Douglas Elliman Inc. (NYSE: DOUG)

Sector: Real Estate Industry: Real Estate Services CIK: 0001878897
Market Cap 228.91 Mn
P/B 1.99
P/E -3.86
P/S 0.22
ROIC (Qtr) -13.94
Div Yield % 0.00
Rev 1y % (Qtr) -1.31
Total Debt (Qtr) 142.82 Mn
Debt/Equity (Qtr) 1.24

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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Price action

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.

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. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.49 1.34
EV to Cash from Ops. EV/CFO -27.60 2.97
EV to Debt EV to Debt 1.64 6.15
EV to EBIT EV/EBIT -4.37 5.23
EV to EBITDA EV/EBITDA -22.89 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF -18.30 -9.39
EV to Market Cap EV to Market Cap 1.02 4.27
EV to Revenue EV/Rev 0.23 3.62
Price to Book Value [P/B] P/B 1.99 2.10
Price to Earnings [P/E] P/E -3.86 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -6.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.42
Interest Coverage Int. cover (Qtr) -8.75 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.58 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.11 23.84
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.42 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 78.19 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 39.79 12.80
EBT Growth (1y) % EBT 1y % (Qtr) 34.01 21.27
EPS Growth (1y) % EPS 1y % (Qtr) 32.04 22.42
FCF Growth (1y) % FCF 1y % (Qtr) 48.22 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.48 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.15 1.45
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 -0.06
Interest Cover Ratio Int Coverage (Qtr) -8.75 -2.22
Times Interest Earned Times Interest Earned (Qtr) -8.75 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.50 -121.98
EBIT Margin % EBIT Margin % (Qtr) -5.19 -136.76
EBT Margin % EBT Margin % (Qtr) -5.78 -144.54
Gross Margin % Gross Margin % (Qtr) 26.00 32.87
Net Profit Margin % Net Margin % (Qtr) -5.80 -139.89