RETAIL OPPORTUNITY INVESTMEN (ROIC) Stock Fundamental Analysis
NASDAQ:ROIC - Nasdaq - US76131N1019 - REIT - Currency: USD
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. While ROIC belongs to the best of the industry regarding profitability, there are concerns on its financial health. ROIC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ROIC was profitable.
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
Looking at the Return On Assets, with a value of 1.92%, ROIC is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
ROIC's Return On Equity of 4.47% is fine compared to the rest of the industry. ROIC outperforms 67.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.10%, ROIC is in line with its industry, outperforming 59.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROIC is in line with the industry average of 3.11%.
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
Looking at the Profit Margin, with a value of 17.24%, ROIC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of ROIC has declined.
ROIC has a Operating Margin of 34.07%. This is in the better half of the industry: ROIC outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of ROIC has remained more or less at the same level.
ROIC has a Gross Margin of 82.88%. This is amongst the best in the industry. ROIC outperforms 83.33% of its industry peers.
ROIC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, ROIC has an improved debt to assets ratio.
2.2 Solvency
ROIC has an Altman-Z score of 0.86. This is a bad value and indicates that ROIC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.86, ROIC is doing good in 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's Debt to FCF ratio of 565.81 is in line compared to the rest of the industry. ROIC outperforms 44.44% 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.
The Debt to Equity ratio of ROIC (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
ROIC's Current ratio of 1.41 is in line compared to the rest of the industry. ROIC outperforms 57.14% of its industry peers.
A Quick Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.41, ROIC perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ROIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.79%.
ROIC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.73% yearly.
ROIC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
The Revenue has been growing slightly by 2.07% on average over the past years.
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
ROIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.99% yearly.
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
The Price/Earnings ratio is 69.98, which means the current valuation is very expensive for ROIC.
Compared to the rest of the industry, the Price/Earnings ratio of ROIC indicates a slightly more expensive valuation: ROIC is more expensive than 62.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.39, ROIC is valued quite expensively.
The Price/Forward Earnings ratio is 60.18, which means the current valuation is very expensive for ROIC.
ROIC's Price/Forward Earnings ratio is in line with the industry average.
ROIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 94.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.98 | ||
| Fwd PE | 60.18 |
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 | 894.99 | ||
| 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 18.77.
Compared to an average S&P500 Dividend Yield of 2.30, ROIC pays a bit more dividend than the S&P500 average.
| 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%
RETAIL OPPORTUNITY INVESTMEN
NASDAQ:ROIC (2/12/2025, 10:21:00 AM)
17.495
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.18%
Inst Owner Change-14.13%
Ins Owners2.75%
Ins Owner Change0.69%
Market Cap2.24B
Analysts50.91
Price Target16.7 (-4.54%)
Short Float %2.88%
Short Ratio2.78
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)7.38%
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)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.98 | ||
| Fwd PE | 60.18 | ||
| P/S | 6.64 | ||
| P/FCF | 894.99 | ||
| 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
WACC7.04%
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%