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Demant
(OTC:WILYY)
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Rating:61Neutral
Price Target:
$24.00
▲(8.21% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by mixed financial performance (higher leverage and weaker margins despite strong growth) and a high valuation (P/E ~38). These are partially offset by strong technical momentum (price above key moving averages with positive MACD) and a supportive earnings call featuring upgraded 2026 guidance and improving operational momentum, albeit with elevated special items and regional/competitive headwinds.
Positive Factors
Organic Growth and Upgraded Outlook
Strong organic expansion and upgraded guidance indicate sustained demand for Demant's hearing healthcare products and services. This supports revenue visibility over the next several months, while acquisitive growth broadens the platform and distribution reach.
Negative Factors
Elevated Leverage and Refinancing Risk
The more debt-heavy capital structure reduces financial flexibility and raises refinancing sensitivity if earnings weaken. Although leverage has improved from the acquisition spike, management still expects net leverage above its 2.0-2.5 target range.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Growth and Upgraded Outlook
Strong organic expansion and upgraded guidance indicate sustained demand for Demant's hearing healthcare products and services. This supports revenue visibility over the next several months, while acquisitive growth broadens the platform and distribution reach.
Read all positive factors
Demant (WILYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.33B
Dividend YieldN/A
Average Volume (3M)39.00
Price to Earnings (P/E)38.2
Beta (1Y)0.90
Revenue Growth17.46%
EPS Growth-23.56%
CountryUS
Employees26,704
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.73
Shares Outstanding423,506,600
10 Day Avg. Volume119
30 Day Avg. Volume39
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)4.48
Price to Sales (P/S)1.92
P/FCF Ratio13.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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 operates as a hearing healthcare company in Europe, North America, Asia, Pacific region, and internationally. It engages in the development, manufacture, and wholesale of hearing aids; owning and operating hearing care clinics; and offe...
How the Company Makes Money
Demant makes money primarily by selling hearing healthcare products and by providing hearing care services. A major revenue stream is the sale of hearing aids and associated accessories and solutions, which are sold through hearing care profession...
Demant Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 09, 2027
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: robust reported revenue growth (15%), gross profit expansion (+17%) and gross margin improvement (+1.1 ppt), solid cash generation, successful commercial momentum driven by Oticon Zeal and the new Oticon Reveal product positioning, and upgraded full-year guidance. Offsetting these positives are elevated and increased special items tied to acquisitions and restructurings, FX headwinds, regional softness (notably China and managed care in the U.S.), and the risk of competitive launches in H2. On balance, the company’s financial performance, product momentum, successful integration progress and strengthened outlook outweigh the headwinds and one-off costs.Positive Updates
Strong Reported Revenue Growth
Group reported revenue growth of 15% in H1 2026, composed of 7% organic growth, 10% acquisitive growth (predominantly from KIND), and a -3% FX effect.
Negative Updates
Increased Special Items and Integration Costs
Special items for full-year 2026 were increased to DKK 400 million (from DKK 325 million). KIND integration costs are now estimated at DKK 150 million (up from DKK 125 million) and cost-savings implementation severance/implementation costs at DKK 250 million (up from DKK 200 million). H1 special items totaled DKK 216 million (predominantly KIND).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Reported Revenue Growth
Group reported revenue growth of 15% in H1 2026, composed of 7% organic growth, 10% acquisitive growth (predominantly from KIND), and a -3% FX effect.
Read all positive updates
Company Guidance
Management upgraded 2026 guidance: organic revenue growth is now expected at 6–7% (up from 3–6%) and EBIT before special items at DKK 4.4–4.8bn. They also set total special items at DKK 400m (up from DKK 325m), with KIND integration costs of DKK 150m (was DKK 125m) and cost‑saving implementation costs of DKK 250m (was DKK 200m); the cost‑effectiveness program is now expected to deliver DKK 300m (vs DKK 250m) and KIND is forecast to contribute DKK 325m to EBIT (vs DKK 300m), while a tariff refund of DKK 25m is expected in H2. For context H1 performance underpinning the upgrade included reported group revenue +15% (organic +7%, acquisitive +10%, FX -3%), gross profit ~DKK 10bn (+17%, gross margin +1.1pp), EBIT before special items DKK 2.134bn (16.5% margin), cash flow from operations DKK 1.6bn (+6%), and net leverage down to ~3.0 with an expectation to be slightly above the 2.0–2.5 target range by year‑end.Demant Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.98B | 22.97B | 22.42B | 22.44B | 19.70B | 17.91B |
| Gross Profit | 19.08B | 17.37B | 17.09B | 16.54B | 14.67B | 13.46B |
| EBITDA | 6.34B | 5.37B | 5.80B | 5.05B | 4.29B | 4.43B |
| Net Income | 1.64B | 1.54B | 2.39B | 1.79B | 2.08B | 2.51B |
Balance Sheet | ||||||
| Total Assets | 40.03B | 39.07B | 32.45B | 30.55B | 29.86B | 24.86B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.33B | 1.11B | 1.14B | 1.13B | 1.17B |
| Total Debt | 20.28B | 20.99B | 15.68B | 14.45B | 15.08B | 11.34B |
| Total Liabilities | 28.71B | 29.16B | 22.81B | 21.21B | 21.30B | 16.88B |
| Stockholders Equity | 11.24B | 9.84B | 9.56B | 9.26B | 8.56B | 7.98B |
Cash Flow | ||||||
| Free Cash Flow | 3.47B | 3.18B | 3.30B | 3.58B | 1.70B | 2.55B |
| Operating Cash Flow | 4.08B | 3.80B | 4.08B | 4.23B | 2.62B | 3.27B |
| Investing Cash Flow | -6.09B | -6.79B | -1.83B | -1.77B | -3.33B | -1.30B |
| Financing Cash Flow | 2.50B | 3.23B | -2.24B | -2.41B | 934.00M | -1.78B |
Demant Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $31.89B | 32.06 | 36.19% | ― | 15.54% | 77.43% | |
71 Outperform | $17.63B | 22.64 | 6.36% | 1.03% | 8.62% | 0.09% | |
65 Neutral | $29.02B | 18.37 | 15.16% | 0.22% | 6.52% | -11.06% | |
61 Neutral | $9.33B | 38.18 | 15.31% | ― | 17.46% | -23.56% | |
58 Neutral | $24.02B | 18.07 | 10.05% | 4.03% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $54.95M | -1.10 | 1719.71% | ― | -6.76% | 42.70% |
* Healthcare Sector Average
WILYY
Demant
22.87
3.31
16.93%
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83.03
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PHG
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ZBH
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93.49
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-8.35%
COCH
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0.74
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GEHC
GE Healthcare Technologies Inc
63.93
-12.36
-16.21%
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.