RETAIL OPPORTUNITY INVESTMEN (ROIC)
US76131N1019 - REIT
Overall ROIC gets a fundamental rating of 4 out of 10. We evaluated ROIC against 129 industry peers in the Diversified REITs industry. ROIC has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, ROIC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ROIC had positive earnings in the past year.
ROIC had a positive operating cash flow in the past year.
In the past 5 years ROIC has always been profitable.
Each year in the past 5 years ROIC had a positive operating cash flow.
1.2 Ratios
ROIC has a Return On Assets of 1.92%. This is in the better half of the industry: ROIC outperforms 69.29% of its industry peers.
With a decent Return On Equity value of 4.47%, ROIC is doing good in the industry, outperforming 68.50% of the companies in the same industry.
The Return On Invested Capital of ROIC (3.10%) is better than 60.63% of its industry peers.
ROIC had an Average Return On Invested Capital over the past 3 years of 2.80%. This is in line with the industry average of 3.06%.
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 71.65% of the companies in the same industry.
In the last couple of years the Profit Margin of ROIC has declined.
Looking at the Operating Margin, with a value of 34.07%, ROIC is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
In the last couple of years the Operating Margin of ROIC has remained more or less at the same level.
With an excellent Gross Margin value of 82.88%, ROIC belongs to the best of the industry, outperforming 83.46% of the companies in the same industry.
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
ROIC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ROIC has been increased compared to 1 year ago.
ROIC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ROIC has been reduced compared to a year ago.
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.
The Altman-Z score of ROIC (0.86) is better than 64.57% of its industry peers.
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.
With a Debt to FCF ratio value of 565.81, ROIC perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
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/WACC0.45
WACC6.89%
2.3 Liquidity
ROIC has a Current 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.
Looking at the Current ratio, with a value of 1.41, ROIC is in line with its industry, outperforming 58.27% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
ROIC has a Quick ratio (1.41) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been decreasing by -2.73% on average over the past years.
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
ROIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.90% yearly.
Based on estimates for the next years, ROIC will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
EPS Next Y43.56%
EPS Next 2Y4.07%
EPS Next 3Y6.9%
EPS Next 5YN/A
Revenue Next Year4.5%
Revenue Next 2Y2.81%
Revenue Next 3Y2.59%
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 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 69.36 indicates a quite expensive valuation of ROIC.
ROIC's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ROIC to the average of the S&P500 Index (29.12), we can say ROIC is valued expensively.
A Price/Forward Earnings ratio of 59.30 indicates a quite expensive valuation of ROIC.
ROIC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. ROIC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.36 | ||
| Fwd PE | 59.3 |
4.2 Price Multiples
ROIC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROIC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 893.03 | ||
| EV/EBITDA | 16.27 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ROIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y4.07%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
ROIC has a Yearly Dividend Yield of 3.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.96, ROIC is paying slightly less dividend.
ROIC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of ROIC decreases each year by -10.38%.
ROIC has paid a dividend for at least 10 years, which is 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 Years3
5.3 Sustainability
ROIC pays out 131.94% of its income as dividend. This is not a sustainable payout ratio.
DP131.94%
EPS Next 2Y4.07%
EPS Next 3Y6.9%
RETAIL OPPORTUNITY INVESTMEN
NASDAQ:ROIC (11/12/2024, 5:25:13 PM)
After market: 17.32 -0.02 (-0.12%)17.34
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.36 | ||
| Fwd PE | 59.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y
EPS Q2Q%
EPS Next Y43.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y