| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 4/6 |
| Dividends | 4/6 |
DLN Stock Overview
Derwent London plc owns 83 buildings in a commercial real estate portfolio predominantly in central London valued at £5.4 billion (including joint ventures) as at 30 June 2020, making it the largest London-focused real estate investment trust (REIT).
Derwent London Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£34.47 |
| 52 Week High | UK£38.50 |
| 52 Week Low | UK£30.62 |
| Beta | 0.54 |
| 1 Month Change | 3.39% |
| 3 Month Change | 0.85% |
| 1 Year Change | 5.48% |
| 3 Year Change | 15.28% |
| 5 Year Change | 39.16% |
| Change since IPO | 1,320.25% |
Recent News & Updates
Shareholder Returns
| DLN | GB REITs | GB Market | |
|---|---|---|---|
| 7D | 1.7% | -1.1% | -0.5% |
| 1Y | 5.5% | 21.7% | 8.7% |
Return vs Industry: DLN underperformed the UK REITs industry which returned 21.7% over the past year.
Return vs Market: DLN underperformed the UK Market which returned 8.7% over the past year.
Price Volatility
| DLN volatility | |
|---|---|
| DLN Average Weekly Movement | 2.0% |
| REITs Industry Average Movement | 2.6% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.5% |
| 10% least volatile stocks in GB Market | 2.4% |
Stable Share Price: DLN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: DLN's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 154 | Paul Williams | https://www.derwentlondon.com |
Derwent London plc owns 83 buildings in a commercial real estate portfolio predominantly in central London valued at £5.4 billion (including joint ventures) as at 30 June 2020, making it the largest London-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt.
Derwent London Fundamentals Summary
| DLN fundamental statistics | |
|---|---|
| Market Cap | UK£3.87b |
| Earnings (TTM) | UK£52.10m |
| Revenue (TTM) | UK£269.80m |
74.2x
P/E Ratio14.3x
P/S RatioIs DLN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DLN income statement (TTM) | |
|---|---|
| Revenue | UK£269.80m |
| Cost of Revenue | UK£69.20m |
| Gross Profit | UK£200.60m |
| Expenses | UK£148.50m |
| Earnings | UK£52.10m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 24, 2022
| Earnings per share (EPS) | 0.46 |
| Gross Margin | 74.35% |
| Net Profit Margin | 19.31% |
| Debt/Equity Ratio | 22.7% |
How did DLN perform over the long term?
See historical performance and comparisonDividends
2.2%
Current Dividend Yield78%
Payout RatioValuation
Is Derwent London undervalued compared to its fair value and its price relative to the market?
74.24x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DLN (£34.47) is trading above our estimate of fair value (£29.37)
Significantly Below Fair Value: DLN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DLN is poor value based on its PE Ratio (74.2x) compared to the UK REITs industry average (13.1x).
PE vs Market: DLN is poor value based on its PE Ratio (74.2x) compared to the UK market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: DLN is poor value based on its PEG Ratio (7.8x)
Price to Book Ratio
PB vs Industry: DLN's PB Ratio (0.9x) is in line with the GB REITs industry average.
Future Growth
How is Derwent London forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
9.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLN's forecast earnings growth (9.5% per year) is above the savings rate (0.9%).
Earnings vs Market: DLN's earnings (9.5% per year) are forecast to grow slower than the UK market (12.1% per year).
High Growth Earnings: DLN's earnings are forecast to grow, but not significantly.
Revenue vs Market: DLN's revenue (5.4% per year) is forecast to grow faster than the UK market (4.8% per year).
High Growth Revenue: DLN's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DLN's Return on Equity is forecast to be low in 3 years time (3.2%).
Past Performance
How has Derwent London performed over the past 5 years?
-22.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLN has a large one-off loss of £67.3M impacting its June 30 2021 financial results.
Growing Profit Margin: DLN's current net profit margins (19.3%) are lower than last year (59.5%).
Past Earnings Growth Analysis
Earnings Trend: DLN's earnings have declined by 22.2% per year over the past 5 years.
Accelerating Growth: DLN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DLN had negative earnings growth (-63.3%) over the past year, making it difficult to compare to the REITs industry average (150.1%).
Return on Equity
High ROE: DLN's Return on Equity (1.2%) is considered low.
Financial Health
How is Derwent London's financial position?
Financial Position Analysis
Short Term Liabilities: DLN's short term assets (£307.8M) exceed its short term liabilities (£136.4M).
Long Term Liabilities: DLN's short term assets (£307.8M) do not cover its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: DLN's net debt to equity ratio (21.3%) is considered satisfactory.
Reducing Debt: DLN's debt to equity ratio has reduced from 25.3% to 22.7% over the past 5 years.
Debt Coverage: DLN's debt is not well covered by operating cash flow (10.7%).
Interest Coverage: DLN's interest payments on its debt are well covered by EBIT (5.4x coverage).
Balance Sheet
Dividend
What is Derwent London current dividend yield, its reliability and sustainability?
2.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLN's dividend (2.19%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: DLN's dividend (2.19%) is low compared to the top 25% of dividend payers in the UK market (4.05%).
Stability and Growth of Payments
Stable Dividend: DLN's dividend payments have been volatile in the past 10 years.
Growing Dividend: DLN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.9%), DLN's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DLN's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Paul Williams (60 yo)
2.67yrs
Tenure
UK£2,130,000
Compensation
Mr. Paul Malcolm Williams has been the Chief Executive Officer of Derwent London Plc since May 17, 2019 and has been its Executive Director since 1998. Mr. Williams served as a Property Director of Derwent...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD2.91M) is about average for companies of similar size in the UK market ($USD2.26M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: DLN's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: DLN's board of directors are considered experienced (6.5 years average tenure).
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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Derwent London Plc's employee growth, exchange listings and data sources
Key Information
- Name: Derwent London Plc
- Ticker: DLN
- Exchange: LSE
- Founded: NaN
- Industry: Office REITs
- Sector: Real Estate
- Implied Market Cap: UK£3.868b
- Shares outstanding: 112.21m
- Website: https://www.derwentlondon.com
Number of Employees
Location
- Derwent London Plc
- 25 Savile Row
- London
- East Lothian
- W1S 2ER
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 18:47 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.