FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
NYSE:FRT - New York Stock Exchange, Inc. - US3137451015 - REIT - Currency: USD
FRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While FRT belongs to the best of the industry regarding profitability, there are concerns on its financial health. FRT is quite expensive at the moment. It does show a decent growth rate.
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
The Return On Assets of FRT (3.40%) is better than 83.08% of its industry peers.
Looking at the Return On Equity, with a value of 9.18%, FRT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.09%, FRT is in the better half of the industry, outperforming 76.15% 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 3.16%.
The last Return On Invested Capital (4.09%) for FRT is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 9.18% | ||
| ROIC | 4.09% |
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 (24.00%) than 78.46% of its industry peers.
FRT's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 34.83%, FRT is doing good in the industry, outperforming 73.85% of the companies in the same industry.
In the last couple of years the Operating Margin of FRT has declined.
FRT has a Gross Margin of 67.18%. This is comparable to the rest of the industry: FRT outperforms 52.31% of its industry peers.
FRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.83% | ||
| PM (TTM) | 24% | ||
| GM | 67.18% |
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.
FRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FRT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that FRT is in the distress zone and has some risk of bankruptcy.
FRT has a Altman-Z score of 1.04. This is in the better half of the industry: FRT outperforms 76.92% of its industry peers.
FRT has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.42, FRT is in line with its industry, outperforming 43.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.6
WACC6.84%
2.3 Liquidity
A Current Ratio of 1.54 indicates that FRT should not have too much problems paying its short term obligations.
FRT has a Current ratio of 1.54. This is in the better half of the industry: FRT outperforms 70.77% of its industry peers.
A Quick Ratio of 1.54 indicates that FRT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.54, FRT is doing good in the industry, outperforming 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.78% over the past year.
FRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.41% yearly.
FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
FRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)1.78%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.12%
3.2 Future
FRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.15% yearly.
The Revenue is expected to grow by 5.90% on average over the next years.
EPS Next Y13.42%
EPS Next 2Y8.16%
EPS Next 3Y7.89%
EPS Next 5Y7.15%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y5.13%
Revenue Next 5Y5.9%
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
A Price/Earnings ratio of 33.50 indicates a quite expensive valuation of FRT.
FRT's Price/Earnings is on the same level as the industry average.
FRT is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.25, which means the current valuation is very expensive for FRT.
FRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FRT is cheaper than 77.69% of the companies in the same industry.
FRT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 29.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FRT is valued a bit more expensive than the industry average as 68.46% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FRT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FRT may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)N/A
EPS Next 2Y8.16%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
FRT has a Yearly Dividend Yield of 4.59%, which is a nice return.
FRT's Dividend Yield is slightly below 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 | 4.59% |
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.
The dividend of FRT decreased recently.
Dividend Growth(5Y)1.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
128.27% of the earnings are spent on dividend by FRT. This is not a sustainable payout ratio.
FRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP128.27%
EPS Next 2Y8.16%
EPS Next 3Y7.89%
95.8
+0.88 (+0.93%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.86%
Inst Owner Change-1.89%
Ins Owners1%
Ins Owner Change3.97%
Market Cap8.26B
Analysts76.19
Price Target112.54 (17.47%)
Short Float %2.92%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend4.41
Dividend Growth(5Y)1.04%
DP128.27%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)1.55%
Max EPS beat(2)2.2%
EPS beat(4)2
Avg EPS beat(4)-1.01%
Min EPS beat(4)-4.4%
Max EPS beat(4)2.2%
EPS beat(8)4
Avg EPS beat(8)1.67%
EPS beat(12)8
Avg EPS beat(12)30.3%
EPS beat(16)12
Avg EPS beat(16)42.51%
Revenue beat(2)0
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)5
Avg Revenue beat(12)0.26%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)-2.76%
PT rev (3m)-7.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)1.04%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 29.25 | ||
| P/S | 6.77 | ||
| P/FCF | N/A | ||
| P/OCF | 13.49 | ||
| P/B | 2.59 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 16.44 |
EPS(TTM)2.86
EY2.99%
EPS(NY)3.28
Fwd EY3.42%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)7.1
OCFY7.41%
SpS14.15
BVpS37
TBVpS37
PEG (NY)2.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 9.18% | ||
| ROCE | 5.17% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.14% | ||
| OM | 34.83% | ||
| PM (TTM) | 24% | ||
| GM | 67.18% | ||
| FCFM | N/A |
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 | 1.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.87 | ||
| Cap/Depr | 183.85% | ||
| Cap/Sales | 52.15% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 79.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.04 |
F-Score7
WACC6.84%
ROIC/WACC0.6
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)1.78%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%9.09%
EPS Next Y13.42%
EPS Next 2Y8.16%
EPS Next 3Y7.89%
EPS Next 5Y7.15%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.12%
Revenue Next Year4.87%
Revenue Next 2Y5.19%
Revenue Next 3Y5.13%
Revenue Next 5Y5.9%
EBIT growth 1Y5.56%
EBIT growth 3Y11.14%
EBIT growth 5Y3.37%
EBIT Next Year88.9%
EBIT Next 3Y27.79%
EBIT Next 5Y17.96%
FCF growth 1Y92.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.01%
OCF growth 3Y6.82%
OCF growth 5Y4.46%