Domain Holdings Australia Ltd Ordinary Shares

DHG: XASX (AUS)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
A$9.80GktspqQdfx

A Financial Recovery, but a Competitive Degradation

Business Strategy and Outlook

We expect Domain’s near-term challenges to center on navigating significant volatility in the Australian housing market. After the onset of the covid-19 pandemic, Domain received a substantial boost to revenue and profit margins from the booming housing market. We estimate that residential transactions were around a third above trend levels during fiscal 2021 and 2022 and we expect that Domain, as the second-largest real estate listings platform, benefited disproportionately from this event.

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