Demant (WILYY)
OTHER OTC:WILYY
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Demant
(OTC:WILYY)
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Rating:53Neutral
Price Target:
$15.00
▼(-12.89% Downside)
Action:ReiteratedDate:02/09/26
Overall score is pulled down primarily by weak technicals (price below key moving averages with negative momentum) and increased leverage alongside softer profitability. Offsetting this are solid cash generation and a defined 2026 improvement plan (cost savings and acquisition-driven EBIT contribution), though valuation remains only moderate given the P/E and current margin/FX pressures.
Positive Factors
High gross margins
A sustained gross margin around 75.6% indicates durable product economics and structural pricing power in core hearing-aid products and instruments. High gross margins give the company room to absorb SG&A, fund R&D and support margin recovery even if ASPs or mix shift temporarily.
Negative Factors
Elevated leverage
Material rise in net debt and a 3.4x gearing level reduces financial flexibility and raises refinancing risk. Management paused buybacks to prioritize deleveraging, which constrains capital allocation and increases vulnerability to prolonged margin shortfalls or adverse FX movements.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
A sustained gross margin around 75.6% indicates durable product economics and structural pricing power in core hearing-aid products and instruments. High gross margins give the company room to absorb SG&A, fund R&D and support margin recovery even if ASPs or mix shift temporarily.
Read all positive factors
Demant (WILYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.20B
Dividend YieldN/A
Average Volume (3M)4.00
Price to Earnings (P/E)28.5
Beta (1Y)0.85
Revenue Growth1.28%
EPS Growth-1.99%
CountryUS
Employees19,917
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.16
Shares Outstanding427,589,320
10 Day Avg. Volume0
30 Day Avg. Volume4
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)4.48
Price to Sales (P/S)1.92
P/FCF Ratio13.87
Enterprise Value/Market Cap10.11
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit3.60
Enterprise Value/Ebitda11.68
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Demant Business Overview & Revenue Model
Company Description
Demant A/S, a hearing healthcare and audio technology company, develops, manufactures, and sells products and equipment to enhance people's hearing in Europe, North America, the Pacific, Asia, and internationally. It operates in two segments, Hear...
How the Company Makes Money
Demant generates revenue primarily through the sale of hearing aids and audiological equipment, which form the cornerstone of its business model. The company operates in multiple segments including Hearing Aids, Audiometric Equipment, and Personal...
Demant Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Neutral
Balanced message: the company delivered solid cash generation, successful product launches (Zeal) and an acquisition that strengthens its Hearing Care footprint, while presenting a clear 2026 growth and profitability roadmap. At the same time, near-term profitability is pressured by a softer hearing aid market (especially in the U.S.), ASP/headwind mix effects, FX impacts, elevated leverage after the KIND acquisition, and planned restructuring/special items. Management expects the cost program and KIND contribution to support margin recovery in 2026, but risks (market softness, competitive pressure and FX) remain.Positive Updates
Group revenue and growth momentum
Full-year 2025 organic growth of 2% (5% in local currencies); second half organic growth improved to 4%, showing sequential recovery across all three business areas.
Negative Updates
Profitability pressure and EBIT decline
EBIT before special items for full-year 2025 DKK 3.96 billion with an EBIT margin of 17.2%; management reported EBIT down ~10% (before special items) and H2 EBIT of DKK 2.1 billion, reflecting lower operating leverage.
Read all updates
Q4-2025 Updates
Positive
Negative
Group revenue and growth momentum
Full-year 2025 organic growth of 2% (5% in local currencies); second half organic growth improved to 4%, showing sequential recovery across all three business areas.
Read all positive updates
Company Guidance
Demant guided 2026 organic growth of 3–6% and EBIT before special items of DKK 4.1–4.5 billion, based on an assumed global hearing‑aid market growing 2–4% in value; key modeling assumptions include acquisitive growth of 8%, FX of -2% (an FX EBIT headwind of DKK 200m, split H1/H2), an effective tax rate of 23% and a pause of share buybacks while targeting deleveraging from a 3.4% year‑end gearing back to 2–2.5% within 18–24 months. The company expects ~DKK 250m of EBIT improvement from a 2‑year cost program in 2026 (part of DKK 500m run‑rate savings from 2028+), will recognize DKK 325m of special items in 2026 (DKK 125m KIND integration + DKK 200m restructuring, plus a further DKK 100m in 2027), anticipates KIND to contribute roughly DKK 300m (≈DKK 275m on an 11‑month basis) to EBIT, models DKK 25m tariff impact, and plans actions affecting ~700 people in 2026 (150 in Demant) with the majority of savings phased into H2.Demant Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.97B | 22.42B | 22.44B | 19.70B | 17.91B |
| Gross Profit | 17.37B | 17.09B | 16.54B | 14.67B | 13.46B |
| EBITDA | 5.37B | 5.80B | 5.05B | 4.29B | 4.43B |
| Net Income | 1.54B | 2.39B | 1.79B | 2.08B | 2.51B |
Balance Sheet | |||||
| Total Assets | 39.07B | 32.45B | 30.55B | 29.86B | 24.86B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 1.11B | 1.14B | 1.13B | 1.17B |
| Total Debt | 20.99B | 15.68B | 14.45B | 15.08B | 11.34B |
| Total Liabilities | 29.16B | 22.81B | 21.21B | 21.30B | 16.88B |
| Stockholders Equity | 9.84B | 9.56B | 9.26B | 8.56B | 7.98B |
Cash Flow | |||||
| Free Cash Flow | 3.18B | 3.30B | 3.58B | 1.70B | 2.55B |
| Operating Cash Flow | 3.80B | 4.08B | 4.23B | 2.62B | 3.27B |
| Investing Cash Flow | -6.79B | -1.83B | -1.77B | -3.33B | -1.30B |
| Financing Cash Flow | 3.23B | -2.24B | -2.41B | 934.00M | -1.78B |
Demant Technical Analysis
Neutral
17.22
Price Trends
14.92
Positive
16.02
Negative
17.62
Negative
Market Momentum
0.02
Negative
54.17
Neutral
73.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WILYY, the sentiment is Neutral. The current price of 17.22 is above the 20-day moving average (MA) of 14.45, above the 50-day MA of 14.92, and below the 200-day MA of 17.62, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 73.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WILYY.
Demant Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $14.02B | 22.70 | 11.79% | 2.28% | 5.78% | 61.52% | |
69 Neutral | $22.07B | 32.31 | 10.21% | 0.94% | 5.15% | 60.30% | |
68 Neutral | $14.33B | 80.92 | 17.36% | ― | 27.12% | -41.72% | |
65 Neutral | $18.20B | 31.78 | 5.60% | 1.05% | 5.47% | -23.03% | |
64 Neutral | $26.53B | 24.78 | 8.21% | 3.30% | -0.76% | -55.03% | |
53 Neutral | $6.20B | 28.51 | 16.06% | ― | 1.28% | -1.99% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WILYY
Demant
15.01
-0.78
-4.92%
PODD
Insulet
203.51
-61.21
-23.12%
PHG
Koninklijke Philips
28.05
5.00
21.67%
SNN
Smith & Nephew Snats
33.03
7.75
30.68%
STE
Steris
225.03
4.30
1.95%
ZBH
Zimmer Biomet Holdings
93.01
-9.36
-9.14%
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.