RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RET - BE0003720340 - REIT
64 EUR
-0.1 (-0.16%)
RET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Diversified REITs industry. While RET has a great profitability rating, there are quite some 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
- In the past year RET was profitable.
- 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
- Looking at the Return On Assets, with a value of 5.18%, RET belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
- RET's Return On Equity of 9.24% is amongst the best of the industry. RET outperforms 85.71% of its industry peers.
- RET has a better Return On Invested Capital (4.34%) than 78.57% 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 3.45%.
- 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
- RET's Profit Margin of 69.77% is amongst the best of the industry. RET outperforms 80.95% of its industry peers.
- In the last couple of years the Profit Margin of RET has grown nicely.
- RET has a Operating Margin (72.89%) which is in line with 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 64.29% of its industry peers.
- In the last couple of years the Gross Margin of RET has remained more or less at the same level.
| 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.
- The number of shares outstanding for RET has been increased compared to 1 year ago.
- RET has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RET has an improved debt to assets ratio.
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.
- The Altman-Z score of RET (1.09) is better than 73.81% of its industry peers.
- The Debt to FCF ratio of RET is 10.48, which is on the high side as it means it would take RET, 10.48 years of fcf income to pay off 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 73.81% of its industry peers.
- RET has a Debt/Equity ratio of 0.66. This is a neutral value indicating RET is somewhat dependend on debt financing.
- RET has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.89
WACC4.88%
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.
- Looking at the Current ratio, with a value of 0.23, RET is doing worse than 71.43% of the companies in the same industry.
- RET has a Quick 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's Quick ratio of 0.23 is on the low side compared to the rest of the industry. RET is outperformed by 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
- RET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.17%, which is quite impressive.
- RET shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
- RET shows a small growth in Revenue. In the last year, the Revenue has grown by 1.24%.
- The Revenue has been growing slightly by 5.78% on average over the past years.
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
- Based on estimates for the next years, RET will show a small growth in Earnings Per Share. The EPS will grow by 0.97% on average per year.
- Based on estimates for the next years, RET will show a small growth in Revenue. The Revenue will grow by 3.12% on average per year.
EPS Next Y-0.45%
EPS Next 2Y0.84%
EPS Next 3Y0.97%
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.
- 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
- The Price/Earnings ratio is 8.44, which indicates a very decent valuation of RET.
- Compared to the rest of the industry, the Price/Earnings ratio of RET indicates a rather cheap valuation: RET is cheaper than 88.10% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. RET is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.92, the valuation of RET can be described as reasonable.
- Based on the Price/Forward Earnings ratio, RET is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- RET is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
- RET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RET is cheaper than 69.05% 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 64.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.16 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
- The excellent profitability rating of RET may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y0.84%
EPS Next 3Y0.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.74%, RET is a good candidate for dividend investing.
- RET's Dividend Yield is a higher than the industry average which is at 5.42.
- RET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
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.
- RET's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.34%
EPS Next 2Y0.84%
EPS Next 3Y0.97%
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 8.44 and the Price/Book (PB) ratio is 0.79.
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%.