Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
DMCI Holdings, Inc., founded in 1995 and headquartered in Makati City, Philippines, is a diversified conglomerate with operations spanning the Philippines and international markets. The company's extensive portfolio is managed across seven key segments: Construction and Others, Coal Mining, Nickel Mining, Real Estate, On-Grid Power, Off-Grid Power, and Water. Its construction division undertakes a wide range of projects, including commercial and residential buildings, infrastructure like bridges, power plants, industrial facilities, and specialized structures such as chapels and theaters. Complementing its construction services, DMCI is also involved in manufacturing and trading concrete products, executing steel fabrication, and performing electrical and foundation works. In real estate, the company develops mid-income residential properties, primarily under its DMCI Homes brand. Its power generation activities involve operating both coal-fired and satellite power plants. DMCI's mining operations encompass the exploration, development, and sale of coal resources from Semirara Island in Caluya, Antique, as well as the extraction and sale of nickel, chromite, and iron laterite from various mines in Palawan (Berong, Moorsom, Ulugan) and Zambales (Acoje). Furthermore, the conglomerate is a provider of water and sewerage services.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD