LSE:DJAN

Stock Analysis Report

Executive Summary

Daejan Holdings Plc, together with its subsidiaries, engages in the property investment activities in the United Kingdom and the United States.

Rewards

Trading at 10.9% below its fair value

Pays a reliable dividend of 1.96%

Risk Analysis

Earnings have declined by -8.35% per year over past 5 years

Large one-off items impacting financial results

Profit margins (36.2%) are lower than last year



Snowflake Analysis

Good value average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

DJAN

3.1%

GB Real Estate

1.4%

GB Market


1 Year Return

-12.2%

DJAN

35.3%

GB Real Estate

12.4%

GB Market

Return vs Industry: DJAN underperformed the UK Real Estate industry which returned 33.7% over the past year.

Return vs Market: DJAN underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

DJANIndustryMarket
7 Day-0.9%3.1%1.4%
30 Day-6.4%5.0%1.8%
90 Day6.3%14.0%8.8%
1 Year-10.4%-12.2%38.8%35.3%18.3%12.4%
3 Year-13.6%-18.2%18.3%9.6%23.8%8.0%
5 Year2.9%-5.5%32.3%17.6%41.8%8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DJAN (£54.2) is trading below our estimate of fair value (£60.81)

Significantly Below Fair Value: DJAN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DJAN is good value based on its PE Ratio (14.7x) compared to the Real Estate industry average (15x).

PE vs Market: DJAN is good value based on its PE Ratio (14.7x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DJAN is good value based on its PB Ratio (0.5x) compared to the GB Real Estate industry average (1.2x).


Next Steps

Future Growth

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

20.6%

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 Daejan Holdings 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 Daejan Holdings performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DJAN has a large one-off gain of £18.7M impacting its September 30 2019 financial results.

Growing Profit Margin: DJAN's current net profit margins (36.2%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: DJAN's earnings have declined by -8.3% per year over the past 5 years.

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

Earnings vs Industry: DJAN had negative earnings growth (-71%) over the past year, making it difficult to compare to the Real Estate industry average (2.2%).


Return on Equity

High ROE: DJAN's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Daejan Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DJAN's short term assets (£297.8M) exceed its short term liabilities (£110.5M).

Long Term Liabilities: DJAN's short term assets (£297.8M) do not cover its long term liabilities (£786.4M).


Debt to Equity History and Analysis

Debt Level: DJAN's debt to equity ratio (25.4%) is considered satisfactory.

Reducing Debt: DJAN's debt to equity ratio has increased from 24.8% to 25.4% over the past 5 years.

Debt Coverage: DJAN's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: DJAN's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: DJAN has a high level of physical assets or inventory.

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


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Daejan Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.0%marketbottom25%1.8%markettop25%5.0%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DJAN's dividend (1.96%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: DJAN's dividend (1.96%) is low compared to the top 25% of dividend payers in the UK market (4.95%).


Stability and Growth of Payments

Stable Dividend: DJAN's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.8%), DJAN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.5yrs

Average board tenure


CEO

Benzion S. Freshwater (71yo)

43.5yrs

Tenure

UK£1,250,000

Compensation

Mr. Benzion S. E. Freshwater has been the Managing Director of Daejan Holdings PLC since July 1976 and has been its the Chairman since July 1980. Mr. Freshwater has been a Director of Daejan Holdings PLC s ...


CEO Compensation Analysis

Compensation vs Market: Benzion S.'s total compensation ($USD1.63M) is above average for companies of similar size in the UK market ($USD1.13M).

Compensation vs Earnings: Benzion S.'s compensation has been consistent with company performance over the past year.


Board Age and Tenure

9.5yrs

Average Tenure

65yo

Average Age

Experienced Board: DJAN's board of directors are considered experienced (9.5 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

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


Management Team

  • Mark Roy Jenner (68yo)

    Company Secretary

    • Benzion S. Freshwater (71yo)

      Chairman & MD

      • Tenure: 43.5yrs
      • Compensation: UK£1.25m
    • James Southgate

      Chief Financial Officer


      Board Members

      • Solomon Freshwater (68yo)

        Director

        • Tenure: 34yrs
        • Compensation: UK£1.25m
      • Benzion S. Freshwater (71yo)

        Chairman & MD

        • Tenure: 43.5yrs
        • Compensation: UK£1.25m
      • D. Davis (84yo)

        Non-Executive Director

        • Tenure: 48.1yrs
        • Compensation: UK£20.00k
      • Raphael Freshwater (49yo)

        Non-Executive Director

        • Tenure: 9.5yrs
        • Compensation: UK£20.00k
      • Alexander Freshwater (48yo)

        Non-Executive Director

        • Tenure: 9.5yrs
        • Compensation: UK£20.00k
      • Solly Benaim (63yo)

        Independent Director

        • Tenure: 3yrs
        • Compensation: UK£25.00k
      • S. Srulowitz (67yo)

        Independent Director

        • Tenure: 2.5yrs
        • Compensation: UK£20.00k
      • Chaim Freshwater (47yo)

        Non-Executive Director

        • Tenure: 2.5yrs
        • Compensation: UK£20.00k

      Company Information

      Daejan Holdings Plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Daejan Holdings Plc
      • Ticker: DJAN
      • Exchange: LSE
      • Founded: 1935
      • Industry: Real Estate Operating Companies
      • Sector: Real Estate
      • Market Cap: UK£855.506m
      • Shares outstanding: 16.30m
      • Website: https://www.daejanholdings.com

      Number of Employees


      Location

      • Daejan Holdings Plc
      • Freshwater House
      • 158-162, Shaftesbury Avenue
      • London
      • Greater London
      • WC2H 8HR
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      DJANLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
      DJANLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

      Biography

      Daejan Holdings Plc, together with its subsidiaries, engages in the property investment activities in the United Kingdom and the United States. Its property portfolio includes commercial, industrial, and residential properties. The company was incorporated in 1935 and is headquartered in London, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 20:44
      End of Day Share Price2020/01/20 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      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.