SGX:C09

Stock Analysis Report

Executive Summary

City Developments Limited (CDL) is a leading global real estate operating company with a network spanning 103 locations in 29 countries and regions.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: C09 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

C09

-1.0%

SG Real Estate

-0.3%

SG Market


1 Year Return

20.9%

C09

-0.2%

SG Real Estate

2.1%

SG Market

Return vs Industry: C09 exceeded the SG Real Estate industry which returned 1.1% over the past year.

Return vs Market: C09 exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

C09IndustryMarket
7 Day-4.2%-1.0%-0.3%
30 Day-0.4%1.6%1.4%
90 Day1.7%3.7%2.8%
1 Year23.6%20.9%2.9%-0.2%6.3%2.1%
3 Year25.7%19.1%5.7%-2.7%14.9%2.6%
5 Year16.8%6.8%-2.9%-15.3%11.1%-7.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: C09 (SGD11.2) is trading above our estimate of fair value (SGD2.86)

Significantly Below Fair Value: C09 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: C09 is poor value based on its PE Ratio (18.7x) compared to the Real Estate industry average (10.3x).

PE vs Market: C09 is poor value based on its PE Ratio (18.7x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: C09 is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: C09 is overvalued based on its PB Ratio (1x) compared to the SG Real Estate industry average (0.5x).

Future Growth

How is City Developments forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C09's forecast earnings growth (5.6% per year) is above the savings rate (1.8%).

Earnings vs Market: C09's earnings (6% per year) are forecast to grow faster than the SG market (5.9% per year).

High Growth Earnings: C09's earnings are forecast to grow, but not significantly.

Revenue vs Market: C09's revenue (11% per year) is forecast to grow faster than the SG market (5.6% per year).

High Growth Revenue: C09's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C09's Return on Equity is forecast to be low in 3 years time (7.1%).

Past Performance

How has City Developments performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C09 has high quality earnings.

Growing Profit Margin: C09's current net profit margins (16.6%) are higher than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: C09's earnings have declined by -6.2% per year over the past 5 years.

Accelerating Growth: C09's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C09 had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Real Estate industry average (-7.2%).


Return on Equity

High ROE: C09's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is City Developments's financial position?


Financial Position Analysis

Short Term Liabilities: C09's short term assets (SGD9.9B) exceed its short term liabilities (SGD3.4B).

Long Term Liabilities: C09's short term assets (SGD9.9B) exceed its long term liabilities (SGD7.1B).


Debt to Equity History and Analysis

Debt Level: C09's debt to equity ratio (65.9%) is considered high.

Reducing Debt: C09's debt to equity ratio has reduced from 68.1% to 65.9% over the past 5 years.

Debt Coverage: C09's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: C09's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet

Inventory Level: C09 has a high level of physical assets or inventory.

Debt Coverage by Assets: C09's debt is covered by short term assets (assets are 1.2x debt).

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.4%markettop25%5.5%industryaverage3.1%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: C09's dividend (1.79%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: C09's dividend (1.79%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: C09's dividend payments have been volatile in the past 10 years.

Growing Dividend: C09's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.4%), C09's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C09's dividends in 3 years are forecast to be well covered by earnings (29.3% payout ratio).

Management

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

3.8yrs

Average management tenure


CEO

Sherman Kwek (44yo)

2yrs

Tenure

S$2,258,000

Compensation

Mr. Eik Tse Kwek, also known as Sherman, has been Group Chief Executive Officer of City Developments Limited (“CDL”) since January 1, 2018. Mr. Kwek serves as Executive Director of City Developments Limit ...


CEO Compensation Analysis

Compensation vs Market: Sherman's total compensation ($USD1.68M) is below average for companies of similar size in the SG market ($USD4.09M).

Compensation vs Earnings: Insufficient data to compare Sherman's compensation with company performance.


Management Age and Tenure

3.8yrs

Average Tenure

48yo

Average Age

Experienced Management: C09's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: C09's board of directors are considered experienced (6.8 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

  • Leng Beng Kwek (78yo)

    Executive Chairman of the Board

    • Tenure: 25yrs
    • Compensation: S$8.87m
  • Frank Khoo (50yo)

    Group Chief Investment Officer

    • Tenure: 1.9yrs
  • Mark Yip

    Chief Marketing Officer

    • Tenure: 5.6yrs
  • Sherman Kwek (44yo)

    Group CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: S$2.26m
  • Ivan Ng

    Chief Technology Officer

    • Tenure: 4yrs
  • Sharifah Shah

    Head of Legal Department

    • Yim Ming Yiong (46yo)

      Group Chief Financial Officer

      • Tenure: 4yrs
    • Belinda Lee

      VP, Head of Corporate Communication & Investor Relations

      • Cindy Tan

        Head of Administration Department

        • Steven Tan

          Chief Human Resource Officer

          • Tenure: 3.5yrs

        Board Members

        • Leng Beng Kwek (78yo)

          Executive Chairman of the Board

          • Tenure: 25yrs
          • Compensation: S$8.87m
        • Leng Peck Kwek (63yo)

          Non-Executive Director

          • Tenure: 32.4yrs
          • Compensation: S$198.00k
        • Philip Yeo (73yo)

          Independent Non-Executive Director

          • Tenure: 10.7yrs
          • Compensation: S$132.00k
        • Poay Tan (53yo)

          Independent Non-Executive Director

          • Tenure: 7.9yrs
          • Compensation: S$95.00k
        • Sherman Kwek (44yo)

          Group CEO & Executive Director

          • Tenure: 2yrs
          • Compensation: S$2.26m
        • Jenny Lim (66yo)

          Lead Independent Director

          • Tenure: 1.6yrs
          • Compensation: S$121.00k
        • Yee Tan (45yo)

          Independent Non-Executive Director

          • Tenure: 5.7yrs
          • Compensation: S$179.00k
        • Alan Koh (68yo)

          Independent Non-Executive Director

          • Tenure: 3.3yrs
          • Compensation: S$175.00k

        Company Information

        City Developments Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: City Developments Limited
        • Ticker: C09
        • Exchange: SGX
        • Founded: 1963
        • Industry: Diversified Real Estate Activities
        • Sector: Real Estate
        • Market Cap: S$10.112b
        • Shares outstanding: 906.90m
        • Website: https://www.cdl.com.sg

        Number of Employees


        Location

        • City Developments Limited
        • 9 Raffles Place
        • Suite 12-01 Republic Plaza
        • Singapore
        • 48619
        • Singapore

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        CDEV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
        C09SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
        CDEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
        CDEV.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 1995

        Biography

        City Developments Limited (CDL) is a leading global real estate operating company with a network spanning 103 locations in 29 countries and regions. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls. With a proven track record of over 55 years in real estate development, investment and management, CDL has developed over 43,000 homes and owns over 18 million square feet of lettable floor area globally. Its diversified global land bank offers 4.1 million square feet of developable gross floor area. The Group’s London-listed subsidiary, Millennium & Copthorne Hotels plc (M&C), is one of the world’s largest hotel chains, with over 135 hotels worldwide, many in key gateway cities. Leveraging its deep expertise in developing and managing a diversified asset base, the Group is focused on enhancing the performance of its portfolio and strengthening its recurring income streams to deliver long-term sustainable value to shareholders. The Group is also developing a fund management business and targets to achieve US$5 billion in Assets Under Management (AUM) by 2023. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 12:34
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.