FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FRT - US3137451015 - REIT
99.82 USD
-1.66 (-1.64%)
99.82 USD
0 (0%)
Taking everything into account, FRT scores 5 out of 10 in our fundamental rating. FRT was compared to 124 industry peers in the Diversified REITs industry. FRT scores excellent on profitability, but 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
- FRT had positive earnings in the past year.
- 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
- FRT's Return On Assets of 3.81% is amongst the best of the industry. FRT outperforms 81.45% of its industry peers.
- FRT has a better Return On Equity (10.50%) than 87.90% of its industry peers.
- FRT's Return On Invested Capital of 4.10% is fine compared to the rest of the industry. FRT outperforms 79.03% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FRT is in line with the industry average of 3.05%.
- 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
- Looking at the Profit Margin, with a value of 26.90%, FRT is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
- In the last couple of years the Profit Margin of FRT has declined.
- With a decent Operating Margin value of 34.86%, FRT is doing good in the industry, outperforming 71.77% 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 67.29%. This is comparable to the rest of the industry: FRT outperforms 51.61% of 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.
- 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 has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.05, we must say that FRT is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.05, FRT is doing good in the industry, outperforming 79.84% of the companies in the same industry.
- FRT has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- FRT's Debt to Equity ratio of 1.47 is in line compared to the rest of the industry. FRT outperforms 42.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.6
WACC6.83%
2.3 Liquidity
- FRT has a Current 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.
- Looking at the Current ratio, with a value of 1.57, FRT is in the better half of 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.
- With a decent Quick ratio value of 1.57, FRT is doing good in the industry, outperforming 74.19% of the companies in the same industry.
| 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.
- The Earnings Per Share has been decreasing by -9.41% on average over the past years.
- FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
- 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.
- Based on estimates for the next years, FRT will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
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
- A Price/Earnings ratio of 25.34 indicates a quite expensive valuation of FRT.
- FRT's Price/Earnings ratio is a bit cheaper when compared to the industry. FRT is cheaper than 73.39% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, FRT is valued at the same level.
- With a Price/Forward Earnings ratio of 32.34, FRT can be considered very expensive at the moment.
- FRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FRT is 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 (25.83), we can say FRT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.34 | ||
| Fwd PE | 32.34 |
4.2 Price Multiples
- 64.52% 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 | 16.65 |
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)0.59
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.
- Compared to an average S&P500 Dividend Yield of 1.82, FRT pays a better dividend.
| 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 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%
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.