Derwent London Plc
Derwent London Plc Fundamental Analysis
Derwent London Plc (DWVYF) shows moderate financial fundamentals with a PE ratio of 11.26, profit margin of 40.73%, and ROE of 4.48%. The company generates $0.4B in annual revenue with weak year-over-year growth of 1.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DWVYF's fundamental strength across five key dimensions:
Efficiency Score
WeakDWVYF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDWVYF trades at attractive valuation levels.
Growth Score
WeakDWVYF faces weak or negative growth trends.
Financial Health Score
ModerateDWVYF shows balanced financial health with some risks.
Profitability Score
ModerateDWVYF maintains healthy but balanced margins.
Key Financial Metrics
Is DWVYF Expensive or Cheap?
P/E Ratio
DWVYF trades at 11.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DWVYF's PEG of -0.46 indicates potential undervaluation.
Price to Book
The market values Derwent London Plc at 0.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.16 times EBITDA. This is generally considered low.
How Well Does DWVYF Make Money?
Net Profit Margin
For every $100 in sales, Derwent London Plc keeps $40.73 as profit after all expenses.
Operating Margin
Core operations generate 50.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.48 in profit for every $100 of shareholder equity.
ROA
Derwent London Plc generates $3.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Derwent London Plc generates strong operating cash flow of $228.12M, reflecting robust business health.
Free Cash Flow
Derwent London Plc generates strong free cash flow of $294.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.62 in free cash annually.
FCF Yield
DWVYF converts 16.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How DWVYF Stacks Against Its Sector Peers
| Metric | DWVYF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.26 | 22.46 | Better (Cheaper) |
| ROE | 4.48% | 681.00% | Weak |
| Net Margin | 40.73% | -37308.00% (disorted) | Strong |
| Debt/Equity | 0.43 | -20.87 (disorted) | Distorted |
| Current Ratio | 0.59 | 1953.63 | Weak Liquidity |
| ROA | 3.03% | -1226.00% (disorted) | Weak |
DWVYF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Derwent London Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.37%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-59.45%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-49.72%
Industry Style: Income, Inflation Hedge, REIT
Declining