RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
EBR:RET - Euronext Brussels - BE0003720340 - REIT - Currency: EUR
We assign a fundamental rating of 4 out of 10 to RET. RET was compared to 42 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years RET has always been profitable.
In the past 5 years RET always reported a positive cash flow from operatings.
1.2 Ratios
RET has a better Return On Assets (5.78%) than 95.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.63%, RET belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
RET's Return On Invested Capital of 4.13% is fine compared to the rest of the industry. RET outperforms 77.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RET is in line with the industry average of 3.65%.
The last Return On Invested Capital (4.13%) for RET is above the 3 year average (3.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 10.63% | ||
| ROIC | 4.13% |
ROA(3y)7.37%
ROA(5y)5.77%
ROE(3y)13.77%
ROE(5y)11.24%
ROIC(3y)3.92%
ROIC(5y)3.94%
1.3 Margins
With an excellent Profit Margin value of 79.78%, RET belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
RET's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 72.43%, RET is in line with its industry, outperforming 52.50% of the companies in the same industry.
In the last couple of years the Operating Margin of RET has remained more or less at the same level.
The Gross Margin of RET (78.74%) is comparable to the rest of the industry.
RET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 72.43% | ||
| PM (TTM) | 79.78% | ||
| GM | 78.74% |
OM growth 3Y-2.1%
OM growth 5Y-0.87%
PM growth 3Y13.7%
PM growth 5Y9.15%
GM growth 3Y-1.79%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RET is destroying value.
Compared to 1 year ago, RET has more shares outstanding
RET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RET is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.99, we must say that RET is in the distress zone and has some risk of bankruptcy.
RET has a Altman-Z score of 0.99. This is in the better half of the industry: RET outperforms 65.00% of its industry peers.
The Debt to FCF ratio of RET is 9.97, which is on the high side as it means it would take RET, 9.97 years of fcf income to pay off all of its debts.
RET's Debt to FCF ratio of 9.97 is fine compared to the rest of the industry. RET outperforms 80.00% of its industry peers.
RET has a Debt/Equity ratio of 0.74. This is a neutral value indicating RET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, RET perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 9.97 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.89
WACC4.62%
2.3 Liquidity
RET has a Current Ratio of 0.34. 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's Current ratio of 0.34 is on the low side compared to the rest of the industry. RET is outperformed by 72.50% of its industry peers.
A Quick Ratio of 0.34 indicates that RET may have some problems paying its short term obligations.
RET's Quick ratio of 0.34 is on the low side compared to the rest of the industry. RET is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
RET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.75%.
The Earnings Per Share has been growing by 12.21% on average over the past years. This is quite good.
Looking at the last year, RET shows a quite strong growth in Revenue. The Revenue has grown by 11.00% in the last year.
The Revenue has been growing slightly by 7.81% on average over the past years.
EPS 1Y (TTM)-33.75%
EPS 3Y21%
EPS 5Y12.21%
EPS Q2Q%-52.78%
Revenue 1Y (TTM)11%
Revenue growth 3Y10.84%
Revenue growth 5Y7.81%
Sales Q2Q%5.89%
3.2 Future
The Earnings Per Share is expected to decrease by -0.04% on average over the next years.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y-1.08%
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
EPS Next 5YN/A
Revenue Next Year6.03%
Revenue Next 2Y5.69%
Revenue Next 3Y5.33%
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
The Price/Earnings ratio is 6.69, which indicates a rather cheap valuation of RET.
Based on the Price/Earnings ratio, RET is valued cheaper than 95.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, RET is valued rather cheaply.
A Price/Forward Earnings ratio of 8.95 indicates a reasonable valuation of RET.
Based on the Price/Forward Earnings ratio, RET is valued a bit cheaper than 77.50% of the companies in the same industry.
RET is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RET indicates a somewhat cheap valuation: RET is cheaper than 62.50% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RET indicates a somewhat cheap valuation: RET is cheaper than 72.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.16 | ||
| EV/EBITDA | 15.54 |
4.3 Compensation for Growth
The decent profitability rating of RET may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
5. Dividend
5.1 Amount
No dividends for RET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RETAIL ESTATES
EBR:RET (2/5/2025, 5:29:25 PM)
57.5
+0.4 (+0.7%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners20.21%
Inst Owner ChangeN/A
Ins Owners3.98%
Ins Owner ChangeN/A
Market Cap845.83M
Analysts86.67
Price Target70.38 (22.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend4.85
Dividend Growth(5Y)4.49%
DP56.14%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.74%
PT rev (3m)-6.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 8.95 | ||
| P/S | 5.49 | ||
| P/FCF | 9.16 | ||
| P/OCF | 8.96 | ||
| P/B | 0.73 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)8.6
EY14.96%
EPS(NY)6.42
Fwd EY11.17%
FCF(TTM)6.27
FCFY10.91%
OCF(TTM)6.42
OCFY11.17%
SpS10.48
BVpS78.61
TBVpS78.01
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 10.63% | ||
| ROCE | 5.51% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.15% | ||
| OM | 72.43% | ||
| PM (TTM) | 79.78% | ||
| GM | 78.74% | ||
| FCFM | 59.88% |
ROA(3y)7.37%
ROA(5y)5.77%
ROE(3y)13.77%
ROE(5y)11.24%
ROIC(3y)3.92%
ROIC(5y)3.94%
ROICexc(3y)3.93%
ROICexc(5y)4%
ROICexgc(3y)3.95%
ROICexgc(5y)4.02%
ROCE(3y)5.42%
ROCE(5y)5.47%
ROICexcg growth 3Y0.71%
ROICexcg growth 5Y0.46%
ROICexc growth 3Y0.91%
ROICexc growth 5Y0.38%
OM growth 3Y-2.1%
OM growth 5Y-0.87%
PM growth 3Y13.7%
PM growth 5Y9.15%
GM growth 3Y-1.79%
GM growth 5Y-0.77%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 9.97 | ||
| Debt/EBITDA | 7.6 | ||
| Cap/Depr | 145.39% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 4.79 | ||
| Cash Conversion | 83.49% | ||
| Profit Quality | 75.06% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.99 |
F-Score5
WACC4.62%
ROIC/WACC0.89
Cap/Depr(3y)391.22%
Cap/Depr(5y)553.93%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.46%
Profit Quality(3y)55.89%
Profit Quality(5y)70.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.75%
EPS 3Y21%
EPS 5Y12.21%
EPS Q2Q%-52.78%
EPS Next Y-1.08%
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
EPS Next 5YN/A
Revenue 1Y (TTM)11%
Revenue growth 3Y10.84%
Revenue growth 5Y7.81%
Sales Q2Q%5.89%
Revenue Next Year6.03%
Revenue Next 2Y5.69%
Revenue Next 3Y5.33%
Revenue Next 5YN/A
EBIT growth 1Y15.29%
EBIT growth 3Y8.51%
EBIT growth 5Y6.87%
EBIT Next Year1.77%
EBIT Next 3Y4.2%
EBIT Next 5YN/A
FCF growth 1Y22.66%
FCF growth 3Y5.28%
FCF growth 5Y9.94%
OCF growth 1Y18.72%
OCF growth 3Y6.77%
OCF growth 5Y10.64%