Damac Real Estate Development Ltd EBITDA surged on 163% in 2015 and Revenue jumped on 128%
11 Feb 2016 • About Damac Real Estate Development Ltd (
$DMC) • By InTwits
Damac Real Estate Development Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Damac Real Estate Development Ltd is a fast growth stock: 2015 revenue growth was 128%, 5 year revenue CAGR was 81.5% at 2015 ROIC 41.5%
- Damac Real Estate Development Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 41.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Damac Real Estate Development Ltd ($DMC) key annual financial indicators
| mln. AED | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 667 | 692 | 1,224 | 1,018 | 2,324 | 128.2% |
| Gross Profit | 250 | 281 | 788 | 607 | 1,380 | 127.3% |
| SG&A | | | | 145 | 276 | 90.4% |
| EBITDA | 208 | 228 | 667 | 472 | 1,243 | 163.2% |
| Net Income | 150 | 212 | 642 | 881 | 1,229 | 39.6% |
Balance Sheet
|
|---|
| Cash | 94 | 119 | 578 | 1,800 | 2,587 | 43.7% |
| Short Term Debt | 21 | 75 | 85 | 75 | 279 | 270.4% |
| Long Term Debt | 83 | 29 | 26 | 645 | 746 | 15.7% |
Cash flow
|
|---|
| Capex | 1 | 2 | 5 | 4 | 5 | 16.7% |
Ratios
|
|---|
| Revenue growth | 465.2% | 3.8% | 76.9% | -16.8% | 128.2% | |
| EBITDA growth | -5,886.1% | 9.3% | 193.0% | -29.2% | 163.2% | |
| Gross Margin | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% | -0.2% |
| EBITDA Margin | 31.2% | 32.9% | 54.5% | 46.4% | 53.5% | 7.1% |
| Net Income Margin | 22.5% | 30.7% | 52.4% | 86.5% | 52.9% | -33.6% |
| SG&A, % of revenue | | | | 14.2% | 11.9% | -2.4% |
| CAPEX, % of revenue | 0.1% | 0.3% | 0.4% | 0.4% | 0.2% | -0.2% |
| ROIC | | 163.1% | 127.1% | 31.3% | 41.5% | 10.2% |
| ROE | | | 160.6% | 93.3% | 62.9% | -30.3% |
| Net Debt/EBITDA | 0.1x | -0.1x | -0.7x | -2.3x | -1.3x | 1.0x |
Revenue and profitability
The company's Revenue jumped on 128% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.8 pp from 12.9% to 6.1% in FY2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased on 2.4 pp from 14.2% to 11.9% in 2015.
Net Income marign dropped on 33.6 pp from 86.5% to 52.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.20%. Damac Real Estate Development Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.33%.
Return on investment
The company operates at high and attractive ROIC (41.48%) and ROE (62.94%). ROIC jumped on 10.2 pp from 31.3% to 41.5% in 2015. ROE dropped on 30.3 pp from 93.3% to 62.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 0.8x. Net Debt / EBITDA jumped on 1.0x from -2.3x to -1.3x in 2015. Debt jumped on 42.4% in 2015 while cash surged on 43.7% in 2015.
Appendix 1: Peers in Real Estate Investment & Services
Below we provide Damac Real Estate Development Ltd benchmarking against other companies in Real Estate Investment & Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaza Centers Nv ($PLAZ) | -37.7% | 28.0% | -10.0% | 131.0% | |
| Formation Group ($FRM) | | -60.8% | 147.9% | 35.8% | 199.3% |
| Etalon Group Ltd ($ETLN) | 11.9% | 18.3% | 48.4% | 29.0% | |
| Safeland ($SAF) | | 38.2% | -40.1% | 21.2% | -1.5% |
| Hml Hldgs ($HMLH) | | 12.9% | 20.8% | 15.3% | 16.7% |
| |
|---|
| Median (16 companies) | 1.6% | 4.4% | 13.0% | 3.4% | 7.6% |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 3.8% | 76.9% | -16.8% | 128.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arricano Real Estate ($ARO) | | | 96.1% | 96.5% | |
| Taliesin Property Fund Ltd ($TPFZ) | | 75.2% | 76.6% | 74.9% | 76.3% |
| Songbird Estates ($SBD) | 69.2% | 71.5% | 68.3% | 70.7% | |
| Panther Securities ($PNS) | 65.3% | 69.2% | 77.2% | 68.0% | |
| Hagl JSC ($HAG) | 45.2% | 27.3% | 43.2% | 40.2% | |
| |
|---|
| Median (12 companies) | 43.1% | 40.8% | 41.2% | 34.6% | 26.9% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Summit Germany Ltd ($SMTG) | 77.8% | 78.3% | 78.7% | 89.3% | |
| Panther Securities ($PNS) | 39.9% | 44.8% | 56.9% | 50.3% | |
| Quintain Estates & Development ($QED) | -101.5% | -81.5% | -70.4% | 43.6% | 76.3% |
| Hagl JSC ($HAG) | 37.0% | 23.1% | 40.5% | 39.6% | |
| Farglory Land Development Co Ltd ($FLDS) | 33.7% | 33.5% | 31.8% | 30.2% | |
| |
|---|
| Median (15 companies) | 31.4% | 23.4% | 20.9% | 11.8% | 10.0% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 31.2% | 32.9% | 54.5% | 46.4% | 53.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | 136.2% | 210.6% | 162.3% | 217.2% | 173.3% |
| Hagl JSC ($HAG) | 152.8% | 134.2% | 171.2% | 145.6% | |
| Taliesin Property Fund Ltd ($TPFZ) | | 14.1% | 21.3% | 45.2% | 43.7% |
| Raven Russia Ltd ($RUS) | | 19.8% | 27.5% | 41.0% | 9.1% |
| Panther Securities ($PNS) | 176.0% | 87.9% | 42.6% | 26.0% | |
| |
|---|
| Median (16 companies) | 1.9% | 2.9% | 1.2% | 1.8% | 14.3% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 0.1% | 0.3% | 0.4% | 0.4% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Etalon Group Ltd ($ETLN) | 20.1% | 12.1% | 14.4% | 14.3% | |
| PIK Group OJSC ($PIK) | 25.6% | 21.2% | 25.6% | 13.5% | |
| Hml Hldgs ($HMLH) | 5.6% | 8.2% | 9.9% | 12.5% | 12.5% |
| Farglory Land Development Co Ltd ($FLDS) | 16.0% | 9.7% | 13.0% | 7.7% | |
| Summit Germany Ltd ($SMTG) | 5.8% | 6.9% | 5.6% | 7.1% | |
| |
|---|
| Median (16 companies) | 4.6% | 3.6% | 3.0% | 2.3% | 1.8% |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 163.1% | 127.1% | 31.3% | 41.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Raven Russia Ltd ($RUS) | | 6.4x | 4.1x | 75.5x | |
| Plaza Centers Nv ($PLAZ) | | 17.9x | | 41.9x | |
| Quintain Estates & Development ($QED) | | | | 15.3x | 4.5x |
| Hagl JSC ($HAG) | 7.5x | 13.4x | 10.5x | 14.2x | |
| London & Associated Properties ($LAS) | 10.8x | 40.8x | 11.1x | 13.0x | |
| |
|---|
| Median (12 companies) | 7.9x | 8.2x | 7.3x | 11.0x | 1.2x |
|---|
| Damac Real Estate Development Ltd ($DMC) | 0.1x | -0.1x | -0.7x | -2.3x | -1.3x |
