RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RET - BE0003720340 - REIT
64.1 EUR
+0.3 (+0.47%)
RET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Diversified REITs industry. While RET belongs to the best of the industry regarding profitability, there are concerns on its financial health. RET is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- RET had positive earnings in the past year.
- RET had a positive operating cash flow in the past year.
- Each year in the past 5 years RET has been profitable.
- In the past 5 years RET always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of RET (5.18%) is better than 87.80% of its industry peers.
- With an excellent Return On Equity value of 9.24%, RET belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
- RET has a better Return On Invested Capital (4.34%) than 80.49% of its industry peers.
- RET had an Average Return On Invested Capital over the past 3 years of 3.97%. This is in line with the industry average of 3.37%.
- The 3 year average ROIC (3.97%) for RET is below the current ROIC(4.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9.24% | ||
| ROIC | 4.34% |
ROA(3y)6.59%
ROA(5y)6.11%
ROE(3y)11.91%
ROE(5y)11.53%
ROIC(3y)3.97%
ROIC(5y)3.97%
1.3 Margins
- Looking at the Profit Margin, with a value of 69.77%, RET belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
- In the last couple of years the Profit Margin of RET has grown nicely.
- RET has a Operating Margin of 72.89%. This is comparable to the rest of the industry: RET outperforms 58.54% of its industry peers.
- In the last couple of years the Operating Margin of RET has remained more or less at the same level.
- RET has a better Gross Margin (77.87%) than 63.41% of its industry peers.
- RET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 72.89% | ||
| PM (TTM) | 69.77% | ||
| GM | 77.87% |
OM growth 3Y-0.81%
OM growth 5Y-0.79%
PM growth 3Y-13.36%
PM growth 5Y6.76%
GM growth 3Y-0.84%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RET is destroying value.
- RET has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for RET has been increased compared to 5 years ago.
- The debt/assets ratio for RET has been reduced compared to a year ago.
2.2 Solvency
- RET has an Altman-Z score of 1.09. This is a bad value and indicates that RET is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.09, RET is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
- RET has a debt to FCF ratio of 10.48. This is a negative value and a sign of low solvency as RET would need 10.48 years to pay back of all of its debts.
- RET has a Debt to FCF ratio of 10.48. This is in the better half of the industry: RET outperforms 73.17% of its industry peers.
- A Debt/Equity ratio of 0.66 indicates that RET is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.66, RET is in line with its industry, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.89
WACC4.87%
2.3 Liquidity
- RET has a Current Ratio of 0.23. This is a bad value and indicates that RET is not financially healthy enough and could expect problems in meeting its short term obligations.
- RET has a Current ratio of 0.23. This is in the lower half of the industry: RET underperforms 70.73% of its industry peers.
- A Quick Ratio of 0.23 indicates that RET may have some problems paying its short term obligations.
- With a Quick ratio value of 0.23, RET is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.17% over the past year.
- The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 1.24% in the past year.
- Measured over the past years, RET shows a small growth in Revenue. The Revenue has been growing by 5.78% on average per year.
EPS 1Y (TTM)40.17%
EPS 3Y-10.65%
EPS 5Y9.19%
EPS Q2Q%10.12%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y7.56%
Revenue growth 5Y5.78%
Sales Q2Q%1.96%
3.2 Future
- RET is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.96% yearly.
- RET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y-0.48%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y3.25%
Revenue Next 3Y3.12%
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.
- 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 8.46, the valuation of RET can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of RET indicates a rather cheap valuation: RET is cheaper than 90.24% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RET is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.94, the valuation of RET can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RET indicates a somewhat cheap valuation: RET is cheaper than 70.73% of the companies listed in the same industry.
- RET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.46 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RET is valued a bit cheaper than 70.73% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RET is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 15.68 |
4.3 Compensation for Growth
- RET has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y0.82%
EPS Next 3Y0.96%
5. Dividend
5.1 Amount
- RET has a Yearly Dividend Yield of 5.68%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.41, RET has a dividend in line with its industry peers.
- RET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
5.2 History
- The dividend of RET is nicely growing with an annual growth rate of 18.46%!
Dividend Growth(5Y)18.46%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- RET pays out 68.34% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of RET is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.34%
EPS Next 2Y0.82%
EPS Next 3Y0.96%
RETAIL ESTATES / RET.BR FAQ
What is the fundamental rating for RET stock?
ChartMill assigns a fundamental rating of 5 / 10 to RET.BR.
What is the valuation status of RETAIL ESTATES (RET.BR) stock?
ChartMill assigns a valuation rating of 6 / 10 to RETAIL ESTATES (RET.BR). This can be considered as Fairly Valued.
Can you provide the profitability details for RETAIL ESTATES?
RETAIL ESTATES (RET.BR) has a profitability rating of 8 / 10.
What is the valuation of RETAIL ESTATES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RETAIL ESTATES (RET.BR) is 8.46 and the Price/Book (PB) ratio is 0.8.
How sustainable is the dividend of RETAIL ESTATES (RET.BR) stock?
The dividend rating of RETAIL ESTATES (RET.BR) is 6 / 10 and the dividend payout ratio is 68.34%.