DOWNER EDI LIMITED (DOW)
Share Price Analysis and Chart

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DOW - DOWNER EDI LIMITED

FNArena Sector : Industrial Sector Contractors & Engineers

Year End: June

GICS Industry Group : Commercial & Professional Services

Debt/EBITDA: 2.96

Index: ASX100 | ASX200 | ASX300 | ALL-ORDS

Downer Edi designs, builds and services assets and infrastructure across a wide range of industries including the mining, transport and oil and gas sectors. The company is the number one builder of roads in Australia. It is listed on the ASX and the NZX.

LAST PRICE	CHANGE +/-	CHANGE %	VOLUME
$5.47 22 Apr 2025	-0.030 OPEN $5.44	-0.55% HIGH $5.49	718,137 LOW $5.41

TARGET

$5.71

4.4% upside

Franking for last dividend paid out: 75%

OTHER COMPANIES IN THE SAME SECTOR
3DA . ALQ . AVD . BSA . CG1 . CLG . CVL . CWY . CXL . DUR . EGL . EGN . EVS . FLC . IPG . LBL . MAD . PPK . RWL . SDV . SHA . SND . SSM . SYL . VEE . VNT .

FNARENA'S MARKET CONSENSUS FORECASTS

Title	FY23 Actual	FY24 Actual	FY25 Forecast	FY26 Forecast
EPS (cps)	xxx	10.3	37.9	xxx
DPS (cps)	xxx	17.0	22.4	xxx
EPS Growth	xxx	N/A	100.0%	xxx
DPS Growth	xxx	30.8%	31.8%	xxx
PE Ratio	xxx	N/A	14.8	xxx
Dividend Yield	xxx	N/A	4.0%	xxx
Div Pay Ratio(%)	xxx	164.9%	59.1%	xxx

Dividend yield today if purchased 3 years ago: 3.09%

DIVIDEND YIELD CALCULATOR

Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 13/03 - ex-div 6c (franking 0%)

HISTORICAL DATA ARE ALL IN AUD

Copyright © 2025 FactSet UK Limited. All rights reserved

Title	2019	2020	2021	2022	2023	2024
EPS Basic	xxx	xxx	xxx	xxx	xxx	10.3
DPS All	xxx	xxx	xxx	xxx	xxx	17.0
Sales/Revenue	xxx	xxx	xxx	xxx	xxx	10,969.0 M
Book Value Per Share	xxx	xxx	xxx	xxx	xxx	310.4
Net Operating Cash Flow	xxx	xxx	xxx	xxx	xxx	544.1 M
Net Profit Margin	xxx	xxx	xxx	xxx	xxx	0.63 %

EPS Basic

Negative
Growth
Slowing

DPS All

Negative
Growth
Slowing

Sales/Revenue

Negative
Growth
Slowing

Book Value Per Share

Negative
Growth
Slowing

Net Operating Cash Flow

Negative
Growth
Slowing

Net Profit Margin

Negative
Growth
Slowing

Title	2019	2020	2021	2022	2023	2024
Return on Capital Employed	xxx	xxx	xxx	xxx	xxx	3.30 %
Return on Invested Capital	xxx	xxx	xxx	xxx	xxx	1.72 %
Return on Assets	xxx	xxx	xxx	xxx	xxx	0.95 %
Return on Equity	xxx	xxx	xxx	xxx	xxx	3.16 %
Return on Total Capital	xxx	xxx	xxx	xxx	xxx	6.23 %
Free Cash Flow ex dividends	xxx	xxx	xxx	xxx	xxx	312.8 M

Return on Capital Employed

Negative
Growth
Slowing

Return on Invested Capital

Negative
Growth
Slowing

Return on Assets

Negative
Growth
Slowing

Return on Equity

Negative
Growth
Slowing

Return on Total Capital

Negative
Growth
Slowing

Free Cash Flow ex dividends

Negative
Growth
Slowing

Title	2019	2020	2021	2022	2023	2024
Short-Term Debt	xxx	xxx	xxx	xxx	xxx	127 M
Long Term Debt	xxx	xxx	xxx	xxx	xxx	1,679 M
Total Debt	xxx	xxx	xxx	xxx	xxx	1,806 M
Goodwill - Gross	xxx	xxx	xxx	xxx	xxx	2,563 M
Cash & Equivalents - Generic	xxx	xxx	xxx	xxx	xxx	838 M
Price To Book Value	xxx	xxx	xxx	xxx	xxx	1.49

Short-Term Debt

Negative
Growth
Slowing

Long Term Debt

Negative
Growth
Slowing

Total Debt

Negative
Growth
Slowing

Goodwill - Gross

Negative
Growth
Slowing

Cash & Equivalents - Generic

Negative
Growth
Slowing

Price To Book Value

Negative
Growth
Slowing

Title	2019	2020	2021	2022	2023	2024
Capex	xxx	xxx	xxx	xxx	xxx	146.3 M
Capex % of Sales	xxx	xxx	xxx	xxx	xxx	1.33 %
Cost of Goods Sold	xxx	xxx	xxx	xxx	xxx	9,684 M
Selling, General & Admin. Exp & Other	xxx	xxx	xxx	xxx	xxx	1,020 M
Research & Development	xxx	xxx	xxx	xxx	xxx	-
Investments - Total	xxx	xxx	xxx	xxx	xxx	168 M

Capex

Negative
Growth
Slowing

Capex % of Sales

Negative
Growth
Slowing

Cost of Goods Sold

Negative
Growth
Slowing

Selling, General & Admin. Exp & Other

Negative
Growth
Slowing

Research & Development

Investments - Total

Negative
Growth
Slowing

Negative

Growth

Slowing

EXPERT VIEWS
EXTRA COVERAGE

EXPERT VIEWS

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Sentiment Indicator

0.0

No. Of Recommendations

BROKER	DATE	RATING	RECOMMENDATION	TARGET PRICE	% TO REACH TARGET	COMMENTARY
Macquarie	xx/xx/xxxx	3	xxxxxxx	$xx.xx	xx.xx%	Broker commentary and detailed analysis is available for Full Members Only. Login above or Get a Free Trial
UBS	13/02/2025	3	Neutral	$5.75	5.12%	UBS’ first take on Downer EDI’s earnings report notes that lower interest and tax expenses helped the company deliver a slightly better net profit after tax result. Corporate costs fell by -10%, while Utilities and Power reported earnings growth of 26%, Transport 10%, and Facilities 10%. The analyst sees the reinstatement of guidance by management as a positive for the company and its elevated cost-out program. Management referred to "varied" market conditions, citing a weaker NZ economy and a reduction in Australian transport spending. The outcome of the Defence tender is expected in 2H25. Neutral rating. Target $5.75. FORECAST UBS forecasts a full year FY25 dividend of 22.00 cents and EPS of 37.00 cents. UBS forecasts a full year FY26 dividend of 28.00 cents and EPS of 46.00 cents.
Ord Minnett	xx/xx/xxxx	3	xxxx	$xx.xx	xx.xx%	Broker commentary and detailed analysis is available for Full Members Only. Login above or Get a Free Trial

BROKER

DATE

RATING

RECOMMENDATION

TARGET PRICE

% TO REACH TARGET

COMMENTARY

Macquarie

xx/xx/xxxx

xxxxxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

UBS

13/02/2025

Neutral

$5.75

5.12%

UBS’ first take on Downer EDI’s earnings report notes that lower interest and tax expenses helped the company deliver a slightly better net profit after tax result.

Corporate costs fell by -10%, while Utilities and Power reported earnings growth of 26%, Transport 10%, and Facilities 10%.

The analyst sees the reinstatement of guidance by management as a positive for the company and its elevated cost-out program.

Management referred to "varied" market conditions, citing a weaker NZ economy and a reduction in Australian transport spending.

The outcome of the Defence tender is expected in 2H25.

Neutral rating. Target $5.75.

FORECAST
UBS forecasts a full year FY25 dividend of 22.00 cents and EPS of 37.00 cents.
UBS forecasts a full year FY26 dividend of 28.00 cents and EPS of 46.00 cents.

Ord Minnett

xx/xx/xxxx

xxxx

$xx.xx

xx.xx%

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

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EXTRA COVERAGE

Display All Commentary

No. Of Recommendations

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER	DATE	RATING	RECOMMENDATION	TARGET PRICE	% TO REACH TARGET	COMMENTARY
Goldman Sachs	25/02/2025	3	Resume at Neutral	$5.70	4.20%	Goldman Sachs has resumed coverage of Downer EDI with a Neutral rating and target price of $5.70. Downer's 1H result broadly met expectations and FY25 guidance of $265-280m compared with the broker's $269m forecast. The broker notes EBITA margin of 3.7% was up 110bps y/y but -17bps vs 2H24, which aligns with historic seasonality and project timing. But achieving the target of over 4.2% would require 2H margin of 4.7% vs 4.0% the year before. The broker is forecasting FY25 and FY25 EBITDA margins at 4.1% and 4.5% respectively. The broker notes business turnaround is progressing well with efficiencies delivered through a continuing emphasis on contracting discipline and meeting cost-out targets. FORECAST Goldman Sachs forecasts a full year FY25 dividend of 21.00 cents and EPS of 36.00 cents. Goldman Sachs forecasts a full year FY26 dividend of 25.00 cents and EPS of 42.00 cents.

BROKER

DATE

RATING

RECOMMENDATION

TARGET PRICE

% TO REACH TARGET

COMMENTARY

Goldman Sachs

25/02/2025

Resume at Neutral

$5.70

4.20%

Goldman Sachs has resumed coverage of Downer EDI with a Neutral rating and target price of $5.70.

Downer's 1H result broadly met expectations and FY25 guidance of $265-280m compared with the broker's $269m forecast.

The broker notes EBITA margin of 3.7% was up 110bps y/y but -17bps vs 2H24, which aligns with historic seasonality and project timing. But achieving the target of over 4.2% would require 2H margin of 4.7% vs 4.0% the year before.

The broker is forecasting FY25 and FY25 EBITDA margins at 4.1% and 4.5% respectively. The broker notes business turnaround is progressing well with efficiencies delivered through a continuing emphasis on contracting discipline and meeting cost-out targets.

FORECAST
Goldman Sachs forecasts a full year FY25 dividend of 21.00 cents and EPS of 36.00 cents.
Goldman Sachs forecasts a full year FY26 dividend of 25.00 cents and EPS of 42.00 cents.

Access Extra Coverage Research History >

DOW STOCK CHART

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4	Rudi’s View: Hope Trumps Uncertainties Feb 12 2025 - Rudi's View

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Dividend Yield Today On Last Actual Payout :	3.04
Estimated Dividend Growth (Average Of Past Three Years)	%
Amount Invested	$
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DOWNER EDI LIMITED (DOW)
Share Price Analysis and Chart