RETAIL OPPORTUNITY INVESTMEN (ROIC) Stock Fundamental Analysis
USA - NASDAQ:ROIC - US76131N1019 - REIT
17.49 USD
0 (0%)
17.49 USD
0 (0%)
Taking everything into account, ROIC scores 4 out of 10 in our fundamental rating. ROIC was compared to 129 industry peers in the Diversified REITs industry. ROIC scores excellent on profitability, but there are concerns on its financial health. ROIC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
ROIC had positive earnings in the past year.
In the past year ROIC had a positive cash flow from operations.
Each year in the past 5 years ROIC has been profitable.
ROIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROIC's Return On Assets of 1.92% is fine compared to the rest of the industry. ROIC outperforms 69.84% of its industry peers.
ROIC has a better Return On Equity (4.47%) than 68.25% of its industry peers.
ROIC has a Return On Invested Capital (3.10%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ROIC is in line with the industry average of 3.01%.
The 3 year average ROIC (2.80%) for ROIC is below the current ROIC(3.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROIC | 3.1% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
1.3 Margins
With a decent Profit Margin value of 17.24%, ROIC is doing good in the industry, outperforming 72.22% of the companies in the same industry.
ROIC's Profit Margin has declined in the last couple of years.
ROIC's Operating Margin of 34.07% is fine compared to the rest of the industry. ROIC outperforms 71.43% of its industry peers.
ROIC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 82.88%, ROIC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of ROIC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% |
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROIC is destroying value.
Compared to 1 year ago, ROIC has more shares outstanding
The number of shares outstanding for ROIC has been increased compared to 5 years ago.
ROIC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that ROIC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, ROIC is in the better half of the industry, outperforming 65.87% of the companies in the same industry.
ROIC has a debt to FCF ratio of 565.81. This is a negative value and a sign of low solvency as ROIC would need 565.81 years to pay back of all of its debts.
ROIC has a Debt to FCF ratio of 565.81. This is comparable to the rest of the industry: ROIC outperforms 46.03% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that ROIC has dependencies on debt financing.
ROIC has a Debt to Equity ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC7.02%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
ROIC has a Current ratio (1.41) which is in line with its industry peers.
ROIC has a Quick Ratio of 1.41. This is a normal value and indicates that ROIC is financially healthy and should not expect problems in meeting its short term obligations.
ROIC has a better Quick ratio (1.41) than 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for ROIC have decreased strongly by -13.79% in the last year.
Measured over the past years, ROIC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.73% on average per year.
Looking at the last year, ROIC shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
Measured over the past years, ROIC shows a small growth in Revenue. The Revenue has been growing by 2.07% on average per year.
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 69.96, the valuation of ROIC can be described as expensive.
ROIC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ROIC to the average of the S&P500 Index (27.55), we can say ROIC is valued expensively.
A Price/Forward Earnings ratio of 60.17 indicates a quite expensive valuation of ROIC.
ROIC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROIC to the average of the S&P500 Index (23.04), we can say ROIC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 |
4.2 Price Multiples
ROIC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ROIC is more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROIC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 894.73 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
ROIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ROIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y3.76%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, ROIC has a reasonable but not impressive dividend return.
ROIC's Dividend Yield is slightly below the industry average, which is at 7.01.
ROIC's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of ROIC decreases each year by -10.38%.
ROIC has been paying a dividend for at least 10 years, so it has a reliable track record.
ROIC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.38%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
131.94% of the earnings are spent on dividend by ROIC. This is not a sustainable payout ratio.
DP131.94%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
17.49
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.95%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap2.24B
Analysts50.91
Price Target16.7 (-4.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.45
Dividend Growth(5Y)-10.38%
DP131.94%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.39%
Min EPS beat(2)-39.67%
Max EPS beat(2)-7.12%
EPS beat(4)1
Avg EPS beat(4)-5.39%
Min EPS beat(4)-39.67%
Max EPS beat(4)32.35%
EPS beat(8)2
Avg EPS beat(8)-6.5%
EPS beat(12)5
Avg EPS beat(12)4.15%
EPS beat(16)9
Avg EPS beat(16)31.8%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)6.93%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)31.43%
EPS NY rev (3m)21.05%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 | ||
| P/S | 6.64 | ||
| P/FCF | 894.73 | ||
| P/OCF | 15.43 | ||
| P/B | 1.72 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.25
EY1.43%
EPS(NY)0.29
Fwd EY1.66%
FCF(TTM)0.02
FCFY0.11%
OCF(TTM)1.13
OCFY6.48%
SpS2.64
BVpS10.15
TBVpS9.82
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROCE | 3.92% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.21% | ||
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% | ||
| FCFM | 0.74% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
ROICexc(3y)2.81%
ROICexc(5y)2.78%
ROICexgc(3y)2.86%
ROICexgc(5y)2.83%
ROCE(3y)3.55%
ROCE(5y)3.51%
ROICexcg growth 3Y4.14%
ROICexcg growth 5Y1.52%
ROICexc growth 3Y4.44%
ROICexc growth 5Y1.76%
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 135% | ||
| Cap/Sales | 42.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.79% | ||
| Profit Quality | 4.3% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.86 |
F-Score6
WACC7.02%
ROIC/WACC0.44
Cap/Depr(3y)145.7%
Cap/Depr(5y)104.48%
Cap/Sales(3y)46.5%
Cap/Sales(5y)33.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
EBIT growth 1Y6.57%
EBIT growth 3Y5.18%
EBIT growth 5Y1.22%
EBIT Next Year98.32%
EBIT Next 3Y27.23%
EBIT Next 5Y20.38%
FCF growth 1Y102.09%
FCF growth 3Y2.72%
FCF growth 5Y9.65%
OCF growth 1Y-6%
OCF growth 3Y11.39%
OCF growth 5Y2.41%