DEME GROUP (DEME.BR) Stock Fundamental Analysis
EBR:DEME - Euronext Brussels - BE0974413453 - Common Stock - Currency: EUR
DEME gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 43 industry peers in the Construction & Engineering industry. DEME has only an average score on both its financial health and profitability. DEME is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make DEME suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year DEME was profitable.
DEME had a positive operating cash flow in the past year.
Each year in the past 5 years DEME has been profitable.
DEME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DEME (5.16%) is better than 67.44% of its industry peers.
Looking at the Return On Equity, with a value of 13.71%, DEME is in line with its industry, outperforming 46.51% of the companies in the same industry.
DEME has a Return On Invested Capital (8.97%) which is comparable to the rest of the industry.
DEME had an Average Return On Invested Capital over the past 3 years of 5.35%. This is significantly below the industry average of 10.72%.
The 3 year average ROIC (5.35%) for DEME is below the current ROIC(8.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 13.71% | ||
| ROIC | 8.97% |
ROA(3y)2.92%
ROA(5y)2.64%
ROE(3y)7.4%
ROE(5y)6.87%
ROIC(3y)5.35%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DEME (7.34%) is better than 69.77% of its industry peers.
DEME's Profit Margin has declined in the last couple of years.
The Operating Margin of DEME (8.82%) is better than 62.79% of its industry peers.
DEME's Operating Margin has been stable in the last couple of years.
DEME has a Gross Margin (34.74%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DEME has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.82% | ||
| PM (TTM) | 7.34% | ||
| GM | 34.74% |
OM growth 3YN/A
OM growth 5Y0.53%
PM growth 3Y29.23%
PM growth 5Y-3.37%
GM growth 3Y3.03%
GM growth 5Y1.72%
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.
DEME has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, DEME has an improved debt to assets ratio.
2.2 Solvency
DEME has an Altman-Z score of 1.86. 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 1.86 is in line compared to the rest of the industry. DEME outperforms 51.16% of its industry peers.
The Debt to FCF ratio of DEME is 1.65, which is an excellent value as it means it would take DEME, only 1.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.65, DEME belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
DEME has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DEME (0.31) is better than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.38
WACC6.52%
2.3 Liquidity
DEME has a Current Ratio of 0.88. This is a bad value and indicates that DEME is not financially healthy enough and could expect problems in meeting its short term obligations.
DEME has a worse Current ratio (0.88) than 81.40% of its industry peers.
DEME has a Quick Ratio of 0.88. 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 Quick ratio, with a value of 0.87, DEME is doing worse than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
DEME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.83%, which is quite impressive.
Measured over the past 5 years, DEME shows a small growth in Earnings Per Share. The EPS has been growing by 0.91% on average per year.
The Revenue has grown by 31.29% in the past year. This is a very strong growth!
DEME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)164.83%
EPS 3Y47.8%
EPS 5Y0.91%
EPS Q2Q%367.49%
Revenue 1Y (TTM)31.29%
Revenue growth 3Y14.38%
Revenue growth 5Y4.43%
Sales Q2Q%29.89%
3.2 Future
Based on estimates for the next years, DEME will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.02% on average per year.
Based on estimates for the next years, DEME will show a small growth in Revenue. The Revenue will grow by 7.58% on average per year.
EPS Next Y122.93%
EPS Next 2Y49.9%
EPS Next 3Y32.96%
EPS Next 5Y19.02%
Revenue Next Year32.75%
Revenue Next 2Y17.07%
Revenue Next 3Y11.83%
Revenue Next 5Y7.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.56, the valuation of DEME can be described as correct.
Based on the Price/Earnings ratio, DEME is valued a bit cheaper than 65.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of DEME to the average of the S&P500 Index (24.29), we can say DEME is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.20, which indicates a very decent valuation of DEME.
DEME's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DEME is cheaper than 65.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. DEME is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEME is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DEME is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.58 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
DEME's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DEME has a very decent profitability rating, which may justify a higher PE ratio.
DEME's earnings are expected to grow with 32.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.1
PEG (5Y)13.84
EPS Next 2Y49.9%
EPS Next 3Y32.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, DEME has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.58, DEME has a dividend in line with its industry peers.
DEME's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y49.9%
EPS Next 3Y32.96%
EBR:DEME (5/7/2025, 5:29:50 PM)
135.8
-0.2 (-0.15%)
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 Cap3.44B
Analysts82.86
Price Target185.26 (36.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend1.05
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
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)-1.56%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 11.2 | ||
| P/S | 0.92 | ||
| P/FCF | 6.58 | ||
| P/OCF | 3.94 | ||
| P/B | 1.72 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)10.81
EY7.96%
EPS(NY)12.12
Fwd EY8.93%
FCF(TTM)20.62
FCFY15.19%
OCF(TTM)34.45
OCFY25.37%
SpS147.23
BVpS78.87
TBVpS77.49
PEG (NY)0.1
PEG (5Y)13.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 13.71% | ||
| ROCE | 11.48% | ||
| ROIC | 8.97% | ||
| ROICexc | 10.91% | ||
| ROICexgc | 11.07% | ||
| OM | 8.82% | ||
| PM (TTM) | 7.34% | ||
| GM | 34.74% | ||
| FCFM | 14.01% |
ROA(3y)2.92%
ROA(5y)2.64%
ROE(3y)7.4%
ROE(5y)6.87%
ROIC(3y)5.35%
ROIC(5y)N/A
ROICexc(3y)6.52%
ROICexc(5y)N/A
ROICexgc(3y)6.64%
ROICexgc(5y)N/A
ROCE(3y)6.85%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-1.19%
ROICexc growth 3YN/A
ROICexc growth 5Y-1.25%
OM growth 3YN/A
OM growth 5Y0.53%
PM growth 3Y29.23%
PM growth 5Y-3.37%
GM growth 3Y3.03%
GM growth 5Y1.72%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 102.32% | ||
| Cap/Sales | 9.39% | ||
| Interest Coverage | 25.94 | ||
| Cash Conversion | 130% | ||
| Profit Quality | 190.71% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.86 |
F-Score7
WACC6.52%
ROIC/WACC1.38
Cap/Depr(3y)121.86%
Cap/Depr(5y)116.67%
Cap/Sales(3y)13.87%
Cap/Sales(5y)13.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.83%
EPS 3Y47.8%
EPS 5Y0.91%
EPS Q2Q%367.49%
EPS Next Y122.93%
EPS Next 2Y49.9%
EPS Next 3Y32.96%
EPS Next 5Y19.02%
Revenue 1Y (TTM)31.29%
Revenue growth 3Y14.38%
Revenue growth 5Y4.43%
Sales Q2Q%29.89%
Revenue Next Year32.75%
Revenue Next 2Y17.07%
Revenue Next 3Y11.83%
Revenue Next 5Y7.58%
EBIT growth 1Y95.98%
EBIT growth 3YN/A
EBIT growth 5Y4.97%
EBIT Next Year280.74%
EBIT Next 3Y60.3%
EBIT Next 5Y34.6%
FCF growth 1Y1756.06%
FCF growth 3Y-32.11%
FCF growth 5YN/A
OCF growth 1Y116.42%
OCF growth 3Y6.42%
OCF growth 5Y15.67%