70.45 USD
-0.84 (-1.18%)
70.45 USD
0 (0%)
Taking everything into account, REG scores 5 out of 10 in our fundamental rating. REG was compared to 124 industry peers in the Diversified REITs industry. While REG belongs to the best of the industry regarding profitability, there are concerns on its financial health. REG is not valued too expensively and it also shows a decent growth rate. Finally REG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year REG was profitable.
- REG had a positive operating cash flow in the past year.
- REG had positive earnings in each of the past 5 years.
- REG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.05%, REG is doing good in the industry, outperforming 70.97% of the companies in the same industry.
- With a decent Return On Equity value of 5.85%, REG is doing good in the industry, outperforming 68.55% of the companies in the same industry.
- REG's Return On Invested Capital of 3.65% is fine compared to the rest of the industry. REG outperforms 70.97% 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 3.05%.
- The 3 year average ROIC (3.42%) for REG is below the current ROIC(3.65%), indicating increased profibility in the last year.
| 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
- The Profit Margin of REG (26.14%) is better than 75.81% of its industry peers.
- REG's Profit Margin has improved in the last couple of years.
- REG's Operating Margin of 37.49% is amongst the best of the industry. REG outperforms 80.65% of its industry peers.
- In the last couple of years the Operating Margin of REG has grown nicely.
- REG has a better Gross Margin (70.44%) than 60.48% of 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so REG is destroying value.
- The number of shares outstanding for REG has been reduced compared to 1 year ago.
- REG has more shares outstanding than it did 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 1.28, we must say that REG is in the distress zone and has some risk of bankruptcy.
- REG has a better Altman-Z score (1.28) than 84.68% of its industry peers.
- 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 has a Debt to FCF ratio of 18.34. This is in the better half 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.
- The Debt to Equity ratio of REG (0.72) is better than 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 18.34 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.49
WACC7.41%
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 (0.77) which is in line with 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.
- The Quick ratio of REG (0.70) is worse than 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%.
- REG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.
- REG shows a small growth in Revenue. In the last year, the Revenue has grown by 5.61%.
- 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
- The Earnings Per Share is expected to grow by 9.04% on average over the next years. This is quite good.
- 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
- Based on the Price/Earnings ratio of 32.17, the valuation of REG can be described as expensive.
- Based on the Price/Earnings ratio, REG is valued a bit cheaper than 61.29% of the companies in the same industry.
- REG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 28.59, the valuation of REG can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of REG indicates a somewhat cheap valuation: REG is cheaper than 79.03% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of REG to the average of the S&P500 Index (25.83), we can say REG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.17 | ||
| Fwd PE | 28.59 |
4.2 Price Multiples
- 77.42% of the companies in the same industry are cheaper than REG, based on the Enterprise Value to EBITDA ratio.
- 66.94% of the companies in the same industry are more expensive than REG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.06 | ||
| EV/EBITDA | 18.4 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.98
PEG (5Y)3.93
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.
- Compared to an average industry Dividend Yield of 6.82, REG pays a bit more dividend than its industry peers.
- REG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- REG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
- 130.28% of the earnings are spent on dividend by REG. 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 32.17 and the Price/Book (PB) ratio is 1.9.
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.