Koninklijke DSM NV (DSM.AS)
NL0000009827 - Common Stock
We assign a fundamental rating of 5 out of 10 to DSM. DSM was compared to 65 industry peers in the Chemicals industry. DSM has an excellent financial health rating, but there are some minor concerns on its profitability. DSM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DSM had positive earnings in the past year.
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.
1.2 Ratios
DSM has a Return On Assets of 9.73%. This is in the better half of the industry: DSM outperforms 76.19% of its industry peers.
DSM has a better Return On Equity (15.77%) than 66.67% of its industry peers.
DSM has a Return On Invested Capital (3.55%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DSM is below the industry average of 7.40%.
| 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
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.
Looking at the Operating Margin, with a value of 7.90%, DSM is in line with its industry, outperforming 58.73% of the companies in the same industry.
DSM's Operating Margin has declined in the last couple of years.
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 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.
DSM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, DSM has less shares outstanding
The debt/assets ratio for DSM has been reduced compared to a year ago.
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.
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.
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 Debt to FCF ratio of 9.76. This is in the better half of the industry: DSM outperforms 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.
The Debt to Equity ratio of DSM (0.28) is comparable to the rest of the industry.
| 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.24 |
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%.
The Earnings Per Share has been decreasing by -0.46% on average over the past years.
The Revenue has grown by 15.42% in the past year. This is quite good.
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 growth Q2Q86.75%
Revenue 1Y (TTM)15.42%
Revenue growth 3Y1.61%
Revenue growth 5Y-0.57%
Revenue growth Q2Q13.94%
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
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.
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.
61.90% of the companies in the same industry are more expensive than DSM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.25, DSM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 33.15, the valuation of DSM can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DSM indicates a slightly more expensive valuation: DSM is more expensive than 65.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, DSM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 33.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DSM is valued 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
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 3.11.
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.
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%
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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap568.64M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.64 | ||
| Fwd PE | 33.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 15.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.9% | ||
| PM (TTM) | 20.19% | ||
| GM | 32.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.15 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.34%
EPS 3Y32.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.42%
Revenue growth 3Y1.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
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OCF growth 5Y