How to buy Downer Edi (DOW) shares
Learn how to easily invest in Downer Edi shares.
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Downer Edi 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 $11.2 billion. If you're looking to buy shares, check out the steps below.
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 ASX. Our table can help you choose.
- Open and fund your brokerage account. Complete an application with your personal and financial details, such as 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. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
- 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.
- Check on your investment. Congratulations, you own a part of Downer Edi. Optimise your portfolio by tracking how your stock and 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 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
Downer Edi stock price (ASX:DOW)Use our graph to track the performance of DOW stocks over time.
Downer Edi shares at a glance
|52-week range||$4.79 - $6.7121|
|50-day moving average||$5.4608|
|200-day moving average||$5.7059|
|Dividend yield||$0.24 (4.7%)|
|Earnings per share (TTM)||$0.269|
Compare share trading platforms
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Is it a good time to buy Downer Edi stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. 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 (2022-06-22)||0.20%|
|1 month (2022-05-27)||-10.96%|
|3 months (2022-03-29)||-3.58%|
|6 months (2021-12-29)||-15.51%|
|1 year (2021-06-29)||-8.41%|
|2 years (2020-06-29)||22.13%|
|3 years (2019-06-28)||-26.01%|
|5 years (2017-06-29)||-19.02%|
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 19x. In other words, Downer Edi shares trade at around 19x 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 $398.2 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||$11.2 billion|
|Operating margin TTM||1.81%|
|Gross profit TTM||$1.4 billion|
|Return on assets TTM||1.63%|
|Return on equity TTM||6.76%|
|Market capitalisation||$3.5 billion|
TTM: trailing 12 months
Downer Edi share dividends
Dividend payout ratio: 85.71% of net profits
Recently Downer Edi has paid out, on average, around 85.71% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.7% 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 4.7% return on their shares, in the form of dividend payments. In Downer Edi's case, that would currently equate to about A$0.24 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 23 February 2022 (the "ex-dividend date").
Have Downer Edi's shares ever split?
Downer Edi's shares were split on a 1:4 basis on 21 November 2003. So if you had owned 4 shares the day before the split, the next day you would own 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 $4.79 up to $6.7121. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while Downer Edi's is 1.5274. 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.
Stocks similar to Downer Edi
Downer Edi in the news
The three-year shareholder returns and company earnings persist lower as Downer EDI (ASX:DOW) stock falls a further 3.1% in past week
Downer EDI Limited's (ASX:DOW) Financial Prospects Don't Look Very Positive: Could It Mean A Stock Price Drop In The Future?
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