ASX:DVN

Stock Analysis Report

Executive Summary

Devine Limited, together with its subsidiaries, engages in the land development and construction activities in Australia.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Devine's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.7%

DVN

3.3%

AU Real Estate

0.4%

AU Market


1 Year Return

-53.3%

DVN

3.1%

AU Real Estate

9.8%

AU Market

Return vs Industry: DVN underperformed the Australian Real Estate industry which returned 3.1% over the past year.

Return vs Market: DVN underperformed the Australian Market which returned 9.8% over the past year.


Shareholder returns

DVNIndustryMarket
7 Day-9.7%3.3%0.4%
30 Day-9.7%2.5%-1.1%
90 Day-6.7%13.5%-0.6%
1 Year-53.3%-53.3%6.5%3.1%16.1%9.8%
3 Year-69.6%-69.6%25.1%11.7%36.1%17.9%
5 Year-85.4%-85.4%40.6%15.9%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Devine undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DVN (A$0.14) is trading below our estimate of fair value (A$0.61)

Significantly Undervalued: DVN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DVN is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DVN is good value based on its PB Ratio (0.2x) compared to the AU Real Estate industry average (1x).


Next Steps

Future Growth

How is Devine forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.6%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Devine has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Devine performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DVN is unprofitable, but has reduced losses over the past 5 years at a rate of 3.6% per year.

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

Earnings vs Industry: DVN is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-2.5%).


Return on Equity

High ROE: DVN has a negative Return on Equity (-17.68%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: DVN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: DVN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Devine's financial position?


Financial Position Analysis

Short Term Liabilities: DVN's short term assets (A$40.0M) do not cover its short term liabilities (A$50.8M)

Long Term Liabilities: DVN's short term assets (40.0M) exceeds its long term liabilities (3.7M)


Debt to Equity History and Analysis

Debt Level: DVN's debt to equity ratio (42.1%) is considered high

Reducing Debt: DVN's debt to equity ratio has increased from 36.3% to 42.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: DVN's debt is covered by short term assets (assets are 1.053650x 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 DVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DVN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.1% per year.


Next Steps

Dividend

What is Devine's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate DVN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DVN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if DVN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DVN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DVN is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DVN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

John Campbell 0

1.3yrs

Tenure

AU$400,023

Compensation

Mr. John McLeod Campbell has been Chief Executive Officer and Executive Director of Devine Limited since July 9, 2018. Mr. Campbell has more than 27 years’ experience in property development and constructi ...


CEO Compensation Analysis

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

3.7yrs

Average Tenure

Experienced Management: DVN's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

Experienced Board: DVN's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Warren Thomson

    General Manager of Marketing & Sales

    • Tenure: 9.3yrs
  • Jamie MacKay

    CFO & Company Secretary

    • Tenure: 3.7yrs
    • Compensation: AU$475.23k
  • John Campbell

    CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$400.02k

Board Members

  • David Robinson (60yo)

    Chairman

    • Tenure: 3.8yrs
    • Compensation: AU$105.00k
  • George Sassine

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$105.00k
  • John Campbell

    CEO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$400.02k

Company Information

Devine Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Devine Limited
  • Ticker: DVN
  • Exchange: ASX
  • Founded: 1983
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$22.222m
  • Shares outstanding: 158.73m
  • Website: https://www.devine.com.au

Number of Employees


Location

  • Devine Limited
  • KSD1
  • Level 2
  • Hamilton
  • Queensland
  • 4007
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DVNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1994
DVNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 1994

Biography

Devine Limited, together with its subsidiaries, engages in the land development and construction activities in Australia. It develops and sells apartment and mixed use projects; and constructs residential  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.