DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
NYSE:DEI - New York Stock Exchange, Inc. - US25960P1093 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to DEI. DEI was compared to 130 industry peers in the Diversified REITs industry. Both the profitability and the financial health of DEI get a neutral evaluation. Nothing too spectacular is happening here. DEI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DEI was profitable.
In the past year DEI had a positive cash flow from operations.
DEI had positive earnings in 4 of the past 5 years.
In the past 5 years DEI always reported a positive cash flow from operatings.
1.2 Ratios
DEI has a Return On Assets (0.55%) which is comparable to the rest of the industry.
DEI's Return On Equity of 2.59% is in line compared to the rest of the industry. DEI outperforms 56.15% of its industry peers.
DEI has a worse Return On Invested Capital (1.73%) than 72.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DEI is in line with the industry average of 3.16%.
The 3 year average ROIC (1.67%) for DEI is below the current ROIC(1.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 2.59% | ||
| ROIC | 1.73% |
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
DEI has a Profit Margin (5.33%) which is comparable to the rest of the industry.
DEI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 20.63%, DEI perfoms like the industry average, outperforming 46.92% of the companies in the same industry.
DEI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 64.14%, DEI is doing worse than 63.08% of the companies in the same industry.
DEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.63% | ||
| PM (TTM) | 5.33% | ||
| GM | 64.14% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DEI is destroying value.
DEI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, DEI has less shares outstanding
Compared to 1 year ago, DEI has a worse debt to assets ratio.
2.2 Solvency
DEI has an Altman-Z score of 0.23. This is a bad value and indicates that DEI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DEI (0.23) is worse than 66.15% of its industry peers.
The Debt to FCF ratio of DEI is 35.02, which is on the high side as it means it would take DEI, 35.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 35.02, DEI is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
DEI has a Debt/Equity ratio of 2.75. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DEI (2.75) is worse than 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 35.02 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.24
WACC7.16%
2.3 Liquidity
A Current Ratio of 2.98 indicates that DEI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.98, DEI belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
A Quick Ratio of 2.98 indicates that DEI has no problem at all paying its short term obligations.
DEI has a better Quick ratio (2.98) than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.90% over the past year.
DEI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.57% yearly.
DEI shows a decrease in Revenue. In the last year, the revenue decreased by -1.98%.
The Revenue has been growing slightly by 1.04% on average over the past years.
EPS 1Y (TTM)112.9%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-180%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
3.2 Future
DEI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -43.61% yearly.
Based on estimates for the next years, DEI will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y-159.05%
EPS Next 2Y-86.86%
EPS Next 3Y-42.71%
EPS Next 5Y-43.61%
Revenue Next Year0.76%
Revenue Next 2Y1.53%
Revenue Next 3Y1.64%
Revenue Next 5Y3.59%
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
The Price/Earnings ratio is 376.00, which means the current valuation is very expensive for DEI.
Based on the Price/Earnings ratio, DEI is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of DEI to the average of the S&P500 Index (27.15), we can say DEI is valued expensively.
The Forward Price/Earnings Ratio is negative for DEI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 376 | ||
| Fwd PE | N/A |
4.2 Price Multiples
DEI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DEI is cheaper than 63.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DEI is valued cheaper than 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.65 | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as DEI's earnings are expected to decrease with -42.71% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-86.86%
EPS Next 3Y-42.71%
5. Dividend
5.1 Amount
DEI has a Yearly Dividend Yield of 5.04%, which is a nice return.
DEI's Dividend Yield is comparable with the industry average which is at 6.64.
Compared to an average S&P500 Dividend Yield of 2.42, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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
240.28% of the earnings are spent on dividend by DEI. 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.
DP240.28%
EPS Next 2Y-86.86%
EPS Next 3Y-42.71%
15.04
-0.15 (-0.99%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.76%
Inst Owner Change0.94%
Ins Owners3.41%
Ins Owner Change0%
Market Cap2.52B
Analysts68.24
Price Target16.73 (11.24%)
Short Float %14.21%
Short Ratio11.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend0.76
Dividend Growth(5Y)-6.08%
DP240.28%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.97%
Min EPS beat(2)-65.02%
Max EPS beat(2)80.96%
EPS beat(4)3
Avg EPS beat(4)141.9%
Min EPS beat(4)-65.02%
Max EPS beat(4)397.03%
EPS beat(8)5
Avg EPS beat(8)52.28%
EPS beat(12)6
Avg EPS beat(12)29.2%
EPS beat(16)9
Avg EPS beat(16)19.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.73%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)-8.12%
PT rev (3m)-10.14%
EPS NQ rev (1m)12%
EPS NQ rev (3m)-10%
EPS NY rev (1m)47.59%
EPS NY rev (3m)50%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 376 | ||
| Fwd PE | N/A | ||
| P/S | 2.54 | ||
| P/FCF | 15.65 | ||
| P/OCF | 6.26 | ||
| P/B | 1.23 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 12.95 |
EPS(TTM)0.04
EY0.27%
EPS(NY)-0.19
Fwd EYN/A
FCF(TTM)0.96
FCFY6.39%
OCF(TTM)2.4
OCFY15.97%
SpS5.93
BVpS12.22
TBVpS12.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 2.59% | ||
| ROCE | 2.19% | ||
| ROIC | 1.73% | ||
| ROICexc | 1.83% | ||
| ROICexgc | 1.85% | ||
| OM | 20.63% | ||
| PM (TTM) | 5.33% | ||
| GM | 64.14% | ||
| FCFM | 16.2% |
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%
ROICexcg growth 3Y1.27%
ROICexcg 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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 35.02 | ||
| Debt/EBITDA | 9.54 | ||
| Cap/Depr | 62.52% | ||
| Cap/Sales | 24.31% | ||
| Interest Coverage | 0.91 | ||
| Cash Conversion | 68.07% | ||
| Profit Quality | 303.88% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 | ||
| Altman-Z | 0.23 |
F-Score5
WACC7.16%
ROIC/WACC0.24
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)112.9%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-180%
EPS Next Y-159.05%
EPS Next 2Y-86.86%
EPS Next 3Y-42.71%
EPS Next 5Y-43.61%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
Revenue Next Year0.76%
Revenue Next 2Y1.53%
Revenue Next 3Y1.64%
Revenue Next 5Y3.59%
EBIT growth 1Y40.71%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year180.86%
EBIT Next 3Y43.52%
EBIT Next 5Y33.27%
FCF growth 1Y470.57%
FCF growth 3Y3.24%
FCF growth 5YN/A
OCF growth 1Y-20%
OCF growth 3Y-2.94%
OCF growth 5Y-2.74%