ASX:DHG

Stock Analysis Report

Domain Holdings Australia

Executive Summary

Domain Holdings Australia Limited operates as a real estate media and technology services company that focuses on the property market in Australia.

Rewards

Earnings are forecast to grow 66.92% per year

Revenue grew by 16.1% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Domain Holdings Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DHG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

DHG

3.8%

AU Interactive Media and Services

2.0%

AU Market


1 Year Return

39.4%

DHG

39.9%

AU Interactive Media and Services

18.2%

AU Market

Return vs Industry: DHG matched the Australian Interactive Media and Services industry which returned 39.9% over the past year.

Return vs Market: DHG exceeded the Australian Market which returned 18.2% over the past year.


Shareholder returns

DHGIndustryMarket
7 Day2.6%3.8%2.0%
30 Day4.1%3.2%-0.7%
90 Day8.6%1.6%0.7%
1 Year42.2%39.4%42.3%39.9%24.1%18.2%
3 Yearn/a82.2%72.4%36.0%17.3%
5 Yearn/a141.2%119.1%64.1%27.1%

Price Volatility Vs. Market

How volatile is Domain Holdings Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Domain Holdings Australia undervalued compared to its fair value and its price relative to the market?

1.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DHG (A$3.54) is trading above our estimate of fair value (A$3.31)

Significantly Below Fair Value: DHG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DHG is unprofitable, so we can't compare its PE Ratio to the Interactive Media and Services industry average.

PE vs Market: DHG is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DHG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DHG is good value based on its PB Ratio (1.8x) compared to the AU Interactive Media and Services industry average (7.8x).


Next Steps

Future Growth

How is Domain Holdings Australia forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

66.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: DHG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DHG's is expected to become profitable in the next 3 years.

Revenue vs Market: DHG's revenue (5.5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: DHG's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DHG's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Domain Holdings Australia performed over the past 5 years?

-1169.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DHG is currently unprofitable.

Growing Profit Margin: DHG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DHG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare DHG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DHG is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (8.2%).


Return on Equity

High ROE: DHG has a negative Return on Equity (-11.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Domain Holdings Australia's financial position?


Financial Position Analysis

Short Term Liabilities: DHG's short term assets (A$95.3M) exceed its short term liabilities (A$61.1M).

Long Term Liabilities: DHG's short term assets (A$95.3M) do not cover its long term liabilities (A$251.8M).


Debt to Equity History and Analysis

Debt Level: DHG's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DHG's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: DHG has a low level of unsold assets or inventory.

Debt Coverage by Assets: DHG's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DHG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DHG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40% per year.


Next Steps

Dividend

What is Domain Holdings Australia's current dividend yield, its reliability and sustainability?

1.69%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.4%markettop25%5.5%industryaverage0.5%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: DHG's dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: DHG's dividend (1.69%) is low compared to the top 25% of dividend payers in the Australian market (5.54%).


Stability and Growth of Payments

Stable Dividend: DHG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DHG has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: DHG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DHG's dividends in 3 years are forecast to be covered by earnings (78.8% payout ratio).


Next Steps

Management

What is the CEO of Domain Holdings Australia's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Jason Pellegrino 0

1.3yrs

Tenure

AU$2,396,633

Compensation

Mr. Jason Pellegrino has been the Managing Director and Chief Executive Officer at Domain Holdings Australia Ltd. since August 27, 2018. He was Managing Director Australia and New Zealand at Google from Ma ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.65M) is about average for companies of similar size in the Australian market ($USD1.39M).

Compensation vs Earnings: Insufficient data to compare Jason's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: DHG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: DHG's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$31,774,61024 Nov 19
FIL Limited
EntityCompany
Shares9,045,140
Max PriceAU$3.56
SellAU$14,395,59621 Nov 19
HMI Capital, LLC
EntityCompany
Shares6,343,887
Max PriceAU$2.39
BuyAU$12,649,96710 Oct 19
HMI Capital, LLC
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Shares5,776,818
Max PriceAU$2.30
SellAU$38,724,49410 Oct 19
HMI Capital, LLC
EntityCompany
Shares11,690,621
Max PriceAU$3.31
BuyAU$009 Apr 19
FIL Limited
EntityCompany
Shares10,916,606
Max PriceAU$3.55
SellAU$009 Apr 19
FIL Limited
EntityCompany
Shares12,069,183
Max PriceAU$3.54

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44.5%.


Management Team

  • Tony Blamey

    Chief Commercial Officer

    • Tenure: 0yrs
  • Catriona McGregor

    Group General Counsel & Company Secretary

    • Tenure: 2yrs
  • Rob Doyle

    Chief Financial Officer

    • Tenure: 2.1yrs
    • Compensation: AU$924.38k
  • Tom Ainsworth

    Chief Sales Officer

    • Tenure: 0yrs
  • Pooyan Asgari

    Chief Data Officer

    • Tenure: 0yrs
  • Jason Pellegrino

    MD, CEO & Director

    • Tenure: 1.3yrs
    • Compensation: AU$2.40m
  • Jason Chuck

    Chief Consumer Officer

    • Tenure: 0.7yrs
  • Y Kim

    Group Director of Strategy & Operations

    • Tenure: 0.08yrs
  • Fabien Ruffin

    Acting Group Director of Technology

    • Tenure: 0.08yrs

Board Members

  • Nick Falloon (62yo)

    Non-Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: AU$433.26k
  • Patrick Newton Allaway (58yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$130.46k
  • Diana Eilert (59yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$150.85k
  • Geoff Kleemann (70yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$152.89k
  • Gail Hambly

    Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$112.12k
  • Greg Ellis (57yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$112.12k
  • Jason Pellegrino

    MD, CEO & Director

    • Tenure: 1.3yrs
    • Compensation: AU$2.40m

Company Information

Domain Holdings Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Domain Holdings Australia Limited
  • Ticker: DHG
  • Exchange: ASX
  • Founded:
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: AU$2.064b
  • Shares outstanding: 583.08m
  • Website: https://shareholders.domain.com.au

Number of Employees


Location

  • Domain Holdings Australia Limited
  • 100 Harris Street
  • Level 5
  • Pyrmont
  • New South Wales
  • 2009
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DHGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2017
DHGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2017
3DHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2017

Biography

Domain Holdings Australia Limited operates as a real estate media and technology services company that focuses on the property market in Australia. It operates through three segments: Core Digital, Consume ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 10:42
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.