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Demant (WILYY)
OTHER OTC:WILYY
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Demant
(OTC:WILYY)
Select Model
Select Model
Rating:63Neutral
Price Target:
$18.00
▲(4.53% Upside)
Demant's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and challenges highlighted in the earnings call. The company's valuation is moderate, but the lack of organic growth and market challenges weigh on the score.
Positive Factors
Cash Generation
Strong cash flow management enhances financial flexibility, allowing Demant to invest in growth opportunities and weather economic challenges.
Sustainability Efforts
Sustainability initiatives improve operational efficiency and align with global environmental standards, strengthening long-term brand reputation.
Strategic Acquisition
The acquisition of KIND Group enhances market presence in Germany, potentially increasing revenue through expanded retail channels.
Negative Factors
Market Growth Challenges
Slower market growth limits revenue potential and pressures Demant to innovate and capture market share in a challenging environment.
U.S. Market Weakness
Underperformance in the U.S. market impacts overall profitability and necessitates strategic adjustments to regain competitive positioning.
Organic Growth Stagnation
Lack of organic growth indicates potential issues in market penetration and product adoption, requiring strategic focus on innovation and sales execution.
Demant (WILYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.27B
Dividend YieldN/A
Average Volume (3M)4.00
Price to Earnings (P/E)23.1
Beta (1Y)0.86
Revenue Growth1.28%
EPS Growth-1.99%
CountryUS
Employees19,917
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.39
Shares Outstanding427,589,320
10 Day Avg. Volume0
30 Day Avg. Volume4
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)6.15
Price to Sales (P/S)2.63
P/FCF Ratio17.83
Enterprise Value/Market Cap9.82
Enterprise Value/Revenue3.16
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda12.66
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 DescriptionDemant 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, Hearing Healthcare and Communications. The Hearing Healthcare segment offers hearing implants and aids, hearing care, and diagnostic products. The Communications segment provides headsets for collaborative work and gaming markets under the EPOS brand name. The company was formerly known as William Demant Holding A/S and changed its name to Demant A/S in March 2019. Demant A/S was founded in 1904 and is headquartered in Smørum, Denmark.
How the Company Makes MoneyDemant 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 Communication. Key revenue streams include direct sales to consumers, partnerships with hearing care professionals, and distribution agreements with various healthcare providers. Additionally, Demant benefits from ongoing relationships with audiology clinics and retailers that facilitate the distribution of its products. The company also invests in research and development, leading to innovative products that enhance sales and customer loyalty, contributing to its overall profitability.
Demant Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Negative
The earnings call highlighted strong cash flow management and sustainability progress. However, these positives were overshadowed by significant challenges in market growth, especially in the U.S., declining ASP and gross margins, and the lack of organic growth. The acquisition of KIND Group is a positive strategic move but was offset by the immediate operational and market challenges.Q2-2025 Updates
Positive Updates
Strong Cash Flow Performance
Delivered solid cash flow from operations of over DKK 1.5 billion and free cash flow of DKK 1.126 billion, which demonstrates strong cash management despite lower profitability.
Sustainability Progress
Decreased Scope 1 and 2 market-based greenhouse gas emissions by 5% by increasing the share of renewable electricity, achieving 94% training of highly exposed employees in Demant's code of conduct.
Acquisition of KIND Group
Agreed to acquire the KIND Group, a leading retailer of hearing aids with around 650 clinics primarily in Germany, marking a significant expansion in retail operations.
Negative Updates
Global Hearing Aid Market Growth Below Expectations
The global hearing aid market grew below the normal 4% to 6% expectation, attributed to macroeconomic uncertainty, leading to a revised full-year market growth expectation from 1% to 5% down to 1% to 3%.
Decline in U.S. Market Performance
U.S. performance was weaker than expected with significant challenges in large retailer channels and lower-than-planned sales, contributing to a negative impact on overall group profitability.
ASP and Gross Margin Decline
Average Selling Price (ASP) declined due to unfavorable geographic sales mix, and gross margin declined by 0.8 percentage points, falling to the lower end of the expected range.
0% Organic Growth
The group reported 0% organic growth, which was below expectations due to a weaker-than-anticipated market and challenges in executing sales in the U.S. market.
Company Guidance
During the conference call, Demant provided guidance that highlighted a challenging environment for the global hearing aid market, which grew below the typical 4% to 6% expectation due to macroeconomic uncertainties. The company's first-half 2025 performance showed 0% organic growth, influenced by a decline in the global average selling price (ASP) and lower sales in the U.S. market. Demant reported a gross margin decline of 0.8 percentage points and an EBIT before special items of DKK 1.849 billion, with a contraction in EBIT margin due to unfavorable geographic and product mix changes. The company adjusted its outlook for the global hearing aid market to 1% to 3% growth in value and revised its EBIT forecast to EUR 3.9 billion to EUR 4.3 billion. Despite these challenges, Demant achieved a solid cash flow from operations of over DKK 1.5 billion. Sustainability efforts included a 5% reduction in Scope 1 and 2 greenhouse gas emissions and a 94% training rate in the company's code of conduct. The company's strategic acquisition of the KIND Group was also noted, with share buyback paused following this agreement.Demant Financial Statement Overview
Summary
Demant demonstrates strong financial health with robust profitability, efficient cash generation, and a balanced capital structure. The company maintains significant margins and returns, although revenue growth is stable with a slight decline. 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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.59B | 22.42B | 22.44B | 19.70B | 17.91B | 14.47B |
| Gross Profit | 17.13B | 17.09B | 16.54B | 14.67B | 13.46B | 10.19B |
| EBITDA | 5.64B | 5.80B | 5.05B | 4.29B | 4.43B | 2.41B |
| Net Income | 2.31B | 2.39B | 1.79B | 2.08B | 2.51B | 1.12B |
Balance Sheet | ||||||
| Total Assets | 32.64B | 32.45B | 30.55B | 29.86B | 24.86B | 21.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 1.11B | 1.14B | 1.13B | 1.17B | 952.00M |
| Total Debt | 16.18B | 15.68B | 14.45B | 15.08B | 11.34B | 9.00B |
| Total Liabilities | 23.16B | 22.81B | 21.21B | 21.30B | 16.88B | 13.65B |
| Stockholders Equity | 9.40B | 9.56B | 9.26B | 8.56B | 7.98B | 8.25B |
Cash Flow | ||||||
| Free Cash Flow | 3.59B | 3.30B | 3.58B | 1.70B | 2.55B | 1.94B |
| Operating Cash Flow | 4.40B | 4.08B | 4.23B | 2.62B | 3.27B | 2.62B |
| Investing Cash Flow | -1.97B | -1.83B | -1.77B | -3.33B | -1.30B | -992.00M |
| Financing Cash Flow | -2.26B | -2.24B | -2.41B | 934.00M | -1.78B | -1.44B |
Demant Technical Analysis
Positive
17.22
Price Trends
16.92
Positive
17.74
Negative
18.60
Negative
Market Momentum
0.13
Negative
62.93
Neutral
84.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WILYY, the sentiment is Positive. The current price of 17.22 is above the 20-day moving average (MA) of 16.97, above the 50-day MA of 16.92, and below the 200-day MA of 18.60, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 84.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WILYY.
Demant Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.59B | 36.99 | 10.14% | 0.94% | 5.15% | 60.30% | |
73 Outperform | $18.40B | 22.98 | 6.41% | 1.05% | 5.47% | -23.03% | |
70 Outperform | $19.60B | 80.71 | 19.68% | ― | 27.12% | -41.72% | |
69 Neutral | $14.29B | 28.22 | 9.20% | 2.28% | 5.78% | 61.52% | |
63 Neutral | $7.27B | 23.07 | 27.42% | ― | 1.28% | -1.99% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $28.35B | -36.29 | ― | 3.30% | -0.76% | -55.03% |
* Healthcare Sector Average
WILYY
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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.