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Fat Margins Remain Norm at DMCI Holdings

Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on DMCI Holdings Incorporated.



Background

DMCI Holdings Incorporated is a major Philippines-based conglomerate. It owns the largest coal mine in the country.

In the past, its core business was construction, but power, mining, property development and domestic infrastructure projects have recently become its main profit sources.

Business Description

More than 80% of DMCI’s net income comes from its power, property and mining segments. It owns 56% of Semirara Mining and Power Corporation (SCC PM), which accounts for more than half of DMC’s overall net income. Power generation revenue comes from both its ownership in SCC and its fully-owned subsidiary DMCI Power, which designs, constructs, invests in and operates electric power plants.

The mining division is engaged in the mining  and sale of coal and nickel ore.

The property development segment is focused on mid-income residential condos under the brand name DMCI Homes.

Its water segment, which provides about one-sixth of the company’s net income, runs the largest private water concession in the country. The construction division is involved in general contracting.

Leadership

Isidro Consunji took full control of the company from his father, founder David Consunji, at the end of 2014. He had already been a board director for various companies controlled by DCMI and the President of DMCI since 1995.

Since then the old saying has proven true: life father, like son. Our World Class Benchmarking metrics have remained strong under the younger Consunji’s leadership thus far. The company remains in the top tier among its peers for its industry-leading profit margin.

World Class Benchmarking

Most investors should be impressed by DCMI’s Profitable Growth metric, which has been stable at #2 since 2014. DMCI ranks among the best 280 large industrial companies globally in this metric.

Profitability also fell back to a strong #2, and the company’s Growth metric has remained above average.

While our ranking system rules that their Asset utilization is in the worst decile, its Profit margin remains among the best, so investors may be forgiven for ignoring the efficiency indicator.

Among its peers, its Profit margin has remained in the top ranking for five years without fail.


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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.