71.14 USD
-0.14 (-0.2%)
Overall REG gets a fundamental rating of 5 out of 10. We evaluated REG against 124 industry peers in the Diversified REITs industry. REG has an excellent profitability rating, but there are concerns on its financial health. REG has a decent growth rate and is not valued too expensively. REG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- REG had positive earnings in the past year.
- In the past year REG had a positive cash flow from operations.
- In the past 5 years REG has always been profitable.
- Each year in the past 5 years REG had a positive operating cash flow.
1.2 Ratios
- REG has a better Return On Assets (3.05%) than 70.97% of its industry peers.
- REG has a Return On Equity of 5.85%. This is in the better half of the industry: REG outperforms 68.55% of its industry peers.
- The Return On Invested Capital of REG (3.65%) is better than 70.97% of its industry peers.
- REG had an Average Return On Invested Capital over the past 3 years of 3.42%. This is in line with the industry average of 3.05%.
- The last Return On Invested Capital (3.65%) for REG is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 5.85% | ||
| ROIC | 3.65% |
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 26.14%, REG is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of REG has grown nicely.
- REG has a better Operating Margin (37.49%) than 80.65% of its industry peers.
- REG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 70.44%, REG is in the better half of the industry, outperforming 60.48% of the companies in the same industry.
- 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 | 37.49% | ||
| PM (TTM) | 26.14% | ||
| GM | 70.44% |
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
- REG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- REG has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for REG has been increased compared to 5 years ago.
- Compared to 1 year ago, REG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.27, we must say that REG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.27, REG belongs to the top of the industry, outperforming 84.68% of the companies in the same industry.
- REG has a debt to FCF ratio of 18.34. This is a negative value and a sign of low solvency as REG would need 18.34 years to pay back of all of its debts.
- REG's Debt to FCF ratio of 18.34 is fine compared to the rest of the industry. REG outperforms 79.03% of its industry peers.
- REG has a Debt/Equity ratio of 0.72. This is a neutral value indicating REG is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.72, REG is doing good in the industry, outperforming 79.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 18.34 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.49
WACC7.42%
2.3 Liquidity
- A Current Ratio of 0.77 indicates that REG may have some problems paying its short term obligations.
- REG has a Current ratio of 0.77. This is comparable to the rest of the industry: REG outperforms 41.13% of its industry peers.
- REG has a Quick Ratio of 0.77. This is a bad value and indicates that REG is not financially healthy enough and could expect problems in meeting its short term obligations.
- REG's Quick ratio of 0.70 is on the low side compared to the rest of the industry. REG is outperformed by 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- REG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.82%.
- The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
- Looking at the last year, REG shows a small growth in Revenue. The Revenue has grown by 5.61% in the last year.
- The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)2.82%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%7.41%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%7.58%
3.2 Future
- REG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.04% yearly.
- Based on estimates for the next years, REG will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y8.09%
EPS Next 2Y7.82%
EPS Next 3Y7.21%
EPS Next 5Y9.04%
Revenue Next Year8.91%
Revenue Next 2Y6.55%
Revenue Next 3Y6.1%
Revenue Next 5Y4.21%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- REG is valuated quite expensively with a Price/Earnings ratio of 32.48.
- Based on the Price/Earnings ratio, REG is valued a bit cheaper than 62.10% of the companies in the same industry.
- When comparing the Price/Earnings ratio of REG to the average of the S&P500 Index (27.25), we can say REG is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 28.87, the valuation of REG can be described as expensive.
- REG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. REG is cheaper than 79.03% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of REG to the average of the S&P500 Index (25.98), we can say REG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.48 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REG indicates a slightly more expensive valuation: REG is more expensive than 77.42% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, REG is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.53 | ||
| EV/EBITDA | 18.39 |
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.
- The excellent profitability rating of REG may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)3.96
EPS Next 2Y7.82%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
- REG has a Yearly Dividend Yield of 6.68%, which is a nice return.
- REG's Dividend Yield is a higher than the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.82, REG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
- The dividend of REG has a limited annual growth rate of 3.44%.
- REG has paid a dividend for at least 10 years, which is 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
- REG pays out 130.28% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of REG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP130.28%
EPS Next 2Y7.82%
EPS Next 3Y7.21%
REGENCY CENTERS CORP / REG FAQ
What is the ChartMill fundamental rating of REGENCY CENTERS CORP (REG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to REG.
What is the valuation status of REGENCY CENTERS CORP (REG) stock?
ChartMill assigns a valuation rating of 4 / 10 to REGENCY CENTERS CORP (REG). This can be considered as Fairly Valued.
What is the profitability of REG stock?
REGENCY CENTERS CORP (REG) has a profitability rating of 8 / 10.
What is the valuation of REGENCY CENTERS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REGENCY CENTERS CORP (REG) is 32.48 and the Price/Book (PB) ratio is 1.91.
What is the expected EPS growth for REGENCY CENTERS CORP (REG) stock?
The Earnings per Share (EPS) of REGENCY CENTERS CORP (REG) is expected to grow by 8.09% in the next year.