OTCPK:CDEV.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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: CDEV.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.6%

CDEV.F

14.7%

US Real Estate

3.8%

US Market


1 Year Return

1.3%

CDEV.F

-7.5%

US Real Estate

9.7%

US Market

Return vs Industry: CDEV.F exceeded the US Real Estate industry which returned -10.5% over the past year.

Return vs Market: CDEV.F underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CDEV.FIndustryMarket
7 Day12.6%14.7%3.8%
30 Day14.1%26.7%11.4%
90 Dayn/a-13.3%6.8%
1 Year1.3%1.3%-6.9%-7.5%12.1%9.7%
3 Year-18.0%-18.0%-6.5%-8.6%36.2%27.2%
5 Year-20.2%-20.2%-13.8%-16.5%63.7%45.4%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDEV.F ($6.07) is trading below our estimate of fair value ($30.03)

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


Price To Earnings Ratio

PE vs Industry: CDEV.F is good value based on its PE Ratio (14.5x) compared to the Real Estate industry average (16.1x).

PE vs Market: CDEV.F is good value based on its PE Ratio (14.5x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CDEV.F is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CDEV.F is good value based on its PB Ratio (0.8x) compared to the US Real Estate industry average (1.1x).

Future Growth

How is City Developments forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDEV.F's forecast earnings growth (5.6% per year) is above the savings rate (2.2%).

Earnings vs Market: CDEV.F's earnings (5.6% per year) are forecast to grow slower than the US market (22.3% per year).

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

Revenue vs Market: CDEV.F's revenue (5.4% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: CDEV.F'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: CDEV.F's Return on Equity is forecast to be low in 3 years time (5.8%).

Past Performance

How has City Developments performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDEV.F has high quality earnings.

Growing Profit Margin: CDEV.F's current net profit margins (16.1%) are higher than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: CDEV.F's earnings have declined by -7.5% per year over the past 5 years.

Accelerating Growth: CDEV.F's earnings growth over the past year (1.3%) exceeds its 5-year average (-7.5% per year).

Earnings vs Industry: CDEV.F earnings growth over the past year (1.3%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: CDEV.F's Return on Equity (5.4%) is considered low.

Financial Health

How is City Developments's financial position?


Financial Position Analysis

Short Term Liabilities: CDEV.F's short term assets (SGD9.8B) exceed its short term liabilities (SGD3.8B).

Long Term Liabilities: CDEV.F's short term assets (SGD9.8B) exceed its long term liabilities (SGD8.2B).


Debt to Equity History and Analysis

Debt Level: CDEV.F's debt to equity ratio (88.2%) is considered high.

Reducing Debt: CDEV.F's debt to equity ratio has increased from 63.4% to 88.2% over the past 5 years.

Debt Coverage: CDEV.F's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: CDEV.F's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Dividend

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

2.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CDEV.F's dividend (2.27%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: CDEV.F's dividend (2.27%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.2%), CDEV.F's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CDEV.F's dividends in 3 years are forecast to be well covered by earnings (27.9% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Sherman Kwek (44yo)

2.42yrs

Tenure

S$2,835,000

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 ($USD2.03M) is below average for companies of similar size in the US market ($USD7.17M).

Compensation vs Earnings: Sherman's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Leng Beng Kwek
Executive Chairman of the Board25.42yrsS$8.88m0.044% SGD2.5m
Eik Tse Kwek
Group CEO & Executive Director2.42yrsS$2.84mno data
Yim Ming Yiong
Group Chief Financial Officer4.42yrsno datano data
Shao-Hong Khoo
Group Chief Investment Officer2.33yrsno datano data
Ong Siew Toh
Senior Vice President of Group Accountsno datano datano data
Ivan Ng
Chief Technology Officer4.42yrsno datano data
Cindy Tan
Head of Administration Departmentno datano datano data
Belinda Lee
VP, Head of IR & Corporate Communicationsno datano datano data
Sharifah Shah
Senior Vice President of Legalno datano datano data
Yuon Meng Yip
Chief Marketing Officer6yrsno datano data

4.4yrs

Average Tenure

48yo

Average Age

Experienced Management: CDEV.F's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leng Beng Kwek
Executive Chairman of the Board25.42yrsS$8.88m0.044% SGD2.5m
Eik Tse Kwek
Group CEO & Executive Director2.42yrsS$2.84mno data
Leng Peck Kwek
Non-Executive Director32.83yrsS$190.00k0.0048% SGD274.7k
Liat Kok Yeo
Independent Non-Executive Director11.08yrsS$172.00kno data
Poay Tan
Independent Non-Executive Director8.33yrsS$115.00kno data
Yin Nee Lim
Lead Independent Director2yrsS$299.00kno data
Yee Peng Tan
Independent Non-Executive Director6.08yrsS$248.00kno data
Thiam Hock Koh
Independent Non-Executive Director3.75yrsS$235.00kno data

7.2yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CDEV.F's board of directors are considered experienced (7.2 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

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


Key Information

  • Name: City Developments Limited
  • Ticker: CDEV.F
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: S$7.990b
  • Listing Market Cap: S$5.712b
  • 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-based hotel arm, Millennium & Copthorne Hotels (M&C), is one of the world’s largest hotel chains, with over 145 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 Analysis2020/06/05 03:55
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.