Dexus (ASX:DXS) - Share price, News & Analysis

DXS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	2/6
Dividends	4/6

DXS Stock Overview

Dexus is one of Australia’s leading real estate groups, proudly managing a high-quality Australian property portfolio valued at $32.1 billion.

Rewards

Trading at 26.7% below our estimate of its fair value

Earnings are forecast to grow 2.75% per year

Earnings grew by 257.4% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Large one-off items impacting financial results

Dexus Competitors

Cromwell Property Group

ASX:CMW

AU$2.0b

Centuria Office REIT

ASX:COF

AU$1.2b

Garda Property Group

ASX:GDF

AU$350.8m

Elanor Commercial Property Fund

ASX:ECF

AU$330.8m

Price History & Performance

Summary of all time highs, changes and price drops for Dexus
Historical stock prices
Current Share Price	AU$10.50
52 Week High	AU$11.50
52 Week Low	AU$9.86
Beta	0.54
1 Month Change	-4.55%
3 Month Change	-1.32%
1 Year Change	1.16%
3 Year Change	-18.48%
5 Year Change	0.095%
Change since IPO	31.58%

Shareholder Returns

	DXS	AU REITs	AU Market
7D	-1.1%	0.1%	-0.4%
1Y	1.2%	0.3%	-1.1%

Return vs Industry: DXS matched the Australian REITs industry which returned 0.3% over the past year.

Return vs Market: DXS exceeded the Australian Market which returned -1.1% over the past year.

Price Volatility

Is DXS's price volatile compared to industry and market?
DXS volatility
DXS Average Weekly Movement	2.6%
REITs Industry Average Movement	3.3%
Market Average Movement	9.3%
10% most volatile stocks in AU Market	16.4%
10% least volatile stocks in AU Market	4.2%

Stable Share Price: DXS is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DXS's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	559	Darren Steinberg	https://www.dexus.com

Dexus is one of Australia’s leading real estate groups, proudly managing a high-quality Australian property portfolio valued at $32.1 billion. We believe that the strength and quality of our relationships will always be central to our success and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $16.5 billion of office and industrial properties.

Dexus Fundamentals Summary

How do Dexus's earnings and revenue compare to its market cap?
DXS fundamental statistics
Market Cap	AU$11.29b
Earnings (TTM)	AU$1.50b
Revenue (TTM)	AU$1.76b

7.5x

P/E Ratio

6.4x

P/S Ratio

Is DXS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DXS income statement (TTM)
Revenue	AU$1.76b
Cost of Revenue	AU$320.50m
Gross Profit	AU$1.44b
Other Expenses	-AU$58.30m
Earnings	AU$1.50b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 16, 2022

Earnings per share (EPS)	1.39
Gross Margin	81.82%
Net Profit Margin	85.12%
Debt/Equity Ratio	43.0%

How did DXS perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

76%

Payout Ratio

New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Dexus forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXS's forecast earnings growth (2.8% per year) is above the savings rate (1.8%).

Earnings vs Market: DXS's earnings (2.8% per year) are forecast to grow slower than the Australian market (6.4% per year).

High Growth Earnings: DXS's earnings are forecast to grow, but not significantly.

Revenue vs Market: DXS's revenue (3% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: DXS's revenue (3% per year) is forecast to grow slower than 20% 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 (6.1%).

Past Performance

How has Dexus performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DXS has a large one-off gain of A$397.6M impacting its December 31 2021 financial results.

Growing Profit Margin: DXS's current net profit margins (85.1%) are higher than last year (31.9%).

Past Earnings Growth Analysis

Earnings Trend: DXS's earnings have declined by 6.8% per year over the past 5 years.

Accelerating Growth: DXS's earnings growth over the past year (257.4%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: DXS earnings growth over the past year (257.4%) exceeded the REITs industry 215.6%.

Return on Equity

High ROE: DXS's Return on Equity (11.5%) is considered low.

Financial Health

How is Dexus's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DXS's short term assets (A$1.1B) exceed its short term liabilities (A$825.0M).

Long Term Liabilities: DXS's short term assets (A$1.1B) do not cover its long term liabilities (A$5.5B).

Debt to Equity History and Analysis

Debt Level: DXS's net debt to equity ratio (42.5%) is considered high.

Reducing Debt: DXS's debt to equity ratio has increased from 41.6% to 43% over the past 5 years.

Debt Coverage: DXS's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: DXS's interest payments on its debt are well covered by EBIT (12.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.93%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DXS's dividend (4.93%) is higher than the bottom 25% of dividend payers in the Australian market (2.6%).

High Dividend: DXS's dividend (4.93%) is low compared to the top 25% of dividend payers in the Australian market (6.23%).

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.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (76%), DXS's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (67.1%), DXS's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

7.4yrs

Average management tenure

CEO

Darren Steinberg

10.17yrs

Tenure

AU$5,205,728

Compensation

Mr. Darren Joseph Steinberg, F.A.C.I.D., serves as Independent Non-Executive Director at VGI Partners Limited since May 12, 2019. He has been the Chief Executive Officer of Dexus Asset Management Limited a...

CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD3.68M) is above average for companies of similar size in the Australian market ($USD2.42M).

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

Leadership Team

Experienced Management: DXS's management team is seasoned and experienced (7.4 years average tenure).

Board Members

Experienced Board: DXS's board of directors are considered experienced (6.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: DXS 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30