RETAIL OPPORTUNITY INVESTMEN (ROIC)

US76131N1019 - REIT

17.38  +0.01 (+0.06%)

After market: 17.38 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ROIC. 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 is valied quite expensively at the moment, while it does show a decent growth rate.



7

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.
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 69.29% of its industry peers.
Looking at the Return On Equity, with a value of 4.47%, ROIC is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.10%, ROIC is doing good in the industry, outperforming 60.63% of the companies in the same industry.
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 3.08%.
The last Return On Invested Capital (3.10%) for ROIC is above the 3 year average (2.80%), which is a sign of increasing profitability.
Industry RankSector 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 72.44% of the companies in the same industry.
In the last couple of years the Profit Margin of ROIC has declined.
The Operating Margin of ROIC (34.07%) is better than 71.65% of its industry peers.
ROIC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 82.88%, ROIC belongs to the top of the industry, outperforming 83.46% 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 RankSector 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%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROIC is destroying value.
ROIC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ROIC has been increased compared to 5 years ago.
The debt/assets ratio for ROIC has been reduced compared to a year ago.

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.
The Altman-Z score of ROIC (0.86) is better than 64.57% 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.
The Debt to FCF ratio of ROIC (565.81) is comparable to the rest of the 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 RankSector Rank
Debt/Equity 1.09
Debt/FCF 565.81
Altman-Z 0.86
ROIC/WACC0.44
WACC6.96%

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.
ROIC has a Current ratio of 1.41. This is comparable to the rest of the industry: ROIC outperforms 59.06% of 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's Quick ratio of 1.41 is fine compared to the rest of the industry. ROIC outperforms 60.63% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 1.41

4

3. Growth

3.1 Past

The earnings per share for ROIC have decreased strongly by -13.79% in the last year.
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%.
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

The Earnings Per Share is expected to grow by 6.90% on average over the next years.
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

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 accelerating: in the next years the growth will be better than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 69.52, ROIC can be considered very expensive at the moment.
ROIC's Price/Earnings is on the same level as the industry average.
ROIC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 59.44 indicates a quite expensive valuation of ROIC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROIC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.82. ROIC is valued rather expensively when compared to this.
Industry RankSector Rank
PE 69.52
Fwd PE 59.44

4.2 Price Multiples

ROIC's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROIC.
Industry RankSector Rank
P/FCF 889.11
EV/EBITDA 16.22

4.3 Compensation for Growth

ROIC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ROIC may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y4.07%
EPS Next 3Y6.9%

3

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 6.55.
ROIC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
Industry RankSector 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 (11/21/2024, 8:00:02 PM)

After market: 17.38 0 (0%)

17.38

+0.01 (+0.06%)

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 Cap2.22B
Analysts
Price Target
Dividend
Industry RankSector 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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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 69.52
Fwd PE 59.44
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)1.6
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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