REGENCY CENTERS CORP (REG) Stock Fundamental Analysis
NASDAQ:REG - Nasdaq - US7588491032 - REIT - Currency: USD
Taking everything into account, REG scores 5 out of 10 in our fundamental rating. REG was compared to 130 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. While showing a medium growth rate, REG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year REG was profitable.
REG had a positive operating cash flow in the past year.
Each year in the past 5 years REG has been profitable.
REG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REG has a Return On Assets of 3.12%. This is in the better half of the industry: REG outperforms 76.15% of its industry peers.
The Return On Equity of REG (5.75%) is better than 75.38% of its industry peers.
REG has a better Return On Invested Capital (3.48%) than 65.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REG is in line with the industry average of 3.19%.
The 3 year average ROIC (3.42%) for REG is below the current ROIC(3.48%), indicating increased profibility in the last year.
| 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's Profit Margin of 26.60% is amongst the best of the industry. REG outperforms 80.77% of its industry peers.
REG's Profit Margin has improved in the last couple of years.
REG's Operating Margin of 35.34% is fine compared to the rest of the industry. REG outperforms 74.62% 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 70.21%, REG is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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
REG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
REG has a worse debt/assets ratio than last year.
2.2 Solvency
REG has an Altman-Z score of 1.36. This is a bad value and indicates that REG is not financially healthy and even has some risk of bankruptcy.
REG's Altman-Z score of 1.36 is amongst the best of the industry. REG outperforms 90.00% of its industry peers.
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.
REG has a Debt to FCF ratio of 12.24. This is amongst the best in the industry. REG outperforms 87.69% of its industry peers.
REG has a Debt/Equity ratio of 0.66. This is a neutral value indicating REG is somewhat dependend on debt financing.
REG's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. REG outperforms 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 12.24 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.46
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.49 indicates that REG may have some problems paying its short term obligations.
With a Current ratio value of 0.49, REG is not doing good in the industry: 78.46% of the companies in the same industry are doing better.
REG has a Quick 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 Quick ratio (0.49) than 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.41% over the past year.
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 grown by 9.94% in the past year. This is quite good.
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 7.94% on average over the next years.
Based on estimates for the next years, REG will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y5.8%
EPS Next 2Y6.95%
EPS Next 3Y8.26%
EPS Next 5Y7.94%
Revenue Next Year6.73%
Revenue Next 2Y5.46%
Revenue Next 3Y5.43%
Revenue Next 5Y3.71%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.11, REG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as REG.
REG is valuated rather expensively when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.24, REG can be considered very expensive at the moment.
74.62% of the companies in the same industry are more expensive than REG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of REG to the average of the S&P500 Index (21.37), we can say REG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 32.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REG is valued expensively inside the industry as 80.77% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, REG is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.46 | ||
| EV/EBITDA | 18.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.88
PEG (5Y)4.16
EPS Next 2Y6.95%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
REG has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
REG's Dividend Yield is slightly below the industry average, which is at 16.87.
Compared to an average S&P500 Dividend Yield of 2.51, REG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 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
REG pays out 130.32% 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.
DP130.32%
EPS Next 2Y6.95%
EPS Next 3Y8.26%
72.32
+1.54 (+2.18%)
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 Change0.25%
Ins Owners0.78%
Ins Owner Change-0.02%
Market Cap13.13B
Analysts80
Price Target81.47 (12.65%)
Short Float %2.54%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)3.94%
Min Revenue beat(2)0.55%
Max Revenue beat(2)7.33%
Revenue beat(4)4
Avg Revenue beat(4)2.25%
Min Revenue beat(4)0.25%
Max Revenue beat(4)7.33%
Revenue beat(8)8
Avg Revenue beat(8)1.95%
Revenue beat(12)12
Avg Revenue beat(12)2.63%
Revenue beat(16)16
Avg Revenue beat(16)3.97%
PT rev (1m)-0.08%
PT rev (3m)0.82%
EPS NQ rev (1m)1.64%
EPS NQ rev (3m)7.12%
EPS NY rev (1m)3.78%
EPS NY rev (3m)5.98%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 32.24 | ||
| P/S | 9.03 | ||
| P/FCF | 36.46 | ||
| P/OCF | 16.61 | ||
| P/B | 1.95 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 18.93 |
EPS(TTM)2.12
EY2.93%
EPS(NY)2.24
Fwd EY3.1%
FCF(TTM)1.98
FCFY2.74%
OCF(TTM)4.35
OCFY6.02%
SpS8.01
BVpS37.04
TBVpS34.86
PEG (NY)5.88
PEG (5Y)4.16
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 | 1.36 |
F-Score7
WACC7.56%
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 Y5.8%
EPS Next 2Y6.95%
EPS Next 3Y8.26%
EPS Next 5Y7.94%
Revenue 1Y (TTM)9.94%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%3.6%
Revenue Next Year6.73%
Revenue Next 2Y5.46%
Revenue Next 3Y5.43%
Revenue Next 5Y3.71%
EBIT growth 1Y9.75%
EBIT growth 3Y4.35%
EBIT growth 5Y6.79%
EBIT Next Year79.88%
EBIT Next 3Y24.81%
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%