FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FRT - US3137451015 - REIT
101.7 USD
-0.07 (-0.07%)
We assign a fundamental rating of 5 out of 10 to FRT. FRT was compared to 124 industry peers in the Diversified REITs industry. While FRT has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, FRT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- FRT had positive earnings in the past year.
- 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 3.81%. This is amongst the best in the industry. FRT outperforms 81.45% of its industry peers.
- The Return On Equity of FRT (10.50%) is better than 87.90% of its industry peers.
- The Return On Invested Capital of FRT (4.10%) is better than 79.03% 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 (4.10%) for FRT is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 10.5% | ||
| ROIC | 4.1% |
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
- FRT has a better Profit Margin (26.90%) than 79.03% of its industry peers.
- In the last couple of years the Profit Margin of FRT has declined.
- FRT has a Operating Margin of 34.86%. This is in the better half of the industry: FRT outperforms 71.77% of its industry peers.
- FRT's Operating Margin has declined in the last couple of years.
- FRT has a Gross Margin (67.29%) which is in line with its industry peers.
- FRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.86% | ||
| PM (TTM) | 26.9% | ||
| GM | 67.29% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
- FRT has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.07, we must say that FRT is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of FRT (1.07) is better than 79.03% of its industry peers.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that FRT has dependencies on debt financing.
- FRT has a Debt to Equity ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.6
WACC6.85%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that FRT should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.57, FRT is doing good in the industry, outperforming 73.39% of the companies in the same industry.
- A Quick Ratio of 1.57 indicates that FRT should not have too much problems paying its short term obligations.
- FRT has a better Quick ratio (1.57) than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
- FRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.21%, which is quite impressive.
- The Earnings Per Share has been decreasing by -9.41% on average over the past years.
- Looking at the last year, FRT shows a small growth in Revenue. The Revenue has grown by 6.05% in the last year.
- The Revenue has been growing slightly by 5.14% on average over the past years.
EPS 1Y (TTM)40.21%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%-1.43%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%3.15%
3.2 Future
- Based on estimates for the next years, FRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.40% on average per year.
- FRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y43.1%
EPS Next 2Y5%
EPS Next 3Y5.32%
EPS Next 5Y8.4%
Revenue Next Year5.53%
Revenue Next 2Y5.5%
Revenue Next 3Y4.6%
Revenue Next 5Y5.2%
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
- The Price/Earnings ratio is 25.81, which means the current valuation is very expensive for FRT.
- Based on the Price/Earnings ratio, FRT is valued a bit cheaper than the industry average as 73.39% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, FRT is valued at the same level.
- The Price/Forward Earnings ratio is 32.95, which means the current valuation is very expensive for FRT.
- Based on the Price/Forward Earnings ratio, FRT is valued a bit cheaper than 73.39% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of FRT to the average of the S&P500 Index (25.98), we can say FRT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 32.95 |
4.2 Price Multiples
- FRT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FRT is more expensive than 65.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.86 |
4.3 Compensation for Growth
- FRT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of FRT may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y5%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.45%, FRT is a good candidate for dividend investing.
- FRT's Dividend Yield is comparable with the industry average which is at 6.82.
- FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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 113.83% 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.
DP113.83%
EPS Next 2Y5%
EPS Next 3Y5.32%
FEDERAL REALTY INVS TRUST / FRT FAQ
What is the ChartMill fundamental rating of FEDERAL REALTY INVS TRUST (FRT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FRT.
What is the valuation status of FEDERAL REALTY INVS TRUST (FRT) stock?
ChartMill assigns a valuation rating of 3 / 10 to FEDERAL REALTY INVS TRUST (FRT). This can be considered as Overvalued.
How profitable is FEDERAL REALTY INVS TRUST (FRT) stock?
FEDERAL REALTY INVS TRUST (FRT) has a profitability rating of 7 / 10.
How financially healthy is FEDERAL REALTY INVS TRUST?
The financial health rating of FEDERAL REALTY INVS TRUST (FRT) is 3 / 10.
Can you provide the expected EPS growth for FRT stock?
The Earnings per Share (EPS) of FEDERAL REALTY INVS TRUST (FRT) is expected to grow by 43.1% in the next year.