How to buy Downer Edi (DOW) shares

Learn how to easily invest in Downer Edi shares.

Downer EDI Limited
AU: DOW - AUD
ENGINEERING & CONSTRUCTION
A$6.47
+ A$0.01 ( + 0.15%)

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Downer EDI Limited is an engineering & construction business based in Australia. Downer Edi shares (DOW) are listed on the Australian Securities Exchange (ASX) and all prices are in Australian Dollars. Downer Edi has a trailing 12-month revenue of around $11.5 billion. If you're looking to buy shares, check out the steps below.

How to buy shares in Downer Edi

  1. Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
  3. Search for Downer Edi. Find the share by name or ticker symbol: DOW. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Downer Edi reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  6. Check in on your investment. Congratulations, you own a part of Downer Edi. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Downer Edi stock price (ASX:DOW)

Use our graph to track the performance of DOW stocks over time.

Downer Edi shares at a glance

Information last updated 2021-10-16.
52-week range$4.2497 - $6.87
50-day moving average $6.5225
200-day moving average $5.7985
Target price$6.33
PE ratio 26.1694
Dividend yield $0.21 (3.22%)
Earnings per share (TTM) $0.248

Compare share trading platforms

The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
Name Product Standard brokerage fee Inactivity fee Markets
IG Share Trading
AUD $8 or 0.1%
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
Superhero share trading
AUD $5
No
ASX shares, US shares
Australia’s lowest-cost broker for ASX shares and ETFs.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
ThinkMarkets Share Trading
AUD $8
No
ASX shares
Limited-time offer: Get 10 free ASX trades ($0 brokerage) when you open a share trading account with ThinkMarkets before 31 December 2021(T&Cs apply). $8 flat fee brokerage for CHESS Sponsored ASX stocks (HIN ownership), plus free live stock price data on an easy to use mobile app.
Bell Direct Share Trading
AUD $15
No
ASX shares, mFunds, ETFs
Finder Exclusive: Get 5 free stock trades and unlimited ETF trades until 31 Dec 2021, when you join Bell Direct. T&Cs apply.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
SelfWealth (Basic account)
AUD $9.5
No
ASX shares, US shares
Trade ASX and US shares for a flat fee of $9.50, regardless of the trade size.
New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
Saxo Capital Markets (Classic account)
AUD $5
No
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
CMC Markets Invest
AUD $11 or 0.1%
No
ASX shares, Global shares, mFunds, ETFs
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
HSBC Online Share Trading
AUD $19.95
No
ASX shares, mFunds, ETFs, Bonds
Limited time offer: Get up to $100 in brokerage rebates on your first 5 trades when you sign up to a HSBC Online Share Trading account (T&Cs apply). Make trades online with brokerage fees starting from just $19.95 with an HSBC Online Share Trading account. Plus gain access to complimentary expert research, trading ideas and tools.
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Is it a good time to buy Downer Edi stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Downer Edi price performance over time

Historical closes compared with the last close of A$6.46

1 week (2021-10-15) -0.46%
1 month (2021-09-22) 0.31%
3 months (2021-07-22) 18.97%
6 months (2021-04-22) 23.05%
1 year (2020-10-22) 34.58%
2 years (2019-10-22) -17.55%
3 years (2018-10-22) -6.80%
5 years (2016-10-21) 19.22%

Is Downer Edi under- or over-valued?

Valuing Downer Edi stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Downer Edi's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Downer Edi's P/E ratio

Downer Edi's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 26x. In other words, Downer Edi shares trade at around 26x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Downer Edi's PEG ratio

Downer Edi's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 10.24. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Downer Edi's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Downer Edi's EBITDA

Downer Edi's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $583.2 million (£0.0 million).

The EBITDA is a measure of a Downer Edi's overall financial performance and is widely used to measure a its profitability.

Downer Edi financials

Revenue TTM $11.5 billion
Operating margin TTM 2.53%
Gross profit TTM $1.4 billion
Return on assets TTM 2.19%
Return on equity TTM 6.62%
Profit margin 1.57%
Book value 3.991
Market capitalisation $4.5 billion

TTM: trailing 12 months

Downer Edi share dividends

81%

Dividend payout ratio: 80.77% of net profits

Recently Downer Edi has paid out, on average, around 80.77% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.7% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Downer Edi shareholders could enjoy a 3.7% return on their shares, in the form of dividend payments. In Downer Edi's case, that would currently equate to about A$0.21 per share.

Downer Edi's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 24 August 2021 (the "ex-dividend date").

Have Downer Edi's shares ever split?

Downer Edi's shares were split on a 1:4 basis on 20 November 2003. So if you had owned 4 shares the day before before the split, the next day you'd have owned 1 share. This wouldn't directly have changed the overall worth of your Downer Edi shares – just the quantity. However, indirectly, the new 300% higher share price could have impacted the market appetite for Downer Edi shares which in turn could have impacted Downer Edi's share price.

Downer Edi share price volatility

Over the last 12 months, Downer Edi's shares have ranged in value from as little as $4.2497 up to $6.87. A popular way to gauge a stock's volatility is its "beta".

DOW.AU volatility(beta: 1.56)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Downer Edi's is 1.5633. This would suggest that Downer Edi's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Downer Edi overview

Downer EDI Limited operates as an integrated services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa. Its Transport segment provides road network management; routine road maintenance; asset management systems; spray sealing; asphalt laying; and manufacture and supply of bitumen-based products and asphalt products. This segment also engages in the design and construction of light and heavy rail networks, signaling works, track and station works, and bridges; and provides rail safety technology, fleet maintenance, and overhaul services. The company's Utilities segment plans, designs, constructs, operates, maintains, manages, and decommissions power and gas network assets; provides water and wastewater treatment, and network construction and rehabilitation services; and designs, constructs, and maintains renewable assets in the wind, solar, and power system storage sectors. This segment also offers technology and communications solutions, including design, civil construction, network construction, operation, and maintenance services for fiber, copper, and radio networks. Its Facilities segment offers outsourced facility, catering and laundry, technical and engineering, and maintenance and asset management services, as well as refrigeration solutions, as well as building and construction solutions across various sectors. The company's Engineering, Construction and Maintenance segment provides design, engineering, construction, shutdown, turnaround and outage delivery, and operations maintenance and ongoing management services for various projects; and designs and manufactures mineral process equipment. Its Mining segment provides resource definition, exploration drilling, and mine feasibility studies; open cut and underground mining services; and drilling, explosives manufacture and supply; blasting and crushing; asset management; tire management; and mine closure and rehabilitation services. The company is headquartered in Sydney, Australia.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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