DOUGLAS EMMETT INC (DEI)
US25960P1093 - REIT
Taking everything into account, DEI scores 3 out of 10 in our fundamental rating. DEI was compared to 130 industry peers in the Diversified REITs industry. DEI has an average financial health and profitability rating. DEI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DEI had positive earnings in the past year.
In the past year DEI had a positive cash flow from operations.
Each year in the past 5 years DEI has been profitable.
In the past 5 years DEI always reported a positive cash flow from operatings.
1.2 Ratios
DEI has a Return On Assets (0.21%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 0.90%, DEI is in line with its industry, outperforming 42.19% of the companies in the same industry.
DEI's Return On Invested Capital of 1.50% is on the low side compared to the rest of the industry. DEI is outperformed by 72.66% 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 2.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.9% | ||
| ROIC | 1.5% |
ROA(3y)0.74%
ROA(5y)1.5%
ROE(3y)2.82%
ROE(5y)5.32%
ROIC(3y)1.72%
ROIC(5y)1.94%
1.3 Margins
DEI has a Profit Margin (2.07%) which is comparable to the rest of the industry.
DEI's Profit Margin has declined in the last couple of years.
DEI's Operating Margin of 17.99% is in line compared to the rest of the industry. DEI outperforms 42.19% of its industry peers.
In the last couple of years the Operating Margin of DEI has declined.
DEI has a worse Gross Margin (64.93%) than 62.50% of its industry peers.
DEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.99% | ||
| PM (TTM) | 2.07% | ||
| GM | 64.93% |
OM growth 3Y-2.09%
OM growth 5Y-3.9%
PM growth 3Y-36.96%
PM growth 5Y-3.46%
GM growth 3Y-0.87%
GM growth 5Y-0.52%
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.
DEI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for DEI has been increased compared to 5 years ago.
DEI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that DEI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DEI (0.21) is worse than 71.88% of its industry peers.
DEI has a debt to FCF ratio of 27.79. This is a negative value and a sign of low solvency as DEI would need 27.79 years to pay back of all of its debts.
DEI has a Debt to FCF ratio of 27.79. This is comparable to the rest of the industry: DEI outperforms 57.81% of its industry peers.
DEI has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
DEI has a worse Debt to Equity ratio (2.37) than 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 27.79 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.25
WACC6%
2.3 Liquidity
DEI has a Current Ratio of 3.06. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI's Current ratio of 3.06 is amongst the best of the industry. DEI outperforms 90.63% of its industry peers.
DEI has a Quick Ratio of 3.06. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.06, DEI belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 |
3. Growth
3.1 Past
DEI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -76.92%.
The Earnings Per Share has been decreasing by -0.71% on average over the past years.
DEI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.78%.
Measured over the past years, DEI shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
EPS 1Y (TTM)-76.92%
EPS 3Y-35.82%
EPS 5Y-0.71%
EPS growth Q2Q-161.54%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y1.99%
Revenue growth 5Y4.12%
Revenue growth Q2Q0.69%
3.2 Future
The Earnings Per Share is expected to decrease by -41.59% on average over the next years. This is quite bad
The Revenue is expected to decrease by -3.05% on average over the next years.
EPS Next Y-119.1%
EPS Next 2Y-62.34%
EPS Next 3Y-41.59%
EPS Next 5YN/A
Revenue Next Year0.89%
Revenue Next 2Y-0.48%
Revenue Next 3Y-3.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 102.50, the valuation of DEI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DEI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DEI to the average of the S&P500 Index (24.54), we can say DEI is valued expensively.
DEI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.5 | ||
| 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 72.66% of the companies are valued more expensively.
90.63% of the companies in the same industry are more expensive than DEI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
DEI's earnings are expected to decrease with -41.59% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-62.34%
EPS Next 3Y-41.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.67%, DEI is a good candidate for dividend investing.
DEI's Dividend Yield is a higher than the industry average which is at 6.56.
Compared to an average S&P500 Dividend Yield of 2.63, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
5.2 History
The dividend of DEI has a limited annual growth rate of 4.26%.
DEI has paid a dividend for at least 10 years, which is a reliable track record.
DEI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.26%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
DEI pays out 702.95% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of DEI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP702.95%
EPS Next 2Y-62.34%
EPS Next 3Y-41.59%
DOUGLAS EMMETT INC
NYSE:DEI (11/29/2023, 7:04:00 PM)
After market: 12.3 0 (0%)12.3
+0.25 (+2.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-31 2023-10-31/amc
Earnings (Next)02-05 2024-02-05/amc
Inst Owners113.66%
Inst Owner Change-0.47%
Ins Owners4.5%
Ins Owner Change0.13%
Market Cap2.05B
Analysts54.29
Price Target13.68 (11.22%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
Dividend Growth(5Y)4.26%
DP702.95%
Div Incr Years12
Div Non Decr Years13
Ex-Date09-28 2023-09-28 (0.19)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-68.36%
Min EPS beat(2)-142.43%
Max EPS beat(2)5.7%
EPS beat(4)2
Avg EPS beat(4)-33.55%
Min EPS beat(4)-142.43%
Max EPS beat(4)6.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)1.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.07%
Max Revenue beat(4)1.06%
PT rev (1m)-1.67%
PT rev (3m)-1.04%
EPS NQ rev (1m)-9.76%
EPS NQ rev (3m)-427.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-146.22%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.5 | ||
| Fwd PE | N/A | ||
| P/S | 2.02 | ||
| P/FCF | 10.28 | ||
| P/OCF | 4.58 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 11.54 |
EPS(TTM)0.12
EY0.98%
EPS(NY)-0.35
Fwd EYN/A
FCF(TTM)1.2
FCFY9.72%
OCF(TTM)2.68
OCFY21.82%
SpS6.09
BVpS14.02
TBVpS13.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.9% | ||
| ROCE | 1.9% | ||
| ROIC | 1.5% | ||
| ROICexc | 1.59% | ||
| ROICexgc | 1.63% | ||
| OM | 17.99% | ||
| PM (TTM) | 2.07% | ||
| GM | 64.93% | ||
| FCFM | 19.64% |
ROA(3y)0.74%
ROA(5y)1.5%
ROE(3y)2.82%
ROE(5y)5.32%
ROIC(3y)1.72%
ROIC(5y)1.94%
ROICexc(3y)1.77%
ROICexc(5y)1.99%
ROICexgc(3y)1.79%
ROICexgc(5y)2.01%
ROCE(3y)2.17%
ROCE(5y)2.46%
ROICexcg growth 3Y-0.28%
ROICexcg growth 5Y-2.6%
ROICexc growth 3Y-1.17%
ROICexc growth 5Y-2.99%
OM growth 3Y-2.09%
OM growth 5Y-3.9%
PM growth 3Y-36.96%
PM growth 5Y-3.46%
GM growth 3Y-0.87%
GM growth 5Y-0.52%
F-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 27.79 | ||
| Debt/EBITDA | 9.05 | ||
| Cap/Depr | 57.68% | ||
| Cap/Sales | 24.43% | ||
| Interest Coverage | 1.02 | ||
| Cash Conversion | 73.04% | ||
| Profit Quality | 950.83% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 3.06 | ||
| Altman-Z | 0.21 |
F-Score6
WACC6%
ROIC/WACC0.25
Cap/Depr(3y)102.91%
Cap/Depr(5y)111.49%
Cap/Sales(3y)40.84%
Cap/Sales(5y)43.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)-76.92%
EPS 3Y-35.82%
EPS 5Y-0.71%
EPS growth Q2Q-161.54%
EPS Next Y-119.1%
EPS Next 2Y-62.34%
EPS Next 3Y-41.59%
EPS Next 5YN/A
Revenue 1Y (TTM)3.78%
Revenue growth 3Y1.99%
Revenue growth 5Y4.12%
Revenue growth Q2Q0.69%
Revenue Next Year0.89%
Revenue Next 2Y-0.48%
Revenue Next 3Y-3.05%
Revenue Next 5YN/A
EBIT growth 1Y-21.95%
EBIT growth 3Y-0.15%
EBIT growth 5Y0.05%
EBIT Next Year152.07%
EBIT Next 3Y35.75%
EBIT Next 5YN/A
FCF growth 1Y188.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11%
OCF growth 3Y1.9%
OCF growth 5Y4.29%