RETAIL OPPORTUNITY INVESTMEN (ROIC)
US76131N1019 - REIT
We assign a fundamental rating of 4 out of 10 to ROIC. ROIC was compared to 130 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
In the past year ROIC was profitable.
In the past year ROIC had a positive cash flow from operations.
In the past 5 years ROIC has always been profitable.
In the past 5 years ROIC always reported a positive cash flow from operatings.
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 68.50% of the companies in the same industry.
The Return On Equity of ROIC (4.47%) is better than 66.93% 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 59.84% 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 3.10%.
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
The Profit Margin of ROIC (17.24%) is better than 71.65% of its industry peers.
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 71.65% of its industry peers.
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
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.
Compared to 1 year ago, ROIC has an improved debt to assets ratio.
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.
ROIC has a better Altman-Z score (0.86) than 65.35% 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.
With a Debt to FCF ratio value of 565.81, ROIC perfoms like the industry average, outperforming 43.31% 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's Debt to Equity ratio of 1.09 is in line compared to the rest of the industry. ROIC outperforms 55.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC7.08%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.41, ROIC perfoms like the industry average, outperforming 56.69% 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.
The Quick ratio of ROIC (1.41) 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
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.
The Revenue has been growing slightly by 4.18% in the past year.
ROIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.07% yearly.
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.
ROIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
EPS Next Y32.22%
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.
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
With a Price/Earnings ratio of 69.68, ROIC can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ROIC.
The average S&P500 Price/Earnings ratio is at 27.40. ROIC is valued rather expensively when compared to this.
ROIC is valuated quite expensively with a Price/Forward Earnings ratio of 59.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROIC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ROIC to the average of the S&P500 Index (23.67), we can say ROIC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.68 | ||
| Fwd PE | 59.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROIC is valued a bit more expensive than the industry average as 66.14% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROIC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 891.15 | ||
| EV/EBITDA | 16.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ROIC may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y3.76%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
ROIC has a Yearly Dividend Yield of 3.46%.
ROIC's Dividend Yield is slightly below the industry average, which is at 15.41.
Compared to an average S&P500 Dividend Yield of 2.33, ROIC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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
ROIC pays out 131.94% of its income as dividend. This is not a sustainable payout ratio.
DP131.94%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
RETAIL OPPORTUNITY INVESTMEN
NASDAQ:ROIC (1/6/2025, 4:20:00 PM)
After market: 17.42 0 (0%)17.42
+0.04 (+0.23%)
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 Change0%
Ins Owners2.75%
Ins Owner Change0.3%
Market Cap2.23B
Analysts50.91
Price Target16.7 (-4.13%)
Short Float %1.8%
Short Ratio1.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)-1.75%
PT rev (3m)10.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)-7.89%
EPS NY rev (3m)32.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.68 | ||
| Fwd PE | 59.92 | ||
| P/S | 6.61 | ||
| P/FCF | 891.15 | ||
| P/OCF | 15.37 | ||
| P/B | 1.72 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 16.23 |
EPS(TTM)0.25
EY1.44%
EPS(NY)0.29
Fwd EY1.67%
FCF(TTM)0.02
FCFY0.11%
OCF(TTM)1.13
OCFY6.51%
SpS2.64
BVpS10.15
TBVpS9.82
PEG (NY)2.16
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
WACC7.08%
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 Y32.22%
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%