WHITESTONE REIT (WSR) Stock Fundamental Analysis
NYSE:WSR - New York Stock Exchange, Inc. - US9660842041 - REIT - Currency: USD
Overall WSR gets a fundamental rating of 5 out of 10. We evaluated WSR against 129 industry peers in the Diversified REITs industry. WSR scores excellent on profitability, but there are concerns on its financial health. WSR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSR was profitable.
WSR had a positive operating cash flow in the past year.
In the past 5 years WSR has always been profitable.
WSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.77%, WSR is doing good in the industry, outperforming 75.19% of the companies in the same industry.
WSR has a Return On Equity of 7.25%. This is amongst the best in the industry. WSR outperforms 82.95% of its industry peers.
WSR has a better Return On Invested Capital (3.71%) than 70.54% of its industry peers.
WSR had an Average Return On Invested Capital over the past 3 years of 3.59%. This is in line with the industry average of 3.15%.
The last Return On Invested Capital (3.71%) for WSR is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.25% | ||
| ROIC | 3.71% |
ROA(3y)2.72%
ROA(5y)1.97%
ROE(3y)7.16%
ROE(5y)5.27%
ROIC(3y)3.59%
ROIC(5y)3.15%
1.3 Margins
WSR has a better Profit Margin (20.15%) than 76.74% of its industry peers.
WSR's Profit Margin has improved in the last couple of years.
WSR has a better Operating Margin (32.62%) than 69.77% of its industry peers.
In the last couple of years the Operating Margin of WSR has grown nicely.
WSR's Gross Margin of 69.92% is in line compared to the rest of the industry. WSR outperforms 58.91% of its industry peers.
In the last couple of years the Gross Margin of WSR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.62% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.92% |
OM growth 3Y5.79%
OM growth 5Y2.69%
PM growth 3Y35.51%
PM growth 5Y3.87%
GM growth 3Y0.75%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
WSR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WSR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WSR has more shares outstanding
Compared to 1 year ago, WSR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.63, we must say that WSR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.63, WSR is in line with its industry, outperforming 55.04% of the companies in the same industry.
WSR has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
WSR has a worse Debt to Equity ratio (1.49) than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.52
WACC7.17%
2.3 Liquidity
A Current Ratio of 1.79 indicates that WSR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.79, WSR is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
WSR has a Quick Ratio of 1.79. This is a normal value and indicates that WSR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.79, WSR is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
WSR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.50%, which is quite impressive.
WSR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.63% yearly.
Looking at the last year, WSR shows a small growth in Revenue. The Revenue has grown by 4.61% in the last year.
WSR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)87.5%
EPS 3Y39.77%
EPS 5Y5.63%
EPS Q2Q%-61.11%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y7.16%
Revenue growth 5Y5.28%
Sales Q2Q%2.26%
3.2 Future
WSR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.85% yearly.
Based on estimates for the next years, WSR will show a small growth in Revenue. The Revenue will grow by 4.61% on average per year.
EPS Next Y-51.16%
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
EPS Next 5Y-5.85%
Revenue Next Year2.55%
Revenue Next 2Y3.83%
Revenue Next 3Y4.32%
Revenue Next 5Y4.61%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.20, which indicates a rather expensive current valuation of WSR.
Based on the Price/Earnings ratio, WSR is valued cheaply inside the industry as 82.17% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. WSR is valued slightly cheaper when compared to this.
WSR is valuated quite expensively with a Price/Forward Earnings ratio of 29.75.
Based on the Price/Forward Earnings ratio, WSR is valued a bit cheaper than 75.97% of the companies in the same industry.
WSR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 29.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.91 |
4.3 Compensation for Growth
WSR has a very decent profitability rating, which may justify a higher PE ratio.
WSR's earnings are expected to decrease with -11.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.77
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, WSR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.45, WSR is paying slightly less dividend.
WSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
5.2 History
The dividend of WSR decreases each year by -15.28%.
WSR has paid a dividend for at least 10 years, which is a reliable track record.
WSR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.28%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
81.42% of the earnings are spent on dividend by WSR. This is not a sustainable payout ratio.
The Dividend Rate of WSR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP81.42%
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
12.72
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.67%
Inst Owner Change0%
Ins Owners3.28%
Ins Owner Change2.15%
Market Cap647.45M
Analysts80
Price Target15.37 (20.83%)
Short Float %0.98%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend0.49
Dividend Growth(5Y)-15.28%
DP81.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)93.92%
Min EPS beat(2)-18.46%
Max EPS beat(2)206.3%
EPS beat(4)2
Avg EPS beat(4)53.68%
Min EPS beat(4)-38.12%
Max EPS beat(4)206.3%
EPS beat(8)4
Avg EPS beat(8)81.68%
EPS beat(12)6
Avg EPS beat(12)94.2%
EPS beat(16)8
Avg EPS beat(16)86.98%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-3.76%
Max Revenue beat(2)4.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-3.76%
Max Revenue beat(4)4.3%
Revenue beat(8)1
Avg Revenue beat(8)-0.51%
Revenue beat(12)2
Avg Revenue beat(12)-0.53%
Revenue beat(16)5
Avg Revenue beat(16)-0.14%
PT rev (1m)0%
PT rev (3m)-6.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.28%
EPS NY rev (1m)0.98%
EPS NY rev (3m)-15.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 29.75 | ||
| P/S | 4.17 | ||
| P/FCF | N/A | ||
| P/OCF | 13.01 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 14.91 |
EPS(TTM)0.6
EY4.72%
EPS(NY)0.43
Fwd EY3.36%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0.98
OCFY7.69%
SpS3.05
BVpS8.47
TBVpS8.47
PEG (NY)N/A
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.25% | ||
| ROCE | 4.69% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 3.73% | ||
| OM | 32.62% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.92% | ||
| FCFM | N/A |
ROA(3y)2.72%
ROA(5y)1.97%
ROE(3y)7.16%
ROE(5y)5.27%
ROIC(3y)3.59%
ROIC(5y)3.15%
ROICexc(3y)3.61%
ROICexc(5y)3.18%
ROICexgc(3y)3.65%
ROICexgc(5y)3.22%
ROCE(3y)4.54%
ROCE(5y)3.99%
ROICexcg growth 3Y12.11%
ROICexcg growth 5Y6.64%
ROICexc growth 3Y12.38%
ROICexc growth 5Y6.74%
OM growth 3Y5.79%
OM growth 5Y2.69%
PM growth 3Y35.51%
PM growth 5Y3.87%
GM growth 3Y0.75%
GM growth 5Y0.35%
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.46 | ||
| Cap/Depr | 145.93% | ||
| Cap/Sales | 33.41% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 57.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 0.63 |
F-Score7
WACC7.17%
ROIC/WACC0.52
Cap/Depr(3y)159.87%
Cap/Depr(5y)164.15%
Cap/Sales(3y)36.2%
Cap/Sales(5y)37.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.5%
EPS 3Y39.77%
EPS 5Y5.63%
EPS Q2Q%-61.11%
EPS Next Y-51.16%
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
EPS Next 5Y-5.85%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y7.16%
Revenue growth 5Y5.28%
Sales Q2Q%2.26%
Revenue Next Year2.55%
Revenue Next 2Y3.83%
Revenue Next 3Y4.32%
Revenue Next 5Y4.61%
EBIT growth 1Y7.98%
EBIT growth 3Y13.37%
EBIT growth 5Y8.11%
EBIT Next Year78.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-153.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.05%
OCF growth 3Y6.01%
OCF growth 5Y4.05%