Demant A/S (DEMANT.CO) stock analysis

In our weekly check, Demant A/S is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 5.

About Demant A/S

Demant A/S is a Healthcare company (Medical - Devices) based in Denmark, listed on CPH as DEMANT.CO.

What our checks show for DEMANT.CO

Red flags

• Operating profit covers interest only 1.1 times: a weak year could make the payments hard.
• The net margin fell by 7 points over 5 years, to 6.7%: the company keeps less of each sale as profit.
• The gross margin fell by 5 points, to 69.8%: costs are rising faster than prices.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6.2 years.

Warning signs

• Net debt is 4.3x a year of EBITDA (debt/equity 1.8). That limits room in a downturn and raises refinancing risk.
• Earnings per share fell 7.4% a year over the last 3 years.
• Net profit fell 9.5% a year over the last 3 years.
• The net margin is only 6.7%: little room if costs rise.
• Thinly traded (about 312 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 2.56x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 39.1% a year over the next years.
• Analysts expect the net margin to improve by 6.3 points from today's 6.7%.
• Free cash flow is 14.3% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $11.5 billion.
• The share count fell by 5.3% in 2 years: the company buys back its own shares.

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Questions

What grade does Demant A/S (DEMANT.CO) have?

In our weekly check, Demant A/S is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of DEMANT.CO stock?

This week's biggest flags for Demant A/S: Weak interest cover, Margins falling, Gross margin falling. In total 10 of 24 checks show a warning or a red flag.

What does Demant A/S do?

Demant A/S is a Healthcare company (Medical - Devices) based in Denmark, listed on CPH as DEMANT.CO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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