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City Developments (CDEVF)
:CDEVF
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Positive Factors
Asset management
CDL's sale of its 50.1% stake in the South Beach development unlocked S$465m in disposal gains, significantly boosting financial metrics.
Property market
Strong residential sales in Singapore, with The Orie seeing 91% of its units sold and other projects also performing well, indicate robust market demand.
Valuation
City Dev is trading at an attractive valuation below the lows seen during the Global Financial Crisis, with potential for recovery in share price.
Negative Factors
Dividend
The company has declared a lower dividend per share compared to the previous year, reflecting its challenging financial performance.
Financial performance
CDL's 2024 results missed analyst and consensus estimates, with revenue and PATMI significantly lower than expected due to timing issues and higher interest costs.
Leadership uncertainty
A very public leadership tussle involving the Executive Chairman and the CEO has overshadowed the company's financial performance, creating uncertainty about its future direction.
City Developments (CDEVF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend Yield1.48%
Average Volume (3M)0.00
Price to Earnings (P/E)25.6
Beta (1Y)0.45
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,354
SectorReal Estate
Sector Strength60
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.16
Shares Outstanding909,301,330
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)0.50
Price to Sales (P/S)0.00
P/FCF Ratio16.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.34Price Target Upside6.63% Upside
Rating ConsensusHold
Number of Analyst Covering5
City Developments Business Overview & Revenue Model
Company DescriptionCity Developments Limited (CDL) is a leading global real estate operating company with a network spanning 103 locations in 29 countries and regions. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls. With a proven track record of over 55 years in real estate development, investment and management, CDL has developed over 43,000 homes and owns over 18 million square feet of lettable floor area globally. Its diversified global land bank offers 4.1 million square feet of developable gross floor area. The Group's London-based hotel arm, Millennium & Copthorne Hotels (M&C), is one of the world's largest hotel chains, with over 145 hotels worldwide, many in key gateway cities. Leveraging its deep expertise in developing and managing a diversified asset base, the Group is focused on enhancing the performance of its portfolio and strengthening its recurring income streams to deliver long-term sustainable value to shareholders. The Group is also developing a fund management business and targets to achieve US$5 billion in Assets Under Management (AUM) by 2023.
How the Company Makes Money
City Developments Financial Statement Overview
Summary
City Developments exhibits strong gross margins and a stable equity base. However, challenges exist in sustaining profitability and managing leverage, as indicated by fluctuating revenue trends and decreased ROE. Cash flow from operations is strong, but free cash flow management requires attention.Income Statement
City Developments shows a fluctuating revenue trend with a recent decline from 2023 to 2024. The gross profit margin remains strong at around 44.7% in 2024, indicating solid cost management. However, net profit margin dropped significantly to 6.2% in 2024 from 6.4% in 2023, revealing challenges in translating revenue to net income. EBIT and EBITDA margins are healthy, but there's room for improvement in profitability.65
Positive
Balance Sheet
The balance sheet reflects a stable equity base. The debt-to-equity ratio increased marginally, indicating rising leverage which could be a risk if not managed well. The return on equity (ROE) decreased to 2.2% in 2024, highlighting potential inefficiencies in generating profits from shareholders' equity. The equity ratio remains strong, suggesting a stable long-term financial position.70
Positive
Cash Flow
Operating cash flow improved in 2024, but free cash flow saw a decline due to higher capital expenditures. The operating cash flow to net income ratio is favorable at 4.6, indicating efficient cash conversion from earnings. However, the free cash flow to net income ratio decreased, pointing to potential challenges in maintaining liquidity without impacting investments.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.95B | 3.27B | 4.94B | 3.29B | 2.63B | 2.11B | Gross Profit |
| 1.66B | 1.46B | 1.65B | 1.25B | 977.71M | 828.94M | EBIT |
| 317.31M | 685.67M | 818.53M | 420.11M | 321.87M | -411.69M | EBITDA |
| 123.76M | 1.20B | 918.49M | 696.54M | 439.48M | -330.63M | Net Income Common Stockholders |
| 1.81B | 201.32M | 317.31M | 1.29B | 139.84M | -1.88B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.41B | 3.01B | 2.41B | 2.37B | 2.11B | 3.15B | Total Assets |
| 24.23B | 25.61B | 24.23B | 22.98B | 23.89B | 23.68B | Total Debt |
| 12.30B | 13.98B | 12.30B | 10.37B | 11.41B | 11.81B | Net Debt |
| 9.90B | 10.98B | 9.90B | 8.00B | 9.32B | 8.68B | Total Liabilities |
| 14.69B | 16.30B | 14.69B | 13.42B | 14.56B | 14.43B | Stockholders Equity |
| 9.18B | 9.09B | 9.18B | 9.22B | 8.41B | 8.50B |
| Cash Flow | Free Cash Flow | ||||
| 360.08M | 275.44M | 360.08M | -514.24M | 719.49M | -749.97M | Operating Cash Flow |
| 639.67M | 929.67M | 639.67M | -125.51M | 1.13B | -356.15M | Investing Cash Flow |
| -2.01B | -982.99M | -2.01B | 779.97M | -863.41M | -1.08B | Financing Cash Flow |
| 1.21B | 692.40M | 725.97M | -290.11M | -1.28B | 1.56B |
City Developments Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $3.70B | 25.57 | 2.21% | 1.48% | ― | ― | ||
61 Neutral | $2.83B | 10.98 | 0.41% | 8438.90% | 5.81% | -21.06% | |
| $3.40B | 20.84 | 5.08% | 5.13% | ― | ― | ||
| $2.53B | 12.81 | 2.80% | 5.24% | ― | ― | ||
| $4.01B | 14.93 | 3.19% | 2.87% | ― | ― | ||
68 Neutral | S$232.73M | 112.50 | 0.35% | 4.76% | 31.28% | ― | |
55 Neutral | S$235.28M | 35.71 | 0.92% | 1.50% | 12.04% | 18.64% |
* Real Estate Sector Average
Performance Comparison
CDEVF
City Developments
4.04
0.08
2.02%
FRZCF
Frasers Centrepoint
1.79
0.34
23.45%
FSRPF
Frasers Property
0.69
0.13
23.21%
UOLGF
UOL Group
4.72
0.93
24.54%
SG:5JK
Hiap Hoe Ltd.
0.51
-0.11
-17.74%
SG:F1E
Low Keng Huat Singapore Ltd
0.32
0.03
10.34%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.