Downer EDI Limited (AU:DOW)
ASX:DOW
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Downer EDI Limited
(Sydney:DOW)
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Rating:64Neutral
Price Target:
AU$9.00
▲(16.13% Upside)
Action:ReiteratedDate:10/22/25
Downer EDI Limited's overall stock score is driven by stable financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, and the overbought technical signals indicate a risk of short-term price correction. The lack of earnings call and corporate events data limits further insights.
Positive Factors
Balance sheet stability
Moderate leverage and a stable equity ratio provide durable financial flexibility for multi-year infrastructure contracts. This reduces refinancing and solvency risk, supports bid capacity and working-capital needs, and underpins the company’s ability to sustain operations through project cycles.
Negative Factors
Revenue decline
A nearly 5% year-on-year revenue decline reduces scale and contract leverage, weakening bargaining power and margin recovery prospects. Persistent top-line contraction undermines backlog replenishment and limits funds available for strategic investment or new long-term framework wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet stability
Moderate leverage and a stable equity ratio provide durable financial flexibility for multi-year infrastructure contracts. This reduces refinancing and solvency risk, supports bid capacity and working-capital needs, and underpins the company’s ability to sustain operations through project cycles.
Read all positive factors
Downer EDI Limited (DOW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$5.12B
Dividend Yield3.11%
Average Volume (3M)1.75M
Price to Earnings (P/E)14.2
Beta (1Y)0.95
Revenue Growth-4.53%
EPS Growth97.67%
CountryAU
Employees26,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.19
Shares Outstanding661,779,000
10 Day Avg. Volume1,174,070
30 Day Avg. Volume1,745,792
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)2.05
Price to Sales (P/S)0.40
P/FCF Ratio9.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$8.29Price Target Upside6.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.43
Revenue Forecast (FY)AU$10.23B
Downer EDI Limited Business Overview & Revenue Model
Company Description
Downer EDI Limited operates as an integrated facilities management services provider in Australia, New Zealand, and internationally. Its Transport segment provides road network management; routine road maintenance; asset management systems; spray ...
How the Company Makes Money
Downer EDI Limited generates revenue through multiple streams, primarily from its contracts and service agreements in the sectors it operates in. The company earns money by providing services such as maintenance and repair of infrastructure, proje...
Downer EDI Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.11B | 10.48B | 10.97B | 11.64B | 10.95B | 11.51B |
| Gross Profit | 1.28B | 9.04B | 1.28B | 1.28B | 1.21B | 1.44B |
| EBITDA | 616.90M | 616.00M | 512.70M | 60.70M | 645.80M | 806.90M |
| Net Income | 160.80M | 136.70M | 69.10M | -385.70M | 151.60M | 181.60M |
Balance Sheet | ||||||
| Total Assets | 6.08B | 6.48B | 7.06B | 7.48B | 7.64B | 8.32B |
| Cash, Cash Equivalents and Short-Term Investments | 683.40M | 839.70M | 856.70M | 889.10M | 738.50M | 811.40M |
| Total Debt | 1.60B | 1.54B | 1.81B | 2.13B | 1.91B | 2.14B |
| Total Liabilities | 3.93B | 4.24B | 4.80B | 5.19B | 4.83B | 5.36B |
| Stockholders Equity | 1.97B | 2.06B | 2.08B | 2.29B | 2.81B | 2.95B |
Cash Flow | ||||||
| Free Cash Flow | 457.30M | 439.60M | 397.80M | 55.20M | 215.60M | 423.40M |
| Operating Cash Flow | 569.20M | 562.50M | 544.10M | 318.20M | 495.40M | 708.70M |
| Investing Cash Flow | 24.70M | -29.10M | -29.30M | -86.70M | 38.40M | 35.90M |
| Financing Cash Flow | -543.50M | -536.50M | -566.60M | -80.70M | -600.20M | -523.20M |
Downer EDI Limited Technical Analysis
Positive
7.75
Price Trends
7.82
Negative
7.78
Negative
7.29
Positive
Market Momentum
-0.08
Negative
50.58
Neutral
72.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DOW, the sentiment is Positive. The current price of 7.75 is below the 20-day moving average (MA) of 7.80, below the 50-day MA of 7.82, and above the 200-day MA of 7.29, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DOW.
Downer EDI Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$1.19B | 12.85 | 12.08% | 2.43% | 1.65% | 84.19% | |
66 Neutral | AU$1.66B | 12.97 | 9.26% | 1.30% | 15.14% | -7.23% | |
66 Neutral | AU$1.66B | 17.28 | 13.62% | 1.85% | 23.76% | 21.18% | |
65 Neutral | AU$2.86B | 10.17 | 20.27% | 2.65% | 7.20% | 32.60% | |
64 Neutral | AU$5.12B | 14.22 | 7.97% | 3.11% | -4.53% | 97.67% | |
64 Neutral | AU$2.58B | 8.10 | 7.79% | 3.20% | 12.18% | -73.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AU:DOW
Downer EDI Limited
7.75
2.48
47.03%
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Downer EDI Limited Corporate Events
Macquarie Group Ceases to Be Substantial Holder in Downer EDI
Mar 16, 2026
Macquarie Group Limited and a wide range of its controlled entities have lodged a notice stating they have ceased to be a substantial holder in Downer EDI Limited. The filing, made under section 671B of the Corporations Act, signals that Macquarie...
Downer EDI Continues On-Market Share Buy-Back Program
Mar 15, 2026
Downer EDI Limited has provided an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares under code DOW. The latest daily report, dated 16 March 2026, discloses that...
Downer EDI Cancels 1.36 Million Shares After On‑Market Buy‑Back
Mar 12, 2026
Downer EDI Limited has cancelled 1,364,448 ordinary fully paid shares following an on-market buy-back completed on 20 February 2026. The reduction in issued capital, formally notified to the ASX, marginally increases the ownership percentage of re...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
Mar 12, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The update, dated 13 March 2026, reports that a total of 9,540,808 shares had been bought...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
Mar 11, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under code DOW. The update, dated 12 March 2026, confirms that the company repurchased 245,478 shares o...
Downer EDI Issues Daily Update on Ongoing Share Buy-Back
Mar 9, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that a cumulative total of 8,912,206 shares had been repurchased pri...
Downer EDI director Annette Carey acquires first indirect stake
Mar 9, 2026
Downer EDI Limited has disclosed a change in director Annette Carey’s relevant interests, with the filing noting that she now holds an indirect beneficial interest in 10,000 ordinary shares. The shares are held via Sandose Pty Ltd as trustee...
Downer EDI Continues On-Market Share Buy-Back Program
Mar 8, 2026
Downer EDI Limited has provided an updated notification to the ASX confirming ongoing on-market buy-back activity for its ordinary fully paid shares under an existing program first announced on 21 August 2025. The latest daily update dated 9 March...
Downer EDI Updates NZ Dollar Terms on Interim Dividend
Mar 6, 2026
Downer EDI Limited has updated its previously announced dividend notification for holders of its ordinary fully paid shares, relating to the six-month period ended 31 December 2025. The update, dated 6 March 2026, specifically reflects a revision ...
Downer EDI Issues Daily Update on Ongoing On-Market Share Buy-Back
Mar 4, 2026
Downer EDI Limited has provided a daily update on its ongoing on-market share buy-back program for its ordinary fully paid shares. As of 5 March 2026, the company reported that it had repurchased a cumulative total of 8,723,318 shares prior to the...
Downer EDI updates director Peter Tompkins’ share and performance rights holdings
Mar 3, 2026
Downer EDI Limited has disclosed a change in the equity interests of director Peter John Tompkins, detailing an updated mix of directly and indirectly held ordinary shares and performance rights. The indirect interests are held through the trustee...
Downer EDI Issues 1.6m Unquoted Performance Rights Under Incentive Scheme
Mar 3, 2026
Downer EDI Limited has notified the market of the issue of 1,615,917 unquoted performance rights under its employee incentive scheme, effective 27 February 2026. These securities, which are not intended to be quoted on the ASX, reflect the company...
Downer EDI Updates Market on Progress of Ongoing Share Buy‑Back
Mar 3, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back program for its ordinary fully paid shares. The update, dated 4 March 2026, confirms that a total of 8,549,839 shares had...
Macquarie Group Ceases to Be Substantial Holder in Downer EDI
Feb 27, 2026
Macquarie Group Limited and a wide range of its controlled entities have lodged a notice stating they have ceased to be a substantial holder in Downer EDI Limited. The change, formalised in late February 2026, signals a reduction in Macquarie̵...
Macquarie exits substantial holder position in Downer EDI
Feb 25, 2026
Macquarie Group Limited and its controlled entities have lodged a notice stating they have ceased to be a substantial holder in Downer EDI Limited. The filing, made under Australia’s Corporations Act, indicates changes in Macquarie’s r...
Downer EDI Updates Market on Ongoing On-Market Share Buy-Back
Feb 23, 2026
Downer EDI Limited has updated the market on its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest Appendix 3C filing dated 24 February 2026 confirms that this notice is a daily buy-back notification, followin...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
Feb 22, 2026
Downer EDI Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for ordinary fully paid shares under code DOW. As of 23 February 2026, the company reported that it had repurchased a cumulative 8,4...
Downer EDI Performance Rights Lapse After Unmet Vesting Conditions
Feb 2, 2026
Downer EDI Limited has notified the market that 41,386 performance rights (ASX code DOWAC) have lapsed as of 31 January 2026 because the vesting conditions were not met or could no longer be satisfied. The cessation of these securities reflects a ...
Macquarie Group Ceases to Be Substantial Shareholder in Downer EDI
Jan 19, 2026
Macquarie Group Limited and its controlled entities have filed a notice stating they have ceased to be a substantial shareholder in Downer EDI Limited, under the disclosure requirements of the Corporations Act 2001. The change in Macquarie’s...
Macquarie Group Ceases to Be Substantial Holder in Downer EDI
Jan 15, 2026
Macquarie Group Limited and its controlled entities have lodged a notice that they have ceased to be a substantial holder in Downer EDI Limited, indicating that their voting interest in the company has fallen below the substantial holding threshol...
Allan Gray Australia Ceases to Be Substantial Shareholder in Downer EDI
Jan 12, 2026
Allan Gray Australia Pty Ltd and its related bodies corporate have notified Downer EDI Limited that they have ceased to be a substantial shareholder in the company as of 8 January 2026, according to a statutory disclosure lodged under the Corporat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.