URBAN EDGE PROPERTIES (UE) Stock Fundamental Analysis
NYSE:UE - New York Stock Exchange, Inc. - US91704F1049 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to UE. UE was compared to 129 industry peers in the Diversified REITs industry. While UE is still in line with the averages on profitability rating, there are concerns on its financial health. UE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
UE had positive earnings in the past year.
In the past year UE had a positive cash flow from operations.
UE had positive earnings in each of the past 5 years.
Each year in the past 5 years UE had a positive operating cash flow.
1.2 Ratios
UE has a Return On Assets of 2.19%. This is in the better half of the industry: UE outperforms 73.02% of its industry peers.
Looking at the Return On Equity, with a value of 5.67%, UE is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
UE's Return On Invested Capital of 2.38% is on the low side compared to the rest of the industry. UE is outperformed by 60.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UE is in line with the industry average of 3.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 5.67% | ||
| ROIC | 2.38% |
ROA(3y)3.77%
ROA(5y)3.59%
ROE(3y)10.66%
ROE(5y)10.42%
ROIC(3y)2.82%
ROIC(5y)2.86%
1.3 Margins
The Profit Margin of UE (16.29%) is better than 69.84% of its industry peers.
In the last couple of years the Profit Margin of UE has declined.
The Operating Margin of UE (21.69%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of UE has declined.
UE has a worse Gross Margin (63.91%) than 64.29% of its industry peers.
UE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.69% | ||
| PM (TTM) | 16.29% | ||
| GM | 63.91% |
OM growth 3Y-14.67%
OM growth 5Y-6.33%
PM growth 3Y-12.28%
PM growth 5Y-10.41%
GM growth 3Y-0.98%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UE is destroying value.
UE has more shares outstanding than it did 1 year ago.
UE has more shares outstanding than it did 5 years ago.
UE has a better debt/assets ratio than last year.
2.2 Solvency
UE has an Altman-Z score of 1.03. This is a bad value and indicates that UE is not financially healthy and even has some risk of bankruptcy.
UE has a better Altman-Z score (1.03) than 73.81% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that UE has dependencies on debt financing.
UE has a Debt to Equity ratio (1.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.34
WACC7.07%
2.3 Liquidity
UE has a Current Ratio of 0.96. This is a bad value and indicates that UE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.96, UE perfoms like the industry average, outperforming 42.06% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that UE may have some problems paying its short term obligations.
UE has a Quick ratio (0.96) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
UE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -75.62%.
The Earnings Per Share has been decreasing by -8.10% on average over the past years.
UE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.74%.
UE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.80% yearly.
EPS 1Y (TTM)-75.62%
EPS 3Y-12.48%
EPS 5Y-8.1%
EPS Q2Q%-87.3%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y1.53%
Revenue growth 5Y2.8%
Sales Q2Q%-0.24%
3.2 Future
UE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.03% yearly.
UE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.04% yearly.
EPS Next Y-37.15%
EPS Next 2Y-14.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.78%
Revenue Next 2Y4.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.98, which means the current valuation is very expensive for UE.
The rest of the industry has a similar Price/Earnings ratio as UE.
UE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 54.07, UE can be considered very expensive at the moment.
UE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, UE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 54.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UE is valued a bit more expensive than 65.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
UE's earnings are expected to decrease with -14.03% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, UE has a reasonable but not impressive dividend return.
UE's Dividend Yield is slightly below the industry average, which is at 18.48.
Compared to an average S&P500 Dividend Yield of 2.29, UE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of UE decreases each year by -5.42%.
UE has paid a dividend for at least 10 years, which is a reliable track record.
UE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.42%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
UE pays out 114.37% of its income as dividend. This is not a sustainable payout ratio.
UE's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP114.37%
EPS Next 2Y-14.03%
EPS Next 3YN/A
20.05
-0.1 (-0.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.78%
Inst Owner Change3.67%
Ins Owners0.08%
Ins Owner Change0.14%
Market Cap2.50B
Analysts83.33
Price Target23.97 (19.55%)
Short Float %2.46%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend0.68
Dividend Growth(5Y)-5.42%
DP114.37%
Div Incr Years1
Div Non Decr Years3
Ex-Date
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)2
Avg Revenue beat(2)2.23%
Min Revenue beat(2)1.92%
Max Revenue beat(2)2.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.54%
Revenue beat(8)6
Avg Revenue beat(8)12.9%
Revenue beat(12)8
Avg Revenue beat(12)10.25%
Revenue beat(16)12
Avg Revenue beat(16)20.74%
PT rev (1m)-1.06%
PT rev (3m)6.9%
EPS NQ rev (1m)3.58%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)-5.75%
EPS NY rev (3m)-5.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 54.07 | ||
| P/S | 5.63 | ||
| P/FCF | N/A | ||
| P/OCF | 16.34 | ||
| P/B | 1.96 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.59
EY2.94%
EPS(NY)0.37
Fwd EY1.85%
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)1.23
OCFY6.12%
SpS3.56
BVpS10.24
TBVpS9.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 5.67% | ||
| ROCE | 3.01% | ||
| ROIC | 2.38% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.54% | ||
| OM | 21.69% | ||
| PM (TTM) | 16.29% | ||
| GM | 63.91% | ||
| FCFM | N/A |
ROA(3y)3.77%
ROA(5y)3.59%
ROE(3y)10.66%
ROE(5y)10.42%
ROIC(3y)2.82%
ROIC(5y)2.86%
ROICexc(3y)2.9%
ROICexc(5y)3.01%
ROICexgc(3y)3.03%
ROICexgc(5y)3.14%
ROCE(3y)3.57%
ROCE(5y)3.62%
ROICexcg growth 3Y-17.41%
ROICexcg growth 5Y-9.41%
ROICexc growth 3Y-17.71%
ROICexc growth 5Y-9.63%
OM growth 3Y-14.67%
OM growth 5Y-6.33%
PM growth 3Y-12.28%
PM growth 5Y-10.41%
GM growth 3Y-0.98%
GM growth 5Y-0.1%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.45 | ||
| Cap/Depr | 190.4% | ||
| Cap/Sales | 66.32% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 60.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.03 |
F-Score5
WACC7.07%
ROIC/WACC0.34
Cap/Depr(3y)241.11%
Cap/Depr(5y)249.9%
Cap/Sales(3y)69.29%
Cap/Sales(5y)67.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.62%
EPS 3Y-12.48%
EPS 5Y-8.1%
EPS Q2Q%-87.3%
EPS Next Y-37.15%
EPS Next 2Y-14.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.74%
Revenue growth 3Y1.53%
Revenue growth 5Y2.8%
Sales Q2Q%-0.24%
Revenue Next Year6.78%
Revenue Next 2Y4.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-22.71%
EBIT growth 3Y-13.36%
EBIT growth 5Y-3.71%
EBIT Next Year134.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.04%
OCF growth 3Y4.22%
OCF growth 5Y-0.42%