ASX:DHG

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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.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

DHG

3.6%

AU Interactive Media and Services

5.0%

AU Market


1 Year Return

-6.7%

DHG

6.5%

AU Interactive Media and Services

-10.3%

AU Market

Return vs Industry: DHG underperformed the Australian Interactive Media and Services industry which returned 6.5% over the past year.

Return vs Market: DHG exceeded the Australian Market which returned -10.3% over the past year.


Shareholder returns

DHGIndustryMarket
7 Day-0.3%3.6%5.0%
30 Day17.2%16.1%8.8%
90 Day-3.8%-0.2%-9.9%
1 Year-5.0%-6.7%8.4%6.5%-6.6%-10.3%
3 Yearn/a44.8%36.6%11.1%-3.5%
5 Yearn/a96.1%76.0%28.9%1.1%

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?

46.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DHG (A$3.07) is trading above our estimate of fair value (A$2.39)

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


Price To Earnings Ratio

PE vs Industry: DHG is poor value based on its PE Ratio (46.9x) compared to the Interactive Media and Services industry average (28.8x).

PE vs Market: DHG is poor value based on its PE Ratio (46.9x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: DHG is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: DHG is good value based on its PB Ratio (1.5x) compared to the AU Interactive Media and Services industry average (3.2x).


Next Steps

Future Growth

How is Domain Holdings Australia forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DHG's forecast earnings growth (32.4% per year) is above the savings rate (2.3%).

Earnings vs Market: DHG's earnings (32.4% per year) are forecast to grow faster than the Australian market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DHG's revenue (9.4% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: DHG's revenue (9.4% 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 (5.3%).


Next Steps

Past Performance

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

-16.7%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: DHG has a large one-off gain of A$9.7M impacting its December 31 2019 financial results.

Growing Profit Margin: DHG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DHG has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: DHG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DHG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (3.1%).


Return on Equity

High ROE: DHG's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Domain Holdings Australia's financial position?


Financial Position Analysis

Short Term Liabilities: DHG's short term assets (A$60.9M) exceed its short term liabilities (A$54.9M).

Long Term Liabilities: DHG's short term assets (A$60.9M) do not cover its long term liabilities (A$287.6M).


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.

Debt Coverage: DHG's debt is well covered by operating cash flow (35.1%).

Interest Coverage: DHG's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DHG's dividend (1.95%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.61%).

High Dividend: DHG's dividend (1.95%) is low compared to the top 25% of dividend payers in the Australian market (6.69%).


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: With its high payout ratio (91.6%), DHG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DHG's dividends in 3 years are forecast to be covered by earnings (76.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Jason Pellegrino

1.75yrs

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 ($USD1.59M) is above average for companies of similar size in the Australian market ($USD1.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jason Pellegrino
MD, CEO & Director1.75yrsAU$2.40m0.13% A$2.2m
Rob Doyle
Chief Financial Officer2.5yrsAU$924.38k0.017% A$307.1k
Y Kim
Group Director of Strategy & Operations0.50yrno datano data
David Bolton
Director of Technology0.33yrno datano data
Catriona McGregor
Group General Counsel & Company Secretary2.42yrsno datano data
Tom Ainsworth
Chief Sales Officerno datano datano data
Tony Blamey
Chief Commercial Officerno datano datano data
Pooyan Asgari
Chief Data Officerno datano datano data
Jason Chuck
Chief Consumer Officer1.08yrsno datano data

1.4yrs

Average Tenure

Experienced Management: DHG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jason Pellegrino
MD, CEO & Director1.75yrsAU$2.40m0.13% A$2.2m
Nicholas Falloon
Non-Executive Chairman2.33yrsAU$433.26k0.017% A$310.9k
Diana Eilert
Independent Non-Executive Director2.5yrsAU$150.85k0.0074% A$133.2k
Geoffrey Kleemann
Independent Non-Executive Director2.5yrsAU$152.89k0.010% A$184.1k
Hugh Marks
Non-Executive Director0.17yrno datano data
Gregory Ellis
Independent Non-Executive Director2.5yrsAU$112.12k0.0018% A$32.5k
Elizabeth Young
Non-Executive Director0.17yrno datano data

2.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: DHG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.795b
  • Shares outstanding: 584.62m
  • 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, Consumer Solutions and Other, and Print segments. The company offers residential, commercial, and rural property marketing services through its listings portals on desktop and mobile, as well as through social media and print magazines. It also provides media and lead-generation solutions for advertisers looking to promote their products and services to consumers; and creates property market content to engage consumers and support audience growth. In addition, the company offers data and technology services to real estate agencies through customer relationship management software, property data subscriptions and research, and property inspection management tools. Further, it publishes real estate newspapers and magazines; and provides other services in the property lifecycle, including home loan brokerage, insurance, residential utilities product comparison, residential and commercial utilities connection, and trade services, as well as information services for buyers, investors, sellers, renters, and agents. Domain Holdings Australia Limited serves residential and commercial real estate agencies and professionals, property developers, financial services companies, retailers, utilities companies, media, government, and consumers. The company is based in Pyrmont, Australia. Domain Holdings Australia Limited is a subsidiary of Nine Entertainment Co. Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 10:56
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.