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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

DSM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Chemicals industry. DSM has only an average score on both its financial health and profitability. DSM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year DSM was profitable.
DSM had a positive operating cash flow in the past year.
DSM had positive earnings in each of the past 5 years.
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

DSM has a better Return On Assets (9.73%) than 76.19% of its industry peers.
Looking at the Return On Equity, with a value of 15.77%, DSM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a Return On Invested Capital value of 3.55%, DSM perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
DSM had an Average Return On Invested Capital over the past 3 years of 4.18%. This is in line with the industry average of 6.15%.
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

The Profit Margin of DSM (20.19%) is better than 93.65% of its industry peers.
In the last couple of years the Profit Margin of DSM has remained more or less at the same level.
DSM has a Operating Margin of 7.90%. This is comparable to the rest of the industry: DSM outperforms 58.73% of its industry peers.
In the last couple of years the Operating Margin of DSM has declined.
DSM has a Gross Margin (32.06%) which is in line with 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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DSM is still creating some value.
The number of shares outstanding for DSM remains at a similar level compared to 1 year ago.
DSM has a better debt/assets ratio than last year.
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

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's Altman-Z score of 1.83 is on the low side compared to the rest of the industry. DSM is outperformed by 68.25% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.76, DSM is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that DSM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.28, DSM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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 has a Current ratio of 3.15. This is amongst the best in 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.
Looking at the Quick ratio, with a value of 2.24, DSM belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
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

DSM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.34%.
DSM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.46% yearly.
The Revenue has grown by 15.42% in the past year. This is quite good.
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

Based on estimates for the next years, DSM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.32% on average per year.
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

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 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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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.64, which indicates a very decent valuation of DSM.
61.90% of the companies in the same industry are more expensive than DSM, based on the Price/Earnings ratio.
DSM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 33.15 indicates a quite expensive valuation of DSM.
Based on the Price/Forward Earnings ratio, DSM is valued a bit more expensive than 65.08% of the companies in the same industry.
DSM is valuated expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
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 40 50

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

DSM has a very decent profitability rating, which may justify a higher PE ratio.
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.
Compared to an average industry Dividend Yield of 3.04, DSM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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

DSM pays out 20.37% of its income as dividend. This is a 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%