Damac Real Estate Development Ltd Net Income dropped on 103%
11 Feb 2020 • About Damac Real Estate Development Ltd (
$DMC) • By InTwits
Damac Real Estate Development Ltd reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: in FY2019 vs. 20.8% in FY2018 vs. 53.5% in FY2015
- It operates with high leverage: Net Debt/EBITDA is 5.6x while industry average is 4.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Damac Real Estate Development Ltd's Revenue dropped on 28.3%.
Net Income margin dropped on 19.6 pp from 18.8% to -0.84% in FY2019. Net Income margin declined at -14.0 pp per annum in the last 5 years.
Management team
The company's CFO is Adil Mohammed Hassan Taqi. Adil Mohammed Hassan Taqi has 6 years tenure at the company.
Financial and operational results
FY ended 30 Nov -0001
Damac Real Estate Development Ltd ($DMC) key annual financial indicators| mln. AED | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 2,324 | 1,948 | 2,030 | 1,670 | 1,198 | -28.3% |
| Gross Profit | 1,380 | 1,088 | 989 | 577 | | |
| SG&A | 276 | 234 | 290 | 245 | | |
| EBITDA | 1,243 | 1,018 | 782 | 347 | | |
| Net Income | 1,229 | 1,006 | 751 | 314 | -10 | -103.2% |
Balance Sheet
|
|---|
| Cash | 2,587 | 2,264 | 2,031 | 1,681 | | |
| Short Term Debt | 279 | 317 | 222 | 182 | | |
| Long Term Debt | 746 | 722 | 1,072 | 1,165 | | |
Cash flow
|
|---|
| Capex | 5 | 3 | 6 | 3 | | |
Ratios
|
|---|
| Revenue growth | 128.2% | -16.2% | 4.2% | -17.7% | -28.3% | |
| EBITDA growth | 163.2% | -18.2% | -23.1% | -55.6% | | |
|
|---|
| Gross Margin | 59.4% | 55.9% | 48.8% | 34.6% | | |
| EBITDA Margin | 53.5% | 52.2% | 38.5% | 20.8% | |
| SG&A, % of revenue | 11.9% | 12.0% | 14.3% | 14.7% | | |
| Net Income Margin | 52.9% | 51.6% | 37.0% | 18.8% | -0.8% | -19.6% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.3% | 0.2% | | |
|
|---|
| ROIC | 41.5% | 24.5% | 16.0% | 6.5% | | |
| ROE | 62.9% | 32.9% | 20.8% | 8.2% | | |
| Net Debt/EBITDA | -1.3x | -1.2x | -0.9x | -1.0x | |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 6.0% | -29.7% | 65.9% | -4.3% |
| Development Securities ($DSC) | 156.8% | 18.9% | -48.8% | 40.1% | |
| St.Modwen Properties ($SMP) | | 0.1% | 10.7% | 36.9% | -1.4% |
| Hml Hldgs ($HMLH) | 16.7% | 7.8% | 12.6% | 24.2% | |
| Safestore Hldgs ($SAFE) | | 10.1% | 12.6% | 10.8% | 5.5% |
| |
|---|
| Median (7 companies) | -1.5% | 8.9% | 11.7% | 24.2% | -2.9% |
|---|
| Damac Real Estate Development Ltd ($DMC) | | -16.2% | 4.2% | -17.7% | -28.3% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 50.4% | 80.5% | 74.8% | 52.8% |
| Safeland ($SAF) | 26.9% | 33.7% | 18.9% | 10.5% | |
| Formation Group ($FRM) | 6.3% | 9.9% | 5.9% | 2.5% | |
| |
|---|
| Median (3 companies) | 34.2% | 41.1% | 28.3% | 10.5% | 52.8% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 59.4% | 55.9% | 48.8% | 34.6% | |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Caledonian Trust ($CNN) | | 17.4% | 191.0% | 316.6% | 238.5% |
| Safestore Hldgs ($SAFE) | 128.4% | 95.1% | 84.8% | 137.7% | 108.3% |
| Safeland ($SAF) | 65.8% | 28.0% | 15.2% | 94.0% | |
| St.Modwen Properties ($SMP) | 47.8% | 32.8% | 28.6% | 21.3% | 19.5% |
| Development Securities ($DSC) | 20.3% | 12.3% | 1.7% | 19.5% | |
| |
|---|
| Median (7 companies) | 24.8% | 28.0% | 20.8% | 21.3% | 108.3% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 53.5% | 52.2% | 38.5% | 20.8% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| St.Modwen Properties ($SMP) | 55.8% | 31.3% | 19.3% | 25.8% | 32.4% |
| Safestore Hldgs ($SAFE) | 7.2% | 24.5% | 16.7% | 19.2% | 25.5% |
| Hml Hldgs ($HMLH) | 3.1% | 1.5% | 1.5% | 1.6% | |
| Safeland ($SAF) | 19.5% | 0.5% | 1.1% | 1.5% | |
| Development Securities ($DSC) | 24.6% | 2.9% | 2.5% | 1.4% | |
| |
|---|
| Median (7 companies) | 8.1% | 1.5% | 1.8% | 1.5% | 25.5% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 0.2% | 0.1% | 0.3% | 0.2% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Safestore Hldgs ($SAFE) | 17.8% | 12.1% | 10.3% | 16.5% | 12.1% |
| Caledonian Trust ($CNN) | | 0.6% | 4.7% | 11.7% | 7.6% |
| Hml Hldgs ($HMLH) | 12.5% | 11.3% | 9.6% | 9.1% | |
| Safeland ($SAF) | 31.2% | 22.5% | 6.7% | 8.9% | |
| St.Modwen Properties ($SMP) | 10.7% | 6.3% | 5.9% | 6.3% | 5.6% |
| |
|---|
| Median (9 companies) | 4.9% | 6.4% | 6.4% | 8.9% | 7.6% |
|---|
| Damac Real Estate Development Ltd ($DMC) | 41.5% | 24.5% | 16.0% | 6.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Development Securities ($DSC) | 3.5x | 5.7x | 70.8x | 3.9x | |
| Safeland ($SAF) | 1.2x | 1.3x | 1.2x | 3.4x | |
| St.Modwen Properties ($SMP) | 3.7x | 5.5x | 5.4x | 3.0x | 3.8x |
| Safestore Hldgs ($SAFE) | 2.1x | 3.4x | 3.2x | 2.1x | 2.7x |
| Caledonian Trust ($CNN) | | 25.7x | 4.0x | 1.4x | 2.3x |
| |
|---|
| Median (6 companies) | 4.5x | 5.2x | 4.0x | 2.5x | 2.7x |
|---|
| Damac Real Estate Development Ltd ($DMC) | -1.3x | -1.2x | -0.9x | -1.0x | |
