DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
USA - NYSE:DEI - US25960P1093 - REIT
16.1 USD
-0.26 (-1.59%)
16.08 USD
-0.02 (-0.12%)
DEI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. DEI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. DEI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
DEI had negative earnings in the past year.
DEI had a positive operating cash flow in the past year.
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 (0.38%) which is in line with its industry peers.
The Return On Equity of DEI (1.81%) is comparable to the rest of the industry.
DEI has a worse Return On Invested Capital (1.67%) than 72.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DEI is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.81% | ||
| 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
DEI has a Profit Margin of 3.62%. This is comparable to the rest of the industry: DEI outperforms 49.23% of its industry peers.
DEI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 19.49%, DEI perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
DEI's Operating Margin has declined in the last couple of years.
DEI's Gross Margin of 63.41% is on the low side compared to the rest of the industry. DEI is outperformed by 60.77% 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 | 19.49% | ||
| PM (TTM) | 3.62% | ||
| GM | 63.41% |
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
DEI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DEI remains at a similar level compared to 1 year ago.
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
Based on the Altman-Z score of 0.22, we must say that DEI is in the distress zone and has some risk of bankruptcy.
DEI has a worse Altman-Z score (0.22) than 65.38% of its industry peers.
DEI has a debt to FCF ratio of 43.83. This is a negative value and a sign of low solvency as DEI would need 43.83 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 43.83, DEI is doing good in the industry, outperforming 63.08% of the companies in the same industry.
A Debt/Equity ratio of 2.78 is on the high side and indicates that DEI has dependencies on debt financing.
DEI has a worse Debt to Equity ratio (2.78) than 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 43.83 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.27
WACC6.2%
2.3 Liquidity
DEI has a Current Ratio of 2.54. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.54, DEI belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
DEI has a Quick Ratio of 2.54. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI's Quick ratio of 2.54 is amongst the best of the industry. DEI outperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.43% over the past year.
The earnings per share for DEI have been decreasing by -42.57% on average. This is quite bad
Looking at the last year, DEI shows a decrease in Revenue. The Revenue has decreased by -0.57% in the last year.
The Revenue has been growing slightly by 1.04% on average over the past years.
EPS 1Y (TTM)71.43%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.71%
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 -34.99% yearly.
Based on estimates for the next years, DEI will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y-120.2%
EPS Next 2Y-94.6%
EPS Next 3Y-55.87%
EPS Next 5Y-34.99%
Revenue Next Year2.57%
Revenue Next 2Y2.37%
Revenue Next 3Y2.28%
Revenue Next 5Y3.95%
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 negative for DEI. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DEI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEI is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEI indicates a somewhat cheap valuation: DEI is cheaper than 75.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.24 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
DEI's earnings are expected to decrease with -55.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-94.6%
EPS Next 3Y-55.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, DEI is a good candidate for dividend investing.
DEI's Dividend Yield is comparable with the industry average which is at 6.66.
DEI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
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 351.13% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of DEI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP351.13%
EPS Next 2Y-94.6%
EPS Next 3Y-55.87%
16.1
-0.26 (-1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.32%
Inst Owner Change-4.95%
Ins Owners3.41%
Ins Owner Change0%
Market Cap2.70B
Analysts67.5
Price Target17.06 (5.96%)
Short Float %13.93%
Short Ratio14.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend0.76
Dividend Growth(5Y)-6.08%
DP351.13%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.45%
Min EPS beat(2)-65.02%
Max EPS beat(2)36.12%
EPS beat(4)3
Avg EPS beat(4)112.27%
Min EPS beat(4)-65.02%
Max EPS beat(4)397.03%
EPS beat(8)6
Avg EPS beat(8)74.6%
EPS beat(12)7
Avg EPS beat(12)34.84%
EPS beat(16)9
Avg EPS beat(16)19.05%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)1.73%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)6
Avg Revenue beat(12)-0.06%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)1.69%
PT rev (3m)1.96%
EPS NQ rev (1m)7.14%
EPS NQ rev (3m)-25.81%
EPS NY rev (1m)55.17%
EPS NY rev (3m)82.07%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.7 | ||
| P/FCF | 21.24 | ||
| P/OCF | 6.88 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 13.34 |
EPS(TTM)-0.06
EYN/A
EPS(NY)-0.23
Fwd EYN/A
FCF(TTM)0.76
FCFY4.71%
OCF(TTM)2.34
OCFY14.53%
SpS5.97
BVpS11.94
TBVpS11.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 1.81% | ||
| ROCE | 2.12% | ||
| ROIC | 1.67% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 1.76% | ||
| OM | 19.49% | ||
| PM (TTM) | 3.62% | ||
| GM | 63.41% | ||
| FCFM | 12.7% |
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-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 43.83 | ||
| Debt/EBITDA | 9.47 | ||
| Cap/Depr | 67.49% | ||
| Cap/Sales | 26.49% | ||
| Interest Coverage | 0.86 | ||
| Cash Conversion | 66.71% | ||
| Profit Quality | 350.25% | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.54 | ||
| Altman-Z | 0.22 |
F-Score6
WACC6.2%
ROIC/WACC0.27
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)71.43%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-166.67%
EPS Next Y-120.2%
EPS Next 2Y-94.6%
EPS Next 3Y-55.87%
EPS Next 5Y-34.99%
Revenue 1Y (TTM)-0.57%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.71%
Revenue Next Year2.57%
Revenue Next 2Y2.37%
Revenue Next 3Y2.28%
Revenue Next 5Y3.95%
EBIT growth 1Y14.89%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year184.5%
EBIT Next 3Y44.44%
EBIT Next 5Y33.59%
FCF growth 1Y-47.19%
FCF growth 3Y3.24%
FCF growth 5YN/A
OCF growth 1Y-18.92%
OCF growth 3Y-2.94%
OCF growth 5Y-2.74%