ASX:DXS

Stock Analysis Report

Executive Summary

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $31.8 billion.

Rewards

PE ratio (9.7x) is below the Australian market (18.4x)

Risk Analysis

Earnings are forecast to decline by an average of -14.2% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.2%

DXS

1.1%

AU REITs

2.0%

AU Market


1 Year Return

7.7%

DXS

13.8%

AU REITs

18.2%

AU Market

Return vs Industry: DXS underperformed the Australian REITs industry which returned 13.8% over the past year.

Return vs Market: DXS underperformed the Australian Market which returned 18.2% over the past year.


Shareholder returns

DXSIndustryMarket
7 Day2.2%1.1%2.0%
30 Day3.4%-0.01%-0.7%
90 Day-1.5%1.3%0.7%
1 Year12.3%7.7%19.5%13.8%24.1%18.2%
3 Year47.0%28.1%46.4%25.2%36.0%17.3%
5 Year118.5%70.9%94.4%50.7%64.1%27.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DXS (A$12.03) is trading above our estimate of fair value (A$11.06)

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


Price To Earnings Ratio

PE vs Industry: DXS is good value based on its PE Ratio (9.7x) compared to the REITs industry average (15.9x).

PE vs Market: DXS is good value based on its PE Ratio (9.7x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: DXS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DXS is good value based on its PB Ratio (1.1x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is Dexus forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXS's earnings are forecast to decline over the next 3 years (-14.2% per year).

Earnings vs Market: DXS's earnings are forecast to decline over the next 3 years (-14.2% per year).

High Growth Earnings: DXS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DXS's revenue is expected to decline over the next 3 years (-10.4% per year).

High Growth Revenue: DXS's revenue is forecast to decline over the next 3 years (-10.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DXS's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

  • Explore growth companies in the Real Estate industry.

Past Performance

How has Dexus performed over the past 5 years?

21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXS has a large one-off gain of A$455.4M impacting its June 30 2019 financial results.

Growing Profit Margin: DXS's current net profit margins (96.2%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: DXS's earnings have grown significantly by 21.3% per year over the past 5 years.

Accelerating Growth: DXS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DXS had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).


Return on Equity

High ROE: DXS's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dexus's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: DXS's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: DXS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DXS has a sufficient allowance for bad loans.

Low Risk Liabilities: DXS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DXS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DXS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DXS has an appropriate level of bad loans.


Next Steps

Dividend

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

4.17%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.4%markettop25%5.5%industryaverage4.4%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: DXS's dividend (4.17%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: DXS's dividend (4.17%) is low compared to the top 25% of dividend payers in the Australian market (5.54%).


Stability and Growth of Payments

Stable Dividend: DXS's dividend payments have been volatile in the past 10 years.

Growing Dividend: DXS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.6%), DXS's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DXS's dividends in 3 years are forecast to be thoroughly covered by earnings (0.07% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Darren Steinberg 0

7.8yrs

Tenure

AU$6,116,763

Compensation

Mr. Darren Joseph Steinberg, BEc, FRICS, FAPI, FAICD, has been Non-Executive Director at VGI Partners Limited since May 12, 2019. Mr. Steinberg, BEc, FRICS, FAPI, FAICD, has been the Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD4.17M) is above average for companies of similar size in the Australian market ($USD2.88M).

Compensation vs Earnings: Darren's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

Experienced Management: DXS's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: DXS's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

Insider Buying: DXS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$200,06406 Nov 19
Wallace Sheppard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of DEXUS Funds Management Limited
Shares16,690
Max PriceAU$11.99
BuyAU$13,00522 Aug 19
Nicola Roxon
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of DEXUS Funds Management Limited
Shares1,000
Max PriceAU$13.00
SellAU$2,364,07514 Feb 19
Darren Steinberg
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director of DEXUS Funds Management Limited
Shares199,500
Max PriceAU$11.85
SellAU$166,733,85830 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares14,858,138
Max PriceAU$11.22
BuyAU$361,941,67830 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares32,094,651
Max PriceAU$11.32

Ownership Breakdown

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


Management Team

  • Darren Steinberg

    CEO & Executive Director of DEXUS Funds Management Limited

    • Tenure: 7.8yrs
    • Compensation: AU$6.12m
  • Kevin George

    Executive General Manager of Office

    • Tenure: 7yrs
    • Compensation: AU$2.18m
  • David Yates

    Executive GM of Investor Relations

    • Tenure: 0yrs
  • Ross Du Vernet

    Chief Investment Officer

    • Tenure: 3.4yrs
    • Compensation: AU$2.26m
  • Alison Harrop

    Chief Financial Officer

    • Tenure: 4.2yrs
    • Compensation: AU$2.05m
  • Deborah Coakley

    Executive General Manager of Funds Management

    • Tenure: 5.8yrs
    • Compensation: AU$1.82m
  • Chris Hynes

    Head of Office & Industrial Leasing

    • Tenure: 0yrs
  • Scott Mahony

    Head of Governance & Company Secretary of Dexus Funds Management Limited

    • Tenure: 1.9yrs
  • Brett Cameron

    General Counsel & Company Secretary of Dexus Funds Management Limited

    • Tenure: 0yrs
  • Paul Oates

    Group General Manager of Development

    • Tenure: 5yrs

Board Members

  • John Conde (71yo)

    Independent Non-Executive Director of DEXUS Funds Management Limited

    • Tenure: 10.7yrs
    • Compensation: AU$222.50k
  • Penny Bingham-Hall (59yo)

    Independent Non-Executive Director of DEXUS Funds Management Limited

    • Tenure: 5.5yrs
    • Compensation: AU$223.84k
  • Darren Steinberg

    CEO & Executive Director of DEXUS Funds Management Limited

    • Tenure: 7.8yrs
    • Compensation: AU$6.12m
  • Wallace Sheppard (70yo)

    Non-Executive Chairman of DEXUS Funds Management Limited

    • Tenure: 4.2yrs
    • Compensation: AU$400.00k
  • Mark Henry Ford (65yo)

    Independent Non-Executive Director of DEXUS Funds Management Limited

    • Tenure: 3.1yrs
    • Compensation: AU$201.64k
  • Peter St George (72yo)

    Independent Non-Executive Director of DEXUS Funds Management Limited

    • Tenure: 10.7yrs
    • Compensation: AU$215.00k
  • Tonianne Dwyer (57yo)

    Independent Non-Executive Director of DEXUS Funds Management Limited

    • Tenure: 8.3yrs
    • Compensation: AU$246.71k
  • Nicola Roxon

    Independent Non-Executive Director of DEXUS Funds Management Limited

    • Tenure: 2.3yrs
    • Compensation: AU$200.87k

Company Information

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


Key Information

  • Name: Dexus
  • Ticker: DXS
  • Exchange: ASX
  • Founded: 2004
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: AU$13.195b
  • Shares outstanding: 1.10b
  • Website: https://www.dexus.com

Number of Employees


Location

  • Dexus
  • Australia Square
  • Level 25
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXSASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDOct 2004
DXSP.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDOct 2004
0DPSDB (Deutsche Boerse AG)YesStapled SecuritiesDEEUROct 2004
DXSCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDOct 2004

Biography

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $31.8 billion. We believe that the strength and quality of our relationships  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 10:30
End of Day Share Price2019/12/11 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.