OTCPK:DWHH.F

Stock Analysis Report

Executive Summary

Deutsche Wohnen SE, a residential property company, develops and manages residential properties in Germany and Europe.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Deutsche Wohnen's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

10.1%

DWHH.F

19.0%

US Real Estate

7.2%

US Market


1 Year Return

-24.0%

DWHH.F

-30.9%

US Real Estate

-10.4%

US Market

Return vs Industry: DWHH.F exceeded the US Real Estate industry which returned -30.9% over the past year.

Return vs Market: DWHH.F underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

DWHH.FIndustryMarket
7 Day10.1%19.0%7.2%
30 Day-6.7%-30.3%-12.6%
90 Day-7.4%-37.8%-19.4%
1 Year-24.0%-24.0%-30.3%-30.9%-8.5%-10.4%
3 Year13.0%13.0%-15.3%-17.4%15.8%8.3%
5 Year38.9%38.9%-31.1%-33.2%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Deutsche Wohnen undervalued compared to its fair value and its price relative to the market?

8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DWHH.F ($37.86) is trading above our estimate of fair value ($15.17)

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


Price To Earnings Ratio

PE vs Industry: DWHH.F is good value based on its PE Ratio (8x) compared to the Real Estate industry average (15.8x).

PE vs Market: DWHH.F is good value based on its PE Ratio (8x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: DWHH.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DWHH.F is good value based on its PB Ratio (1x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is Deutsche Wohnen forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DWHH.F's earnings are forecast to decline over the next 3 years (-40.6% per year).

Earnings vs Market: DWHH.F's earnings are forecast to decline over the next 3 years (-40.6% per year).

High Growth Earnings: DWHH.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DWHH.F's revenue is expected to decline over the next 3 years (-43.8% per year).

High Growth Revenue: DWHH.F's revenue is forecast to decline over the next 3 years (-43.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DWHH.F's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Deutsche Wohnen performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DWHH.F has a large one-off gain of €1.4B impacting its December 31 2019 financial results.

Growing Profit Margin: DWHH.F's current net profit margins (68.4%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: DWHH.F's earnings have grown by 11.8% per year over the past 5 years.

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

Earnings vs Industry: DWHH.F had negative earnings growth (-16.6%) over the past year, making it difficult to compare to the Real Estate industry average (10.6%).


Return on Equity

High ROE: DWHH.F's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Deutsche Wohnen's financial position?


Financial Position Analysis

Short Term Liabilities: DWHH.F's short term assets (€1.9B) exceed its short term liabilities (€1.2B).

Long Term Liabilities: DWHH.F's short term assets (€1.9B) do not cover its long term liabilities (€13.6B).


Debt to Equity History and Analysis

Debt Level: DWHH.F's debt to equity ratio (76.9%) is considered high.

Reducing Debt: DWHH.F's debt to equity ratio has reduced from 116.2% to 76.9% over the past 5 years.

Debt Coverage: DWHH.F's debt is not well covered by operating cash flow (4.5%).

Interest Coverage: DWHH.F's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

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

Debt Coverage by Assets: DWHH.F's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Deutsche Wohnen's current dividend yield, its reliability and sustainability?

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DWHH.F's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: DWHH.F's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DWHH.F has been paying a dividend for less than 10 years.

Growing Dividend: DWHH.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), DWHH.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DWHH.F's dividends in 3 years are forecast to be covered by earnings (63.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Michael Zahn (56yo)

11.25s

Tenure

€2,309,000

Compensation

Mr. Michael Zahn is Chairman of the Management Board at Deutsche Wohnen SE. In December 2008, Mr. Zahn was appointed as the Chief Executive Officer of Deutsche Wohnen SE. graduated as an Economist from the ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD2.55M) is below average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Zahn
Chief Executive Officer11.25yrs€2.31m0.015% 2.0m
Philip Grosse
CFO & Member of the Management Board3.42yrs€1.12m0.0044% 592.2k
Lars Urbansky
COO & Member of the Executive Board1.17yrs€677.93kno data
Henrik Thomsen
Chief Development Officer & Member of Management Board0.17yr€620.00kno data
Sebastian Jacob
Head of Investor Relationsno datano datano data
Marcus Eilers
Managing Director of Corporate Development & Strategyno datano datano data
Jens Koglin
Managing Director of Human Resourcesno datano datano data
Andy Herrmann
Managing Director of Financingno datano datano data

2.3yrs

Average Tenure

52yo

Average Age

Experienced Management: DWHH.F's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andreas Kretschmer
Supervisory Board Deputy Chairman13.58yrs€127.50k0.00089% 118.7k
Matthias Hünlein
Chairman of the Supervisory Board1.67yrs€255.00kno data
Arwed Fischer
Member of Supervisory board0.67yr€43.75kno data
Jürgen Fenk
Supervisory Board Member2.42yrs€95.00kno data
Florian Stetter
Member of Supervisory Board14yrs€105.00kno data
Tina Kleingarn
Member of the Supervisory Board1.67yrs€77.92kno data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: DWHH.F's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

Deutsche Wohnen SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deutsche Wohnen SE
  • Ticker: DWHH.F
  • Exchange: OTCPK
  • Founded: 1924
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: €12.090b
  • Listing Market Cap: €13.339b
  • Shares outstanding: 353.00m
  • Website: https://www.deutsche-wohnen.com

Number of Employees


Location

  • Deutsche Wohnen SE
  • Mecklenburgische Strasse 57
  • Berlin
  • Berlin
  • 14197
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DWNIDB (Deutsche Boerse AG)YesBearer SharesDEEURJul 2006
DWNIXTRA (XETRA Trading Platform)YesBearer SharesDEEURJul 2006
DWHH.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJul 2006
0OBQLSE (London Stock Exchange)YesBearer SharesGBEURJul 2006
DWNIDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJul 2006
DWNISWX (SIX Swiss Exchange)YesBearer SharesCHCHFJul 2006
DWNIWBAG (Wiener Boerse AG)YesBearer SharesATEURJul 2006
DWNIETLX (Eurotlx)YesBearer SharesITEURJul 2006
DTCW.YOTCPK (Pink Sheets LLC)UNSPON ADR EACH REP 0.5 ORD SHSUSUSDFeb 2017
DWNPDB (Deutsche Boerse AG)UNSPON ADR EACH REP 0.5 ORD SHSDEEURFeb 2017
DWNGDB (Deutsche Boerse AG)NPVDEEURDec 2019

Biography

Deutsche Wohnen SE, a residential property company, develops and manages residential properties in Germany and Europe. The company operates through three segments: Residential Property Management, Disposals, and Nursing and Assisted Living. Its property portfolio consists of approximately 167,000 residential and commercial units; nursing properties with approximately 12,100 beds; and apartments for assisted living. The company manages and markets nursing and residential care homes, as well as provides services for the care of the senior citizens. Deutsche Wohnen SE was founded in 1924 and is headquartered in Berlin, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:21
End of Day Share Price2020/03/30 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.