DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEI - US25960P1093 - REIT
11.64 USD
-0.12 (-1.02%)
11.87 USD
+0.23 (+1.98%)
We assign a fundamental rating of 4 out of 10 to DEI. DEI was compared to 128 industry peers in the Diversified REITs industry. The financial health of DEI is average, but there are quite some concerns on its profitability. DEI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year DEI has reported negative net income.
In the past year DEI had a positive cash flow from operations.
Of the past 5 years DEI 4 years were profitable.
DEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.22%, DEI perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
DEI has a Return On Equity of 1.07%. This is comparable to the rest of the industry: DEI outperforms 46.09% of its industry peers.
DEI has a Return On Invested Capital of 1.67%. This is in the lower half of the industry: DEI underperforms 73.44% of its industry peers.
DEI had an Average Return On Invested Capital over the past 3 years of 1.67%. This is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 1.07% | ||
| ROIC | 1.67% |
ROA(3y)0.26%
ROA(5y)0.4%
ROE(3y)0.95%
ROE(5y)1.51%
ROIC(3y)1.67%
ROIC(5y)1.63%
1.3 Margins
Looking at the Profit Margin, with a value of 2.08%, DEI is in line with its industry, outperforming 44.53% of the companies in the same industry.
In the last couple of years the Profit Margin of DEI has declined.
DEI has a Operating Margin (19.37%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DEI has declined.
DEI has a worse Gross Margin (63.77%) than 61.72% of its industry peers.
In the last couple of years the Gross Margin of DEI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.37% | ||
| PM (TTM) | 2.08% | ||
| GM | 63.77% |
OM growth 3Y-1.45%
OM growth 5Y-4.15%
PM growth 3Y-31.59%
PM growth 5Y-43.41%
GM growth 3Y-1.25%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DEI is destroying value.
Compared to 1 year ago, DEI has about the same amount of shares outstanding.
The number of shares outstanding for DEI has been reduced compared to 5 years ago.
DEI has a worse debt/assets ratio than last year.
2.2 Solvency
DEI has an Altman-Z score of 0.16. This is a bad value and indicates that DEI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.16, DEI is doing worse than 68.75% of the companies in the same industry.
The Debt to FCF ratio of DEI is 57.79, which is on the high side as it means it would take DEI, 57.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DEI (57.79) is better than 70.31% of its industry peers.
A Debt/Equity ratio of 2.85 is on the high side and indicates that DEI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.85, DEI is doing worse than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 57.79 | ||
| Altman-Z | 0.16 |
ROIC/WACC0.28
WACC5.87%
2.3 Liquidity
A Current Ratio of 2.33 indicates that DEI has no problem at all paying its short term obligations.
DEI has a Current ratio of 2.33. This is amongst the best in the industry. DEI outperforms 85.94% of its industry peers.
DEI has a Quick Ratio of 2.33. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI has a Quick ratio of 2.33. This is amongst the best in the industry. DEI outperforms 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The earnings per share for DEI have decreased strongly by -60.00% in the last year.
The earnings per share for DEI have been decreasing by -42.57% on average. This is quite bad
DEI shows a decrease in Revenue. In the last year, the revenue decreased by -0.12%.
Measured over the past years, DEI shows a small growth in Revenue. The Revenue has been growing by 1.04% on average per year.
EPS 1Y (TTM)-60%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-333.33%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%-0.07%
3.2 Future
Based on estimates for the next years, DEI will show a very negative growth in Earnings Per Share. The EPS will decrease by -40.21% on average per year.
The Revenue is expected to grow by 2.91% on average over the next years.
EPS Next Y-34.74%
EPS Next 2Y-79%
EPS Next 3Y-43.45%
EPS Next 5Y-40.21%
Revenue Next Year2.47%
Revenue Next 2Y2.07%
Revenue Next 3Y1.83%
Revenue Next 5Y2.91%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DEI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year DEI is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
72.66% of the companies in the same industry are more expensive than DEI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DEI is valued a bit cheaper than 75.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.26 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
DEI's earnings are expected to decrease with -43.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-79%
EPS Next 3Y-43.45%
5. Dividend
5.1 Amount
DEI has a Yearly Dividend Yield of 6.37%, which is a nice return.
In the last 3 months the price of DEI has falen by -30.05%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.59, DEI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.37% |
5.2 History
The dividend of DEI decreases each year by -6.08%.
DEI has paid a dividend for at least 10 years, which is a reliable track record.
DEI has decreased its dividend recently.
Dividend Growth(5Y)-6.08%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DEI pays out 612.82% of its income as dividend. This is not a sustainable payout ratio.
DEI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP612.82%
EPS Next 2Y-79%
EPS Next 3Y-43.45%
11.64
-0.12 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.61%
Inst Owner Change2.03%
Ins Owners3.44%
Ins Owner Change0.56%
Market Cap1.95B
Revenue(TTM)999.53M
Net Income(TTM)20.77M
Analysts65.88
Price Target14.6 (25.43%)
Short Float %14.13%
Short Ratio11.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.37% |
Yearly Dividend0.76
Dividend Growth(5Y)-6.08%
DP612.82%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.56%
Min EPS beat(2)0.99%
Max EPS beat(2)36.12%
EPS beat(4)3
Avg EPS beat(4)13.26%
Min EPS beat(4)-65.02%
Max EPS beat(4)80.96%
EPS beat(8)6
Avg EPS beat(8)74.01%
EPS beat(12)8
Avg EPS beat(12)38.16%
EPS beat(16)10
Avg EPS beat(16)25.37%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.03%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)1.05%
Revenue beat(8)4
Avg Revenue beat(8)0.17%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)-14.52%
PT rev (3m)-12.04%
EPS NQ rev (1m)13.98%
EPS NQ rev (3m)31.63%
EPS NY rev (1m)24.44%
EPS NY rev (3m)423.08%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.95 | ||
| P/FCF | 20.26 | ||
| P/OCF | 4.9 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)-0.16
EYN/A
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)0.57
FCFY4.94%
OCF(TTM)2.38
OCFY20.41%
SpS5.97
BVpS11.63
TBVpS11.59
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.22% | ||
| ROE | 1.07% | ||
| ROCE | 2.12% | ||
| ROIC | 1.67% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 1.76% | ||
| OM | 19.37% | ||
| PM (TTM) | 2.08% | ||
| GM | 63.77% | ||
| FCFM | 9.63% |
ROA(3y)0.26%
ROA(5y)0.4%
ROE(3y)0.95%
ROE(5y)1.51%
ROIC(3y)1.67%
ROIC(5y)1.63%
ROICexc(3y)1.75%
ROICexc(5y)1.7%
ROICexgc(3y)1.78%
ROICexgc(5y)1.72%
ROCE(3y)2.12%
ROCE(5y)2.07%
ROICexgc growth 3Y1.27%
ROICexgc growth 5Y-2.56%
ROICexc growth 3Y1.06%
ROICexc growth 5Y-2.66%
OM growth 3Y-1.45%
OM growth 5Y-4.15%
PM growth 3Y-31.59%
PM growth 5Y-43.41%
GM growth 3Y-1.25%
GM growth 5Y-1.1%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 57.79 | ||
| Debt/EBITDA | 9.43 | ||
| Cap/Depr | 76.09% | ||
| Cap/Sales | 30.17% | ||
| Interest Coverage | 0.81 | ||
| Cash Conversion | 67.43% | ||
| Profit Quality | 463.37% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 0.16 |
F-Score6
WACC5.87%
ROIC/WACC0.28
Cap/Depr(3y)88.33%
Cap/Depr(5y)84.24%
Cap/Sales(3y)34.7%
Cap/Sales(5y)33.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-60%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-333.33%
EPS Next Y-34.74%
EPS Next 2Y-79%
EPS Next 3Y-43.45%
EPS Next 5Y-40.21%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%-0.07%
Revenue Next Year2.47%
Revenue Next 2Y2.07%
Revenue Next 3Y1.83%
Revenue Next 5Y2.91%
EBIT growth 1Y2.09%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year185.87%
EBIT Next 3Y43.73%
EBIT Next 5Y31.86%
FCF growth 1Y-51.75%
FCF growth 3Y3.24%
FCF growth 5YN/A
OCF growth 1Y-11.09%
OCF growth 3Y-2.94%
OCF growth 5Y-2.74%
DOUGLAS EMMETT INC / DEI FAQ
Can you provide the ChartMill fundamental rating for DOUGLAS EMMETT INC?
ChartMill assigns a fundamental rating of 4 / 10 to DEI.
What is the valuation status for DEI stock?
ChartMill assigns a valuation rating of 2 / 10 to DOUGLAS EMMETT INC (DEI). This can be considered as Overvalued.
How profitable is DOUGLAS EMMETT INC (DEI) stock?
DOUGLAS EMMETT INC (DEI) has a profitability rating of 3 / 10.
Can you provide the dividend sustainability for DEI stock?
The dividend rating of DOUGLAS EMMETT INC (DEI) is 5 / 10 and the dividend payout ratio is 612.82%.