Develia S.A. (DVL) AI Stock Analysis

• Market Cap: zł3.82B
• Dividend Yield: 7.03%
• Average Volume (3M): 177.55K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.71
• Revenue Growth: 2.65%
• EPS Growth: 15.35%
• Country: PL
• Employees: 269
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.24
• Shares Outstanding: 463,336,270
• 10 Day Avg. Volume: 102,491
• 30 Day Avg. Volume: 177,554
• PEG Ratio: 0.19
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 9.10
• 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: zł9.03
• Price Target Upside: 9.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: zł9.00 ▲(9.09% Upside)

Develia S.A. scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive to value and income investors. While financial performance shows profitability, concerns over revenue decline and cash flow challenges need addressing. Technical indicators suggest stability but with potential bearish momentum.

Develia S.A. Business Overview & Revenue Model

Company Description

Develia S.A., through its subsidiaries, buys, develops, rents, manages, and sells real estate properties in Poland. It undertakes the development of commercial and residential investment projects located in Warsaw, Wroclaw, Kraków, Katowice, Gdansk, and Lódz. The company was formerly known as LC Corp S.A. and changed its name to Develia S.A. in September 2019. Develia S.A. was incorporated in 2006 and is based in Wroclaw, Poland.

How the Company Makes Money

Develia generates revenue primarily through the sale of residential properties and commercial real estate developments. The company develops housing projects that are sold to individual buyers and investors, contributing significantly to its revenue. Additionally, Develia engages in property leasing, which provides a steady income stream from its commercial assets. The company may also benefit from strategic partnerships with financial institutions and construction firms, which can facilitate funding and enhance project execution. Furthermore, Develia's focus on sustainable and modern construction practices attracts a growing segment of environmentally-conscious buyers, potentially increasing sales and profitability.

Develia S.A. Financial Statement Overview

Summary

Develia S.A. demonstrates strong profitability with healthy EBIT and EBITDA margins and a solid return on equity. However, recent revenue decline and cash flow challenges, such as negative free cash flow growth and low operating cash flow coverage, could pose risks if not addressed.

Income Statement

Develia S.A. shows strong profitability with a consistent gross profit margin around 34% and a net profit margin improving to 21.18% in 2024. EBIT and EBITDA margins are healthy, indicating efficient operations. However, revenue growth has been negative recently, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.57, indicating a balanced approach to leveraging. Return on equity is strong at 22.17%, reflecting effective use of equity. However, the equity ratio is not provided, limiting a full assessment of asset financing.

Cash Flow

Free cash flow to net income ratio is high at 93.92%, suggesting good cash generation relative to profits. However, free cash flow growth has been negative, and operating cash flow coverage is low, indicating potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.80B	1.61B	1.07B	911.93M	517.11M
Gross Profit	567.41M	612.69M	481.12M	361.02M	281.27M	183.62M
EBITDA	421.79M	453.90M	359.90M	294.41M	276.42M	143.47M
Net Income	360.88M	380.27M	275.62M	230.94M	153.95M	-138.80M
Balance Sheet
Total Assets	4.45B	4.28B	3.81B	2.95B	3.25B	2.82B
Cash, Cash Equivalents and Short-Term Investments	524.93M	840.61M	559.44M	481.59M	478.33M	485.03M
Total Debt	961.29M	983.80M	953.82M	652.03M	941.38M	837.14M
Total Liabilities	2.67B	2.56B	2.26B	1.51B	1.85B	1.50B
Stockholders Equity	1.78B	1.72B	1.55B	1.43B	1.40B	1.32B
Cash Flow
Free Cash Flow	178.40M	274.45M	124.97M	166.53M	85.06M	56.87M
Operating Cash Flow	241.11M	311.96M	131.17M	169.97M	86.81M	59.94M
Investing Cash Flow	8.34M	43.44M	-38.84M	368.57M	-110.24M	326.21M
Financing Cash Flow	-299.86M	-274.83M	78.85M	-519.18M	-20.85M	-350.00M

Develia S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:DVL, the sentiment is Positive. The current price of 8.25 is above the 20-day moving average (MA) of 8.05, above the 50-day MA of 8.16, and above the 200-day MA of 6.88, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 84.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PL:DVL.

Develia S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DVL	70 Outperform	zł3.82B	9.31	26.09%	7.03%	2.65%	15.35%
DOM	70 Outperform	€6.19B	10.61	35.59%	5.42%	16.90%	24.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GTC	58 Neutral	zł2.39B	28.53	1.76%	5.29%	3.31%	-63.79%
ECH	51 Neutral	zł2.31B	―	―	―	-34.22%	-410.61%