New Lifetime High Reached: Douglas Emmett (DEI)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Douglas Emmett as such a stock due to the following factors:
- DEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.3 million.
- DEI has traded 2,834 shares today.
- DEI is trading at a new lifetime high.
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More details on DEI:
Douglas Emmett, Inc., a real estate investment trust, owns and operates office and multifamily properties in California and Hawaii. As of December 31, 2007, the company's office portfolio consisted of 48 properties and multifamily portfolio consisted of 9 properties. The stock currently has a dividend yield of 2.9%. DEI has a PE ratio of 96.2. Currently there are 2 analysts that rate Douglas Emmett a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Douglas Emmett has been 985,800 shares per day over the past 30 days. Douglas Emmett has a market cap of $4.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.60 and a short float of 2.2% with 2.09 days to cover. Shares are up 2.9% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Douglas Emmett as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 5.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- The gross profit margin for DOUGLAS EMMETT INC is currently lower than what is desirable, coming in at 28.91%. Regardless of DEI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DEI's net profit margin of 6.93% is significantly lower than the industry average.
- Net operating cash flow has declined marginally to $52.01 million or 2.33% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Douglas Emmett Ratings Report.
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