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Demant (WILYY)
OTHER OTC:WILYY
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Demant
(OTC:WILYY)
70Outperform
Demant (WILYY) vs. S&P 500 (SPY)
Market Cap
$8.02B
Dividend YieldN/A
Average Volume (3M)172.00
Price to Earnings (P/E)23.1
Beta (1Y)0.75
Revenue Growth-0.61%
EPS Growth38.73%
CountryUS
Employees20,570
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)0.81
Shares Outstanding442,179,600
10 Day Avg. Volume105
30 Day Avg. Volume172
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)N/A
Price to Sales (P/S)3.34
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Demant Business Overview & Revenue Model
Company DescriptionDemant (WILYY) is a global leader in the hearing healthcare sector, focusing on improving people’s lives through the provision of innovative hearing solutions. The company operates in various segments including hearing aids, audiometric equipment, personal communication, and hearing implants. With a strong emphasis on research and development, Demant offers a wide range of products and services that cater to individuals with hearing loss, enabling them to connect and communicate effectively.
How the Company Makes MoneyDemant generates revenue primarily through the sale of hearing aids, which is the largest segment of its business. The company offers a variety of hearing solutions ranging from basic to premium products, catering to different consumer needs and price points. Additionally, Demant earns income from audiometric equipment and diagnostic instruments used by hearing care professionals. The hearing implants segment, though smaller, also contributes to the company's earnings by providing advanced solutions for severe hearing loss cases. Furthermore, Demant benefits from its partnerships with audiologists and hearing clinics worldwide, which play a crucial role in distributing its products and expanding its market reach. The company also invests significantly in research and development to innovate and maintain its competitive edge in the hearing healthcare industry.
Demant Financial Statement Overview
Summary
Demant demonstrates strong financial health with robust profitability, efficient cash generation, and a balanced capital structure. Despite stable revenue growth, the company maintains significant margins and returns. Moderate leverage is offset by strong cash flows and shareholder returns.Income Statement
Demant exhibits strong profitability with a gross profit margin of 76.2% and an improving net profit margin, reaching 10.6% in the latest year. The revenue growth rate from the previous year was stable with a slight decline of 0.1%, indicating a steady performance. EBITDA and EBIT margins are robust at 25.9% and 19.6% respectively, showcasing effective cost management and operational efficiency.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio stands at 1.64, reflecting moderate leverage and a stable financial structure. The return on equity is commendable at 24.9%, demonstrating strong returns for shareholders. The equity ratio of 29.5% indicates a balanced yet slightly leveraged capital structure, which is reasonable for the industry.78
Positive
Cash Flow
Demant's free cash flow growth rate shows a positive trajectory with a 9.2% increase from the previous year, enhancing liquidity. The operating cash flow to net income ratio is 1.71, indicating efficient cash conversion. The free cash flow to net income ratio of 1.38 further supports the company's solid cash generation capability, ensuring financial flexibility.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 28.08B | 22.42B | 22.44B | 19.70B | 18.39B | 14.47B | Gross Profit |
| 21.13B | 17.09B | 16.54B | 14.67B | 13.75B | 10.19B | EBIT |
| 5.31B | 4.40B | 4.15B | 3.21B | 3.44B | 1.53B | EBITDA |
| 4.77B | 5.80B | 5.22B | 4.29B | 4.44B | 2.50B | Net Income Common Stockholders |
| 3.06B | 2.39B | 1.79B | 2.08B | 2.51B | 1.12B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.14B | 1.11B | 1.14B | 1.13B | 1.17B | 952.00M | Total Assets |
| 30.55B | 32.45B | 30.55B | 29.86B | 24.86B | 21.93B | Total Debt |
| 14.45B | 15.68B | 14.45B | 15.08B | 11.34B | 9.00B | Net Debt |
| 13.32B | 14.57B | 13.32B | 13.95B | 10.17B | 8.05B | Total Liabilities |
| 21.21B | 22.81B | 21.21B | 21.30B | 16.88B | 13.65B | Stockholders Equity |
| 9.26B | 9.56B | 9.26B | 8.56B | 7.98B | 8.25B |
| Cash Flow | Free Cash Flow | ||||
| 3.63B | 3.30B | 3.62B | 1.70B | 2.55B | 1.94B | Operating Cash Flow |
| 4.65B | 4.08B | 4.33B | 2.62B | 3.27B | 2.62B | Investing Cash Flow |
| -2.77B | -1.83B | -1.79B | -3.33B | -1.30B | -992.00M | Financing Cash Flow |
| -2.01B | -2.24B | -2.44B | 934.00M | -1.78B | -1.44B |
Demant Technical Analysis
Negative
18.27
Price Trends
18.97
Negative
18.96
Negative
19.93
Negative
Market Momentum
-0.17
Negative
45.83
Neutral
74.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WILYY, the sentiment is Negative. The current price of 18.27 is below the 20-day moving average (MA) of 18.41, below the 50-day MA of 18.97, and below the 200-day MA of 19.93, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 74.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WILYY.
Demant Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $20.41B | 39.13 | 20.39% | 2.07% | 4.59% | -2.05% | |
77 Outperform | $119.64B | 28.51 | 8.42% | 2.97% | 2.72% | 4.48% | |
76 Outperform | $22.41B | 49.10 | 9.61% | 0.96% | -0.17% | -17.34% | |
70 Outperform | $8.02B | 23.06 | 31.06% | ― | -0.61% | 38.73% | |
70 Outperform | $18.12B | 29.11 | 25.48% | 0.92% | 5.75% | -1.50% | |
60 Neutral | $12.15B | 29.37 | 11.26% | ― | 3.54% | -3.41% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
WILYY
Demant
18.27
-7.41
-28.86%
ALGN
Align Tech
165.14
-155.55
-48.50%
MDT
Medtronic
93.28
11.01
13.38%
STE
Steris
228.06
-3.43
-1.48%
WSO
Watsco
505.49
111.87
28.42%
SONVY
Sonova Holding AG
62.28
-2.00
-3.11%
Demant Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -6.98% | Next Earnings Date: Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the company's strong cash flow and strategic advancements in sustainability and hearing care. However, these were counterbalanced by challenges such as the decline in EBIT, loss of market share in the U.S., and issues in the diagnostic segment. Despite the positive outlook, the balance between highlights and lowlights suggests a cautious stance.Highlights
Revenue Growth and Cash Flow
The company reported a 4% revenue growth with 2% from organic growth and 2% from acquisitions, totaling DKK22.4 billion. There was a strong cash flow from operations at DKK2.6 billion and a free cash flow above DKK2.3 billion.
Sustainability Advancements
The company delivered its first integrated report combining financials and sustainability. Achievements include improving the lives of nearly DKK11 million people and conducting 1.5 billion hearing tests in their own clinics.
Profit from Discontinued Operations
The communication business and bone-anchored hearing system business posted a positive result in Q4, aligning with expectations.
Strong Growth in Hearing Care
The hearing care segment showed strong performance with continued momentum, particularly in North America, driven by both organic growth and acquisitions.
Outlook for 2025
The revised outlook anticipates 3% to 7% organic revenue growth, EBIT between DKK4.5 billion to DKK4.9 billion, and a share buyback above DKK1.5 billion.
Lowlights
EBIT Decline
EBIT decreased by DKK100 million, which is a 2% drop, mainly due to a competitive market and strategic changes in the U.S. brand strategy.
Loss of Market Share in U.S.
The hearing aids segment in the U.S. lost significant market share in the managed care channel due to a brand strategy shift.
Challenges in Diagnostic Segment
The diagnostic segment faced challenges with soft markets and limited access to the Chinese government market, impacting growth.
Negative Impact from Exchange Rates
Negative effects from exchange rate fluctuations impacted gross profit and operating leverage, particularly in the hearing aids segment.
Company Guidance
In the recent conference call, the company provided detailed guidance for the fiscal year 2025, emphasizing key financial metrics. The company anticipates organic revenue growth between 3% and 7%, with a projected EBIT before special items ranging from DKK 4.5 billion to DKK 4.9 billion. Cash flow from operations is expected to be robust, exceeding DKK 2.6 billion, with a free cash flow of over DKK 2.3 billion. The company also plans a share buyback exceeding DKK 1.5 billion. Despite challenges, such as a competitive environment in the U.S. hearing aid market and managed care headwinds, the company is optimistic about its growth potential, driven by strategic initiatives in its hearing healthcare business. Additionally, the company reported an overall revenue increase to DKK 22.4 billion, reflecting a 4% growth, comprising 2% organic growth and 2% from acquisitions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.