DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
NYSE:DEI - US25960P1093 - REIT
15.53 USD
+0.74 (+5%)
15.53 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DEI. DEI was compared to 129 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
DEI had negative earnings in the past year.
DEI had a positive operating cash flow in the past year.
Of the past 5 years DEI 4 years were profitable.
Each year in the past 5 years DEI had a positive operating cash flow.
1.2 Ratios
DEI's Return On Assets of 0.38% is in line compared to the rest of the industry. DEI outperforms 45.74% of its industry peers.
DEI has a Return On Equity (1.81%) which is in line with its industry peers.
DEI's Return On Invested Capital of 1.67% is on the low side compared to the rest of the industry. DEI is outperformed by 72.09% 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 3.07%.
| 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
With a Profit Margin value of 3.62%, DEI perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
DEI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.49%, DEI is in line with its industry, outperforming 45.74% 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 60.47% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DEI is destroying value.
DEI has about the same amout of shares outstanding than it did 1 year ago.
DEI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DEI has a worse debt to assets ratio.
2.2 Solvency
DEI has an Altman-Z score of 0.22. This is a bad value and indicates that DEI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.22, DEI is not doing good in the industry: 65.89% of the companies in the same industry are doing better.
The Debt to FCF ratio of DEI is 43.83, which is on the high side as it means it would take DEI, 43.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 43.83, DEI is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
DEI has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.78, DEI is not doing good in the industry: 79.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 43.83 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.27
WACC6.23%
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.
With an excellent Current ratio value of 2.54, DEI belongs to the best of the industry, outperforming 88.37% 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.
Looking at the Quick ratio, with a value of 2.54, DEI belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 2.54 |
3. Growth
3.1 Past
DEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.43%, which is quite impressive.
The earnings per share for DEI have been decreasing by -42.57% on average. This is quite bad
The Revenue has decreased by -0.57% in the past year.
Measured over the past years, DEI shows a small growth in Revenue. The Revenue has been growing by 1.04% on average per year.
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
The Earnings Per Share is expected to decrease by -34.99% on average over the next years. This is quite bad
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y-120.2%
EPS Next 2Y-94.6%
EPS Next 3Y-55.87%
EPS Next 5Y-34.99%
Revenue Next Year1.97%
Revenue Next 2Y2.07%
Revenue Next 3Y2.19%
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEI indicates a somewhat cheap valuation: DEI is cheaper than 67.44% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEI indicates a somewhat cheap valuation: DEI is cheaper than 75.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.49 | ||
| EV/EBITDA | 13.18 |
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
DEI has a Yearly Dividend Yield of 5.14%, which is a nice return.
Compared to an average industry Dividend Yield of 6.36, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
5.2 History
The dividend of DEI decreases each year by -6.08%.
DEI has been paying a dividend for at least 10 years, so it has 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%
15.53
+0.74 (+5%)
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 Cap2.60B
Analysts67.5
Price Target16.72 (7.66%)
Short Float %13.87%
Short Ratio13.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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)-0.34%
PT rev (3m)-8.19%
EPS NQ rev (1m)-2.7%
EPS NQ rev (3m)-68.89%
EPS NY rev (1m)55.17%
EPS NY rev (3m)82.07%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.6 | ||
| P/FCF | 20.49 | ||
| P/OCF | 6.64 | ||
| P/B | 1.3 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 13.18 |
EPS(TTM)-0.06
EYN/A
EPS(NY)-0.23
Fwd EYN/A
FCF(TTM)0.76
FCFY4.88%
OCF(TTM)2.34
OCFY15.06%
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
WACC6.23%
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 Year1.97%
Revenue Next 2Y2.07%
Revenue Next 3Y2.19%
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%