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%)
Overall FRT gets a fundamental rating of 5 out of 10. We evaluated FRT against 124 industry peers in the Diversified REITs industry. While FRT has a great profitability rating, there are quite some concerns on its financial health. FRT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FRT was profitable.
- In the past year FRT had a positive cash flow from operations.
- Each year in the past 5 years FRT has been profitable.
- Each year in the past 5 years FRT had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 3.81%, FRT belongs to the best of the industry, outperforming 80.80% of the companies in the same industry.
- FRT's Return On Equity of 10.50% is amongst the best of the industry. FRT outperforms 87.20% of its industry peers.
- FRT has a Return On Invested Capital of 4.10%. This is in the better half of the industry: FRT outperforms 78.40% 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
- FRT's Profit Margin of 26.90% is fine compared to the rest of the industry. FRT outperforms 78.40% 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 34.86%, FRT is in the better half of the industry, outperforming 72.00% 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 (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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FRT is destroying value.
- Compared to 1 year ago, FRT has more shares outstanding
- Compared to 5 years ago, FRT has more shares outstanding
- Compared to 1 year ago, FRT has an improved debt to assets ratio.
2.2 Solvency
- FRT has an Altman-Z score of 1.07. This is a bad value and indicates that FRT is not financially healthy and even 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 79.20% 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's Debt to Equity ratio of 1.47 is in line compared 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
WACC6.85%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that FRT should not have too much problems paying its short term obligations.
- The Current ratio of FRT (1.57) is better 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.
- Looking at the Quick ratio, with a value of 1.57, FRT is in the better half of the industry, outperforming 74.40% 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.
- FRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.41% yearly.
- 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
- 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
- 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
- Based on the Price/Earnings ratio of 25.83, the valuation of FRT can be described as expensive.
- 72.80% of the companies in the same industry are more expensive than FRT, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of FRT to the average of the S&P500 Index (27.21), we can say FRT is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 32.97, the valuation of FRT can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FRT indicates a somewhat cheap valuation: FRT is cheaper than 73.60% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, FRT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 32.97 |
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 65.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.86 |
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)0.6
PEG (5Y)N/A
EPS Next 2Y5%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
- FRT has a Yearly Dividend Yield of 4.45%, which is a nice return.
- FRT's Dividend Yield is comparable with the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.
- 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.
- The dividend of FRT is growing, but earnings are growing more, so the dividend growth is 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.