Douglas Elliman Inc. (NYSE: DOUG)

Sector: Real Estate Industry: Real Estate Services CIK: 0001878897
Market Cap 208.56 Mn
P/B 1.81
P/E -3.51
P/S 0.20
ROIC (Qtr) -13.94
Div Yield % 0.00
Rev 1y % (Qtr) -1.31
Total Debt (Qtr) 142.82 Mn
Debt/Equity (Qtr) 1.24
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About

Douglas Elliman Inc., or DOUG, is a real estate services company operating in the United States. Established in 1911, the company has its headquarters in New York City and maintains a strong presence in major markets such as New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Maryland, Virginia, and Washington D.C. As a leading luxury real estate brokerage firm, DOUG specializes in residential brokerage, new development marketing, property management, title and escrow services, and other ancillary services. DOUG's main business...

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Investment thesis

Bull case

  • Healthy cash reserves of 148.42M provide 6.93x coverage of short-term debt 21.41M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 376.55M provides 2.64x coverage of total debt 142.82M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 376.55M provides 4.08x coverage of working capital 92.32M, indicating strong operational backing.
  • Tangible assets of 376.55M provide robust 6.73x coverage of other current liabilities 55.94M, indicating strong asset backing.
  • Cash reserves of 148.42M provide robust 1.48x coverage of current liabilities 100.60M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (8.47M) barely covers its investment activities of 3.49M, with a coverage ratio of -2.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 3.49M provide weak support for R&D spending of 23.35M, which is 0.15x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (8.47M) provides insufficient coverage of deferred revenue obligations of 90.17M, which is -0.09x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (8.47M) shows concerning coverage of stock compensation expenses of 2.18M, with a -3.89 ratio indicating potential earnings quality issues.
  • Free cash flow of (12.77M) provides weak coverage of capital expenditures of 4.30M, with a -2.97 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.44 1.18
EV to Cash from Ops. EV/CFO -25.20 -6.57
EV to Debt EV to Debt 1.49 5.19
EV to EBIT EV/EBIT -3.99 4.86
EV to EBITDA EV/EBITDA -20.90 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF -16.71 -11.14
EV to Market Cap EV to Market Cap 1.02 7.70
EV to Revenue EV/Rev 0.21 3.49
Price to Book Value [P/B] P/B 1.81 1.76
Price to Earnings [P/E] P/E -3.51 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -7.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.46
Interest Coverage Int. cover (Qtr) -8.75 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.58 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.11 24.62
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.42 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 78.19 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 39.79 19.37
EBT Growth (1y) % EBT 1y % (Qtr) 34.01 28.48
EPS Growth (1y) % EPS 1y % (Qtr) 32.04 29.29
FCF Growth (1y) % FCF 1y % (Qtr) 48.22 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.48 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.15 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 1.48 1.45
Current Ratio Curr Ratio (Qtr) 1.92 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.24 -0.07
Interest Cover Ratio Int Coverage (Qtr) -8.75 -2.20
Times Interest Earned Times Interest Earned (Qtr) -8.75 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.50 -120.34
EBIT Margin % EBIT Margin % (Qtr) -5.19 -135.17
EBT Margin % EBT Margin % (Qtr) -5.78 -142.98
Gross Margin % Gross Margin % (Qtr) 26.00 32.99
Net Profit Margin % Net Margin % (Qtr) -5.80 -138.31