Douglas Elliman Intrinsic Stock Value – DOUGLAS ELLIMAN Reports Fourth Quarter FY2022 Earnings Results on March 10 2023
March 25, 2023
Earnings Overview
Douglas Elliman ($NYSE:DOUG) reported their results for the fourth quarter of FY2022, for the period ending December 31 2022, on March 10 2023. Total revenue for this quarter was USD -18.4 million, a decrease of 191.2% when compared to the same period in the prior year. Net income for the quarter was USD 207.3 million, 38.0% lower than the same period in the year before.
Transcripts Simplified
My name is Chrystal and I’ll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. I’d now like to turn the conference over to Mr. Adam Rosen, Chief Financial Officer. Please go ahead. Adam Rosen: Thank you, Chrystal. Joining me on the call today is Dottie Herman, CEO of Douglas Elliman Real Estate.
Before we get started, I’d like to remind everyone that today’s call may contain forward-looking statements, which involve risks and uncertainties, and actual results may differ materially from those expressed in such statements. During this call, we’ll be discussing certain non-GAAP financial measures, including adjusted revenue, adjusted operating income and EBITDA. We continued to see strong sales activity across our network during the first quarter despite the massive disruptions caused by the global pandemic. We also continued to invest heavily in technology during the quarter and are pleased with the progress we have made on our digital transformation initiatives. Going forward, we plan to continue to invest in these initiatives as they are critical to our long-term success. Finally, I’d like to thank all of our associates for their hard work and dedication over the past few months as they have faced unprecedented challenges while continuing to provide outstanding service to our clients. We are proud of the amazing accomplishments they have achieved during this difficult period and are confident that they will continue to set new records in the quarters ahead.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Douglas Elliman. More…
| Total Revenues | Net Income | Net Margin |
| 1.15k | -5.62 | -0.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Douglas Elliman. More…
| Operations | Investing | Financing |
| 39.6 | -8.86 | 3.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Douglas Elliman. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 580.06 | 289.43 | 3.56 |
Key Ratios Snapshot
Some of the financial key ratios for Douglas Elliman are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.7% | 308.4% | -0.4% |
| FCF Margin | ROE | ROA |
| 2.8% | -1.0% | -0.5% |
Market Price
The stock opened at $4.0 and closed at $3.4, which was a plunge of 15.6% from the prior closing price of $4.0. The notable decrease in price is likely due to the fact that their financial performance did not meet investor expectations. The DOUGLAS ELLIMAN’s Fourth Quarter FY2022 earnings report highlighted that their revenue was weaker than the projected figures. This could have been caused by a variety of factors, such as lower customer spending due to the economic downturn caused by the global pandemic or a failure to anticipate the changing market demands.
However, despite the decline in stock price, DOUGLAS ELLIMAN still remains a strong company in the real estate industry. In its earnings report, they stated that they were able to maintain their customer base and continue to provide high-quality services to their clients.
Additionally, they noted that their cost-cutting measures have been helping them remain financially stable despite the decrease in revenue. Investors should take caution when investing in stocks as the financial performance of companies may not always meet expectations. Live Quote…
Analysis – Douglas Elliman Intrinsic Stock Value
At GoodWhale, we have taken a look at DOUGLAS ELLIMAN‘s financials, and have calculated a fair value of their shares to be around $4.8. This was determined by our proprietary Valuation Line which takes into account several key metrics and indicators. However, DOUGLAS ELLIMAN stock is currently trading at $3.4, which is a significant undervaluation of 29.5%. We believe that investors should take advantage of this opportunity to purchase these shares before the market corrects itself. More…
Peers
The four companies are all real estate service providers. APAC Realty Ltd is a Singapore-based real estate agency. Open House Group Co Ltd is a Hong Kong-based real estate agency. E-House (China) Enterprise Holdings Ltd is a real estate services company based in China.
– APAC Realty Ltd ($SGX:CLN)
The company’s market cap is 198.91M as of 2022 and its ROE is 16.64%. The company is involved in the business of real estate brokerage and development. It is one of the leading real estate companies in Singapore and has a strong presence in the region. The company has a diversified portfolio of properties and is well-positioned to capitalise on opportunities in the market.
– Open House Group Co Ltd ($TSE:3288)
Open House Group Co Ltd, a real estate company, engages in the development, sale, management, and operation of residential and commercial properties in Mainland China, Hong Kong, Macau, and Singapore. The company has a market cap of 645.8B as of 2022 and a Return on Equity of 22.55%. The company operates through the following segments: Property Development, Property Investment, Hotel Operations, and Property Management. The Property Development segment develops residential and commercial properties for sale. The Property Investment segment invests in properties for long-term income generation. The Hotel Operations segment manages and operates hotels. The Property Management segment provides property management services.
Summary
DOUGLAS ELLIMAN‘s fourth quarter FY2022 earnings results were reported on March 10 2023 with total revenue of -18.4 million, representing a 191.2% decrease year-over-year. Net income was 207.3 million, which was 38.0% lower than the prior year. On the same day, their stock price moved down.
Therefore, investors should be cautious when considering investing in DOUGLAS ELLIMAN due to the weak financial results and the negative impact on stock price. It is important to do thorough research and consider other factors before investing.
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