DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
NYSE:DEI - New York Stock Exchange, Inc. - US25960P1093 - REIT
We assign a fundamental rating of 3 out of 10 to DEI. DEI was compared to 129 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DEI has reported negative net income.
DEI had a positive operating cash flow in the past year.
DEI had positive earnings in 4 of the past 5 years.
DEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.18%, DEI is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -0.83%, DEI is doing worse than 62.70% of the companies in the same industry.
With a Return On Invested Capital value of 1.62%, DEI is not doing good in the industry: 76.98% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for DEI is in line with the industry average of 3.11%.
| 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 has a Operating Margin of 18.95%. This is in the lower half of the industry: DEI underperforms 60.32% 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 62.70% 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 | 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.
DEI has less shares outstanding than it did 1 year ago.
DEI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DEI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.27, we must say that DEI is in the distress zone and has some risk of bankruptcy.
DEI has a Altman-Z score of 0.27. This is in the lower half of the industry: DEI underperforms 69.84% of its industry peers.
DEI has a debt to FCF ratio of 24.39. This is a negative value and a sign of low solvency as DEI would need 24.39 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 24.39, DEI is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 2.64 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 2.64, DEI is doing worse than 81.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 24.39 | ||
| Altman-Z | 0.27 |
ROIC/WACC0.3
WACC5.44%
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 has a better Current ratio (3.10) than 86.51% of its industry peers.
DEI has a Quick Ratio of 3.10. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI's Quick ratio of 3.10 is amongst the best of the industry. DEI outperforms 86.51% of its industry peers.
| 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%.
The Revenue has decreased by -1.43% in the past year.
Measured over the past years, DEI shows a small growth in Revenue. The Revenue has been growing by 2.98% on average per year.
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
Based on estimates for the next years, DEI will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.24% on average per year.
DEI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.97% yearly.
EPS Next Y131.08%
EPS Next 2Y15.07%
EPS Next 3Y20.45%
EPS Next 5Y-16.24%
Revenue Next Year-3.37%
Revenue Next 2Y-1.8%
Revenue Next 3Y-0.46%
Revenue Next 5Y1.97%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Enterprise Value to EBITDA ratio, DEI is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEI indicates a rather cheap valuation: DEI is cheaper than 84.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 13.14 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DEI's earnings are expected to grow with 20.45% in the coming years.
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 4.41%, which is a nice return.
Compared to an average industry Dividend Yield of 18.51, DEI has a dividend in line with its industry peers.
DEI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of DEI decreases each year by -5.39%.
DEI has been paying a dividend for at least 10 years, so it has 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 (1/21/2025, 8:04:00 PM)
After market: 17.67 0 (0%)17.67
+0.17 (+0.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.17%
Inst Owner Change-0.19%
Ins Owners4.44%
Ins Owner Change0%
Market Cap2.96B
Analysts67.78
Price Target18.72 (5.94%)
Short Float %11.79%
Short Ratio12.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend0.76
Dividend Growth(5Y)-5.39%
DP-728.74%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)3.38%
PT rev (3m)24.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)50%
EPS NY rev (1m)0%
EPS NY rev (3m)433.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.96 | ||
| P/FCF | 13.09 | ||
| P/OCF | 6.89 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 13.14 |
EPS(TTM)-0.1
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)1.35
FCFY7.64%
OCF(TTM)2.56
OCFY14.51%
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
WACC5.44%
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-3.37%
Revenue Next 2Y-1.8%
Revenue Next 3Y-0.46%
Revenue Next 5Y1.97%
EBIT growth 1Y3.83%
EBIT growth 3Y-2.46%
EBIT growth 5Y-9.9%
EBIT Next Year295.87%
EBIT Next 3Y58.57%
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%