Damac Real Estate Development Ltd Net Income dropped on 18.2% in 2016 and Revenue dropped on 16.2%
14 Feb 2017 • About Damac Real Estate Development Ltd (
$DMC) • By InTwits
Damac Real Estate Development Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Damac Real Estate Development Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 24.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Damac Real Estate Development Ltd ($DMC) key annual financial indicators
| mln. AED | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 692 | 1,224 | 1,018 | 2,324 | 1,948 | -16.2% |
| Gross Profit | 281 | 788 | 607 | 1,380 | 1,088 | -21.1% |
| SG&A | | | 145 | 276 | 234 | -15.3% |
| EBITDA | 228 | 667 | 472 | 1,243 | 1,018 | -18.2% |
| Net Income | 212 | 642 | 881 | 1,229 | 1,006 | -18.2% |
Balance Sheet
|
|---|
| Cash | 119 | 578 | 1,800 | 2,587 | 2,264 | -12.5% |
| Short Term Debt | 75 | 85 | 75 | 279 | 317 | 13.4% |
| Long Term Debt | 29 | 26 | 645 | 746 | 722 | -3.2% |
Cash flow
|
|---|
| Capex | 2 | 5 | 4 | 5 | 3 | -41.2% |
Ratios
|
|---|
| Revenue growth | 3.8% | 76.9% | -16.8% | 128.2% | -16.2% | |
| EBITDA growth | 9.3% | 193.0% | -29.2% | 163.2% | -18.2% | |
| Gross Margin | 40.7% | 64.4% | 59.6% | 59.4% | 55.9% | -3.5% |
| EBITDA Margin | 32.9% | 54.5% | 46.4% | 53.5% | 52.2% | -1.3% |
| Net Income Margin | 30.7% | 52.4% | 86.5% | 52.9% | 51.6% | -1.3% |
| SG&A, % of revenue | | | 14.2% | 11.9% | 12.0% | 0.1% |
| CAPEX, % of revenue | 0.3% | 0.4% | 0.4% | 0.2% | 0.1% | -0.1% |
| ROIC | 163.1% | 127.1% | 31.3% | 41.5% | 24.5% | -17.0% |
| ROE | | 160.6% | 93.3% | 62.9% | 32.9% | -30.0% |
| Net Debt/EBITDA | -0.1x | -0.7x | -2.3x | -1.3x | -1.2x | 0.1x |
Revenue and profitability
Damac Real Estate Development Ltd's Revenue dropped on 16.2% in 2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 53.5% to 52.2% in 2016.
Gross Margin decreased on 3.5 pp from 59.4% to 55.9% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased slightly on 1.3 pp from 52.9% to 51.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
Damac Real Estate Development Ltd's CAPEX/Revenue was 0.14% in 2016. Damac Real Estate Development Ltd showed almost no change in CAPEX/Revenue from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.24%.
Return on investment
The company operates at high and attractive ROIC (24.46%) and ROE (32.92%). ROIC dropped on 17.0 pp from 41.5% to 24.5% in 2016. ROE dropped on 30.0 pp from 62.9% to 32.9% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is 1.0x. Net Debt / EBITDA increased on 0.1x from -1.3x to -1.2x in 2016. Debt increased slightly on 1.4% in 2016 while cash dropped on 12.5% in 2016.
Appendix 1: Peers in Real Estate Investment & Services
Below you can find Damac Real Estate Development Ltd benchmarking vs. other companies in Real Estate Investment & Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Formation Group ($FRM) | | 147.9% | 35.8% | 199.3% | 23.8% |
| Development Securities ($DSC) | | | -20.4% | 156.8% | 18.9% |
| Hagl JSC ($HAG) | 39.5% | -36.9% | 10.2% | 104.7% | |
| Quintain Estates & Development ($QED) | -3.2% | -13.0% | -17.5% | 77.0% | |
| Farglory Land Development Co Ltd ($FLDS) | -23.9% | 63.2% | -29.0% | 52.6% | |
| |
|---|
| Median (18 companies) | 4.4% | 5.1% | 3.4% | 2.0% | 18.9% |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 76.9% | -16.8% | 128.2% | -16.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Arricano Real Estate ($ARO) | | 96.1% | 96.5% | 96.1% | |
| Summit Germany Ltd ($SMTG) | | | | 92.3% | |
| Taliesin Property Fund Ltd ($TPFZ) | 75.2% | 76.6% | 74.9% | 76.3% | |
| Panther Securities ($PNS) | 69.2% | 77.2% | 68.0% | 73.5% | |
| Songbird Estates ($SBD) | 71.5% | 68.3% | 70.7% | 72.5% | |
| |
|---|
| Median (14 companies) | 41.0% | 43.2% | 31.9% | 34.2% | 21.8% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 40.7% | 64.4% | 59.6% | 59.4% | 55.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Quintain Estates & Development ($QED) | -81.5% | -70.4% | 43.6% | 76.3% | |
| Summit Germany Ltd ($SMTG) | 78.3% | 78.7% | 89.3% | 75.5% | |
| Safeland ($SAF) | -1.5% | -1.6% | 7.0% | 65.8% | 28.0% |
| Panther Securities ($PNS) | 44.8% | 56.9% | 50.3% | 52.0% | |
| Songbird Estates ($SBD) | 61.4% | -135.2% | -113.6% | 51.7% | |
| |
|---|
| Median (17 companies) | 28.1% | 17.5% | 14.9% | 20.3% | 12.3% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 32.9% | 54.5% | 46.4% | 53.5% | 52.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Quintain Estates & Development ($QED) | 210.6% | 162.3% | 217.2% | 173.3% | |
| Hagl JSC ($HAG) | 134.2% | 171.2% | 145.6% | 127.1% | |
| HALS-Development JSC ($HALS) | 83.2% | 347.0% | 25.0% | 47.3% | |
| Taliesin Property Fund Ltd ($TPFZ) | 14.1% | 21.3% | 45.2% | 43.7% | |
| Development Securities ($DSC) | | 2.9% | 13.5% | 24.6% | 2.9% |
| |
|---|
| Median (18 companies) | 3.1% | 1.8% | 4.9% | 6.1% | 1.5% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 0.3% | 0.4% | 0.4% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Safeland ($SAF) | -1.3% | -1.1% | 3.7% | 31.2% | 22.5% |
| PIK Group OJSC ($PIK) | 21.2% | 25.6% | 13.5% | 25.3% | |
| Hml Hldgs ($HMLH) | 8.2% | 9.9% | 12.5% | 12.5% | 11.3% |
| Etalon Group Ltd ($ETLN) | 12.1% | 14.4% | 14.3% | 10.2% | |
| Farglory Land Development Co Ltd ($FLDS) | 9.7% | 13.0% | 7.7% | 9.5% | |
| |
|---|
| Median (18 companies) | 4.1% | 2.4% | 3.0% | 4.2% | 5.1% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 163.1% | 127.1% | 31.3% | 41.5% | 24.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Arricano Real Estate ($ARO) | | 11.3x | | 43.0x | |
| Plaza Centers Nv ($PLAZ) | 17.9x | | 41.9x | 25.4x | |
| London & Associated Properties ($LAS) | 40.8x | 11.1x | 13.0x | 20.2x | |
| Hagl JSC ($HAG) | 13.4x | 10.5x | 14.2x | 14.8x | |
| Songbird Estates ($SBD) | 13.1x | | | 12.3x | |
| |
|---|
| Median (14 companies) | 10.6x | 10.6x | 10.2x | 6.1x | 4.0x |
|---|
| Damac Real Estate Development Ltd ($DMC) | -0.1x | -0.7x | -2.3x | -1.3x | -1.2x |
