NECESSITY RETAIL REIT INC/TH(NASDAQ:RTL) stock Fundamental Analysis

Fundamental Rating

Overall RTL gets a fundamental rating of 3 out of 10. We evaluated RTL against 129 industry peers in the Diversified REITs industry. RTL may be in some trouble as it scores bad on both profitability and health. RTL does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

RTL had positive earnings in the past year.

In the past year RTL had a positive cash flow from operations.

In the past 5 years RTL always reported negative net income.

Each year in the past 5 years RTL had a positive operating cash flow.

1.2 Ratios

The profitability ratios for RTL are negative, so there is not much use analyzing them.

With a Return On Invested Capital value of 0.63%, RTL is not doing good in the industry: 84.85% of the companies in the same industry are doing better.

The Average Return On Invested Capital over the past 3 years for RTL is in line with the industry average of 3.11%.

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROIC	0.63%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)1.37%

ROIC(5y)1.23%

1.3 Margins

RTL's Operating Margin of 7.48% is on the low side compared to the rest of the industry. RTL is outperformed by 83.33% of its industry peers.

In the last couple of years the Operating Margin of RTL has grown nicely.

RTL has a better Gross Margin (69.50%) than 60.61% of its industry peers.

In the last couple of years the Gross Margin of RTL has declined.

		Industry Rank	Sector Rank
OM	7.48%
PM (TTM)	N/A
GM	69.5%

OM growth 3Y-9.47%

OM growth 5Y5.39%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.73%

GM growth 5Y-1.75%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTL is destroying value.

RTL has more shares outstanding than it did 1 year ago.

RTL has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of -0.13, we must say that RTL is in the distress zone and has some risk of bankruptcy.

The Altman-Z score of RTL (-0.13) is worse than 81.82% of its industry peers.

A Debt/Equity ratio of 1.85 is on the high side and indicates that RTL has dependencies on debt financing.

The Debt to Equity ratio of RTL (1.85) is worse than 70.45% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.85
Debt/FCF	N/A
Altman-Z	-0.13

ROIC/WACC0.1

WACC6.56%

2.3 Liquidity

RTL has a Current Ratio of 2.34. This indicates that RTL is financially healthy and has no problem in meeting its short term obligations.

The Current ratio of RTL (2.34) is better than 81.06% of its industry peers.

A Quick Ratio of 2.34 indicates that RTL has no problem at all paying its short term obligations.

RTL's Quick ratio of 2.34 is amongst the best of the industry. RTL outperforms 83.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.34
Quick Ratio	2.34

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

RTL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -143.65%.

Looking at the last year, RTL shows a quite strong growth in Revenue. The Revenue has grown by 17.76% in the last year.

Measured over the past years, RTL shows a quite strong growth in Revenue. The Revenue has been growing by 10.51% on average per year.

EPS 1Y (TTM)-143.65%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-27.59%

Revenue 1Y (TTM)17.76%

Revenue growth 3Y14.2%

Revenue growth 5Y10.51%

Sales Q2Q%-8.75%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.85, the valuation of RTL can be described as very cheap.

Based on the Price/Earnings ratio, RTL is valued cheaper than 99.24% of the companies in the same industry.

RTL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.

		Industry Rank	Sector Rank
PE	7.85
Fwd PE	N/A

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as RTL.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	14.09

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

RTL has a Yearly Dividend Yield of 11.17%, which is a nice return.

Compared to an average industry Dividend Yield of 18.40, RTL pays a better dividend. On top of this RTL pays more dividend than 94.70% of the companies listed in the same industry.

RTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.

		Industry Rank	Sector Rank
Dividend Yield	11.17%

5.2 History

The dividend of RTL decreases each year by -1.15%.

RTL has been paying a dividend for over 5 years, so it has already some track record.

RTL has decreased its dividend recently.

Dividend Growth(5Y)-1.15%

Div Incr Years0

Div Non Decr Years1

5.3 Sustainability

RTL has negative earnings and hence a negative payout ratio. The dividend may be in danger.

DP-84.63%

EPS Next 2YN/A

EPS Next 3YN/A

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NECESSITY RETAIL REIT INC/TH

NASDAQ:RTL (9/11/2023, 10:21:53 PM)

After market: 7.61 0 (0%)

7.61

+0.08 (+1.06%)

Chartmill FA Rating

GICS SectorReal Estate

GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)

GICS IndustryDiversified REITs

Earnings (Last)08-02 2023-08-02/amc

Earnings (Next)10-31 2023-10-31/amc

Inst OwnersN/A

Inst Owner Change-17.68%

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap0

Analysts80

Price Target10.71 (40.74%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	11.17%

Yearly Dividend1.05

Dividend Growth(5Y)-1.15%

DP-84.63%

Div Incr Years0

Div Non Decr Years1

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)10.53%

PT rev (3m)10.53%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	7.85
Fwd PE	N/A
P/S	2.25
P/FCF	N/A
P/OCF	10.9
P/B	0.71
P/tB	0.71
EV/EBITDA	14.09

EPS(TTM)0.97

EY12.75%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)-0.09

FCFYN/A

OCF(TTM)0.7

OCFY9.17%

SpS3.38

BVpS10.67

TBVpS10.67

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE	0.8%
ROIC	0.63%
ROICexc	0.64%
ROICexgc	0.64%
OM	7.48%
PM (TTM)	N/A
GM	69.5%
FCFM	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)1.37%

ROIC(5y)1.23%

ROICexc(3y)1.42%

ROICexc(5y)1.27%

ROICexgc(3y)1.43%

ROICexgc(5y)1.33%

ROCE(3y)1.73%

ROCE(5y)1.57%

ROICexcg growth 3Y-10.1%

ROICexcg growth 5Y6.61%

ROICexc growth 3Y-5.7%

ROICexc growth 5Y8.8%

OM growth 3Y-9.47%

OM growth 5Y5.39%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.73%

GM growth 5Y-1.75%

F-Score4

Asset Turnover0.1

Health

		Industry Rank	Sector Rank
Debt/Equity	1.85
Debt/FCF	N/A
Debt/EBITDA	10.33
Cap/Depr	47.63%
Cap/Sales	23.3%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	2.34
Quick Ratio	2.34
Altman-Z	-0.13

F-Score4

WACC6.56%

ROIC/WACC0.1

Cap/Depr(3y)285.4%

Cap/Depr(5y)279.41%

Cap/Sales(3y)121.61%

Cap/Sales(5y)119.82%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-143.65%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-27.59%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)17.76%

Revenue growth 3Y14.2%

Revenue growth 5Y10.51%

Sales Q2Q%-8.75%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-60.69%

EBIT growth 3Y3.39%

EBIT growth 5Y16.46%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-1643.46%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y6.63%

OCF growth 3Y13.62%

OCF growth 5Y10.86%

NECESSITY RETAIL REIT INC/TH (RTL) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens