Koninklijke DSM NV (DSM.AS) Stock Fundamental Analysis
Europe - AMS:DSM - NL0000009827 - Common Stock
114.05 EUR
+0.15 (+0.13%)
DSM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Chemicals industry. DSM has an average financial health and profitability rating. DSM has a correct valuation and a medium growth rate.
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.
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.
1.2 Ratios
DSM has a better Return On Assets (9.73%) than 76.19% of its industry peers.
With a decent Return On Equity value of 15.77%, DSM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
DSM has a Return On Invested Capital (3.55%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DSM is below the industry average of 7.08%.
| Industry Rank | Sector 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%
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.
In the last couple of years the Profit Margin of DSM has remained more or less at the same level.
With a Operating Margin value of 7.90%, DSM perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
In the last couple of years the Operating Margin of DSM has declined.
The Gross Margin of DSM (32.06%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DSM has remained more or less at the same level.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, DSM has about the same amount of shares outstanding.
The debt/assets ratio for DSM has been reduced compared to a year ago.
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.
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.
The Debt to FCF ratio of DSM (9.76) is better 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 has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 9.76 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.05
WACC3.37%
2.3 Liquidity
A Current Ratio of 3.15 indicates that DSM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.15, DSM belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
A Quick Ratio of 2.24 indicates that DSM has no problem at all paying its short term obligations.
DSM's Quick ratio of 2.24 is amongst the best of the industry. DSM outperforms 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.34% over the past year.
Measured over the past years, DSM shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.46% on average per year.
Looking at the last year, DSM shows a quite strong growth in Revenue. The Revenue has grown by 15.42% in the last year.
Measured over the past years, DSM shows a decrease in Revenue. The Revenue has been decreasing by -0.57% on average per year.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.64, the valuation of DSM can be described as very reasonable.
Based on the Price/Earnings ratio, DSM is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
DSM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 33.15, which means the current valuation is very expensive for 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's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 33.15 |
4.2 Price Multiples
DSM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DSM is cheaper than 100.00% of the companies in the same industry.
98.41% of the companies in the same industry are more expensive than DSM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.81 | ||
| EV/EBITDA | 0.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.19%
EPS Next 3Y4.44%
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 3.00, DSM pays a bit more dividend than its industry peers.
DSM's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector 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
5.3 Sustainability
20.37% of the earnings are spent on dividend by DSM. This is a low number and 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%
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%