Douglas Elliman Inc. Common Stock (DOUG)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable economics, honest numbers, and a margin of safety. Douglas Elliman is a 1911-founded residential brokerage with ancillary services, but brokerage is a competitive, cyclical, low-margin business with few toll-bridge characteristics. The filed figures show a bumpy turnaround: fiscal 2025 revenue was about $1.0B and net income was $15.2M, or $0.17 diluted EPS, after fiscal 2024 net loss of $76.3M and fiscal 2023 net loss of $42.6M. Yet in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $283.4M and net income was -$2.7M, or -$0.03 diluted EPS; fiscal Q1 2026 lost $16.3M, or -$0.19 diluted EPS. So the latest quarters do not confirm the profitable year. FairStock's calculated P/B of 0.82 and Graham Number of $3.46, against the 2026-10-13 close of $1.51, imply a 56.36% margin of safety, and FairStock's calculated P/E is 5.21. But FairStock also reports trailing free cash flow of -$18.7M, FCF yield of -13.6%, ROCE of -2.77%, and Altman Z-score of 0.65. Those are not the marks of a fortress balance sheet. Debt/equity of 0.59 and beta of 1.90 add cyclicality. The low EV/EBITDA of 3.43, PEG of 0.06, and Lynch TURNAROUND classification hinge on a recovery that the latest filed results have not yet proved. Piotroski 6/9 is middling. I would want sustainable positive cash flow before treating this as a safe bargain.

In plain English: Douglas Elliman is a real estate brokerage and related services company that helps people buy and sell homes. The business has been losing money in recent quarters, though it earned a small profit in fiscal 2025 after losses in 2024 and 2023, so it looks like a shaky turnaround. At $1.51, the shares look cheap compared with the company's book value and some earnings measures, but the cash flow is negative, so the cheapness comes with real risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer