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Koninklijke DSM NV (DSM.AS) Stock Fundamental Analysis

AMS:DSM - Euronext Amsterdam - NL0000009827 - Common Stock - Currency: EUR

114.05  +0.15 (+0.13%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to DSM. DSM was compared to 67 industry peers in the Chemicals industry. DSM has an average financial health and profitability rating. DSM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year DSM was profitable.
DSM had a positive operating cash flow in the past year.
Each year in the past 5 years DSM has been profitable.
DSM had a positive operating cash flow in each of the past 5 years.
DSM.AS Yearly Net Income VS EBIT VS OCF VS FCFDSM.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

1.2 Ratios

With a decent Return On Assets value of 9.73%, DSM is doing good in the industry, outperforming 76.19% of the companies in the same industry.
DSM has a better Return On Equity (15.77%) than 66.67% of its industry peers.
DSM's Return On Invested Capital of 3.55% is in line compared to the rest of the industry. DSM outperforms 41.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DSM is below the industry average of 6.53%.
Industry RankSector Rank
ROA 9.73%
ROE 15.77%
ROIC 3.55%
ROA(3y)7.88%
ROA(5y)7.41%
ROE(3y)13.48%
ROE(5y)12.77%
ROIC(3y)4.18%
ROIC(5y)5.44%
DSM.AS Yearly ROA, ROE, ROICDSM.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 5 10 15 20 25

1.3 Margins

DSM has a better Profit Margin (20.19%) than 93.65% of its industry peers.
DSM's Profit Margin has been stable in the last couple of years.
DSM has a Operating Margin (7.90%) which is in line with its industry peers.
DSM's Operating Margin has declined in the last couple of years.
DSM has a Gross Margin of 32.06%. This is comparable to the rest of the industry: DSM outperforms 50.79% of its industry peers.
DSM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.9%
PM (TTM) 20.19%
GM 32.06%
OM growth 3Y-8.97%
OM growth 5Y-4.86%
PM growth 3Y29.13%
PM growth 5Y-0.21%
GM growth 3Y-2.47%
GM growth 5Y-1.41%
DSM.AS Yearly Profit, Operating, Gross MarginsDSM.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30

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6

2. Health

2.1 Basic Checks

DSM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DSM has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for DSM has been reduced compared to a year ago.
DSM.AS Yearly Shares OutstandingDSM.AS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M
DSM.AS Yearly Total Debt VS Total AssetsDSM.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.2 Solvency

DSM has an Altman-Z score of 1.83. This is not the best score and indicates that DSM is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.83, DSM is not doing good in the industry: 68.25% of the companies in the same industry are doing better.
DSM has a debt to FCF ratio of 9.76. This is a negative value and a sign of low solvency as DSM would need 9.76 years to pay back of all of its debts.
DSM's Debt to FCF ratio of 9.76 is fine compared to the rest of the industry. DSM outperforms 63.49% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that DSM is not too dependend on debt financing.
DSM has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: DSM outperforms 57.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 9.76
Altman-Z 1.83
ROIC/WACC1.05
WACC3.37%
DSM.AS Yearly LT Debt VS Equity VS FCFDSM.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 3.15 indicates that DSM has no problem at all paying its short term obligations.
DSM's Current ratio of 3.15 is amongst the best of the industry. DSM outperforms 80.95% of its industry peers.
A Quick Ratio of 2.24 indicates that DSM has no problem at all paying its short term obligations.
DSM has a better Quick ratio (2.24) than 84.13% of its industry peers.
Industry RankSector Rank
Current Ratio 3.15
Quick Ratio 2.24
DSM.AS Yearly Current Assets VS Current LiabilitesDSM.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.34% over the past year.
DSM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
Looking at the last year, DSM shows a quite strong growth in Revenue. The Revenue has grown by 15.42% in the last year.
DSM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.57% yearly.
EPS 1Y (TTM)1.34%
EPS 3Y32.22%
EPS 5Y-0.46%
EPS Q2Q%86.75%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.57%
Sales Q2Q%13.94%

3.2 Future

DSM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.32% yearly.
Based on estimates for the next years, DSM will show a small growth in Revenue. The Revenue will grow by 3.55% on average per year.
EPS Next Y-17.84%
EPS Next 2Y-0.19%
EPS Next 3Y4.44%
EPS Next 5Y8.32%
Revenue Next Year9.64%
Revenue Next 2Y8.55%
Revenue Next 3Y7.11%
Revenue Next 5Y3.55%

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.
DSM.AS Yearly Revenue VS EstimatesDSM.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B 10B
DSM.AS Yearly EPS VS EstimatesDSM.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.64, which indicates a very decent valuation of DSM.
Compared to the rest of the industry, the Price/Earnings ratio of DSM indicates a somewhat cheap valuation: DSM is cheaper than 61.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, DSM is valued rather cheaply.
DSM is valuated quite expensively with a Price/Forward Earnings ratio of 33.15.
Based on the Price/Forward Earnings ratio, DSM is valued a bit more expensive than the industry average as 65.08% of the companies are valued more cheaply.
DSM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.13.
Industry RankSector Rank
PE 11.64
Fwd PE 33.15
DSM.AS Price Earnings VS Forward Price EarningsDSM.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DSM indicates a rather cheap valuation: DSM is cheaper than 100.00% of the companies listed in the same industry.
DSM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DSM is cheaper than 98.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.81
EV/EBITDA 0.46
DSM.AS Per share dataDSM.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 500 1K 1.5K 2K

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.19%
EPS Next 3Y4.44%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.31%, DSM has a reasonable but not impressive dividend return.
DSM's Dividend Yield is a higher than the industry average which is at 2.91.
Compared to an average S&P500 Dividend Yield of 2.40, DSM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.31%

5.2 History

The dividend of DSM is nicely growing with an annual growth rate of 11.78%!
Dividend Growth(5Y)11.78%
Div Incr Years0
Div Non Decr Years0
DSM.AS Yearly Dividends per shareDSM.AS Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 0.5 1 1.5 2 2.5

5.3 Sustainability

20.37% of the earnings are spent on dividend by DSM. This is a low number and sustainable payout ratio.
DSM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.37%
EPS Next 2Y-0.19%
EPS Next 3Y4.44%
DSM.AS Yearly Income VS Free CF VS DividendDSM.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B
DSM.AS Dividend Payout.DSM.AS Dividend Payout, showing the Payout Ratio.DSM.AS Dividend Payout.PayoutRetained Earnings

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Koninklijke DSM NV

AMS:DSM (5/30/2023, 7:00:00 PM)

114.05

+0.15 (+0.13%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap568.64M
Analysts77.5
Price Target151.14 (32.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.31%
Yearly Dividend1.99
Dividend Growth(5Y)11.78%
DP20.37%
Div Incr Years0
Div Non Decr Years0
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)1
Avg Revenue beat(2)97.46%
Min Revenue beat(2)97.46%
Max Revenue beat(2)97.46%
Revenue beat(4)2
Avg Revenue beat(4)82.78%
Min Revenue beat(4)68.1%
Max Revenue beat(4)97.46%
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)-0.38%
PT rev (3m)-4.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.4%
Valuation
Industry RankSector Rank
PE 11.64
Fwd PE 33.15
P/S 0.07
P/FCF 1.81
P/OCF 0.59
P/B 0.05
P/tB 0.1
EV/EBITDA 0.46
EPS(TTM)9.8
EY8.59%
EPS(NY)3.44
Fwd EY3.02%
FCF(TTM)62.98
FCFY55.22%
OCF(TTM)193.55
OCFY169.7%
SpS1682.76
BVpS2154.7
TBVpS1122.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.73%
ROE 15.77%
ROCE N/A
ROIC 3.55%
ROICexc 4.4%
ROICexgc 7.72%
OM 7.9%
PM (TTM) 20.19%
GM 32.06%
FCFM N/A
ROA(3y)7.88%
ROA(5y)7.41%
ROE(3y)13.48%
ROE(5y)12.77%
ROIC(3y)4.18%
ROIC(5y)5.44%
ROICexc(3y)4.84%
ROICexc(5y)6.53%
ROICexgc(3y)8.47%
ROICexgc(5y)10.73%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-9.43%
ROICexcg growth 5Y-8.64%
ROICexc growth 3Y-13.12%
ROICexc growth 5Y-11.06%
OM growth 3Y-8.97%
OM growth 5Y-4.86%
PM growth 3Y29.13%
PM growth 5Y-0.21%
GM growth 3Y-2.47%
GM growth 5Y-1.41%
F-Score6
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 9.76
Debt/EBITDA 2.33
Cap/Depr 99.85%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 18.54%
Current Ratio 3.15
Quick Ratio 2.24
Altman-Z 1.83
F-Score6
WACC3.37%
ROIC/WACC1.05
Cap/Depr(3y)89.72%
Cap/Depr(5y)101.35%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)81.13%
Profit Quality(5y)81.58%
High Growth Momentum
Growth
EPS 1Y (TTM)1.34%
EPS 3Y32.22%
EPS 5Y-0.46%
EPS Q2Q%86.75%
EPS Next Y-17.84%
EPS Next 2Y-0.19%
EPS Next 3Y4.44%
EPS Next 5Y8.32%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.57%
Sales Q2Q%13.94%
Revenue Next Year9.64%
Revenue Next 2Y8.55%
Revenue Next 3Y7.11%
Revenue Next 5Y3.55%
EBIT growth 1Y-8.43%
EBIT growth 3Y-7.51%
EBIT growth 5Y-5.4%
EBIT Next Year75.39%
EBIT Next 3Y31.75%
EBIT Next 5Y18.88%
FCF growth 1Y-63.06%
FCF growth 3Y-24.99%
FCF growth 5Y-6.57%
OCF growth 1Y-32.38%
OCF growth 3Y-11.35%
OCF growth 5Y-0.63%