FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
USA - NYSE:FRT - US3137451015 - REIT
101.65 USD
-0.15 (-0.15%)
101.3 USD
-0.35 (-0.34%)
FRT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. FRT has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, FRT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year FRT was profitable.
FRT had a positive operating cash flow in the past year.
FRT had positive earnings in each of the past 5 years.
Each year in the past 5 years FRT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.90%, FRT belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.36%, FRT belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
FRT has a better Return On Invested Capital (4.15%) than 76.92% of its industry peers.
FRT had an Average Return On Invested Capital over the past 3 years of 3.87%. This is in line with the industry average of 3.05%.
The last Return On Invested Capital (4.15%) for FRT is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 10.36% | ||
| ROIC | 4.15% |
ROA(3y)3.54%
ROA(5y)3.11%
ROE(3y)9.81%
ROE(5y)8.84%
ROIC(3y)3.87%
ROIC(5y)3.53%
1.3 Margins
The Profit Margin of FRT (27.24%) is better than 83.08% of its industry peers.
In the last couple of years the Profit Margin of FRT has declined.
FRT has a Operating Margin of 34.99%. This is in the better half of the industry: FRT outperforms 73.08% of its industry peers.
In the last couple of years the Operating Margin of FRT has declined.
FRT has a Gross Margin (67.26%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.99% | ||
| PM (TTM) | 27.24% | ||
| GM | 67.26% |
OM growth 3Y2.79%
OM growth 5Y-1.69%
PM growth 3Y-3.57%
PM growth 5Y-8.39%
GM growth 3Y0.35%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FRT is destroying value.
The number of shares outstanding for FRT has been increased compared to 1 year ago.
The number of shares outstanding for FRT has been increased compared to 5 years ago.
Compared to 1 year ago, FRT has an improved debt to assets ratio.
2.2 Solvency
FRT has an Altman-Z score of 1.13. This is a bad value and indicates that FRT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FRT (1.13) is better than 79.23% of its industry peers.
The Debt to FCF ratio of FRT is 27.16, which is on the high side as it means it would take FRT, 27.16 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 27.16, FRT is doing good in the industry, outperforming 72.31% of the companies in the same industry.
A Debt/Equity ratio of 1.39 is on the high side and indicates that FRT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.39, FRT is in line with its industry, outperforming 46.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 27.16 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.62
WACC6.73%
2.3 Liquidity
A Current Ratio of 1.71 indicates that FRT should not have too much problems paying its short term obligations.
FRT has a Current ratio of 1.71. This is in the better half of the industry: FRT outperforms 73.85% of its industry peers.
A Quick Ratio of 1.71 indicates that FRT should not have too much problems paying its short term obligations.
FRT has a better Quick ratio (1.71) than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.09% over the past year.
Measured over the past years, FRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.41% on average per year.
Looking at the last year, FRT shows a small growth in Revenue. The Revenue has grown by 6.00% in the last year.
Measured over the past years, FRT shows a small growth in Revenue. The Revenue has been growing by 5.14% on average per year.
EPS 1Y (TTM)42.09%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%157.97%
Revenue 1Y (TTM)6%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%5.23%
3.2 Future
FRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.17% yearly.
FRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y16.55%
EPS Next 2Y7.59%
EPS Next 3Y8.11%
EPS Next 5Y6.17%
Revenue Next Year4.87%
Revenue Next 2Y5.07%
Revenue Next 3Y4.55%
Revenue Next 5Y5.64%
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 accelerating.
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
Based on the Price/Earnings ratio of 25.73, the valuation of FRT can be described as expensive.
Based on the Price/Earnings ratio, FRT is valued a bit cheaper than 71.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of FRT to the average of the S&P500 Index (27.30), we can say FRT is valued inline with the index average.
FRT is valuated quite expensively with a Price/Forward Earnings ratio of 31.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRT indicates a somewhat cheap valuation: FRT is cheaper than 76.15% of the companies listed in the same industry.
FRT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 31.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FRT is valued a bit more expensive than 68.46% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRT indicates a somewhat cheap valuation: FRT is cheaper than 60.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.93 | ||
| EV/EBITDA | 16.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FRT may justify a higher PE ratio.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y7.59%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
FRT has a Yearly Dividend Yield of 4.44%, which is a nice return.
FRT's Dividend Yield is comparable with the industry average which is at 6.66.
FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
The dividend of FRT has a limited annual growth rate of 1.04%.
FRT has been paying a dividend for at least 10 years, so it has a reliable track record.
FRT has decreased its dividend recently.
Dividend Growth(5Y)1.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FRT pays out 112.93% of its income as dividend. This is not a sustainable payout ratio.
FRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP112.93%
EPS Next 2Y7.59%
EPS Next 3Y8.11%
101.65
-0.15 (-0.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.53%
Inst Owner Change-1.65%
Ins Owners1%
Ins Owner Change-6.33%
Market Cap8.77B
Analysts76.36
Price Target110.49 (8.7%)
Short Float %2.93%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend4.41
Dividend Growth(5Y)1.04%
DP112.93%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.38%
Min EPS beat(2)2.2%
Max EPS beat(2)138.56%
EPS beat(4)3
Avg EPS beat(4)34.48%
Min EPS beat(4)-4.4%
Max EPS beat(4)138.56%
EPS beat(8)4
Avg EPS beat(8)17.96%
EPS beat(12)8
Avg EPS beat(12)39.91%
EPS beat(16)12
Avg EPS beat(16)47.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.43%
Revenue beat(12)4
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)0.8%
PT rev (1m)-0.96%
PT rev (3m)-3.11%
EPS NQ rev (1m)-10.06%
EPS NQ rev (3m)-11.46%
EPS NY rev (1m)3.34%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.73 | ||
| Fwd PE | 31.36 | ||
| P/S | 7.1 | ||
| P/FCF | 52.93 | ||
| P/OCF | 14.78 | ||
| P/B | 2.7 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 16.73 |
EPS(TTM)3.95
EY3.89%
EPS(NY)3.24
Fwd EY3.19%
FCF(TTM)1.92
FCFY1.89%
OCF(TTM)6.88
OCFY6.77%
SpS14.32
BVpS37.66
TBVpS37.66
PEG (NY)1.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 10.36% | ||
| ROCE | 5.26% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 4.24% | ||
| OM | 34.99% | ||
| PM (TTM) | 27.24% | ||
| GM | 67.26% | ||
| FCFM | 13.41% |
ROA(3y)3.54%
ROA(5y)3.11%
ROE(3y)9.81%
ROE(5y)8.84%
ROIC(3y)3.87%
ROIC(5y)3.53%
ROICexc(3y)3.94%
ROICexc(5y)3.66%
ROICexgc(3y)3.95%
ROICexgc(5y)3.67%
ROCE(3y)4.89%
ROCE(5y)4.47%
ROICexcg growth 3Y6.41%
ROICexcg growth 5Y-1.68%
ROICexc growth 3Y6.44%
ROICexc growth 5Y-1.7%
OM growth 3Y2.79%
OM growth 5Y-1.69%
PM growth 3Y-3.57%
PM growth 5Y-8.39%
GM growth 3Y0.35%
GM growth 5Y-0.19%
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 27.16 | ||
| Debt/EBITDA | 5.75 | ||
| Cap/Depr | 122.09% | ||
| Cap/Sales | 34.61% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 49.21% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.13 |
F-Score7
WACC6.73%
ROIC/WACC0.62
Cap/Depr(3y)183.44%
Cap/Depr(5y)207.83%
Cap/Sales(3y)51.91%
Cap/Sales(5y)60.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.09%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%157.97%
EPS Next Y16.55%
EPS Next 2Y7.59%
EPS Next 3Y8.11%
EPS Next 5Y6.17%
Revenue 1Y (TTM)6%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%5.23%
Revenue Next Year4.87%
Revenue Next 2Y5.07%
Revenue Next 3Y4.55%
Revenue Next 5Y5.64%
EBIT growth 1Y6.61%
EBIT growth 3Y11.14%
EBIT growth 5Y3.37%
EBIT Next Year89.1%
EBIT Next 3Y27.69%
EBIT Next 5Y17.15%
FCF growth 1Y172.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.17%
OCF growth 3Y6.82%
OCF growth 5Y4.46%