Dom Development S.A. (DOM) AI Stock Analysis

• Market Cap: zł6.09B
• Dividend Yield: 5.46%
• Average Volume (3M): 3.74K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.41
• Revenue Growth: 16.90%
• EPS Growth: 24.21%
• Country: PL
• Employees: 706
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 10.85
• Shares Outstanding: 25,798,422
• 10 Day Avg. Volume: 5,072
• 30 Day Avg. Volume: 3,737
• PEG Ratio: 0.67
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 34.88
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 25.94
• Revenue Forecast (FY): zł3.75B

• Rating: 70 Outperform
• Price Target: zł258.00 ▼(-3.01% Downside)
• Action: Upgraded Date: 09/28/25
• Date: Action: Upgraded 09/28/25

Dom Development S.A. scores well due to its strong valuation and solid financial performance. However, technical indicators suggest potential bearish momentum, and challenges in revenue growth and cash flow need to be addressed to maintain financial health.

Positive Factors

Strong Profitability

Consistent and strong profitability margins indicate effective cost management and pricing strategies, supporting long-term financial health.

Robust Return on Equity

A high return on equity suggests efficient use of shareholder funds to generate profits, enhancing investor confidence and potential for reinvestment.

Stable Margins

Stable EBIT and EBITDA margins indicate consistent operational efficiency, which is crucial for maintaining profitability amid market fluctuations.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests challenges in sales expansion, which could impact future profitability and market position if not addressed.

Declining Free Cash Flow

Declining free cash flow can strain liquidity and limit the company's ability to invest in growth opportunities or weather economic downturns.

Potential Cash Flow Challenges

Low operating cash flow relative to net income suggests difficulties in converting profits into cash, which could affect operational flexibility.

Dom Development S.A. Business Overview & Revenue Model

Company Description

Dom Development S.A., together with its subsidiaries, develops and sells residential and commercial real estate properties, and related support activities in Poland. The company's properties include multi-family buildings, such as flats and apartments; and commercial space, including retail units. It also offers mortgage, business, and cash loans to finance the purchase of apartments, fit-outs, parking spaces, and storage units; and interior fit out package services. The company was founded in 1995 and is based in Warsaw, Poland. Dom Development S.A. is a subsidiary of Groupe Belleforêt S.à r.l.

How the Company Makes Money

Dom Development S.A. generates revenue primarily through the sale of residential units, which includes apartments and houses, to individual buyers and investors. The company's revenue model is centered on the development of residential properties, where it acquires land, obtains necessary permits, and constructs buildings, which are then marketed and sold upon completion. Key revenue streams include pre-sales of units, sales upon completion, and additional services such as property management. The company may also benefit from strategic partnerships with financial institutions for mortgage facilitation, as well as collaborations with contractors and suppliers to optimize construction costs. Additionally, the growing demand for housing in urban areas, driven by population growth and urbanization trends, contributes positively to its earnings.

Dom Development S.A. Financial Statement Overview

Summary

Dom Development S.A. demonstrates solid profitability with stable margins and a strong return on equity. However, the negative revenue growth and declining free cash flow indicate potential challenges that need addressing.

Income Statement

Dom Development S.A. shows strong profitability with a consistent gross profit margin around 32-33% and a net profit margin improving to 18.87% in TTM. However, the revenue growth rate has turned negative in the TTM, indicating a potential slowdown in sales. EBIT and EBITDA margins are stable, reflecting efficient cost management.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.52 in TTM, suggesting a balanced approach to leveraging. Return on equity is robust at 33.87%, indicating effective use of equity to generate profits. The equity ratio is stable, showing a strong equity base relative to total assets.

Cash Flow

Free cash flow has decreased by 9.30% in TTM, and the operating cash flow to net income ratio is relatively low at 0.09, indicating potential cash flow challenges. However, the free cash flow to net income ratio remains strong at 0.94, showing good cash conversion from profits.

Breakdown	Dec 2024	Sep 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.26B	3.17B	2.55B	2.42B	1.90B
Gross Profit	1.12B	1.02B	815.05M	755.77M	625.18M
EBITDA	835.17M	733.60M	598.94M	538.95M	431.09M
Net Income	654.18M	569.07M	460.23M	410.26M	327.13M
Balance Sheet
Total Assets	5.98B	5.29B	4.56B	4.11B	3.88B
Cash, Cash Equivalents and Short-Term Investments	528.24M	360.85M	286.27M	304.24M	607.04M
Total Debt	846.42M	735.01M	653.75M	481.01M	485.23M
Total Liabilities	3.99B	3.59B	3.11B	2.70B	2.63B
Stockholders Equity	1.99B	1.70B	1.45B	1.41B	1.24B
Cash Flow
Free Cash Flow	188.62M	356.94M	250.43M	-221.27M	379.58M
Operating Cash Flow	213.08M	378.47M	267.73M	-191.94M	393.72M
Investing Cash Flow	-28.33M	-72.50M	-15.69M	-215.79M	-66.45M
Financing Cash Flow	-276.91M	-231.40M	-270.00M	-290.60M	-305.90M

Dom Development S.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 266.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:DOM, the sentiment is Negative. The current price of 266 is above the 20-day moving average (MA) of 251.43, above the 50-day MA of 262.24, and above the 200-day MA of 246.52, indicating a bearish trend. The MACD of -7.24 indicates Positive momentum. The RSI at 28.53 is Positive, neither overbought nor oversold. The STOCH value of 47.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PL:DOM.

Dom Development S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DVL	70 Outperform	zł4.17B	6.97	28.43%	6.94%	2.65%	15.35%
DOM	70 Outperform	zł6.09B	5.88	37.36%	5.46%	16.90%	24.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GTC	58 Neutral	zł1.43B	-4.89	-1.67%	6.96%	3.31%	-63.79%
ECH	51 Neutral	zł2.17B	10.24	-10.12%	17.09%	-34.22%	-410.61%