Downer EDI Ltd DOW

Morningstar Rating
A$7.26 −0.13 (1.76%)
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|V%VyC premium.
Price
A$7.26
Fair Value
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Uncertainty
LOCK|rBKfg
1-Star Price
LOCK|.G!
5-Star Price
LOCK|@%
Economic Moat
LOCK|JVp
Capital Allocation
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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$7.39
Day Range
A$7.25–7.37
52-Week Range
A$6.25–8.66
Bid/Ask
A$7.25 / A$7.39
Shares Outstanding
643.31M
Market Cap
A$4.67B
Volume/Avg
528,936 / 2M

Key Statistics

Price/Earnings (Normalized)
18.18
Price/Sales
0.50
Dividend Yield (Trailing)
4.02%
Dividend Yield (Forward)
4.02%
Dividend Payment Schedule
Apr, Oct
Total Yield
6.09%

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
SW
VNT
Price/Earnings (Normalized)
18.1812.4816.64
Price/Book Value
2.442.407.61
Price/Sales
0.500.380.70
Price/Cash Flow
9.5910.9411.20
Price/Earnings
DOW
SW
VNT

Financial Strength

Metric
DOW
SW
VNT
Quick Ratio
1.000.790.68
Current Ratio
1.090.881.15
Interest Coverage
4.823.136.97
Quick Ratio
DOW
SW
VNT

Profitability

Metric
DOW
SW
VNT
Return on Assets (Normalized)
4.84%3.45%8.67%
Return on Equity (Normalized)
15.35%13.67%47.33%
Return on Invested Capital (Normalized)
9.87%6.80%19.30%
Return on Assets
DOW
SW
VNT

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