FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
NYSE:FRT - New York Stock Exchange, Inc. - US3137451015 - REIT - Currency: USD
Overall FRT gets a fundamental rating of 4 out of 10. We evaluated FRT against 129 industry peers in the Diversified REITs industry. While FRT has a great profitability rating, there are quite some concerns on its financial health. FRT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FRT was profitable.
In the past year FRT had a positive cash flow from operations.
In the past 5 years FRT has always been profitable.
Each year in the past 5 years FRT had a positive operating cash flow.
1.2 Ratios
FRT has a Return On Assets of 3.35%. This is amongst the best in the industry. FRT outperforms 84.13% of its industry peers.
Looking at the Return On Equity, with a value of 9.01%, FRT belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.06%, FRT is doing good in the industry, outperforming 79.37% of the companies in the same industry.
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 3.11%.
The 3 year average ROIC (3.87%) for FRT is below the current ROIC(4.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.01% | ||
| ROIC | 4.06% |
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
Looking at the Profit Margin, with a value of 23.78%, FRT is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
FRT's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 34.79%, FRT is doing good in the industry, outperforming 74.60% of the companies in the same industry.
FRT's Operating Margin has declined in the last couple of years.
FRT has a Gross Margin of 67.42%. This is comparable to the rest of the industry: FRT outperforms 50.79% of 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 | 34.79% | ||
| PM (TTM) | 23.78% | ||
| GM | 67.42% |
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
FRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FRT has more shares outstanding
The debt/assets ratio for FRT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that FRT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.13, FRT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
FRT has a debt to FCF ratio of 83.27. This is a negative value and a sign of low solvency as FRT would need 83.27 years to pay back of all of its debts.
FRT has a Debt to FCF ratio of 83.27. This is comparable to the rest of the industry: FRT outperforms 53.17% of its industry peers.
FRT has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FRT (1.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 83.27 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.58
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.65 indicates that FRT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, FRT is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that FRT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.65, FRT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
FRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.00%, which is quite impressive.
Measured over the past years, FRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.81% on average per year.
The Revenue has been growing slightly by 6.20% in the past 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)35%
EPS 3Y7.06%
EPS 5Y-3.81%
EPS Q2Q%127.63%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.83%
3.2 Future
Based on estimates for the next years, FRT will show a small growth in Earnings Per Share. The EPS will grow by 0.52% on average per year.
Based on estimates for the next years, FRT will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y-17.94%
EPS Next 2Y-6.79%
EPS Next 3Y-3.34%
EPS Next 5Y0.52%
Revenue Next Year5.04%
Revenue Next 2Y4.72%
Revenue Next 3Y5.03%
Revenue Next 5Y4.76%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.58, FRT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FRT is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.63, FRT is valued at the same level.
Based on the Price/Forward Earnings ratio of 33.61, the valuation of FRT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRT indicates a somewhat cheap valuation: FRT is cheaper than 74.60% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FRT to the average of the S&P500 Index (22.68), we can say FRT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 33.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FRT is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as FRT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 164.4 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
The decent profitability rating of FRT may justify a higher PE ratio.
FRT's earnings are expected to decrease with -3.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.79%
EPS Next 3Y-3.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, FRT is a good candidate for dividend investing.
FRT's Dividend Yield is slightly below the industry average, which is at 18.48.
Compared to an average S&P500 Dividend Yield of 2.29, FRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of FRT has a limited annual growth rate of 1.04%.
FRT has paid a dividend for at least 10 years, which is a reliable track record.
FRT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.04%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
FRT pays out 129.97% of its income as dividend. This is not a sustainable payout ratio.
FRT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP129.97%
EPS Next 2Y-6.79%
EPS Next 3Y-3.34%
104.25
-0.28 (-0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.39%
Inst Owner Change5.43%
Ins Owners1.02%
Ins Owner Change6.45%
Market Cap8.86B
Analysts80
Price Target124.89 (19.8%)
Short Float %2.5%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend4.41
Dividend Growth(5Y)1.04%
DP129.97%
Div Incr Years32
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)64.92%
Min EPS beat(2)-4.4%
Max EPS beat(2)134.24%
EPS beat(4)1
Avg EPS beat(4)30.86%
Min EPS beat(4)-4.4%
Max EPS beat(4)134.24%
EPS beat(8)4
Avg EPS beat(8)18.8%
EPS beat(12)8
Avg EPS beat(12)43.74%
EPS beat(16)12
Avg EPS beat(16)58.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)6
Avg Revenue beat(12)0.43%
Revenue beat(16)10
Avg Revenue beat(16)1.29%
PT rev (1m)-1.35%
PT rev (3m)0.11%
EPS NQ rev (1m)-3.99%
EPS NQ rev (3m)-3.57%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 33.61 | ||
| P/S | 7.37 | ||
| P/FCF | 164.4 | ||
| P/OCF | 15.42 | ||
| P/B | 2.79 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 17.41 |
EPS(TTM)3.78
EY3.63%
EPS(NY)3.1
Fwd EY2.98%
FCF(TTM)0.63
FCFY0.61%
OCF(TTM)6.76
OCFY6.49%
SpS14.15
BVpS37.33
TBVpS37.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.01% | ||
| ROCE | 5.14% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.12% | ||
| OM | 34.79% | ||
| PM (TTM) | 23.78% | ||
| GM | 67.42% | ||
| FCFM | 4.48% |
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-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 83.27 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 151.98% | ||
| Cap/Sales | 43.3% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 75.51% | ||
| Profit Quality | 18.84% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.13 |
F-Score6
WACC7.04%
ROIC/WACC0.58
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)35%
EPS 3Y7.06%
EPS 5Y-3.81%
EPS Q2Q%127.63%
EPS Next Y-17.94%
EPS Next 2Y-6.79%
EPS Next 3Y-3.34%
EPS Next 5Y0.52%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.83%
Revenue Next Year5.04%
Revenue Next 2Y4.72%
Revenue Next 3Y5.03%
Revenue Next 5Y4.76%
EBIT growth 1Y5.48%
EBIT growth 3Y11.14%
EBIT growth 5Y3.37%
EBIT Next Year90.01%
EBIT Next 3Y26.32%
EBIT Next 5Y17.97%
FCF growth 1Y-70.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.37%
OCF growth 3Y6.82%
OCF growth 5Y4.46%