17.49 USD
0 (0%)
17.49 USD
0 (0%)
Overall ROIC gets a fundamental rating of 4 out of 10. We evaluated ROIC against 124 industry peers in the Diversified REITs industry. ROIC has an excellent profitability rating, 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
- In the past year ROIC was profitable.
- ROIC had a positive operating cash flow in the past year.
- ROIC had positive earnings in each of the past 5 years.
- In the past 5 years ROIC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ROIC (1.92%) is better than 69.84% of its industry peers.
- ROIC's Return On Equity of 4.47% is fine compared to the rest of the industry. ROIC outperforms 68.25% of its industry peers.
- ROIC's Return On Invested Capital of 3.10% is in line compared to the rest of the industry. ROIC outperforms 58.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ROIC is in line with the industry average of 3.05%.
- 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
- ROIC has a Profit Margin of 17.24%. This is in the better half of the industry: ROIC outperforms 72.22% of its industry peers.
- ROIC's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 34.07%, ROIC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- ROIC's Operating Margin has been stable in the last couple of years.
- The Gross Margin of ROIC (82.88%) is better than 83.33% of its industry peers.
- 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.
- The number of shares outstanding for ROIC has been increased compared to 1 year ago.
- ROIC has a better debt/assets ratio than last year.
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.
- ROIC has a better Altman-Z score (0.86) than 65.87% of its industry peers.
- The Debt to FCF ratio of ROIC is 565.81, which is on the high side as it means it would take ROIC, 565.81 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 565.81, ROIC is in line with its industry, outperforming 46.03% 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.
- 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
WACC7.02%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.41, ROIC is in line with its industry, outperforming 59.52% 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 of 1.41. This is in the better half of the industry: ROIC outperforms 62.70% of its industry peers.
| 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%.
- 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
- Based on estimates for the next years, ROIC will show a small growth in Earnings Per Share. The EPS will grow by 7.99% on average per year.
- ROIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
- The rest of the industry has a similar Price/Earnings ratio as ROIC.
- The average S&P500 Price/Earnings ratio is at 27.25. ROIC is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 60.17, which means the current valuation is very expensive for ROIC.
- The rest of the industry has a similar Price/Forward Earnings ratio as ROIC.
- ROIC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROIC indicates a slightly more expensive valuation: ROIC is more expensive than 66.67% of the companies listed in the same industry.
- ROIC's Price/Free Cash Flow is on the same level as the industry average.
| 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
- ROIC has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 6.82, ROIC is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, ROIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 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 / ROIC FAQ
What is the ChartMill fundamental rating of RETAIL OPPORTUNITY INVESTMEN (ROIC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ROIC.
Can you provide the valuation status for RETAIL OPPORTUNITY INVESTMEN?
ChartMill assigns a valuation rating of 2 / 10 to RETAIL OPPORTUNITY INVESTMEN (ROIC). This can be considered as Overvalued.
What is the profitability of ROIC stock?
RETAIL OPPORTUNITY INVESTMEN (ROIC) has a profitability rating of 7 / 10.
What is the financial health of RETAIL OPPORTUNITY INVESTMEN (ROIC) stock?
The financial health rating of RETAIL OPPORTUNITY INVESTMEN (ROIC) is 3 / 10.
Can you provide the expected EPS growth for ROIC stock?
The Earnings per Share (EPS) of RETAIL OPPORTUNITY INVESTMEN (ROIC) is expected to grow by 73.78% in the next year.