/Earnings ratio.
DEME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)14.57
PEG (5Y)0.64
EPS Next 2Y2.68%
EPS Next 3Y3.61%
5. Dividend
5.1 Amount
DEME has a Yearly Dividend Yield of 2.03%.
DEME's Dividend Yield is comparable with the industry average which is at 4.15.
DEME's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
18.44% of the earnings are spent on dividend by DEME. This is a low number and sustainable payout ratio.
DP18.44%
EPS Next 2Y2.68%
EPS Next 3Y3.61%
EBR:DEME (8/8/2025, 7:00:00 PM)
132
+0.8 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners6.47%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.34B
Analysts80
Price Target179.23 (35.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)-3.15%
PT rev (3m)-3.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.89 | ||
| P/S | 0.81 | ||
| P/FCF | 4.22 | ||
| P/OCF | 3.1 | ||
| P/B | 1.58 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)11.39
EY8.63%
EPS(NY)12.12
Fwd EY9.18%
FCF(TTM)31.25
FCFY23.68%
OCF(TTM)42.57
OCFY32.25%
SpS162.04
BVpS83.68
TBVpS82.57
PEG (NY)14.57
PEG (5Y)0.64
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 | 1.94 |
F-Score8
WACC6.43%
ROIC/WACC1.49
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 5Y0.44%
Revenue 1Y (TTM)24.83%
Revenue growth 3Y17.77%
Revenue growth 5Y9.36%
Sales Q2Q%20.7%
Revenue Next Year3.84%
Revenue Next 2Y3.01%
Revenue Next 3Y3.8%
Revenue Next 5Y3%
EBIT growth 1Y51.8%
EBIT growth 3Y30.25%
EBIT growth 5Y21.25%
EBIT Next Year121.3%
EBIT Next 3Y34.43%
EBIT Next 5Y19.74%
FCF growth 1Y1345.75%
FCF growth 3Y79.17%
FCF growth 5YN/A
OCF growth 1Y137.5%
OCF growth 3Y36.94%
OCF growth 5Y22.61%