Fact based stock research
Downer EDI (ASX:DOW)
AU000000DOW2
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Downer EDI stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 100 (better than 100% compared with investment alternatives), Downer EDI (Diversified Support Services, Australia) shares have much better financial characteristics than comparable stocks. Shares of Downer EDI are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), show above-average growth (Growth Rank of 93) but are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 100, is a strong buy recommendation based on Downer EDI's financial characteristics. As the company Downer EDI's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 97) and above-average growth (Obermatt Growth Rank of 93), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 49) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Australia |
| Industry | Diversified Support Services |
| Index | ASX 100, ASX 200, ASX 300, Water Tech |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Downer EDI
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 74 |
|
99 |
|
99 |
|
97 |
|
| GROWTH | ||||||||
| GROWTH | 12 |
|
15 |
|
35 |
|
93 |
|
| SAFETY | ||||||||
| SAFETY | 9 |
|
13 |
|
22 |
|
49 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
46 |
|
3 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
25 |
|
13 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 100 (better than 100% compared with investment alternatives), Downer EDI (Diversified Support Services, Australia) shares have much better financial characteristics than comparable stocks. Shares of Downer EDI are a good value (attractively priced) with a consolidated Value Rank of 97 (better than 97% of alternatives), show above-average growth (Growth Rank of 93) but are riskily financed (Safety Rank of 49), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 100, is a strong buy recommendation based on Downer EDI's financial characteristics. As the company Downer EDI's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 97) and above-average growth (Obermatt Growth Rank of 93), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 49) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 74 |
|
99 |
|
99 |
|
97 |
|
| GROWTH | ||||||||
| GROWTH | 12 |
|
15 |
|
35 |
|
93 |
|
| SAFETY | ||||||||
| SAFETY | 9 |
|
13 |
|
22 |
|
49 |
|
| COMBINED | ||||||||
| COMBINED | 33 |
|
33 |
|
46 |
|
100 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 97 (better than 97% compared with alternatives) for 2024, Downer EDI shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Downer EDI. Price-to-Sales is 95 which means that the stock price compared with what market professionals expect for future sales is lower than for 95% of comparable companies, indicating a good value for Downer EDI's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 81% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65. Compared with other companies in the same industry, dividend yields of Downer EDI are expected to be higher than for 85% of all competitors (a Dividend Yield rank of 85). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 97, is a buy recommendation based on Downer EDI's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Downer EDI based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 96 |
|
97 |
|
95 |
|
95 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 69 |
|
81 |
|
72 |
|
81 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 76 |
|
84 |
|
80 |
|
65 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 80 |
|
92 |
|
82 |
|
85 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 74 |
|
99 |
|
99 |
|
97 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, Downer EDI shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Downer EDI. Profit Growth has a rank of 78 which means that currently professionals expect the company to grow its profits more than 78% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 91, and Stock Returns has a rank of 81 which means that the stock returns have recently been above 81% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 17 (83% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 1 |
|
18 |
|
8 |
|
17 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 16 |
|
28 |
|
46 |
|
78 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
53 |
|
25 |
|
91 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 46 |
|
47 |
|
73 |
|
81 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 12 |
|
15 |
|
35 |
|
93 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 49 (better than 49% compared with alternatives), the company Downer EDI has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Downer EDI is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Downer EDI and the other two below average. Refinancing is at 54, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 54% of its competitors. But Leverage is high with a rank of 27, meaning the company has an above-average debt-to-equity ratio. It has more debt than 73% of its competitors. Liquidity is also on the riskier side with a rank of 42, meaning the company generates less profit to service its debt than 58% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 49 (worse than 51% compared with alternatives), Downer EDI has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Downer EDI are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Downer EDI and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 18 |
|
18 |
|
18 |
|
27 |
|
| REFINANCING | ||||||||
| REFINANCING | 20 |
|
16 |
|
56 |
|
54 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 39 |
|
19 |
|
12 |
|
42 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 9 |
|
13 |
|
22 |
|
49 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
66 |
|
3 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
11 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
60 |
|
18 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
7 |
|
18 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
46 |
|
3 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Downer EDI from December 19, 2024.
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