DOUGLAS EMMETT INC (DEI)
US25960P1093 - REIT
We assign a fundamental rating of 3 out of 10 to DEI. DEI was compared to 130 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
DEI has a Return On Assets of -0.18%. This is in the lower half of the industry: DEI underperforms 62.50% of its industry peers.
Looking at the Return On Equity, with a value of -0.83%, DEI is doing worse than 63.28% of the companies in the same industry.
DEI's Return On Invested Capital of 1.62% is on the low side compared to the rest of the industry. DEI is outperformed by 75.78% 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 3.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.83% | ||
| ROIC | 1.62% |
ROA(3y)0.41%
ROA(5y)1.13%
ROE(3y)1.48%
ROE(5y)3.97%
ROIC(3y)1.66%
ROIC(5y)1.7%
1.3 Margins
DEI's Operating Margin of 18.95% is in line compared to the rest of the industry. DEI outperforms 40.63% of its industry peers.
DEI's Operating Margin has declined in the last couple of years.
The Gross Margin of DEI (64.92%) is worse than 63.28% of its industry peers.
DEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.95% | ||
| PM (TTM) | N/A | ||
| GM | 64.92% |
OM growth 3Y-6.76%
OM growth 5Y-12.5%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.6%
GM growth 5Y-1.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DEI is destroying value.
Compared to 1 year ago, DEI has less shares outstanding
Compared to 5 years ago, DEI has less shares outstanding
DEI has a worse debt/assets ratio than last year.
2.2 Solvency
DEI has an Altman-Z score of 0.27. 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 (0.27) is worse than 68.75% of its industry peers.
The Debt to FCF ratio of DEI is 24.39, which is on the high side as it means it would take DEI, 24.39 years of fcf income to pay off all of its debts.
DEI has a Debt to FCF ratio of 24.39. This is in the better half of the industry: DEI outperforms 71.88% of its industry peers.
DEI has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DEI (2.64) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 24.39 | ||
| Altman-Z | 0.27 |
ROIC/WACC0.3
WACC5.34%
2.3 Liquidity
DEI has a Current Ratio of 3.10. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI's Current ratio of 3.10 is amongst the best of the industry. DEI outperforms 86.72% of its industry peers.
A Quick Ratio of 3.10 indicates that DEI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.10, DEI belongs to the top of the industry, outperforming 86.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
DEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -183.33%.
DEI shows a decrease in Revenue. In the last year, the revenue decreased by -1.43%.
DEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.98% yearly.
EPS 1Y (TTM)-183.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%137.5%
Revenue 1Y (TTM)-1.43%
Revenue growth 3Y4.61%
Revenue growth 5Y2.98%
Sales Q2Q%-1.82%
3.2 Future
The Earnings Per Share is expected to decrease by -16.24% on average over the next years. This is quite bad
Based on estimates for the next years, DEI will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y131.08%
EPS Next 2Y15.07%
EPS Next 3Y20.45%
EPS Next 5Y-16.24%
Revenue Next Year-3.7%
Revenue Next 2Y-2.08%
Revenue Next 3Y-0.66%
Revenue Next 5Y1.97%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEI is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEI indicates a rather cheap valuation: DEI is cheaper than 85.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.39 | ||
| EV/EBITDA | 13.23 |
4.3 Compensation for Growth
DEI's earnings are expected to grow with 20.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.07%
EPS Next 3Y20.45%
5. Dividend
5.1 Amount
DEI has a Yearly Dividend Yield of 3.86%.
DEI's Dividend Yield is slightly below the industry average, which is at 15.68.
Compared to an average S&P500 Dividend Yield of 2.24, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of DEI decreases each year by -5.39%.
DEI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of DEI are negative and hence is the payout ratio. DEI will probably not be able to sustain this dividend level.
DEI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-728.74%
EPS Next 2Y15.07%
EPS Next 3Y20.45%
DOUGLAS EMMETT INC
NYSE:DEI (12/20/2024, 8:05:02 PM)
After market: 18.08 0 (0%)18.08
+0.24 (+1.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.45%
Inst Owner Change1.43%
Ins Owners4.46%
Ins Owner Change0%
Market Cap3.03B
Analysts67.78
Price Target18.11 (0.17%)
Short Float %10.22%
Short Ratio12.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Dividend Growth(5Y)-5.39%
DP-728.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)275.83%
Min EPS beat(2)154.63%
Max EPS beat(2)397.03%
EPS beat(4)3
Avg EPS beat(4)134.76%
Min EPS beat(4)-150.13%
Max EPS beat(4)397.03%
EPS beat(8)5
Avg EPS beat(8)50.6%
EPS beat(12)7
Avg EPS beat(12)29.4%
EPS beat(16)10
Avg EPS beat(16)56.14%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)1.73%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.73%
Revenue beat(8)4
Avg Revenue beat(8)-0.05%
Revenue beat(12)6
Avg Revenue beat(12)-0.04%
Revenue beat(16)8
Avg Revenue beat(16)0.19%
PT rev (1m)17.94%
PT rev (3m)27.29%
EPS NQ rev (1m)8.24%
EPS NQ rev (3m)50%
EPS NY rev (1m)45.45%
EPS NY rev (3m)433.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.02 | ||
| P/FCF | 13.39 | ||
| P/OCF | 7.05 | ||
| P/B | 1.45 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 13.23 |
EPS(TTM)-0.1
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)1.35
FCFY7.47%
OCF(TTM)2.56
OCFY14.18%
SpS5.98
BVpS12.48
TBVpS12.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.18% | ||
| ROE | -0.83% | ||
| ROCE | 2.05% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.72% | ||
| ROICexgc | 1.74% | ||
| OM | 18.95% | ||
| PM (TTM) | N/A | ||
| GM | 64.92% | ||
| FCFM | 22.59% |
ROA(3y)0.41%
ROA(5y)1.13%
ROE(3y)1.48%
ROE(5y)3.97%
ROIC(3y)1.66%
ROIC(5y)1.7%
ROICexc(3y)1.73%
ROICexc(5y)1.75%
ROICexgc(3y)1.76%
ROICexgc(5y)1.77%
ROCE(3y)2.1%
ROCE(5y)2.15%
ROICexcg growth 3Y-2.08%
ROICexcg growth 5Y-11.86%
ROICexc growth 3Y-2.71%
ROICexc growth 5Y-12.01%
OM growth 3Y-6.76%
OM growth 5Y-12.5%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.6%
GM growth 5Y-1.05%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 24.39 | ||
| Debt/EBITDA | 9.17 | ||
| Cap/Depr | 49.39% | ||
| Cap/Sales | 20.32% | ||
| Interest Coverage | 0.88 | ||
| Cash Conversion | 71.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 0.27 |
F-Score5
WACC5.34%
ROIC/WACC0.3
Cap/Depr(3y)93.87%
Cap/Depr(5y)105.54%
Cap/Sales(3y)37.25%
Cap/Sales(5y)41.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-183.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%137.5%
EPS Next Y131.08%
EPS Next 2Y15.07%
EPS Next 3Y20.45%
EPS Next 5Y-16.24%
Revenue 1Y (TTM)-1.43%
Revenue growth 3Y4.61%
Revenue growth 5Y2.98%
Sales Q2Q%-1.82%
Revenue Next Year-3.7%
Revenue Next 2Y-2.08%
Revenue Next 3Y-0.66%
Revenue Next 5Y1.97%
EBIT growth 1Y3.83%
EBIT growth 3Y-2.46%
EBIT growth 5Y-9.9%
EBIT Next Year293.98%
EBIT Next 3Y57.87%
EBIT Next 5Y44.2%
FCF growth 1Y419.65%
FCF growth 3Y16.99%
FCF growth 5Y1.14%
OCF growth 1Y-12.21%
OCF growth 3Y0.53%
OCF growth 5Y-0.28%