De.mem (STU:DM2) Financial Strength: 5 (As of Dec. 2025) — Near Median

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STU:DM2 De.mem Ltd STU:DM2
37 GF Score
Price €0.06
GF Value €0.08
Valuation Modestly Undervalued
! 6 Warning Signs
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What is De.mem Financial Strength?

De.mem STU:DM2 +19.25% 37 Financial Strength is 5 as of Dec. 2025, which is at its 10-year median of 5.00. GuruFocus rates STU:DM2 with a GF Score™ of 37/100 and a GF Value™ of €0.08 (Modestly Undervalued). The stock has 6 warning signs investors should review.

De.mem has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

De.mem did not have earnings to cover the interest expense. De.mem's debt to revenue ratio for the quarter that ended in Dec. 2025 was 0.06. As of today, De.mem's Altman Z-Score is 2.36.


De.mem  (STU:DM2) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

De.mem has the Financial Strength Rank of 5.


De.mem Financial Strength Related Terms


STU:DM2 vs VLTO, ZWS, CECO: Financial Strength Comparison

For the Pollution & Treatment Controls subindustry, De.mem's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


De.mem Financial Strength vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, De.mem's Financial Strength distribution charts can be found below:

* The bar in red indicates where De.mem's Financial Strength falls into.


STU:DM2
37GF Score
De.mem Ltd STU:DM2
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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De.mem Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

De.mem's Interest Expense for the months ended in Dec. 2025 was €-0.03 Mil. Its Operating Income for the months ended in Dec. 2025 was €-0.31 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €0.55 Mil.

De.mem's Interest Coverage for the quarter that ended in Dec. 2025 is

De.mem did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

De.mem's Debt to Revenue Ratio for the quarter that ended in Dec. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.467 + 0.553) / 18.074
=0.06

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

De.mem has a Z-score of 2.36, indicating it is in Grey Zones. This implies that De.mem is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.36 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
De.mem (STU:DM2) has a Financial Strength of 5 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on De.mem and its competitors. This is near median its historical median of 5.00. Over the past decade, De.mem's Financial Strength has ranged from 4.00 to 6.00.
Is De.mem's Financial Strength too high?
De.mem's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 6.00. Overall, De.mem has a GF Score™ of 37/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does De.mem's Financial Strength compare to VLTO and ZWS?
De.mem's Financial Strength of 5 can be compared against companies in the Industrial Products industry. Historically, De.mem's own Financial Strength has ranged from 4.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on De.mem and its competitors. De.mem's current Financial Strength is 5, which is near median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is De.mem stock overvalued right now?
Based on GuruFocus' analysis, De.mem (STU:DM2) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.08, compared to a current price of €0.06 — trading 21% below its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. De.mem's overall GF Score™ is 37/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For De.mem (STU:DM2), the current Financial Strength is 5 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is De.mem (STU:DM2) Overvalued in 2026?

Based on GuruFocus' analysis, De.mem stock appears to be undervalued. The current stock price of €0.06 is trading 21% below its estimated GF Value™ of €0.08. GuruFocus considers De.mem to be Modestly Undervalued.

Key valuation signals for STU:DM2:

  • Financial Strength: 5 (near median its 10-year median of 5.00)
  • GF Value™: €0.08 vs. price of €0.06 (21% below fair value)
  • GF Score™: 37/100 with 6 warning signs

No single metric tells the full story. See the STU:DM2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


De.mem Business Description

Other Exchanges DEM:Australia
Address 385 Bourke Street, Suite 2, Level 11, Melbourne, VIC, AUS, 3000
De.mem Ltd is a water and wastewater treatment company engaged in the design, construction, ownership, and operation of decentralized water treatment systems. The company provides solutions to industrial, municipal, and residential customers across sectors, including mining, electronics, chemicals, oil and gas, and food and beverage. Its offerings include membrane-based, biological, chemical, and disinfection treatment technologies, and it generates revenue through a combination of equipment sales and recurring service and operation contracts. It operates in Australia, Singapore, and Germany.
37GF Score

Get the complete analysis for STU:DM2

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€0.06
Price
€0.08
GF Value