City Developments (C09) AI Stock Analysis

• Market Cap: $6.68B
• Dividend Yield: 1.38%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 1.00
• Revenue Growth: -10.52%
• EPS Growth: -39.75%
• Country: SG
• Employees: 8,354
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.10
• Shares Outstanding: 909,301,330
• 10 Day Avg. Volume: 1,632,500
• 30 Day Avg. Volume: 1,799,860
• PEG Ratio: -0.57
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 16.64
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 5.02
• Enterprise Value/Gross Profit: 11.67
• Enterprise Value/Ebitda: 24.92
• 1Y Price Target: $8.14
• Price Target Upside: 12.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: S$8.00 ▲(10.65% Upside)

The overall stock score for City Developments is primarily influenced by its strong technical momentum, despite being in overbought territory. Financial performance is a concern due to declining revenue and cash flow, along with increased leverage. The high P/E ratio suggests potential overvaluation, which, combined with a modest dividend yield, limits the stock's attractiveness.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, supporting long-term profitability despite revenue challenges.

Profitability Improvement

The increase in net profit despite revenue decline shows effective tax management, enhancing profitability and potentially boosting investor confidence.

Legal and Tax Favorability

The favorable tax ruling reduces financial liabilities, improving cash flow and financial stability, positively impacting long-term financial health.

Negative Factors

Revenue Decline

A decline in revenue growth indicates potential challenges in market demand or operational efficiency, which could hinder future growth prospects.

Increased Leverage

Higher leverage can pose financial risks, limiting financial flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Declining Cash Flow

Reduced cash flow growth limits the company's ability to invest in new projects and maintain financial flexibility, potentially constraining future expansion.

City Developments Business Overview & Revenue Model

Company Description

City 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 generates revenue primarily through the sale and leasing of residential and commercial properties. The company develops and sells residential units in both the private and public sectors, earning significant profits from property sales. Additionally, CDL derives income from leasing out commercial properties, including office spaces and retail outlets, which provide a steady stream of rental income. The hospitality sector also contributes to its revenue through hotel operations and management services. Key partnerships with local and international developers and financial institutions enhance its project execution and financing capabilities, further strengthening its revenue generation potential.

City Developments Financial Statement Overview

Summary

City Developments exhibits a mixed financial performance with strong gross margins and stable equity but faces challenges in sustaining profitability and managing leverage. Cash flow from operations is strong, but free cash flow management needs attention to support long-term growth without increasing debt.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.40B	3.27B	4.94B	3.29B	2.63B	2.11B
Gross Profit	1.46B	1.46B	1.65B	1.25B	977.71M	828.94M
EBITDA	684.43M	1.20B	918.49M	433.47M	439.48M	-330.63M
Net Income	204.71M	201.32M	317.31M	1.29B	84.71M	-1.88B
Balance Sheet
Total Assets	25.74B	25.61B	24.23B	22.98B	23.89B	23.68B
Cash, Cash Equivalents and Short-Term Investments	1.92B	3.01B	2.41B	2.37B	2.13B	3.15B
Total Debt	13.39B	13.98B	12.30B	10.37B	11.41B	11.81B
Total Liabilities	16.03B	16.30B	14.69B	13.42B	14.56B	14.43B
Stockholders Equity	9.03B	9.09B	9.18B	9.22B	8.41B	8.50B
Cash Flow
Free Cash Flow	-516.37M	275.44M	360.08M	-514.24M	719.49M	-749.97M
Operating Cash Flow	-62.60M	929.67M	639.67M	-125.51M	1.13B	-356.15M
Investing Cash Flow	-294.26M	-982.99M	-1.86B	779.97M	-863.41M	-1.08B
Financing Cash Flow	824.37M	692.40M	725.97M	-290.11M	-1.28B	1.56B

City Developments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:C09, the sentiment is Positive. The current price of 7.23 is above the 20-day moving average (MA) of 7.19, above the 50-day MA of 6.96, and above the 200-day MA of 5.62, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:C09.

City Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TQ5	―	$4.20B	15.97	2.80%	4.29%	19.82%	―
U14	―	$6.98B	16.10	3.80%	2.26%	18.74%	-38.36%
J69U	―	$4.91B	21.36	4.49%	5.18%	10.82%	-5.02%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
F1E	―	S$439.60M	189.29	-2.34%	2.17%	-39.12%	-326.51%
C09	―	$6.68B	33.81	2.25%	1.38%	-10.52%	-39.75%
5JK	―	S$258.81M	23.61	1.53%	0.46%	21.91%	82.03%

City Developments Corporate Events

Supreme Court Upholds Tax Ruling Favoring Grand Plaza Hotel

The Supreme Court has denied the Petition for Review filed by the Commissioner of Internal Revenue against Grand Plaza Hotel Corporation, affirming the previous Court of Tax Appeals decision in favor of the company. This ruling means that the corporation is not liable for the payment of deficiency taxes amounting to over PhP 506 million for the taxable year 2008, which could have included additional surcharges and interest.

Seismic Strengthening Plans for Copthorne Hotel Wellington Oriental Bay Announced

Millennium & Copthorne Hotels New Zealand Limited announced plans to conduct seismic strengthening works at its Copthorne Hotel Wellington Oriental Bay. The Bay Wing, comprising 55 rooms, will be closed for assessments, while the rest of the hotel remains operational. The strengthening works are scheduled for 2026 and 2027, with costs included in future forecasts. Although the closure is not expected to significantly impact FY2025 earnings, the hotel’s carrying value may be reassessed, potentially leading to an impairment.

CDL Investments Reports Increased Profit Despite Revenue Decline

CDL Investments New Zealand Limited, along with its subsidiary, reported its financial performance for the half-year ending June 30, 2025. The company experienced a decline in property sales revenue from the previous year, resulting in a decrease in total revenue. Despite this, the company achieved a higher net profit due to a significant reduction in income tax expenses. This financial outcome indicates a positive shift in profitability, which may influence investor confidence and market positioning.

Millennium & Copthorne Hotels NZ Reports Turnaround in Profit

City Developments’ subsidiary, Millennium & Copthorne Hotels New Zealand Limited, reported a decrease in revenue for the first half of 2025 compared to the same period in 2024. Despite a drop in operating profit and finance income, the company achieved a profit of $8.5 million, a significant turnaround from a loss of $10.2 million in the previous year, indicating improved financial health.

CDL Investments Disappointed by Hastings Council’s Land Exclusion Decision

CDL Investments New Zealand Limited expressed disappointment over the Hastings District Council’s decision to exclude its Middle Road land from the Future Development Strategy, despite recommendations from council officers and an independent panel. The decision raises concerns about meeting future growth needs and delays potential housing solutions for the Hawke’s Bay community. CDI is considering legal and planning advice for next steps, emphasizing the importance of strategic growth and infrastructure development.