BRT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. Both the profitability and financial health of BRT have multiple concerns. BRT does not seem to be growing, but still is valued expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year BRT has reported negative net income.
In the past year BRT had a positive cash flow from operations.
In multiple years BRT reported negative net income over the last 5 years.
In multiple years BRT reported negative operating cash flow during the last 5 years.

1.2 Ratios

BRT's Return On Assets of -1.33% is on the low side compared to the rest of the industry. BRT is outperformed by 80.00% of its industry peers.
BRT has a Return On Equity of -5.07%. This is amonst the worse of the industry: BRT underperforms 80.00% of its industry peers.
With a Return On Invested Capital value of 1.23%, BRT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
BRT had an Average Return On Invested Capital over the past 3 years of 0.71%. This is in line with the industry average of 2.59%.
The last Return On Invested Capital (1.23%) for BRT is above the 3 year average (0.71%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-1.33%
ROE	-5.07%
ROIC	1.23%

ROA(3y)2.02%

ROA(5y)1.39%

ROE(3y)5.72%

ROE(5y)4.06%

ROIC(3y)0.71%

ROIC(5y)N/A

1.3 Margins

BRT has a worse Operating Margin (11.01%) than 75.00% of its industry peers.
BRT's Gross Margin of 54.55% is on the low side compared to the rest of the industry. BRT is outperformed by 80.00% of its industry peers.
BRT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	11.01%
PM (TTM)	N/A
GM	54.55%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.79%

GM growth 5Y-0.34%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRT is destroying value.
The number of shares outstanding for BRT has been increased compared to 1 year ago.
BRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRT has a worse debt to assets ratio.

2.2 Solvency

BRT has an Altman-Z score of 0.31. This is a bad value and indicates that BRT is not financially healthy and even has some risk of bankruptcy.
BRT has a worse Altman-Z score (0.31) than 65.00% of its industry peers.
BRT has a Debt/Equity ratio of 2.67. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BRT (2.67) is worse than 80.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.67
Debt/FCF	N/A
Altman-Z	0.31

ROIC/WACC0.19

WACC6.4%

2.3 Liquidity

A Current Ratio of 0.73 indicates that BRT may have some problems paying its short term obligations.
The Current ratio of BRT (0.73) is better than 75.00% of its industry peers.
A Quick Ratio of 0.73 indicates that BRT may have some problems paying its short term obligations.
BRT has a better Quick ratio (0.73) than 75.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.73
Quick Ratio	0.73

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 3.77% over the past year.
Looking at the last year, BRT shows a very negative growth in Revenue. The Revenue has decreased by -18.44% in the last year.
Measured over the past years, BRT shows a very strong growth in Revenue. The Revenue has been growing by 28.03% on average per year.

EPS 1Y (TTM)3.77%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-16.67%

Revenue 1Y (TTM)-18.44%

Revenue growth 3Y43.89%

Revenue growth 5Y28.03%

Sales Q2Q%0.16%

3.2 Future

Based on estimates for the next years, BRT will show a small growth in Earnings Per Share. The EPS will grow by 3.36% on average per year.
BRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.

EPS Next Y-8.62%

EPS Next 2Y-5.13%

EPS Next 3Y3.36%

EPS Next 5YN/A

Revenue Next Year-0.14%

Revenue Next 2Y1.77%

Revenue Next 3Y3.56%

Revenue Next 5Y2.73%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for BRT. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BRT. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

80.00% of the companies in the same industry are cheaper than BRT, based on the Enterprise Value to EBITDA ratio.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	20.33

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-5.13%

EPS Next 3Y3.36%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.68%, BRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 32.02, BRT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.82, BRT pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	6.68%

5.2 History

The dividend of BRT has a limited annual growth rate of 3.64%.
BRT has paid a dividend for at least 10 years, which is a reliable track record.
As BRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Dividend Growth(5Y)3.64%

Div Incr Years0

Div Non Decr Years7

5.3 Sustainability

The earnings of BRT are negative and hence is the payout ratio. BRT will probably not be able to sustain this dividend level.
The dividend of BRT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP-198.85%

EPS Next 2Y-5.13%

EPS Next 3Y3.36%

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BRT APARTMENTS CORP / BRT FAQ

Can you provide the ChartMill fundamental rating for BRT APARTMENTS CORP?

ChartMill assigns a fundamental rating of 2 / 10 to BRT.

What is the valuation status of BRT APARTMENTS CORP (BRT) stock?

ChartMill assigns a valuation rating of 0 / 10 to BRT APARTMENTS CORP (BRT). This can be considered as Overvalued.

What is the profitability of BRT stock?

BRT APARTMENTS CORP (BRT) has a profitability rating of 2 / 10.

Can you provide the expected EPS growth for BRT stock?

The Earnings per Share (EPS) of BRT APARTMENTS CORP (BRT) is expected to decline by -8.62% in the next year.