FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FRT - US3137451015 - REIT
101.77 USD
+0.11 (+0.11%)
101.77 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FRT. FRT was compared to 125 industry peers in the Diversified REITs industry. FRT scores excellent on profitability, but there are 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.
- FRT had positive earnings in each of the past 5 years.
- In the past 5 years FRT always reported a positive cash flow from operatings.
1.2 Ratios
- FRT has a Return On Assets of 3.81%. This is amongst the best in the industry. FRT outperforms 80.80% of its industry peers.
- FRT's Return On Equity of 10.50% is amongst the best of the industry. FRT outperforms 87.20% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.10%, FRT is in the better half of the industry, outperforming 78.40% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FRT is in line with the industry average of 3.07%.
- The 3 year average ROIC (3.87%) for FRT is below the current ROIC(4.10%), indicating increased profibility in the last year.
| 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
- The Profit Margin of FRT (26.90%) is better than 78.40% of its industry peers.
- In the last couple of years the Profit Margin of FRT has declined.
- The Operating Margin of FRT (34.86%) is better than 72.00% of its industry peers.
- In the last couple of years the Operating Margin of FRT has declined.
- Looking at the Gross Margin, with a value of 67.29%, FRT is in line with its industry, outperforming 52.00% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FRT 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 1.07, 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 1.07, FRT is in the better half of the industry, outperforming 77.60% of the companies in the same industry.
- 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 of 1.47. This is comparable to the rest of the industry: FRT outperforms 43.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACC0.6
WACC6.87%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that FRT should not have too much problems paying its short term obligations.
- FRT has a better Current ratio (1.57) than 73.60% of its industry peers.
- FRT has a Quick Ratio of 1.57. This is a normal value and indicates that FRT is financially healthy and should not expect problems in meeting its short term obligations.
- FRT has a Quick ratio of 1.57. This is in the better half of the industry: FRT outperforms 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.21% 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.
- The Revenue has been growing slightly by 6.05% in the past 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
- The Earnings Per Share is expected to grow by 8.40% on average over the next years. This is quite good.
- FRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y39.46%
EPS Next 2Y5.19%
EPS Next 3Y5.32%
EPS Next 5Y8.4%
Revenue Next Year5.2%
Revenue Next 2Y5.19%
Revenue Next 3Y4.43%
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
- FRT is valuated quite expensively with a Price/Earnings ratio of 25.83.
- 72.80% of the companies in the same industry are more expensive than FRT, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. FRT is around the same levels.
- Based on the Price/Forward Earnings ratio of 32.85, the valuation of FRT can be described as expensive.
- Based on the Price/Forward Earnings ratio, FRT is valued a bit cheaper than 73.60% of the companies in the same industry.
- FRT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 32.85 |
4.2 Price Multiples
- 64.80% of the companies in the same industry are cheaper than FRT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.85 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- FRT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y5.19%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
- FRT has a Yearly Dividend Yield of 6.21%, which is a nice return.
- FRT's Dividend Yield is comparable with the industry average which is at 6.59.
- FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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
- 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 2Y5.19%
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 39.46% in the next year.