WAREHOUSES ESTATES BELGIUM (WEB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:WEB - BE0003734481 - REIT
39.6 EUR
-0.2 (-0.5%)
Taking everything into account, WEB scores 4 out of 10 in our fundamental rating. WEB was compared to 42 industry peers in the Diversified REITs industry. WEB has an excellent profitability rating, but there are concerns on its financial health. WEB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year WEB was profitable.
- In the past year WEB had a positive cash flow from operations.
- WEB had positive earnings in each of the past 5 years.
- In the past 5 years WEB always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.22%, WEB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- With a decent Return On Equity value of 6.36%, WEB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 4.70%, WEB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- WEB had an Average Return On Invested Capital over the past 3 years of 4.53%. This is in line with the industry average of 3.45%.
- The last Return On Invested Capital (4.70%) for WEB is above the 3 year average (4.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 6.36% | ||
| ROIC | 4.7% |
ROA(3y)3.25%
ROA(5y)3.53%
ROE(3y)6.07%
ROE(5y)6.63%
ROIC(3y)4.53%
ROIC(5y)4.35%
1.3 Margins
- WEB has a Profit Margin (44.23%) which is comparable to the rest of the industry.
- WEB's Profit Margin has declined in the last couple of years.
- WEB has a better Operating Margin (79.69%) than 76.19% of its industry peers.
- WEB's Operating Margin has been stable in the last couple of years.
- WEB's Gross Margin of 97.60% is amongst the best of the industry. WEB outperforms 95.24% of its industry peers.
- In the last couple of years the Gross Margin of WEB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 79.69% | ||
| PM (TTM) | 44.23% | ||
| GM | 97.6% |
OM growth 3Y-2.45%
OM growth 5Y-0.08%
PM growth 3Y-17.16%
PM growth 5Y-4.35%
GM growth 3Y0.85%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEB is destroying value.
- Compared to 1 year ago, WEB has more shares outstanding
- WEB has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for WEB has been reduced compared to a year ago.
2.2 Solvency
- WEB has an Altman-Z score of 0.83. This is a bad value and indicates that WEB is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of WEB (0.83) is comparable to the rest of the industry.
- WEB has a debt to FCF ratio of 11.77. This is a negative value and a sign of low solvency as WEB would need 11.77 years to pay back of all of its debts.
- WEB has a Debt to FCF ratio of 11.77. This is comparable to the rest of the industry: WEB outperforms 57.14% of its industry peers.
- WEB has a Debt/Equity ratio of 0.82. This is a neutral value indicating WEB is somewhat dependend on debt financing.
- WEB has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: WEB underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 11.77 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.9
WACC5.21%
2.3 Liquidity
- WEB has a Current Ratio of 0.33. This is a bad value and indicates that WEB is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.33, WEB perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
- A Quick Ratio of 0.33 indicates that WEB may have some problems paying its short term obligations.
- WEB's Quick ratio of 0.33 is in line compared to the rest of the industry. WEB outperforms 45.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- WEB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.18%, which is quite impressive.
- Measured over the past years, WEB shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.07% on average per year.
- WEB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.55%.
- WEB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.96% yearly.
EPS 1Y (TTM)57.18%
EPS 3Y-10.85%
EPS 5Y-0.07%
EPS Q2Q%3.01%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y10.18%
Revenue growth 5Y5.96%
Sales Q2Q%2.62%
3.2 Future
- The Earnings Per Share is expected to decrease by -2.53% on average over the next years.
- The Revenue is expected to grow by 1.01% on average over the next years.
EPS Next Y-5.1%
EPS Next 2Y-4.7%
EPS Next 3Y-2.53%
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y2.47%
Revenue Next 3Y2.15%
Revenue Next 5Y1.01%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- WEB is valuated correctly with a Price/Earnings ratio of 12.41.
- Compared to the rest of the industry, the Price/Earnings ratio of WEB is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.21. WEB is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 11.01, the valuation of WEB can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WEB is on the same level as its industry peers.
- WEB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEB indicates a somewhat cheap valuation: WEB is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- WEB has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as WEB's earnings are expected to decrease with -2.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.7%
EPS Next 3Y-2.53%
5. Dividend
5.1 Amount
- WEB has a Yearly Dividend Yield of 5.89%, which is a nice return.
- WEB's Dividend Yield is a higher than the industry average which is at 5.43.
- WEB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
5.2 History
- The dividend of WEB has a limited annual growth rate of 1.51%.
Dividend Growth(5Y)1.51%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- 105.09% of the earnings are spent on dividend by WEB. This is not a sustainable payout ratio.
- WEB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP105.09%
EPS Next 2Y-4.7%
EPS Next 3Y-2.53%
WAREHOUSES ESTATES BELGIUM / WEB.BR FAQ
What is the ChartMill fundamental rating of WAREHOUSES ESTATES BELGIUM (WEB.BR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WEB.BR.
What is the valuation status of WAREHOUSES ESTATES BELGIUM (WEB.BR) stock?
ChartMill assigns a valuation rating of 5 / 10 to WAREHOUSES ESTATES BELGIUM (WEB.BR). This can be considered as Fairly Valued.
What is the profitability of WEB stock?
WAREHOUSES ESTATES BELGIUM (WEB.BR) has a profitability rating of 7 / 10.
How financially healthy is WAREHOUSES ESTATES BELGIUM?
The financial health rating of WAREHOUSES ESTATES BELGIUM (WEB.BR) is 2 / 10.
What is the expected EPS growth for WAREHOUSES ESTATES BELGIUM (WEB.BR) stock?
The Earnings per Share (EPS) of WAREHOUSES ESTATES BELGIUM (WEB.BR) is expected to decline by -5.1% in the next year.