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Demant A/S DEMANT

Morningstar Rating
DKK 256.60 +4.60 (1.83%)
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Company Report

Demant Is Struggling in the US Managed Care Segment

Demant benefits from favourable trends, including an ageing population, increasing noise pollution, fairly low penetration rates in the developed world, and virtually untapped patient populations in emerging markets such as China. Demant's broad product offerings should allow the company to capitalize on these trends, while its strong brand and superior technological know-how should yield market share gains. Following the sale of its implant business and the upcoming disposition of the communications segment, Demant is in a better position to focus its efforts and maintain its top-tier positioning in the market.

Price vs Fair Value

DEMANT is trading at a 731% premium.
Price
DKK 256.60
Fair Value
DKK 168.00
Uncertainty
Medium
1-Star Price
DKK 226.10
5-Star Price
DKK 792.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Approximately 16% of the world's population suffers from mild to severe hearing loss, and this is expected to grow to 20% during the next decade. Even in developed countries, hearing aid penetration rates only reach 20% on average.

Bears

The company's foray into communications has been a flop despite the few years of high demand due to covid-19.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
DKK 252.00
Day Range
DKK 252.20256.60
52-Week Range
DKK 247.90373.50
Bid/Ask
DKK 256.20 / DKK 256.40
Market Cap
DKK 56.59 Bil
Volume/Avg
187,390 / 304,089

Key Statistics

Price/Earnings (Normalized)
22.68
Price/Sales
2.55
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.49%

Company Profile

Demant is a Denmark-based manufacturer and distributor of hearing solutions, such as hearing aid devices and diagnostic equipment. More than 80% of the company's sales come from North America and Europe.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Mid Growth
Total Number of Employees
21,623

Competitors

Valuation

Metric
DEMANT
SOON
GN
Price/Earnings (Normalized)
22.6822.8023.03
Price/Book Value
6.116.442.56
Price/Sales
2.554.401.38
Price/Cash Flow
13.2320.379.76
Price/Earnings
DEMANT
SOON
GN

Financial Strength

Metric
DEMANT
SOON
GN
Quick Ratio
0.841.020.41
Current Ratio
1.371.450.59
Interest Coverage
6.9123.783.99
Quick Ratio
DEMANT
SOON
GN

Profitability

Metric
DEMANT
SOON
GN
Return on Assets (Normalized)
8.40%10.91%1.71%
Return on Equity (Normalized)
28.27%26.88%5.73%
Return on Invested Capital (Normalized)
12.19%17.63%3.07%
Return on Assets
DEMANT
SOON
GN
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