FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
NYSE:FRT - New York Stock Exchange, Inc. - US3137451015 - REIT
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 belongs to the best of the industry regarding profitability, there are concerns on its financial health. FRT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FRT was profitable.
FRT had a positive operating cash flow in the past year.
In the past 5 years FRT has always been profitable.
In the past 5 years FRT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.35%, FRT belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
FRT's Return On Equity of 9.14% is amongst the best of the industry. FRT outperforms 85.71% of its industry peers.
The Return On Invested Capital of FRT (4.02%) is better than 80.16% of its industry peers.
FRT had an Average Return On Invested Capital over the past 3 years of 3.63%. This is in line with the industry average of 3.11%.
The last Return On Invested Capital (4.02%) for FRT is above the 3 year average (3.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.14% | ||
| ROIC | 4.02% |
ROA(3y)3.52%
ROA(5y)3.45%
ROE(3y)10.06%
ROE(5y)9.75%
ROIC(3y)3.63%
ROIC(5y)3.6%
1.3 Margins
FRT has a better Profit Margin (24.05%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of FRT has declined.
Looking at the Operating Margin, with a value of 34.78%, FRT is in the better half of the industry, outperforming 75.40% of the companies in the same industry.
In the last couple of years the Operating Margin of FRT has declined.
The Gross Margin of FRT (67.40%) is comparable to the rest of the industry.
FRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.78% | ||
| PM (TTM) | 24.05% | ||
| GM | 67.4% |
OM growth 3Y5.59%
OM growth 5Y-1.72%
PM growth 3Y11.05%
PM growth 5Y-4.6%
GM growth 3Y1.34%
GM growth 5Y-0.18%
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.
FRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FRT is higher 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.
The Debt to FCF ratio of FRT is 128.09, which is on the high side as it means it would take FRT, 128.09 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 128.09, FRT perfoms like the industry average, outperforming 46.83% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that FRT has dependencies on debt financing.
With a Debt to Equity ratio value of 1.44, FRT is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 128.09 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.57
WACC7.1%
2.3 Liquidity
FRT has a Current Ratio of 1.44. This is a normal value and indicates that FRT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FRT (1.44) is comparable to the rest of the industry.
A Quick Ratio of 1.44 indicates that FRT should not have too much problems paying its short term obligations.
FRT has a Quick ratio of 1.44. This is in the better half of the industry: FRT outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
FRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.31%.
FRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.57% yearly.
FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.56%.
The Revenue has been growing slightly by 4.34% on average over the past years.
EPS 1Y (TTM)-18.31%
EPS 3Y5.57%
EPS 5Y-2.57%
EPS Q2Q%4.48%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y10.66%
Revenue growth 5Y4.34%
Sales Q2Q%5.94%
3.2 Future
FRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.20% yearly.
FRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.07% yearly.
EPS Next Y23.65%
EPS Next 2Y4.72%
EPS Next 3Y4.9%
EPS Next 5Y6.2%
Revenue Next Year5.95%
Revenue Next 2Y5.45%
Revenue Next 3Y5.34%
Revenue Next 5Y5.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 37.85, FRT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of FRT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FRT is valued a bit more expensive.
The Price/Forward Earnings ratio is 34.64, which means the current valuation is very expensive for FRT.
Based on the Price/Forward Earnings ratio, FRT is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. FRT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.85 | ||
| Fwd PE | 34.64 |
4.2 Price Multiples
76.98% of the companies in the same industry are cheaper than FRT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 258.02 | ||
| EV/EBITDA | 17.81 |
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)1.6
PEG (5Y)N/A
EPS Next 2Y4.72%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, FRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 18.51, FRT is paying slightly less dividend.
FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of FRT has a limited annual growth rate of 1.37%.
FRT has been paying a dividend for at least 10 years, so it has 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)1.37%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
FRT pays out 129.04% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP129.04%
EPS Next 2Y4.72%
EPS Next 3Y4.9%
FEDERAL REALTY INVS TRUST
NYSE:FRT (1/21/2025, 8:04:00 PM)
After market: 106.35 0 (0%)106.35
+0.96 (+0.91%)
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 Change0.02%
Ins Owners1.02%
Ins Owner Change-5.12%
Market Cap9.04B
Analysts80
Price Target127.42 (19.81%)
Short Float %2.58%
Short Ratio3.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend4.38
Dividend Growth(5Y)1.37%
DP129.04%
Div Incr Years32
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.9%
Min EPS beat(2)-4.4%
Max EPS beat(2)-3.39%
EPS beat(4)1
Avg EPS beat(4)0.64%
Min EPS beat(4)-4.4%
Max EPS beat(4)13.37%
EPS beat(8)4
Avg EPS beat(8)17.2%
EPS beat(12)8
Avg EPS beat(12)46.92%
EPS beat(16)12
Avg EPS beat(16)69.4%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.16%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)0%
Revenue beat(8)3
Avg Revenue beat(8)-0.43%
Revenue beat(12)7
Avg Revenue beat(12)0.64%
Revenue beat(16)11
Avg Revenue beat(16)1.61%
PT rev (1m)0.65%
PT rev (3m)1.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.85 | ||
| Fwd PE | 34.64 | ||
| P/S | 7.64 | ||
| P/FCF | 258.02 | ||
| P/OCF | 15.92 | ||
| P/B | 2.9 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 17.81 |
EPS(TTM)2.81
EY2.64%
EPS(NY)3.07
Fwd EY2.89%
FCF(TTM)0.41
FCFY0.39%
OCF(TTM)6.68
OCFY6.28%
SpS13.92
BVpS36.62
TBVpS36.62
PEG (NY)1.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.14% | ||
| ROCE | 5.09% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 4.07% | ||
| OM | 34.78% | ||
| PM (TTM) | 24.05% | ||
| GM | 67.4% | ||
| FCFM | 2.96% |
ROA(3y)3.52%
ROA(5y)3.45%
ROE(3y)10.06%
ROE(5y)9.75%
ROIC(3y)3.63%
ROIC(5y)3.6%
ROICexc(3y)3.71%
ROICexc(5y)3.74%
ROICexgc(3y)3.71%
ROICexgc(5y)3.74%
ROCE(3y)4.59%
ROCE(5y)4.56%
ROICexcg growth 3Y9.34%
ROICexcg growth 5Y-2.86%
ROICexc growth 3Y9.36%
ROICexc growth 5Y-2.88%
OM growth 3Y5.59%
OM growth 5Y-1.72%
PM growth 3Y11.05%
PM growth 5Y-4.6%
GM growth 3Y1.34%
GM growth 5Y-0.18%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 128.09 | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 157.59% | ||
| Cap/Sales | 45.03% | ||
| Interest Coverage | 2.43 | ||
| Cash Conversion | 75.75% | ||
| Profit Quality | 12.31% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 1.13 |
F-Score6
WACC7.1%
ROIC/WACC0.57
Cap/Depr(3y)228.85%
Cap/Depr(5y)228.67%
Cap/Sales(3y)65.76%
Cap/Sales(5y)64.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.31%
EPS 3Y5.57%
EPS 5Y-2.57%
EPS Q2Q%4.48%
EPS Next Y23.65%
EPS Next 2Y4.72%
EPS Next 3Y4.9%
EPS Next 5Y6.2%
Revenue 1Y (TTM)5.56%
Revenue growth 3Y10.66%
Revenue growth 5Y4.34%
Sales Q2Q%5.94%
Revenue Next Year5.95%
Revenue Next 2Y5.45%
Revenue Next 3Y5.34%
Revenue Next 5Y5.07%
EBIT growth 1Y6.21%
EBIT growth 3Y16.85%
EBIT growth 5Y2.55%
EBIT Next Year91.74%
EBIT Next 3Y29.04%
EBIT Next 5Y18.66%
FCF growth 1Y111.36%
FCF growth 3YN/A
FCF growth 5Y6.41%
OCF growth 1Y10.28%
OCF growth 3Y14.54%
OCF growth 5Y1.47%