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£27.66|
|52 Week High||UK£38.50|
|52 Week Low||UK£27.00|
|1 Month Change||-8.47%|
|3 Month Change||-14.39%|
|1 Year Change||-19.45%|
|3 Year Change||-11.23%|
|5 Year Change||4.22%|
|Change since IPO||1,039.66%|
Recent News & Updates
|DLN||GB REITs||GB Market|
Return vs Industry: DLN underperformed the UK REITs industry which returned -5.7% over the past year.
Return vs Market: DLN underperformed the UK Market which returned -8.6% over the past year.
|DLN Average Weekly Movement||3.6%|
|REITs Industry Average Movement||3.3%|
|Market Average Movement||5.5%|
|10% most volatile stocks in GB Market||10.8%|
|10% least volatile stocks in GB Market||2.8%|
Stable Share Price: DLN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: DLN's weekly volatility (4%) has been stable over the past year.
About the Company
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|
Is DLN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DLN income statement (TTM)|
|Cost of Revenue||UK£52.80m|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 11, 2022
|Earnings per share (EPS)||2.25|
|Net Profit Margin||111.05%|
How did DLN perform over the long term?See historical performance and comparison
2.8%Current Dividend Yield
Is DLN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DLN?
Other financial metrics that can be useful for relative valuation.
|What is DLN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does DLN's PE Ratio compare to its peers?
|DLN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: DLN is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (14.4x).
Price to Earnings Ratio vs Industry
How does DLN's PE Ratio compare vs other companies in the U.K. REITs Industry?
Price-To-Earnings vs Industry: DLN is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the UK REITs industry average (7.7x)
Price to Earnings Ratio vs Fair Ratio
What is DLN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||12.3x|
|Fair PE Ratio||17.2x|
Price-To-Earnings vs Fair Ratio: DLN is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.2x).
Share Price vs Fair Value
What is the Fair Price of DLN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DLN (£27.66) is trading below our estimate of fair value (£37.13)
Significantly Below Fair Value: DLN is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: DLN is poor value based on its PEG Ratio (3.2x)
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How is Derwent London forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLN's forecast earnings growth (3.8% per year) is above the savings rate (0.9%).
Earnings vs Market: DLN's earnings (3.8% per year) are forecast to grow slower than the UK market (11% per year).
High Growth Earnings: DLN's earnings are forecast to grow, but not significantly.
Revenue vs Market: DLN's revenue (3.5% per year) is forecast to grow slower than the UK market (4.1% per year).
High Growth Revenue: DLN's revenue (3.5% 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 (2.9%).
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How has Derwent London performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLN has a large one-off gain of £146.0M impacting its December 31 2021 financial results.
Growing Profit Margin: DLN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: DLN's earnings have declined by 11% per year over the past 5 years.
Accelerating Growth: DLN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: DLN has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (129.6%).
Return on Equity
High ROE: DLN's Return on Equity (5.7%) is considered low.
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How is Derwent London's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: DLN's short term assets (£265.6M) exceed its short term liabilities (£193.0M).
Long Term Liabilities: DLN's short term assets (£265.6M) do not cover its long term liabilities (£1.3B).
Debt to Equity History and Analysis
Debt Level: DLN's net debt to equity ratio (26.6%) is considered satisfactory.
Reducing Debt: DLN's debt to equity ratio has increased from 22.9% to 28.1% over the past 5 years.
Debt Coverage: DLN's debt is not well covered by operating cash flow (10.1%).
Interest Coverage: DLN's interest payments on its debt are well covered by EBIT (4.9x coverage).
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What is Derwent London current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLN's dividend (2.77%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).
High Dividend: DLN's dividend (2.77%) is low compared to the top 25% of dividend payers in the UK market (5.18%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (67.1%), DLN's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (68.3%), DLN's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Paul Williams (60 yo)
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 ($USD1.55M) is below average for companies of similar size in the UK market ($USD3.04M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Experienced Management: DLN's management team is considered experienced (2.8 years average tenure).
Experienced Board: DLN's board of directors are considered experienced (6.8 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Derwent London Plc's employee growth, exchange listings and data sources
- Name: Derwent London Plc
- Ticker: DLN
- Exchange: LSE
- Founded: NaN
- Industry: Office REITs
- Sector: Real Estate
- Implied Market Cap: UK£3.106b
- Shares outstanding: 112.27m
- Website: https://www.derwentlondon.com
Number of Employees
- Derwent London Plc
- 25 Savile Row
- East Lothian
- W1S 2ER
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/26 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.