REGENCY CENTERS CORP (REG) Stock Fundamental Analysis
NASDAQ:REG - Nasdaq - US7588491032 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to REG. REG was compared to 130 industry peers in the Diversified REITs industry. REG has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, REG is valued expensive at the moment. REG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year REG was profitable.
In the past year REG had a positive cash flow from operations.
In the past 5 years REG has always been profitable.
In the past 5 years REG always reported a positive cash flow from operatings.
1.2 Ratios
REG has a Return On Assets of 3.08%. This is in the better half of the industry: REG outperforms 77.69% of its industry peers.
REG has a better Return On Equity (5.77%) than 73.85% of its industry peers.
REG has a better Return On Invested Capital (3.52%) than 66.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REG is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.52%) for REG is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 5.77% | ||
| ROIC | 3.52% |
ROA(3y)3.49%
ROA(5y)2.84%
ROE(3y)6.26%
ROE(5y)5.1%
ROIC(3y)3.42%
ROIC(5y)3.16%
1.3 Margins
Looking at the Profit Margin, with a value of 26.28%, REG belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
REG's Profit Margin has improved in the last couple of years.
REG has a Operating Margin of 36.03%. This is in the better half of the industry: REG outperforms 78.46% of its industry peers.
In the last couple of years the Operating Margin of REG has grown nicely.
REG has a Gross Margin (70.07%) which is in line with its industry peers.
In the last couple of years the Gross Margin of REG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.03% | ||
| PM (TTM) | 26.28% | ||
| GM | 70.07% |
OM growth 3Y-3.04%
OM growth 5Y1.59%
PM growth 3Y-4.97%
PM growth 5Y4.71%
GM growth 3Y-0.83%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REG is destroying value.
The number of shares outstanding for REG has been reduced compared to 1 year ago.
Compared to 5 years ago, REG has more shares outstanding
Compared to 1 year ago, REG has a worse debt to assets ratio.
2.2 Solvency
REG has an Altman-Z score of 1.32. This is a bad value and indicates that REG is not financially healthy and even has some risk of bankruptcy.
REG has a better Altman-Z score (1.32) than 86.92% of its industry peers.
REG has a debt to FCF ratio of 19.88. This is a negative value and a sign of low solvency as REG would need 19.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.88, REG is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that REG is somewhat dependend on debt financing.
The Debt to Equity ratio of REG (0.69) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.88 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.47
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.60 indicates that REG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, REG is doing worse than 73.08% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that REG may have some problems paying its short term obligations.
The Quick ratio of REG (0.58) is worse than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
REG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.91%.
REG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.
The Revenue has been growing slightly by 7.50% in the past year.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)2.91%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%0%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%4.69%
3.2 Future
Based on estimates for the next years, REG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.46% on average per year.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y7.87%
EPS Next 2Y7.71%
EPS Next 3Y8.64%
EPS Next 5Y8.46%
Revenue Next Year6.94%
Revenue Next 2Y5.53%
Revenue Next 3Y5.28%
Revenue Next 5Y3.71%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.39, REG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of REG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.45. REG is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 28.78, REG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REG indicates a somewhat cheap valuation: REG is cheaper than 78.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, REG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 28.78 |
4.2 Price Multiples
REG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. REG is more expensive than 80.77% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REG indicates a somewhat cheap valuation: REG is cheaper than 60.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.03 | ||
| EV/EBITDA | 18.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates REG does not grow enough to justify the current Price/Earnings ratio.
REG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.24
PEG (5Y)4.08
EPS Next 2Y7.71%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.49%, REG is a good candidate for dividend investing.
REG's Dividend Yield is a higher than the industry average which is at 6.66.
REG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
5.2 History
The dividend of REG has a limited annual growth rate of 3.44%.
REG has been paying a dividend for at least 10 years, so it has a reliable track record.
REG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.44%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
131.47% of the earnings are spent on dividend by REG. This is not a sustainable payout ratio.
REG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP131.47%
EPS Next 2Y7.71%
EPS Next 3Y8.64%
70.79
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.83%
Inst Owner Change1.38%
Ins Owners0.73%
Ins Owner Change0.39%
Market Cap12.85B
Analysts80
Price Target80.4 (13.58%)
Short Float %3.45%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
Yearly Dividend2.76
Dividend Growth(5Y)3.44%
DP131.47%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.3%
Min EPS beat(2)-5.51%
Max EPS beat(2)2.91%
EPS beat(4)3
Avg EPS beat(4)7.58%
Min EPS beat(4)-5.51%
Max EPS beat(4)16.69%
EPS beat(8)6
Avg EPS beat(8)6.28%
EPS beat(12)10
Avg EPS beat(12)10.6%
EPS beat(16)13
Avg EPS beat(16)24.56%
Revenue beat(2)2
Avg Revenue beat(2)4.36%
Min Revenue beat(2)1.4%
Max Revenue beat(2)7.33%
Revenue beat(4)4
Avg Revenue beat(4)2.38%
Min Revenue beat(4)0.25%
Max Revenue beat(4)7.33%
Revenue beat(8)8
Avg Revenue beat(8)1.96%
Revenue beat(12)12
Avg Revenue beat(12)2.27%
Revenue beat(16)16
Avg Revenue beat(16)3.66%
PT rev (1m)0%
PT rev (3m)-1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.57%
EPS NY rev (1m)0%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 28.78 | ||
| P/S | 8.74 | ||
| P/FCF | 55.03 | ||
| P/OCF | 16.4 | ||
| P/B | 1.92 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 18.85 |
EPS(TTM)2.12
EY2.99%
EPS(NY)2.46
Fwd EY3.47%
FCF(TTM)1.29
FCFY1.82%
OCF(TTM)4.32
OCFY6.1%
SpS8.1
BVpS36.91
TBVpS34.71
PEG (NY)4.24
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 5.77% | ||
| ROCE | 4.46% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.54% | ||
| ROICexgc | 3.67% | ||
| OM | 36.03% | ||
| PM (TTM) | 26.28% | ||
| GM | 70.07% | ||
| FCFM | 15.87% |
ROA(3y)3.49%
ROA(5y)2.84%
ROE(3y)6.26%
ROE(5y)5.1%
ROIC(3y)3.42%
ROIC(5y)3.16%
ROICexc(3y)3.44%
ROICexc(5y)3.2%
ROICexgc(3y)3.58%
ROICexgc(5y)3.32%
ROCE(3y)4.33%
ROCE(5y)4.01%
ROICexcg growth 3Y-0.47%
ROICexcg growth 5Y4.33%
ROICexc growth 3Y-0.39%
ROICexc growth 5Y4.71%
OM growth 3Y-3.04%
OM growth 5Y1.59%
PM growth 3Y-4.97%
PM growth 5Y4.71%
GM growth 3Y-0.83%
GM growth 5Y-0.77%
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.88 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 139.62% | ||
| Cap/Sales | 37.39% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 84.81% | ||
| Profit Quality | 60.41% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.32 |
F-Score7
WACC7.49%
ROIC/WACC0.47
Cap/Depr(3y)105.74%
Cap/Depr(5y)116.95%
Cap/Sales(3y)28.13%
Cap/Sales(5y)31.96%
Profit Quality(3y)88.31%
Profit Quality(5y)168.01%
High Growth Momentum
Growth
EPS 1Y (TTM)2.91%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%0%
EPS Next Y7.87%
EPS Next 2Y7.71%
EPS Next 3Y8.64%
EPS Next 5Y8.46%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%4.69%
Revenue Next Year6.94%
Revenue Next 2Y5.53%
Revenue Next 3Y5.28%
Revenue Next 5Y3.71%
EBIT growth 1Y11.08%
EBIT growth 3Y4.35%
EBIT growth 5Y6.79%
EBIT Next Year80.6%
EBIT Next 3Y24.92%
EBIT Next 5Y16.41%
FCF growth 1Y-26.91%
FCF growth 3Y75.84%
FCF growth 5Y22.26%
OCF growth 1Y16.07%
OCF growth 3Y6.22%
OCF growth 5Y4.93%