DOUGLAS EMMETT INC (DEI) Stock Fundamental Analysis
USA - NYSE:DEI - US25960P1093 - REIT
12.41 USD
+0.44 (+3.68%)
12.2651 USD
-0.14 (-1.17%)
Taking everything into account, DEI scores 4 out of 10 in our fundamental rating. DEI was compared to 127 industry peers in the Diversified REITs industry. The financial health of DEI is average, but there are quite some concerns on its 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.
DEI had a positive operating cash flow in the past year.
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
DEI has a Return On Assets of 0.38%. This is comparable to the rest of the industry: DEI outperforms 44.88% of its industry peers.
DEI has a Return On Equity (1.81%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.67%, DEI is doing worse than 72.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 3.62%, DEI is in line with its industry, outperforming 47.24% of the companies in the same industry.
DEI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 19.49%, DEI perfoms like the industry average, outperforming 45.67% of the companies in the same industry.
In the last couple of years the Operating Margin of DEI has declined.
The Gross Margin of DEI (63.41%) is worse than 61.42% 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.
Compared to 1 year ago, DEI has about the same amount of shares outstanding.
Compared to 5 years ago, DEI has less shares outstanding
Compared to 1 year ago, DEI has a worse debt to assets ratio.
2.2 Solvency
DEI has an Altman-Z score of 0.17. This is a bad value and indicates that DEI is not financially healthy and even has some risk of bankruptcy.
DEI has a Altman-Z score of 0.17. This is in the lower half of the industry: DEI underperforms 68.50% of its industry peers.
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.
The Debt to FCF ratio of DEI (43.83) is better than 66.14% of its industry peers.
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: 79.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 43.83 | ||
| Altman-Z | 0.17 |
ROIC/WACC0.28
WACC5.87%
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.
DEI has a better Current ratio (2.54) than 88.19% of its industry peers.
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.
DEI has a Quick ratio of 2.54. This is amongst the best in the industry. DEI outperforms 88.19% of its industry peers.
| 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 350.00%, which is quite impressive.
The earnings per share for DEI have been decreasing by -42.57% on average. This is quite bad
DEI shows a decrease in Revenue. In the last year, the revenue decreased by -3.33%.
The Revenue has been growing slightly by 1.04% on average over the past years.
EPS 1Y (TTM)350%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%1033.33%
Revenue 1Y (TTM)-3.33%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%-0.07%
3.2 Future
The Earnings Per Share is expected to decrease by -34.99% on average over the next years. This is quite bad
Based on estimates for the next years, DEI will show a small growth in Revenue. The Revenue will grow by 3.34% on average per year.
EPS Next Y-47.56%
EPS Next 2Y-78.35%
EPS Next 3Y-41.86%
EPS Next 5Y-34.99%
Revenue Next Year2.57%
Revenue Next 2Y2.27%
Revenue Next 3Y2.19%
Revenue Next 5Y3.34%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
DEI is valuated quite expensively with a Price/Earnings ratio of 49.64.
DEI's Price/Earnings ratio is in line with the industry average.
DEI is valuated expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
DEI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.64 | ||
| 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 72.44% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEI indicates a somewhat cheap valuation: DEI is cheaper than 79.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.37 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
DEI's earnings are expected to decrease with -41.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-78.35%
EPS Next 3Y-41.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.21%, DEI is a good candidate for dividend investing.
DEI's Dividend Yield is a higher than the industry average which is at 6.21.
Compared to an average S&P500 Dividend Yield of 2.39, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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.
The dividend of DEI decreased 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-78.35%
EPS Next 3Y-41.86%
12.41
+0.44 (+3.68%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners106.21%
Inst Owner Change0.18%
Ins Owners3.41%
Ins Owner Change0%
Market Cap2.08B
Revenue(TTM)986.48M
Net Income(TTM)36.24M
Analysts67.06
Price Target17.09 (37.71%)
Short Float %13.91%
Short Ratio13.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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)0.17%
PT rev (3m)1.86%
EPS NQ rev (1m)10.26%
EPS NQ rev (3m)16.67%
EPS NY rev (1m)145.46%
EPS NY rev (3m)216.38%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.64 | ||
| Fwd PE | N/A | ||
| P/S | 2.08 | ||
| P/FCF | 16.37 | ||
| P/OCF | 5.3 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)0.25
EY2.01%
EPS(NY)-0.15
Fwd EYN/A
FCF(TTM)0.76
FCFY6.11%
OCF(TTM)2.34
OCFY18.85%
SpS5.97
BVpS11.94
TBVpS11.89
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.19
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%
ROICexgc growth 3Y1.27%
ROICexgc 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 | 0.17 |
F-Score6
WACC5.87%
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)350%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%1033.33%
EPS Next Y-47.56%
EPS Next 2Y-78.35%
EPS Next 3Y-41.86%
EPS Next 5Y-34.99%
Revenue 1Y (TTM)-3.33%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%-0.07%
Revenue Next Year2.57%
Revenue Next 2Y2.27%
Revenue Next 3Y2.19%
Revenue Next 5Y3.34%
EBIT growth 1Y14.89%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year186.97%
EBIT Next 3Y44.18%
EBIT Next 5Y32.37%
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%
DOUGLAS EMMETT INC / DEI FAQ
Can you provide the ChartMill fundamental rating for DOUGLAS EMMETT INC?
ChartMill assigns a fundamental rating of 4 / 10 to DEI.
What is the valuation status for DEI stock?
ChartMill assigns a valuation rating of 2 / 10 to DOUGLAS EMMETT INC (DEI). This can be considered as Overvalued.
How profitable is DOUGLAS EMMETT INC (DEI) stock?
DOUGLAS EMMETT INC (DEI) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for DEI stock?
The Price/Earnings (PE) ratio for DOUGLAS EMMETT INC (DEI) is 49.64 and the Price/Book (PB) ratio is 1.04.
How sustainable is the dividend of DOUGLAS EMMETT INC (DEI) stock?
The dividend rating of DOUGLAS EMMETT INC (DEI) is 5 / 10 and the dividend payout ratio is 351.13%.