RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RET - BE0003720340 - REIT
65.6 EUR
+0.9 (+1.39%)
RET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Diversified REITs industry. RET has an excellent profitability rating, but there are concerns on its financial health. RET has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- RET had positive earnings in the past year.
- In the past year RET had a positive cash flow from operations.
- RET had positive earnings in each of the past 5 years.
- In the past 5 years RET always reported a positive cash flow from operatings.
1.2 Ratios
- RET has a Return On Assets of 5.18%. This is amongst the best in the industry. RET outperforms 87.80% of its industry peers.
- Looking at the Return On Equity, with a value of 9.24%, RET belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.34%, RET belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
- 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 last Return On Invested Capital (4.34%) for RET is above the 3 year average (3.97%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (69.77%) than 80.49% of its industry peers.
- In the last couple of years the Profit Margin of RET has grown nicely.
- RET's Operating Margin of 72.89% is in line compared 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 Gross Margin of 77.87%. This is in the better half of the industry: RET outperforms 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
- RET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- RET has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RET has more shares outstanding
- Compared to 1 year ago, RET has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.10, we must say that RET is in the distress zone and has some risk of bankruptcy.
- RET has a better Altman-Z score (1.10) than 75.61% of its industry peers.
- 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.
- The Debt to FCF ratio of RET (10.48) is better than 73.17% of its industry peers.
- A Debt/Equity ratio of 0.66 indicates that 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 | 1.1 |
ROIC/WACC0.89
WACC4.89%
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's Current ratio of 0.23 is on the low side compared to the rest of the industry. RET is outperformed by 70.73% of its industry peers.
- A Quick Ratio of 0.23 indicates that RET may have some problems paying 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 68.29% 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.
- 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
- Based on estimates for the next years, RET will show a small growth in Earnings Per Share. The EPS will grow by 0.96% 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-0.48%
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- The Price/Earnings ratio is 8.65, which indicates a very decent valuation of RET.
- Based on the Price/Earnings ratio, RET is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of RET to the average of the S&P500 Index (28.82), we can say RET is valued rather cheaply.
- RET is valuated reasonably with a Price/Forward Earnings ratio of 10.17.
- Based on the Price/Forward Earnings ratio, RET is valued a bit cheaper than 70.73% of the companies 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 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 10.17 |
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.
- 60.98% of the companies in the same industry are more expensive than RET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 15.79 |
4.3 Compensation for Growth
- RET has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y0.82%
EPS Next 3Y0.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.68%, RET is a good candidate for dividend investing.
- RET's Dividend Yield is comparable with the industry average which is at 5.41.
- Compared to an average S&P500 Dividend Yield of 1.82, RET pays a better dividend.
| 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
- 68.34% of the earnings are spent on dividend by RET. 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 8.65 and the Price/Book (PB) ratio is 0.81.
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%.