REGENCY CENTERS CORP (REG) Stock Fundamental Analysis
NASDAQ:REG - Nasdaq - US7588491032 - REIT - Currency: USD
Overall REG gets a fundamental rating of 4 out of 10. We evaluated REG against 128 industry peers in the Diversified REITs industry. While REG has a great profitability rating, there are quite some concerns on its financial health. REG is valied quite expensively at the moment, while it does show a decent growth rate.
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.
REG had positive earnings in each of the past 5 years.
In the past 5 years REG always reported a positive cash flow from operatings.
1.2 Ratios
REG has a better Return On Assets (3.12%) than 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 5.75%, REG is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
REG's Return On Invested Capital of 3.48% is fine compared to the rest of the industry. REG outperforms 66.67% 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 3.13%.
The last Return On Invested Capital (3.48%) for REG is above the 3 year average (3.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 5.75% | ||
| ROIC | 3.48% |
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
REG has a better Profit Margin (26.60%) than 80.95% of its industry peers.
REG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 35.34%, REG is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
REG's Operating Margin has improved in the last couple of years.
REG has a Gross Margin of 70.21%. This is comparable to the rest of the industry: REG outperforms 58.73% of its industry peers.
REG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.34% | ||
| PM (TTM) | 26.6% | ||
| GM | 70.21% |
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.
Compared to 1 year ago, REG has less shares outstanding
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
REG has an Altman-Z score of 1.40. This is a bad value and indicates that REG is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.40, REG belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
The Debt to FCF ratio of REG is 12.24, which is on the high side as it means it would take REG, 12.24 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.24, REG belongs to the top of the industry, outperforming 84.92% of the companies in the same industry.
REG has a Debt/Equity ratio of 0.66. This is a neutral value indicating REG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, REG is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 12.24 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.46
WACC7.58%
2.3 Liquidity
REG has a Current Ratio of 0.49. 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 has a worse Current ratio (0.49) than 85.71% of its industry peers.
A Quick Ratio of 0.49 indicates that REG may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, REG is not doing good in the industry: 81.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
REG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.41%.
REG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.19% yearly.
Looking at the last year, REG shows a quite strong growth in Revenue. The Revenue has grown by 9.94% in the last year.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)3.41%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%-2.13%
Revenue 1Y (TTM)9.94%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%3.6%
3.2 Future
The Earnings Per Share is expected to grow by 6.49% on average over the next years.
REG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.46% yearly.
EPS Next Y1.95%
EPS Next 2Y4.11%
EPS Next 3Y4.23%
EPS Next 5Y6.49%
Revenue Next Year4.27%
Revenue Next 2Y4.25%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
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 decreasing.
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
The Price/Earnings ratio is 34.59, which means the current valuation is very expensive for REG.
REG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of REG to the average of the S&P500 Index (29.62), we can say REG is valued inline with the index average.
REG is valuated quite expensively with a Price/Forward Earnings ratio of 33.93.
74.60% of the companies in the same industry are more expensive than REG, based on the Price/Forward Earnings ratio.
REG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 33.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REG is valued more expensive than 82.54% of the companies in the same industry.
REG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.93 | ||
| EV/EBITDA | 19.42 |
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 decent profitability rating of REG may justify a higher PE ratio.
PEG (NY)17.71
PEG (5Y)4.22
EPS Next 2Y4.11%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.85%, REG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 18.31, REG is paying slightly less dividend.
REG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
REG pays out 130.32% of its income as dividend. This is not a sustainable payout ratio.
REG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP130.32%
EPS Next 2Y4.11%
EPS Next 3Y4.23%
73.33
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.57%
Inst Owner Change-85.17%
Ins Owners0.78%
Ins Owner Change-0.02%
Market Cap13.30B
Analysts80
Price Target81.22 (10.76%)
Short Float %2.29%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend2.76
Dividend Growth(5Y)3.44%
DP130.32%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.36%
Min EPS beat(2)-5.51%
Max EPS beat(2)16.23%
EPS beat(4)3
Avg EPS beat(4)12.14%
Min EPS beat(4)-5.51%
Max EPS beat(4)21.15%
EPS beat(8)6
Avg EPS beat(8)7.35%
EPS beat(12)10
Avg EPS beat(12)23.64%
EPS beat(16)13
Avg EPS beat(16)35.23%
Revenue beat(2)2
Avg Revenue beat(2)2.74%
Min Revenue beat(2)0.55%
Max Revenue beat(2)4.93%
Revenue beat(4)4
Avg Revenue beat(4)1.65%
Min Revenue beat(4)0.25%
Max Revenue beat(4)4.93%
Revenue beat(8)8
Avg Revenue beat(8)1.65%
Revenue beat(12)12
Avg Revenue beat(12)2.43%
Revenue beat(16)16
Avg Revenue beat(16)3.82%
PT rev (1m)0.51%
PT rev (3m)2.45%
EPS NQ rev (1m)2.99%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)2.12%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 33.93 | ||
| P/S | 9.15 | ||
| P/FCF | 36.93 | ||
| P/OCF | 16.83 | ||
| P/B | 1.98 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 19.42 |
EPS(TTM)2.12
EY2.89%
EPS(NY)2.16
Fwd EY2.95%
FCF(TTM)1.99
FCFY2.71%
OCF(TTM)4.36
OCFY5.94%
SpS8.02
BVpS37.08
TBVpS34.89
PEG (NY)17.71
PEG (5Y)4.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 5.75% | ||
| ROCE | 4.4% | ||
| ROIC | 3.48% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.62% | ||
| OM | 35.34% | ||
| PM (TTM) | 26.6% | ||
| GM | 70.21% | ||
| FCFM | 24.77% |
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 | 0.66 | ||
| Debt/FCF | 12.24 | ||
| Debt/EBITDA | 4.85 | ||
| Cap/Depr | 108.97% | ||
| Cap/Sales | 29.58% | ||
| Interest Coverage | 3.18 | ||
| Cash Conversion | 86.98% | ||
| Profit Quality | 93.11% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.4 |
F-Score7
WACC7.58%
ROIC/WACC0.46
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)3.41%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%-2.13%
EPS Next Y1.95%
EPS Next 2Y4.11%
EPS Next 3Y4.23%
EPS Next 5Y6.49%
Revenue 1Y (TTM)9.94%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%3.6%
Revenue Next Year4.27%
Revenue Next 2Y4.25%
Revenue Next 3Y4.46%
Revenue Next 5YN/A
EBIT growth 1Y9.75%
EBIT growth 3Y4.35%
EBIT growth 5Y6.79%
EBIT Next Year77.74%
EBIT Next 3Y24.58%
EBIT Next 5Y16.41%
FCF growth 1Y-15.91%
FCF growth 3Y75.84%
FCF growth 5Y22.26%
OCF growth 1Y9.81%
OCF growth 3Y6.22%
OCF growth 5Y4.93%