DOUGLAS EMMETT INC (DEI)
US25960P1093 - REIT
We assign a fundamental rating of 3 out of 10 to DEI. DEI was compared to 126 industry peers in the Diversified REITs industry. While DEI seems to be doing ok healthwise, there are quite some concerns on its profitability. DEI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DEI has reported negative net income.
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
The Return On Assets of DEI (-0.46%) is worse than 63.41% of its industry peers.
DEI has a worse Return On Equity (-1.98%) than 64.23% of its industry peers.
DEI has a Return On Invested Capital of 1.25%. This is in the lower half of the industry: DEI underperforms 78.86% of its industry peers.
DEI had an Average Return On Invested Capital over the past 3 years of 1.66%. This is in line with the industry average of 2.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.46% | ||
| ROE | -1.98% | ||
| ROIC | 1.25% |
ROA(3y)0.41%
ROA(5y)1.13%
ROE(3y)1.48%
ROE(5y)3.97%
ROIC(3y)1.66%
ROIC(5y)1.7%
1.3 Margins
Looking at the Operating Margin, with a value of 14.67%, DEI is doing worse than 67.48% of the companies in the same industry.
In the last couple of years the Operating Margin of DEI has declined.
DEI's Gross Margin of 64.63% is on the low side compared to the rest of the industry. DEI is outperformed by 64.23% 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 | 14.67% | ||
| PM (TTM) | N/A | ||
| GM | 64.63% |
OM growth 3Y-6.76%
OM growth 5Y-12.5%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.6%
GM growth 5Y-1.05%
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 less shares outstanding than it did 1 year ago.
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 0.21. 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 (0.21) than 70.73% of its industry peers.
DEI has a debt to FCF ratio of 28.23. This is a negative value and a sign of low solvency as DEI would need 28.23 years to pay back of all of its debts.
DEI has a Debt to FCF ratio of 28.23. This is comparable to the rest of the industry: DEI outperforms 56.10% of its industry peers.
A Debt/Equity ratio of 2.50 is on the high side and indicates that DEI has dependencies on debt financing.
With a Debt to Equity ratio value of 2.50, DEI is not doing good in the industry: 82.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | 28.23 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.2
WACC6.34%
2.3 Liquidity
A Current Ratio of 3.60 indicates that DEI has no problem at all paying its short term obligations.
The Current ratio of DEI (3.60) is better than 90.24% of its industry peers.
A Quick Ratio of 3.60 indicates that DEI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.60, DEI belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.6 | ||
| Quick Ratio | 3.6 |
3. Growth
3.1 Past
The earnings per share for DEI have decreased strongly by -147.27% in the last year.
DEI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
DEI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.98% yearly.
EPS 1Y (TTM)-147.27%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-271.43%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y4.61%
Revenue growth 5Y2.98%
Revenue growth Q2Q2.02%
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 -25.05% on average per year.
Based on estimates for the next years, DEI will show a small growth in Revenue. The Revenue will grow by 1.09% on average per year.
EPS Next Y-135.41%
EPS Next 2Y-67.01%
EPS Next 3Y-25.05%
EPS Next 5YN/A
Revenue Next Year-1.56%
Revenue Next 2Y-2.9%
Revenue Next 3Y1.09%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DEI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Based on the Enterprise Value to EBITDA ratio, DEI is valued a bit cheaper than 72.36% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEI indicates a rather cheap valuation: DEI is cheaper than 85.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 11.91 |
4.3 Compensation for Growth
DEI's earnings are expected to decrease with -25.05% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-67.01%
EPS Next 3Y-25.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.71%, DEI is a good candidate for dividend investing.
DEI's Dividend Yield is comparable with the industry average which is at 6.03.
Compared to an average S&P500 Dividend Yield of 2.41, DEI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
5.2 History
The dividend of DEI decreases each year by -5.39%.
DEI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DEI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of DEI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-295.91%
EPS Next 2Y-67.01%
EPS Next 3Y-25.05%
DOUGLAS EMMETT INC
NYSE:DEI (4/29/2024, 3:11:18 PM)
After market: 13.81 0 (0%)13.81
+0.44 (+3.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.46% | ||
| ROE | -1.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.67% | ||
| PM (TTM) | N/A | ||
| GM | 64.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.6 | ||
| Quick Ratio | 3.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-147.27%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-135.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.7%
Revenue growth 3Y4.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y