Koninklijke DSM NV (DSM.AS) Stock Fundamental Analysis

Europe • Euronext Amsterdam • AMS:DSM • NL0000009827

114.05 EUR
+0.15 (+0.13%)
Last: May 30, 2023, 07:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to DSM. DSM was compared to 71 industry peers in the Chemicals industry. DSM has only an average score on both its financial health and profitability. DSM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year DSM was profitable.
  • In the past year DSM had a positive cash flow from operations.
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 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

1.2 Ratios

  • DSM has a better Return On Assets (9.73%) than 76.19% of its industry peers.
  • 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.
  • DSM had an Average Return On Invested Capital over the past 3 years of 4.18%. This is below the industry average of 7.19%.
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 2016 2017 2018 2019 2020 2021 2022 5 10 15 20 25

1.3 Margins

  • Looking at the Profit Margin, with a value of 20.19%, DSM belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
  • DSM's Profit Margin has been stable in the last couple of years.
  • DSM has a Operating Margin (7.90%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of DSM has declined.
  • With a Gross Margin value of 32.06%, DSM perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
  • 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 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.
  • Compared to 1 year ago, DSM has about the same amount of shares outstanding.
  • DSM has a better debt/assets ratio than last year.
DSM.AS Yearly Shares OutstandingDSM.AS Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 1.83 indicates that DSM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • DSM has a worse Altman-Z score (1.83) than 68.25% of its industry peers.
  • The Debt to FCF ratio of DSM is 9.76, which is on the high side as it means it would take DSM, 9.76 years of fcf income to pay off all of its debts.
  • DSM has a better Debt to FCF ratio (9.76) than 63.49% of its industry peers.
  • DSM has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
  • DSM's Debt to Equity ratio of 0.28 is in line compared 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 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.3 Liquidity

  • DSM has a Current Ratio of 3.15. This indicates that DSM is financially healthy and has no problem in meeting 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.
  • DSM has a Quick Ratio of 2.24. This indicates that DSM is financially healthy and has no problem in meeting 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 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.
  • The Earnings Per Share has been decreasing by -0.46% on average over the past years.
  • DSM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.42%.
  • The Revenue has been decreasing by -0.57% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 8.32% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 3.55% on average over the next years.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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 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 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

  • A Price/Earnings ratio of 11.64 indicates a reasonable valuation of DSM.
  • Based on the Price/Earnings ratio, DSM is valued a bit cheaper than 61.90% of the companies in the same industry.
  • DSM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
  • A Price/Forward Earnings ratio of 33.15 indicates a quite expensive valuation of DSM.
  • 65.08% of the companies in the same industry are cheaper than DSM, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, DSM is valued a bit more expensive.
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 10 20 30

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.
  • Based on the Price/Free Cash Flow ratio, DSM is valued cheaply inside the industry as 98.41% of the companies are valued more expensively.
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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6

5. Dividend

5.1 Amount

  • DSM has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.45, DSM pays a bit more dividend than its industry peers.
  • DSM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
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

  • DSM pays out 20.37% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of DSM is growing, but the earnings are growing slower. 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 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 / DSM.AS FAQ

What is the ChartMill fundamental rating of Koninklijke DSM NV (DSM.AS) stock?

ChartMill assigns a fundamental rating of 5 / 10 to DSM.AS.


What is the valuation status of Koninklijke DSM NV (DSM.AS) stock?

ChartMill assigns a valuation rating of 5 / 10 to Koninklijke DSM NV (DSM.AS). This can be considered as Fairly Valued.


Can you provide the profitability details for Koninklijke DSM NV?

Koninklijke DSM NV (DSM.AS) has a profitability rating of 5 / 10.


What is the valuation of Koninklijke DSM NV based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Koninklijke DSM NV (DSM.AS) is 11.64 and the Price/Book (PB) ratio is 0.05.


Can you provide the dividend sustainability for DSM stock?

The dividend rating of Koninklijke DSM NV (DSM.AS) is 5 / 10 and the dividend payout ratio is 20.37%.