DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
NYSE:DEI - New York Stock Exchange, Inc. - US25960P1093 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to DEI. DEI was compared to 129 industry peers in the Diversified REITs industry. DEI has only an average score on both its financial health and profitability. While showing a medium growth rate, DEI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DEI was profitable.
In the past year DEI had a positive cash flow from operations.
DEI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DEI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.24%, DEI is in line with its industry, outperforming 43.41% of the companies in the same industry.
The Return On Equity of DEI (1.08%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.77%, DEI is doing worse than 71.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DEI is in line with the industry average of 3.16%.
The 3 year average ROIC (1.67%) for DEI is below the current ROIC(1.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 1.08% | ||
| ROIC | 1.77% |
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 (2.24%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DEI has declined.
DEI's Operating Margin of 20.97% is in line compared to the rest of the industry. DEI outperforms 47.29% of its industry peers.
In the last couple of years the Operating Margin of DEI has declined.
The Gross Margin of DEI (64.57%) is worse than 62.02% of its industry peers.
DEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.97% | ||
| PM (TTM) | 2.24% | ||
| GM | 64.57% |
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.
DEI has about the same amout of shares outstanding than it did 1 year ago.
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 0.24. This is a bad value and indicates that DEI is not financially healthy and even has some risk of bankruptcy.
DEI has a worse Altman-Z score (0.24) than 64.34% of its industry peers.
The Debt to FCF ratio of DEI is 32.47, which is on the high side as it means it would take DEI, 32.47 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 32.47, DEI is doing good in the industry, outperforming 68.22% of the companies in the same industry.
A Debt/Equity ratio of 2.67 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 2.67, DEI is doing worse than 79.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 32.47 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.28
WACC6.32%
2.3 Liquidity
A Current Ratio of 3.74 indicates that DEI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.74, DEI belongs to the best of the industry, outperforming 92.25% of the companies in the same industry.
DEI has a Quick Ratio of 3.74. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI's Quick ratio of 3.74 is amongst the best of the industry. DEI outperforms 92.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.74 | ||
| Quick Ratio | 3.74 |
3. Growth
3.1 Past
DEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 254.84%, which is quite impressive.
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 -3.33% in the last year.
DEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.04% yearly.
EPS 1Y (TTM)254.84%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%700%
Revenue 1Y (TTM)-3.33%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
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 -18.92% on average per year.
Based on estimates for the next years, DEI will show a small growth in Revenue. The Revenue will grow by 2.81% on average per year.
EPS Next Y-212.65%
EPS Next 2Y-72.37%
EPS Next 3Y-39.68%
EPS Next 5Y-18.92%
Revenue Next Year0.55%
Revenue Next 2Y0.19%
Revenue Next 3Y1.51%
Revenue Next 5Y2.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.21, which means the current valuation is very expensive for DEI.
The rest of the industry has a similar Price/Earnings ratio as DEI.
DEI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.85.
DEI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| 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 62.02% of the companies listed in the same industry.
DEI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DEI is cheaper than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.34 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
DEI's earnings are expected to decrease with -39.68% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-72.37%
EPS Next 3Y-39.68%
5. Dividend
5.1 Amount
DEI has a Yearly Dividend Yield of 5.13%, which is a nice return.
Compared to an average industry Dividend Yield of 6.64, DEI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
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.
Dividend Growth(5Y)-6.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DEI pays out 574.43% of its income as dividend. This is not a sustainable payout ratio.
DEI's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP574.43%
EPS Next 2Y-72.37%
EPS Next 3Y-39.68%
14.5
-0.31 (-2.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.89%
Inst Owner Change-1.62%
Ins Owners4.44%
Ins Owner Change0%
Market Cap2.43B
Analysts65.88
Price Target18.21 (25.59%)
Short Float %12.69%
Short Ratio9.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend0.76
Dividend Growth(5Y)-6.08%
DP574.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)239%
Min EPS beat(2)80.96%
Max EPS beat(2)397.03%
EPS beat(4)4
Avg EPS beat(4)192.53%
Min EPS beat(4)80.96%
Max EPS beat(4)397.03%
EPS beat(8)5
Avg EPS beat(8)59.9%
EPS beat(12)7
Avg EPS beat(12)35.78%
EPS beat(16)10
Avg EPS beat(16)34.97%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)1.73%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.73%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)-0.11%
Revenue beat(16)8
Avg Revenue beat(16)0.16%
PT rev (1m)-2.19%
PT rev (3m)-2.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)52%
EPS NY rev (1m)4.61%
EPS NY rev (3m)35.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | N/A | ||
| P/S | 2.46 | ||
| P/FCF | 14.34 | ||
| P/OCF | 5.94 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 12.75 |
EPS(TTM)0.48
EY3.31%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)1.01
FCFY6.97%
OCF(TTM)2.44
OCFY16.83%
SpS5.89
BVpS12.29
TBVpS12.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.24% | ||
| ROE | 1.08% | ||
| ROCE | 2.24% | ||
| ROIC | 1.77% | ||
| ROICexc | 1.86% | ||
| ROICexgc | 1.88% | ||
| OM | 20.97% | ||
| PM (TTM) | 2.24% | ||
| GM | 64.57% | ||
| FCFM | 17.16% |
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 Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.67 | ||
| Debt/FCF | 32.47 | ||
| Debt/EBITDA | 9.31 | ||
| Cap/Depr | 62.33% | ||
| Cap/Sales | 24.27% | ||
| Interest Coverage | 0.94 | ||
| Cash Conversion | 69.17% | ||
| Profit Quality | 764.66% | ||
| Current Ratio | 3.74 | ||
| Quick Ratio | 3.74 | ||
| Altman-Z | 0.24 |
F-Score6
WACC6.32%
ROIC/WACC0.28
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)254.84%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%700%
EPS Next Y-212.65%
EPS Next 2Y-72.37%
EPS Next 3Y-39.68%
EPS Next 5Y-18.92%
Revenue 1Y (TTM)-3.33%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
Revenue Next Year0.55%
Revenue Next 2Y0.19%
Revenue Next 3Y1.51%
Revenue Next 5Y2.81%
EBIT growth 1Y38.18%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year177.83%
EBIT Next 3Y43.52%
EBIT Next 5Y32.39%
FCF growth 1Y-13.76%
FCF growth 3Y3.24%
FCF growth 5YN/A
OCF growth 1Y-4.28%
OCF growth 3Y-2.94%
OCF growth 5Y-2.74%