Downer EDI Ltd DOW

Morningstar Rating
A$6.83 +0.11 (1.64%)
View Full Chart

Company Report

Revenue Falls, but the Longer Term Remains Positive for Downer

Downer is a major provider of domestic infrastructure, rail, engineering, and maintenance business. It operates in Australia and New Zealand with contracts spread across the transport, technology, communications, energy, utilities, rail, and defense sectors. The future of Downer is focused on urban services, with mining and high-risk construction businesses.

Price vs Fair Value

DOW is trading at a LOCK|vJG%^t premium.
Price
A$6.83
Fair Value
g!
Uncertainty
LOCK|@>Q<
1-Star Price
LOCK|.?
5-Star Price
r.P
Economic Moat
LOCK|T>
Capital Allocation
LOCK|hyx?HC

Bulls Say, Bears Say

Bulls

Downer is emerging from a period of turmoil and transformation. Restructurings, write-downs, major project losses, and contract disappointments of the past appear to be over.

Bears

Major rail maintenance contracts could be problematic if a high level of reliability is not achieved.

Trading Information

Previous Close Price
A$6.72
Day Range
A$6.74–6.83
52-Week Range
A$6.25–8.66
Bid/Ask
A$6.75 / A$6.93
Shares Outstanding
652.82M
Market Cap
A$4.46B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
16.82
Price/Sales
0.46
Dividend Yield (Trailing)
4.28%
Dividend Yield (Forward)
4.28%
Dividend Payment Schedule
Apr, Oct
Total Yield
6.54%

Company Profile

Downer conducts construction and maintenance in the transport, technology and communications, utilities, rail, and defense segments. The future of Downer is focused on urban services, with mining and higher-risk construction businesses exited. Downer has strong relationships with local and state governments that outsource operational and management activities, ensuring a relatively consistent stream of recurring contract work. The transport segment contributes the majority of earnings.
Sector
Industrials
Industry
Engineering & Construction
Stock Style Box
Mid Core
Total Number of Employees
26,000

Competitors

Valuation

Metric
DOW
VNT
SW
Price/Earnings (Normalized)
16.8220.1113.84
Price/Book Value
2.269.202.17
Price/Sales
0.460.840.33
Price/Cash Flow
8.8713.547.81
Price/Earnings
DOW
VNT
SW

Financial Strength

Metric
DOW
VNT
SW
Quick Ratio
1.000.680.92
Current Ratio
1.091.151.02
Interest Coverage
4.826.974.30
Quick Ratio
DOW
VNT
SW

Profitability

Metric
DOW
VNT
SW
Return on Assets (Normalized)
4.84%8.67%4.13%
Return on Equity (Normalized)
15.35%47.33%16.34%
Return on Invested Capital (Normalized)
9.87%19.30%7.56%
Return on Assets
DOW
VNT
SW

Engineering & Construction Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Quanta Services Inc
PWR
LOCK|jN#V#d^LOCK|p@$100B
Vinci SA ADR
VCISY
—LOCK|x#@>&$66B
Vinci SA
VCISF
—LOCK|q@^w#$66B
Comfort Systems USA Inc
FIX
—LOCK|cQBV$59B
Larsen & Toubro Ltd DR
LTOUF
—LOCK|!f$53B
Ferrovial NV
FER
LOCK|#C?fb#!$LOCK|B&$38B
MasTec Inc
MTZ
LOCK|#BG$DwLOCK|P$?$17B
Jacobs Solutions Inc
J
LOCK|&$%>sLLOCK|cX$16B
AECOM
ACM
LOCK|!hlQn!LOCK|#b^$8B
Fluor Corp
FLR
LOCK|?><cH<LOCK|?#m$7B

Sponsor Center