Douglas Emmett (NYSE:DEI) - Share price, News & Analysis

DEI fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	5/6
Financial Health	2/6
Dividends	5/6

DEI Stock Overview

Rewards

Trading at 54.2% below our estimate of its fair value

Earnings are forecast to grow 25.25% per year

Earnings grew by 129.2% over the past year

Pays a reliable dividend of 4.04%

Risk Analysis

Interest payments are not well covered by earnings

Douglas Emmett Competitors

Boston Properties

NYSE:BXP

US$18.5b

Vornado Realty Trust

NYSE:VNO

US$6.9b

SL Green Realty

NYSE:SLG

US$4.0b

JBG SMITH Properties

NYSE:JBGS

US$3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Douglas Emmett
Historical stock prices
Current Share Price	US$27.75
52 Week High	US$36.97
52 Week Low	US$26.78
Beta	0.85
1 Month Change	-11.14%
3 Month Change	-12.65%
1 Year Change	-21.08%
3 Year Change	-32.30%
5 Year Change	-26.99%
Change since IPO	17.34%

Shareholder Returns

	DEI	US REITs	US Market
7D	0.8%	-0.4%	-0.5%
1Y	-21.1%	-2.1%	-12.3%

Return vs Industry: DEI underperformed the US REITs industry which returned -2% over the past year.

Return vs Market: DEI underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is DEI's price volatile compared to industry and market?
DEI volatility
DEI Average Weekly Movement	3.9%
REITs Industry Average Movement	4.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: DEI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DEI's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1971	700	Jordan Kaplan	https://www.douglasemmett.com

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

Douglas Emmett Fundamentals Summary

How do Douglas Emmett's earnings and revenue compare to its market cap?
DEI fundamental statistics
Market Cap	US$5.72b
Earnings (TTM)	US$78.30m
Revenue (TTM)	US$937.21m

62.3x

P/E Ratio

5.2x

P/S Ratio

Is DEI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DEI income statement (TTM)
Revenue	US$937.21m
Cost of Revenue	US$309.46m
Gross Profit	US$627.75m
Other Expenses	US$549.45m
Earnings	US$78.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.45
Gross Margin	66.98%
Net Profit Margin	8.36%
Debt/Equity Ratio	121.7%

How did DEI perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

49%

Payout Ratio

Valuation

Is Douglas Emmett undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DEI ($27.75) is trading below our estimate of fair value ($60.57)

Significantly Below Fair Value: DEI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: DEI is poor value based on its PE Ratio (62.3x) compared to the US REITs industry average (33.5x).

PE vs Market: DEI is poor value based on its PE Ratio (62.3x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: DEI is poor value based on its PEG Ratio (2.5x)

Price to Book Ratio

PB vs Industry: DEI is overvalued based on its PB Ratio (1.9x) compared to the US REITs industry average (1.7x).

Future Growth

How is Douglas Emmett forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

25.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEI's forecast earnings growth (25.3% per year) is above the savings rate (1.9%).

Earnings vs Market: DEI's earnings (25.3% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DEI's revenue (5.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: DEI's revenue (5.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DEI's Return on Equity is forecast to be low in 3 years time (6.5%).

Past Performance

How has Douglas Emmett performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DEI has high quality earnings.

Growing Profit Margin: DEI's current net profit margins (8.4%) are higher than last year (4%).

Past Earnings Growth Analysis

Earnings Trend: DEI's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: DEI's earnings growth over the past year (129.2%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: DEI earnings growth over the past year (129.2%) exceeded the REITs industry 69.5%.

Return on Equity

High ROE: DEI's Return on Equity (1.8%) is considered low.

Financial Health

How is Douglas Emmett'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: DEI's short term assets ($601.3M) exceed its short term liabilities ($224.2M).

Long Term Liabilities: DEI's short term assets ($601.3M) do not cover its long term liabilities ($5.1B).

Debt to Equity History and Analysis

Debt Level: DEI's net debt to equity ratio (110.5%) is considered high.

Reducing Debt: DEI's debt to equity ratio has reduced from 148.6% to 121.7% over the past 5 years.

Debt Coverage: DEI's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: DEI's interest payments on its debt are not well covered by EBIT (1.5x coverage).

Balance Sheet

Dividend

What is Douglas Emmett current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

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

4.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DEI's dividend (4.04%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: DEI's dividend (4.04%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.5%), DEI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (50.1%), DEI'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?

15.6yrs

Average management tenure

CEO

Jordan Kaplan (60 yo)

17.33yrs

Tenure

US$9,071,244

Compensation

Mr. Jordan L. Kaplan serves as the Chief Executive Officer, President and a Member of the Board at Douglas Emmett Inc. since 2005. Mr. Kaplan joined Douglas Emmett and Company in 1986. He co-founded Dougla...

CEO Compensation Analysis

Compensation vs Market: Jordan's total compensation ($USD9.07M) is about average for companies of similar size in the US market ($USD8.23M).

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

Leadership Team

Experienced Management: DEI's management team is seasoned and experienced (15.6 years average tenure).

Board Members

Experienced Board: DEI's board of directors are considered experienced (8.5 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.

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	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31