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 listed in Australian Dollars. Its last market close was $4.17 – an increase of 1.21% over the previous week. Downer Edi has a trailing 12-month revenue of around $12.7 billion.
How to buy shares in Downer Edi
- 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.
- 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.
- 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.
- 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.
- Decide on how many to buy. At today's price of $4.17, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
- 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.
What's in this guide?
- Downer Edi key stats
- Compare share trading platforms
- Is Downer Edi stock a buy or sell?
- Downer Edi performance over time
- Are Downer Edi shares over-valued?
- Downer Edi's financials
- How volatile are Downer Edi shares?
- Does Downer Edi pay a dividend?
- Have Downer Edi shares ever split?
- Other common questions
How has coronavirus impacted Downer Edi's share price?
Since the stock market crash in March caused by coronavirus, Downer Edi's share price has had significant negative movement.
Its last market close was $4.17, which is 39.12% down on its pre-crash value of $6.85 and 61.32% up on the lowest point reached during the March crash when the shares fell as low as $2.585.
If you had bought $1,000 worth of Downer Edi shares at the start of February 2020, those shares would have been worth $386.20 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $575.17.
Downer Edi share priceUse our graph to track the performance of DOW stocks over time.
Downer Edi shares at a glance
|Latest market close||AUDA$4.17|
|52-week range||AUDA$2.585 - AUDA$8.94|
|50-day moving average||AUDA$4.2351|
|200-day moving average||AUDA$4.2112|
|Dividend yield||AUDA$0.28 (4.02%)|
|Earnings per share (TTM)||AUDA$0.347|
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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
|1 week (2020-09-10)||-2.34%|
|1 month (2020-08-20)||-1.42%|
|3 months (2020-06-19)||-10.32%|
|6 months (2020-03-20)||31.96%|
|1 year (2019-09-20)||-47.68%|
|2 years (2018-09-20)||-45.63%|
|3 years (2017-09-20)||-36.53%|
|5 years (2015-09-18)||23.47%|
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 13x. In other words, Downer Edi shares trade at around 13x 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 $539.4 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||$12.7 billion|
|Operating margin TTM||1.59%|
|Gross profit TTM||$1.4 billion|
|Return on assets TTM||1.52%|
|Return on equity TTM||-5.51%|
|Market capitalisation||$2.5 billion|
TTM: trailing 12 months
Downer Edi share dividends
Dividend payout ratio: 81.16% of net profits
Recently Downer Edi has paid out, on average, around 81.16% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.02% 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 4.02% return on their shares, in the form of dividend payments. In Downer Edi's case, that would currently equate to about A$0.28 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 February 2020 (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 $2.585 up to $8.94. A popular way to gauge a stock's volatility is its "beta".
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 1.6488. 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 a services provider in Australia, New Zealand, the Asia-Pacific, South America, and Southern Africa. Its Transport segment provides road network management and road, asset management, spray sealing, asphalt laying, landfill diversion, and intelligent transport system services; and manufactures bitumen based 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 asset operation 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. The company's Engineering, Construction and Maintenance segment provides design, engineering, construction, shutdown, turnaround and outage delivery, operation, 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, blasting, crushing, asset management, tire management, and mine closure and rehabilitation services, as well as manufactures explosives. The company is headquartered in Sydney, Australia.
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