Domain Holdings Australia Ltd. (DHG) AI Stock Analysis

• Market Cap: AU$2.76B
• Dividend Yield: 0.92%
• Average Volume (3M): 775.84K
• Price to Earnings (P/E): 51.3
• Beta (1Y): 0.46
• Revenue Growth: 12.43%
• EPS Growth: 47.92%
• Country: AU
• Employees: 1,035
• Sector: Communication Services
• Sector Strength: 93
• Industry: Internet Content & Information
• EPS (TTM): 0.06
• Shares Outstanding: 631,657,170
• 10 Day Avg. Volume: 754,552
• 30 Day Avg. Volume: 775,844
• PEG Ratio: -3.81
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 66.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$4.04
• Price Target Upside: -7.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: AU$5.00 ▲(13.90%Upside)

Domain Holdings Australia Ltd. scores well on financial performance with strong revenue growth and cash flow management. However, the high P/E ratio suggests overvaluation, and while technical indicators show moderate bullish momentum, they do not strongly indicate significant upside potential. The absence of earnings call data and notable corporate events limits the assessment to these factors.

Domain Holdings Australia Ltd. Business Overview & Revenue Model

Company Description

Domain Holdings Australia Ltd. (DHG) is a leading Australian real estate technology and media company that operates one of the country's most prominent property marketplaces. The company provides a comprehensive suite of property-related services, including real estate classifieds, media, and technology solutions. Its core offerings include property listing services, digital advertising solutions, and a range of tools and resources for real estate agents, buyers, sellers, and renters.

How the Company Makes Money

Domain Holdings Australia Ltd. primarily generates revenue through its real estate classifieds platform, which connects property buyers, sellers, and renters with real estate agents. The company charges real estate agents and property developers for listing properties on its platform. Additionally, Domain earns revenue through digital advertising by offering targeted advertising solutions to real estate professionals and related businesses. The company also provides subscription-based software and data services to real estate agents, helping them manage their operations more efficiently. Key partnerships with real estate agencies and media companies contribute to its market reach and financial performance.

Domain Holdings Australia Ltd. Financial Statement Overview

Summary

Domain Holdings Australia Ltd. demonstrates strong financial health with impressive revenue growth and profitability improvements. The balance sheet is stable, characterized by low leverage and high equity, though historical fluctuations in net debt warrant attention. Cash flow metrics are particularly strong, highlighting the company's ability to generate and manage cash effectively. While historical challenges exist, recent performance suggests a positive outlook for the company.

Income Statement

Domain Holdings Australia Ltd. shows a strong revenue growth rate of 13.14% from 2023 to 2024, indicating a positive trajectory in sales. The gross profit margin is solid at 46.68%, reflecting efficient cost management. The net profit margin improved to 10.85% in 2024, up from 7.55% in 2023, highlighting increased profitability. EBIT and EBITDA margins are healthy at 23.71% and 33.52% respectively, showing robust operational efficiency. However, the company experienced a net loss in 2020, which impacts the overall historical performance.

Balance Sheet

The balance sheet of Domain Holdings Australia Ltd. is strong, with a low debt-to-equity ratio of 0.18 in 2024, indicating conservative leverage. The equity ratio is high at 74.15%, demonstrating financial stability. Return on equity improved to 3.85% in 2024, reflecting better returns for shareholders, though still moderate. The company maintains a good level of liquidity, with cash and equivalents supporting its operations. However, the company faced fluctuations in its net debt levels over the years, which could pose risks if not managed.

Cash Flow

The company's cash flow statement is robust, with a significant growth in free cash flow of 123.79% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is high at 2.77 in 2024, underscoring efficient cash conversion from profits. The free cash flow to net income ratio stands at 1.89, reflecting healthy free cash flow relative to net income. These metrics suggest the company is well-positioned to fund its operations and investments, despite fluctuations in past periods.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	406.01M	390.91M	345.46M	347.32M	288.77M	265.38M
Gross Profit	193.58M	390.91M	154.96M	159.68M	129.20M	116.06M
EBITDA	126.39M	130.68M	100.11M	102.47M	94.32M	-165.24M
Net Income	53.72M	42.42M	26.10M	35.11M	34.27M	-227.21M
Balance Sheet
Total Assets	1.49B	1.48B	1.49B	1.55B	1.30B	1.27B
Cash, Cash Equivalents and Short-Term Investments	36.54M	33.80M	33.47M	67.12M	94.15M	65.50M
Total Debt	209.70M	199.66M	239.51M	244.47M	219.90M	225.65M
Total Liabilities	369.52M	369.87M	387.84M	436.70M	347.61M	367.09M
Stockholders Equity	1.11B	1.10B	1.09B	1.10B	948.09M	900.21M
Cash Flow
Free Cash Flow	74.12M	80.27M	35.87M	46.48M	34.44M	67.20M
Operating Cash Flow	118.10M	117.41M	66.20M	67.35M	52.09M	85.42M
Investing Cash Flow	-40.84M	-37.05M	-52.71M	-239.56M	-12.75M	-30.51M
Financing Cash Flow	-74.34M	-81.36M	-45.81M	145.17M	-10.69M	-38.74M

Domain Holdings Australia Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DHG, the sentiment is Positive. The current price of 4.39 is above the 20-day moving average (MA) of 4.37, above the 50-day MA of 4.32, and above the 200-day MA of 3.49, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DHG.

Domain Holdings Australia Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAR	71 Outperform	€14.13B	55.03	8.51%	2.06%	17.01%	-26.92%
REA	70 Neutral	$31.01B	50.25	37.91%	0.94%	20.28%	118.95%
DHG	68 Neutral	AU$2.76B	51.29	4.88%	0.92%	12.43%	47.92%
NWS	68 Neutral	AU$26.68B	39.39	5.74%	0.61%	-4.85%	135.33%
Sector *	66 Neutral	¥370.54B	13.72	2.32%	2.56%	5.41%	-19.08%
PPT	57 Neutral	€2.08B	―	-24.47%	6.70%	5.36%	-846.00%
SEK	54 Neutral	AU$8.67B	1,337.91	1.71%	1.97%	-14.38%	-92.03%

Domain Holdings Australia Ltd. Corporate Events

Domain Holdings Backs CoStar Acquisition with Shareholder Support

Domain Holdings Australia Limited has announced a proposed acquisition by CoStar Group, Inc. through a scheme of arrangement, with a share offer of $4.43, deemed fair and reasonable by an Independent Expert. The Domain Board and major shareholder Nine Entertainment Co. Holdings Limited support the scheme, highlighting its premium value and strategic benefits for shareholders.

The most recent analyst rating on (AU:DHG) stock is a Sell with a A$2.80 price target. To see the full list of analyst forecasts on Domain Holdings Australia Ltd. stock, see the AU:DHG Stock Forecast page.

Domain Holdings’ Acquisition by CoStar Group Moves Forward with Court Approval

Domain Holdings Australia Limited has received court approval to convene a shareholder meeting regarding its acquisition by CoStar Group through a scheme of arrangement. The Scheme Booklet, including an independent expert’s report, will be distributed to shareholders, who are encouraged to vote in favor of the proposal, which is deemed fair and reasonable. The acquisition is supported by the Domain Board and Nine Entertainment Co., the controlling shareholder.

The most recent analyst rating on (AU:DHG) stock is a Sell with a A$2.80 price target. To see the full list of analyst forecasts on Domain Holdings Australia Ltd. stock, see the AU:DHG Stock Forecast page.

Domain Holdings Director Acquires Shares in Nine Entertainment

Domain Holdings Australia Limited announced a change in the director’s interest, with Peter Tonagh acquiring 123,456 ordinary shares in Nine Entertainment Co. Holdings Ltd, a related body corporate of Domain Holdings. This acquisition, made through the Tonagh Family Super Fund, signifies a strategic investment move, potentially impacting the company’s alignment and interests within the media and entertainment sector.

The most recent analyst rating on (AU:DHG) stock is a Sell with a A$2.80 price target. To see the full list of analyst forecasts on Domain Holdings Australia Ltd. stock, see the AU:DHG Stock Forecast page.

Domain Holdings Australia Enters Acquisition Agreement with CoStar

Domain Holdings Australia Limited has entered into a Scheme Implementation Deed with CoStar Group, Inc. to acquire the remaining shares of Domain not already owned by CoStar’s subsidiary, Bidder Sub. The agreement involves a cash consideration of $4.43 per Domain share, valuing the company at an enterprise value of $3.0 billion, representing a significant premium for shareholders. The Domain Board recommends shareholders vote in favor of the scheme, supported by its majority shareholder, Nine Entertainment Co. Holdings Limited, in the absence of a superior proposal. This acquisition is seen as an endorsement of Domain’s strong fundamentals and is expected to enhance its market position with CoStar’s backing.

Domain Extends Exclusivity Period for CoStar Acquisition Proposal

Domain Holdings Australia Limited has extended the exclusivity period for CoStar Group, Inc. to conduct due diligence on its proposal to acquire Domain. The extension allows CoStar to finalize its due diligence and negotiate transaction documents, although there is no guarantee that a binding agreement will be reached, leaving the outcome uncertain for stakeholders.

Domain Holdings Announces Registry Office Relocation

Domain Holdings Australia Limited announced a change in the address of its registry office in Sydney, effective from 14 April 2025. This move to a new location at Liberty Place, Level 41, 161 Castlereagh St, Sydney, reflects the company’s ongoing operational adjustments, although it does not affect telephone numbers or postal addresses. The change is part of the company’s compliance with ASX Listing Rule 3.15.1, ensuring stakeholders are informed of the updated registry details.

Domain Holdings Australia Updates Securities Reporting

Domain Holdings Australia Limited has lodged its quarterly reports for unlisted securities movements for the March 2025 quarter, including historical adjustments identified during a reconciliation. The company acknowledges delays in updating balances on the ASX platform and has committed to improved internal processes for future reporting.

Domain Holdings Australia Announces Cessation of Securities

Domain Holdings Australia Ltd. announced the cessation of certain securities, specifically the lapse of conditional share rights, due to unmet conditions. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s operational and financial strategies.

Domain Holdings Australia Ltd. Issues New Equity Securities

Domain Holdings Australia Ltd. announced the issuance of 90,067 unquoted equity securities, specifically ordinary fully paid shares, as part of their ongoing financial operations. This move may impact the company’s financial structure and market positioning, potentially affecting stakeholders by altering share distribution and capital structure.

Domain Holdings Australia Ltd. Announces Cessation of Securities

Domain Holdings Australia Ltd. announced the cessation of certain securities due to unmet conditions. This involves the lapse of 6,880 short-term incentive share rights and 148,039 long-term incentive share rights, reflecting a potential impact on employee compensation structures and investor perceptions.

Domain Holdings Australia Ltd. Issues New Equity Securities

Domain Holdings Australia Ltd. announced the issuance and conversion of unquoted equity securities, reflecting ongoing financial activities and adjustments in its capital structure. This move could potentially impact the company’s market positioning by enhancing its financial flexibility and shareholder value.