Demant (WILYY) AI Stock Analysis

Compare

4 Followers

Top Page

Demant

(OTC:WILYY)

Select Model

Neutral 65 (OpenAI - 4o)

Rating:65Neutral

Price Target:

$20.50

▲(15.88% Upside)

Demant's overall stock score is primarily supported by its strong financial performance, characterized by robust profitability and efficient cash generation. However, technical analysis and valuation present moderate concerns, with bearish momentum and a relatively high P/E ratio. The earnings call revealed significant market challenges, particularly in the U.S., which dampen the outlook despite strategic acquisitions and sustainability efforts.

Demant (WILYY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$7.33B

Dividend YieldN/A

Average Volume (3M)4.00

Price to Earnings (P/E)22.5

Beta (1Y)0.92

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 RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.52

Enterprise Value/Revenue0.50

Enterprise Value/Gross Profit0.65

Enterprise Value/Ebitda1.93

Forecast

1Y Price Target

$20.50

Price Target Upside15.88% Upside

Rating ConsensusHold

Number of Analyst Covering1

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 makes money primarily through the sale of hearing aids and related products. The company's revenue model is centered around its core product segment, which includes hearing aids and audiometric equipment. Demant also generates income from its personal communication solutions and diagnostic instruments. A significant portion of the company's earnings comes from its strong global distribution network and partnerships with hearing clinics, healthcare professionals, and retailers. Additionally, Demant invests in research and development to innovate and maintain a competitive edge in the hearing healthcare market, which helps drive sales and growth.

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, with moderate leverage offset by strong cash flows and shareholder returns.

Income Statement

Very Positive

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

Positive

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

Positive

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.42B	22.44B	19.70B	18.39B	14.47B
Gross Profit	17.09B	16.54B	14.67B	13.75B	10.19B
EBITDA	5.80B	5.22B	4.18B	4.46B	2.41B
Net Income	2.39B	1.79B	2.08B	2.51B	1.12B
Balance Sheet
Total Assets	32.45B	30.55B	29.86B	24.86B	21.93B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.14B	1.13B	1.17B	952.00M
Total Debt	15.68B	14.45B	15.08B	11.34B	9.00B
Total Liabilities	22.81B	21.21B	21.30B	16.88B	13.65B
Stockholders Equity	9.56B	9.26B	8.56B	7.98B	8.25B
Cash Flow
Free Cash Flow	3.30B	3.62B	1.70B	2.55B	1.94B
Operating Cash Flow	4.08B	4.33B	2.62B	3.27B	2.62B
Investing Cash Flow	-1.83B	-1.79B	-3.33B	-1.30B	-992.00M
Financing Cash Flow	-2.24B	-2.44B	934.00M	-1.78B	-1.44B

Demant Technical Analysis

Technical Analysis Sentiment

Negative

Last Price17.69

Price Trends

50DMA

19.64

Negative

100DMA

19.97

Negative

200DMA

19.19

Negative

Market Momentum

MACD

-0.33

Positive

RSI

28.70

Positive

STOCH

2.93

Positive

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 17.69 is below the 20-day moving average (MA) of 18.98, below the 50-day MA of 19.64, and below the 200-day MA of 19.19, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 28.70 is Positive, neither overbought nor oversold. The STOCH value of 2.93 is Positive, 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	79 Outperform	24.53B	37.02	9.29%	0.94%	2.47%	63.68%
SNN	78 Outperform	15.20B	31.21	7.83%	2.12%	5.78%	61.52%
PODD	76 Outperform	22.38B	96.78	16.14%	―	25.99%	-40.46%
ZBH	74 Outperform	19.46B	23.61	6.57%	0.98%	4.11%	-14.43%
WILYY	65 Neutral	$7.33B	22.46	27.42%	―	1.28%	-1.99%
PHG	56 Neutral	25.57B	-32.85	-5.85%	3.30%	-0.76%	-55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

WILYY

Demant

17.68

-2.30

-11.51%

PODD

Insulet

318.00

85.97

37.05%

PHG

Koninklijke Philips

26.82

-4.94

-15.55%

SNN

Smith & Nephew Snats

35.42

5.07

16.71%

STE

Steris

249.08

12.45

5.26%

ZBH

Zimmer Biomet Holdings

98.24

-8.99

-8.38%

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.Date of analysis: Sep 16, 2025