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 an average financial health and profitability rating. DEI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DEI had positive 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.
DEI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DEI has a Return On Assets (0.55%) which is comparable to the rest of the industry.
The Return On Equity of DEI (2.59%) is comparable to the rest of the industry.
DEI's Return On Invested Capital of 1.73% is on the low side compared to the rest of the industry. DEI is outperformed by 72.09% of its industry peers.
DEI had an Average Return On Invested Capital over the past 3 years of 1.67%. This is in line with the industry average of 3.15%.
The 3 year average ROIC (1.67%) for DEI is below the current ROIC(1.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 2.59% | ||
| ROIC | 1.73% |
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 5.33%, DEI perfoms like the industry average, outperforming 52.71% of the companies in the same industry.
DEI's Profit Margin has declined in the last couple of years.
DEI has a Operating Margin of 20.63%. This is comparable to the rest of the industry: DEI outperforms 47.29% of its industry peers.
DEI's Operating Margin has declined in the last couple of years.
DEI has a Gross Margin of 64.14%. This is in the lower half of the industry: DEI underperforms 62.79% of its industry peers.
DEI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.63% | ||
| PM (TTM) | 5.33% | ||
| GM | 64.14% |
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
The debt/assets ratio for DEI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.23, we must say that DEI is in the distress zone and has some risk of bankruptcy.
DEI has a worse Altman-Z score (0.23) than 66.67% of its industry peers.
The Debt to FCF ratio of DEI is 35.02, which is on the high side as it means it would take DEI, 35.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 35.02, DEI is in the better half of the industry, outperforming 70.54% of the companies in the same industry.
DEI has a Debt/Equity ratio of 2.75. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DEI (2.75) is worse than 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 35.02 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.24
WACC7.14%
2.3 Liquidity
A Current Ratio of 2.98 indicates that DEI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.98, DEI belongs to the best of the industry, outperforming 89.15% of the companies in the same industry.
DEI has a Quick Ratio of 2.98. This indicates that DEI is financially healthy and has no problem in meeting its short term obligations.
DEI has a better Quick ratio (2.98) than 89.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
DEI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 112.90%, which is quite impressive.
DEI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.57% yearly.
Looking at the last year, DEI shows a decrease in Revenue. The Revenue has decreased by -1.98% 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)112.9%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-180%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
3.2 Future
DEI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.92% yearly.
DEI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.81% yearly.
EPS Next Y-212.65%
EPS Next 2Y-72.37%
EPS Next 3Y-42.71%
EPS Next 5Y-18.92%
Revenue Next Year0.55%
Revenue Next 2Y1.43%
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.
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
A Price/Earnings ratio of 372.00 indicates a quite expensive valuation of DEI.
Based on the Price/Earnings ratio, DEI is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, DEI is valued quite expensively.
DEI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 372 | ||
| Fwd PE | N/A |
4.2 Price Multiples
DEI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DEI is cheaper than 62.79% of the companies in the same industry.
85.27% 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 | 15.49 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
A cheap valuation may be justified as DEI's earnings are expected to decrease with -42.71% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-72.37%
EPS Next 3Y-42.71%
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 6.68, DEI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
5.2 History
The dividend of DEI decreases each year by -6.08%.
DEI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of DEI decreased recently.
Dividend Growth(5Y)-6.08%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
240.28% of the earnings are spent on dividend by DEI. 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.
DP240.28%
EPS Next 2Y-72.37%
EPS Next 3Y-42.71%
14.88
+0.08 (+0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.76%
Inst Owner Change0.94%
Ins Owners3.41%
Ins Owner Change0%
Market Cap2.49B
Analysts68.24
Price Target16.73 (12.43%)
Short Float %14.21%
Short Ratio11.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
Yearly Dividend0.76
Dividend Growth(5Y)-6.08%
DP240.28%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.97%
Min EPS beat(2)-65.02%
Max EPS beat(2)80.96%
EPS beat(4)3
Avg EPS beat(4)141.9%
Min EPS beat(4)-65.02%
Max EPS beat(4)397.03%
EPS beat(8)5
Avg EPS beat(8)52.28%
EPS beat(12)6
Avg EPS beat(12)29.2%
EPS beat(16)9
Avg EPS beat(16)19.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.73%
Revenue beat(8)5
Avg Revenue beat(8)0.36%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)-8.12%
PT rev (3m)-11.35%
EPS NQ rev (1m)-22.22%
EPS NQ rev (3m)12%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 372 | ||
| Fwd PE | N/A | ||
| P/S | 2.51 | ||
| P/FCF | 15.49 | ||
| P/OCF | 6.19 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 12.84 |
EPS(TTM)0.04
EY0.27%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.96
FCFY6.46%
OCF(TTM)2.4
OCFY16.15%
SpS5.93
BVpS12.22
TBVpS12.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 2.59% | ||
| ROCE | 2.19% | ||
| ROIC | 1.73% | ||
| ROICexc | 1.83% | ||
| ROICexgc | 1.85% | ||
| OM | 20.63% | ||
| PM (TTM) | 5.33% | ||
| GM | 64.14% | ||
| FCFM | 16.2% |
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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 35.02 | ||
| Debt/EBITDA | 9.54 | ||
| Cap/Depr | 62.52% | ||
| Cap/Sales | 24.31% | ||
| Interest Coverage | 0.91 | ||
| Cash Conversion | 68.07% | ||
| Profit Quality | 303.88% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 | ||
| Altman-Z | 0.23 |
F-Score5
WACC7.14%
ROIC/WACC0.24
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)112.9%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-180%
EPS Next Y-212.65%
EPS Next 2Y-72.37%
EPS Next 3Y-42.71%
EPS Next 5Y-18.92%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
Revenue Next Year0.55%
Revenue Next 2Y1.43%
Revenue Next 3Y1.51%
Revenue Next 5Y2.81%
EBIT growth 1Y40.71%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year180.86%
EBIT Next 3Y43.52%
EBIT Next 5Y32.39%
FCF growth 1Y470.57%
FCF growth 3Y3.24%
FCF growth 5YN/A
OCF growth 1Y-20%
OCF growth 3Y-2.94%
OCF growth 5Y-2.74%