FIRST INDUSTRIAL REALTY TR (FR)
US32054K1034 - REIT
We assign a fundamental rating of 6 out of 10 to FR. FR was compared to 130 industry peers in the Diversified REITs industry. While FR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FR had positive earnings in the past year.
FR had a positive operating cash flow in the past year.
Each year in the past 5 years FR has been profitable.
In the past 5 years FR always reported a positive cash flow from operatings.
1.2 Ratios
FR has a Return On Assets of 5.92%. This is amongst the best in the industry. FR outperforms 95.28% of its industry peers.
FR has a Return On Equity of 11.70%. This is amongst the best in the industry. FR outperforms 92.13% of its industry peers.
FR has a better Return On Invested Capital (4.20%) than 81.89% of its industry peers.
FR had an Average Return On Invested Capital over the past 3 years of 3.71%. This is in line with the industry average of 3.10%.
The 3 year average ROIC (3.71%) for FR is below the current ROIC(4.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 11.7% | ||
| ROIC | 4.2% |
ROA(3y)6.34%
ROA(5y)6.19%
ROE(3y)12.55%
ROE(5y)12.29%
ROIC(3y)3.71%
ROIC(5y)3.71%
1.3 Margins
FR has a Profit Margin of 47.31%. This is amongst the best in the industry. FR outperforms 95.28% of its industry peers.
FR's Profit Margin has improved in the last couple of years.
FR has a Operating Margin of 40.68%. This is amongst the best in the industry. FR outperforms 87.40% of its industry peers.
FR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.96%, FR is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
In the last couple of years the Gross Margin of FR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.68% | ||
| PM (TTM) | 47.31% | ||
| GM | 72.96% |
OM growth 3Y2.71%
OM growth 5Y2.71%
PM growth 3Y0.78%
PM growth 5Y2.12%
GM growth 3Y-0.17%
GM growth 5Y0.54%
2. Health
2.1 Basic Checks
FR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FR has about the same amount of shares outstanding.
The number of shares outstanding for FR has been increased compared to 5 years ago.
The debt/assets ratio for FR is higher compared to a year ago.
2.2 Solvency
FR has an Altman-Z score of 1.91. This is not the best score and indicates that FR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of FR (1.91) is better than 95.28% of its industry peers.
The Debt to FCF ratio of FR is 122.77, which is on the high side as it means it would take FR, 122.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FR (122.77) is comparable to the rest of the industry.
FR has a Debt/Equity ratio of 0.83. This is a neutral value indicating FR is somewhat dependend on debt financing.
FR has a Debt to Equity ratio of 0.83. This is in the better half of the industry: FR outperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 122.77 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.54
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.98 indicates that FR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.98, FR is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
A Quick Ratio of 1.95 indicates that FR should not have too much problems paying its short term obligations.
FR has a better Quick ratio (1.95) than 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
FR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.35%, which is quite good.
Measured over the past years, FR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.75% on average per year.
FR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.32%.
FR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.73% yearly.
EPS 1Y (TTM)15.35%
EPS 3Y10.6%
EPS 5Y9.75%
EPS Q2Q%31.58%
Revenue 1Y (TTM)8.32%
Revenue growth 3Y11.08%
Revenue growth 5Y8.73%
Sales Q2Q%8.08%
3.2 Future
Based on estimates for the next years, FR will show a small growth in Earnings Per Share. The EPS will grow by 2.65% on average per year.
FR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.37% yearly.
EPS Next Y-0.86%
EPS Next 2Y-11.11%
EPS Next 3Y-5.1%
EPS Next 5Y2.65%
Revenue Next Year8.35%
Revenue Next 2Y7.76%
Revenue Next 3Y7.91%
Revenue Next 5Y9.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.44 indicates a rather expensive valuation of FR.
Based on the Price/Earnings ratio, FR is valued cheaply inside the industry as 81.10% of the companies are valued more expensively.
FR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
The Price/Forward Earnings ratio is 30.54, which means the current valuation is very expensive for FR.
Based on the Price/Forward Earnings ratio, FR is valued a bit cheaper than 74.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.53. FR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 30.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FR is valued expensively inside the industry as 85.83% of the companies are valued cheaper.
FR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 373.18 | ||
| EV/EBITDA | 20.56 |
4.3 Compensation for Growth
FR has an outstanding profitability rating, which may justify a higher PE ratio.
FR's earnings are expected to decrease with -5.10% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.2
EPS Next 2Y-11.11%
EPS Next 3Y-5.1%
5. Dividend
5.1 Amount
FR has a Yearly Dividend Yield of 3.00%.
With a Dividend Yield of 3.00, FR pays less dividend than the industry average, which is at 15.23. 80.31% of the companies listed in the same industry pay a better dividend than FR!
Compared to an average S&P500 Dividend Yield of 2.33, FR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
On average, the dividend of FR grows each year by 7.55%, which is quite nice.
FR has paid a dividend for at least 10 years, which is a reliable track record.
FR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.55%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
60.58% of the earnings are spent on dividend by FR. This is not a sustainable payout ratio.
FR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.58%
EPS Next 2Y-11.11%
EPS Next 3Y-5.1%
FIRST INDUSTRIAL REALTY TR
NYSE:FR (1/14/2025, 8:04:00 PM)
After market: 49.95 0 (0%)49.95
+0.79 (+1.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.22%
Inst Owner Change0%
Ins Owners0.37%
Ins Owner Change-0.08%
Market Cap6.61B
Analysts76.15
Price Target59.09 (18.3%)
Short Float %0.91%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Dividend Growth(5Y)7.55%
DP60.58%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.19%
Min EPS beat(2)5.77%
Max EPS beat(2)90.62%
EPS beat(4)4
Avg EPS beat(4)68.37%
Min EPS beat(4)5.77%
Max EPS beat(4)112.11%
EPS beat(8)8
Avg EPS beat(8)71.62%
EPS beat(12)12
Avg EPS beat(12)104.12%
EPS beat(16)16
Avg EPS beat(16)105.74%
Revenue beat(2)0
Avg Revenue beat(2)-3.57%
Min Revenue beat(2)-3.97%
Max Revenue beat(2)-3.18%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)-2.47%
Revenue beat(8)2
Avg Revenue beat(8)-1.7%
Revenue beat(12)4
Avg Revenue beat(12)-1.28%
Revenue beat(16)4
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)0.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)0%
EPS NY rev (3m)21.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 30.54 | ||
| P/S | 10.15 | ||
| P/FCF | 373.18 | ||
| P/OCF | 19.44 | ||
| P/B | 2.51 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 20.56 |
EPS(TTM)2.33
EY4.66%
EPS(NY)1.64
Fwd EY3.27%
FCF(TTM)0.13
FCFY0.27%
OCF(TTM)2.57
OCFY5.14%
SpS4.92
BVpS19.89
TBVpS19.89
PEG (NY)N/A
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 11.7% | ||
| ROCE | 5.31% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 4.24% | ||
| OM | 40.68% | ||
| PM (TTM) | 47.31% | ||
| GM | 72.96% | ||
| FCFM | 2.72% |
ROA(3y)6.34%
ROA(5y)6.19%
ROE(3y)12.55%
ROE(5y)12.29%
ROIC(3y)3.71%
ROIC(5y)3.71%
ROICexc(3y)3.77%
ROICexc(5y)3.79%
ROICexgc(3y)3.79%
ROICexgc(5y)3.81%
ROCE(3y)4.69%
ROCE(5y)4.69%
ROICexcg growth 3Y1.27%
ROICexcg growth 5Y0.99%
ROICexc growth 3Y1.37%
ROICexc growth 5Y1.1%
OM growth 3Y2.71%
OM growth 5Y2.71%
PM growth 3Y0.78%
PM growth 5Y2.12%
GM growth 3Y-0.17%
GM growth 5Y0.54%
F-Score8
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 122.77 | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 207.92% | ||
| Cap/Sales | 49.5% | ||
| Interest Coverage | 3.88 | ||
| Cash Conversion | 80.97% | ||
| Profit Quality | 5.75% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 1.91 |
F-Score8
WACC7.78%
ROIC/WACC0.54
Cap/Depr(3y)479.5%
Cap/Depr(5y)425.01%
Cap/Sales(3y)124.54%
Cap/Sales(5y)114.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.35%
EPS 3Y10.6%
EPS 5Y9.75%
EPS Q2Q%31.58%
EPS Next Y-0.86%
EPS Next 2Y-11.11%
EPS Next 3Y-5.1%
EPS Next 5Y2.65%
Revenue 1Y (TTM)8.32%
Revenue growth 3Y11.08%
Revenue growth 5Y8.73%
Sales Q2Q%8.08%
Revenue Next Year8.35%
Revenue Next 2Y7.76%
Revenue Next 3Y7.91%
Revenue Next 5Y9.37%
EBIT growth 1Y9.09%
EBIT growth 3Y14.09%
EBIT growth 5Y11.68%
EBIT Next Year85.15%
EBIT Next 3Y29.36%
EBIT Next 5Y23.95%
FCF growth 1Y103.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.34%
OCF growth 3Y8.23%
OCF growth 5Y7.69%