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 130 industry peers in the Diversified REITs industry. DEI has an average financial health and profitability rating. DEI is quite expensive at the moment. It does show a decent growth rate.
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.
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 (0.55%) which is in line with its industry peers.
DEI has a Return On Equity (2.59%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 1.73%, DEI is doing worse than 72.31% 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(1.73%), 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
DEI has a Profit Margin (5.33%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DEI has declined.
With a Operating Margin value of 20.63%, DEI perfoms like the industry average, outperforming 46.92% of the companies in the same industry.
DEI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 64.14%, DEI is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, DEI has about the same amount of shares outstanding.
The number of shares outstanding for DEI has been reduced compared to 5 years ago.
The debt/assets ratio for DEI is higher compared to a year ago.
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.
The Altman-Z score of DEI (0.24) is worse than 66.15% of its industry peers.
DEI has a debt to FCF ratio of 35.02. This is a negative value and a sign of low solvency as DEI would need 35.02 years to pay back of all of its debts.
DEI's Debt to FCF ratio of 35.02 is fine compared to the rest of the industry. DEI outperforms 70.77% of its industry peers.
A Debt/Equity ratio of 2.75 is on the high side and indicates that DEI has dependencies on debt financing.
With a Debt to Equity ratio value of 2.75, DEI is not doing good in the industry: 79.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.75 | ||
| Debt/FCF | 35.02 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.27
WACC6.32%
2.3 Liquidity
A Current Ratio of 2.98 indicates that DEI has no problem at all paying its short term obligations.
DEI has a better Current ratio (2.98) than 89.23% of its industry peers.
A Quick Ratio of 2.98 indicates that DEI has no problem at all paying its short term obligations.
DEI has a Quick ratio of 2.98. This is amongst the best in the industry. DEI outperforms 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.90% over the past year.
DEI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.57% yearly.
The Revenue has decreased by -1.98% in the past 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
The Earnings Per Share is expected to decrease by -43.61% 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 3.59% on average per year.
EPS Next Y-145.06%
EPS Next 2Y-94.2%
EPS Next 3Y-54.44%
EPS Next 5Y-43.61%
Revenue Next Year1.06%
Revenue Next 2Y1.68%
Revenue Next 3Y1.93%
Revenue Next 5Y3.59%
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 398.00, which means the current valuation is very expensive for DEI.
Based on the Price/Earnings ratio, DEI is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
DEI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.51.
The Forward Price/Earnings Ratio is negative for DEI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 398 | ||
| 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 62.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DEI is valued cheaper than 83.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 13.23 |
4.3 Compensation for Growth
A cheap valuation may be justified as DEI's earnings are expected to decrease with -54.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-94.2%
EPS Next 3Y-54.44%
5. Dividend
5.1 Amount
DEI has a Yearly Dividend Yield of 4.73%, which is a nice return.
DEI's Dividend Yield is comparable with the industry average which is at 6.44.
Compared to an average S&P500 Dividend Yield of 2.35, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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.
DEI has decreased its dividend recently.
Dividend Growth(5Y)-6.08%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DEI pays out 240.28% 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.
DP240.28%
EPS Next 2Y-94.2%
EPS Next 3Y-54.44%
NYSE:DEI (7/15/2025, 12:10:19 PM)
15.92
-0.27 (-1.67%)
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%
Ins Owners3.41%
Ins Owner Change0%
Market Cap2.67B
Analysts68.24
Price Target16.73 (5.09%)
Short Float %15.67%
Short Ratio14.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
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)0%
PT rev (3m)-10.14%
EPS NQ rev (1m)-18.18%
EPS NQ rev (3m)-44.44%
EPS NY rev (1m)60%
EPS NY rev (3m)61.84%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 398 | ||
| Fwd PE | N/A | ||
| P/S | 2.68 | ||
| P/FCF | 16.57 | ||
| P/OCF | 6.63 | ||
| P/B | 1.3 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 13.23 |
EPS(TTM)0.04
EY0.25%
EPS(NY)-0.23
Fwd EYN/A
FCF(TTM)0.96
FCFY6.04%
OCF(TTM)2.4
OCFY15.09%
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 | 0.24 |
F-Score5
WACC6.32%
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)112.9%
EPS 3Y-20.63%
EPS 5Y-42.57%
EPS Q2Q%-180%
EPS Next Y-145.06%
EPS Next 2Y-94.2%
EPS Next 3Y-54.44%
EPS Next 5Y-43.61%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y2.41%
Revenue growth 5Y1.04%
Sales Q2Q%2.68%
Revenue Next Year1.06%
Revenue Next 2Y1.68%
Revenue Next 3Y1.93%
Revenue Next 5Y3.59%
EBIT growth 1Y40.71%
EBIT growth 3Y0.93%
EBIT growth 5Y-3.15%
EBIT Next Year180.86%
EBIT Next 3Y43.52%
EBIT Next 5Y33.27%
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%