WHITESTONE REIT (WSR) Stock Fundamental Analysis
NYSE:WSR - New York Stock Exchange, Inc. - US9660842041 - REIT - Currency: USD
Taking everything into account, WSR scores 4 out of 10 in our fundamental rating. WSR was compared to 129 industry peers in the Diversified REITs industry. While WSR belongs to the best of the industry regarding profitability, there are concerns on its financial health. WSR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSR was profitable.
In the past year WSR had a positive cash flow from operations.
WSR had positive earnings in each of the past 5 years.
WSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.90%, WSR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.03%, WSR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
WSR has a Return On Invested Capital of 3.65%. This is in the better half of the industry: WSR outperforms 69.84% of its industry peers.
WSR had an Average Return On Invested Capital over the past 3 years of 3.21%. This is in line with the industry average of 3.11%.
The 3 year average ROIC (3.21%) for WSR is below the current ROIC(3.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 5.03% | ||
| ROIC | 3.65% |
ROA(3y)2%
ROA(5y)1.76%
ROE(3y)5.38%
ROE(5y)4.95%
ROIC(3y)3.21%
ROIC(5y)2.94%
1.3 Margins
With a decent Profit Margin value of 13.97%, WSR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WSR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 31.85%, WSR is doing good in the industry, outperforming 69.05% of the companies in the same industry.
WSR's Operating Margin has improved in the last couple of years.
WSR has a Gross Margin (69.79%) which is in line with its industry peers.
WSR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.85% | ||
| PM (TTM) | 13.97% | ||
| GM | 69.79% |
OM growth 3Y8.57%
OM growth 5Y2.91%
PM growth 3Y36.88%
PM growth 5Y-5.8%
GM growth 3Y0.72%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WSR is destroying value.
The number of shares outstanding for WSR has been increased compared to 1 year ago.
Compared to 5 years ago, WSR has more shares outstanding
The debt/assets ratio for WSR is higher compared to a year ago.
2.2 Solvency
WSR has an Altman-Z score of 0.60. This is a bad value and indicates that WSR is not financially healthy and even has some risk of bankruptcy.
WSR has a Altman-Z score (0.60) which is comparable to the rest of the industry.
WSR has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
WSR's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. WSR is outperformed by 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.6 |
ROIC/WACC0.52
WACC7%
2.3 Liquidity
WSR has a Current Ratio of 1.19. This is a normal value and indicates that WSR is financially healthy and should not expect problems in meeting its short term obligations.
WSR has a Current ratio (1.19) which is comparable to the rest of the industry.
WSR has a Quick Ratio of 1.19. This is a normal value and indicates that WSR is financially healthy and should not expect problems in meeting its short term obligations.
WSR's Quick ratio of 1.19 is in line compared to the rest of the industry. WSR outperforms 54.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for WSR have decreased strongly by -21.43% in the last year.
The earnings per share for WSR have been decreasing by -15.14% on average. This is quite bad
WSR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.58%.
The Revenue has been growing slightly by 4.16% on average over the past years.
EPS 1Y (TTM)-21.43%
EPS 3Y30.06%
EPS 5Y-15.14%
EPS Q2Q%200%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y7.62%
Revenue growth 5Y4.16%
Sales Q2Q%4.04%
3.2 Future
Based on estimates for the next years, WSR will show a very strong growth in Earnings Per Share. The EPS will grow by 23.27% on average per year.
WSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y123.43%
EPS Next 2Y52.51%
EPS Next 3Y36.99%
EPS Next 5Y23.27%
Revenue Next Year3.91%
Revenue Next 2Y4.2%
Revenue Next 3Y4.43%
Revenue Next 5Y4.55%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
WSR is valuated quite expensively with a Price/Earnings ratio of 30.27.
60.32% of the companies in the same industry are more expensive than WSR, based on the Price/Earnings ratio.
WSR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 26.03, the valuation of WSR can be described as expensive.
Based on the Price/Forward Earnings ratio, WSR is valued cheaper than 80.95% of the companies in the same industry.
WSR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 26.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSR indicates a slightly more expensive valuation: WSR is more expensive than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.77 |
4.3 Compensation for Growth
WSR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WSR may justify a higher PE ratio.
WSR's earnings are expected to grow with 36.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y52.51%
EPS Next 3Y36.99%
5. Dividend
5.1 Amount
WSR has a Yearly Dividend Yield of 4.01%, which is a nice return.
Compared to an average industry Dividend Yield of 18.40, WSR is paying slightly less dividend.
WSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
The dividend of WSR decreases each year by -15.91%.
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)-15.91%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
114.97% of the earnings are spent on dividend by WSR. This is not a sustainable payout ratio.
DP114.97%
EPS Next 2Y52.51%
EPS Next 3Y36.99%
13.32
-0.13 (-0.97%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change-94.32%
Ins Owners3.25%
Ins Owner Change2.95%
Market Cap674.66M
Analysts80
Price Target16.47 (23.65%)
Short Float %0.97%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.48
Dividend Growth(5Y)-15.91%
DP114.97%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.45%
Min EPS beat(2)-38.12%
Max EPS beat(2)65.02%
EPS beat(4)3
Avg EPS beat(4)144.08%
Min EPS beat(4)-38.12%
Max EPS beat(4)375.25%
EPS beat(8)4
Avg EPS beat(8)117.81%
EPS beat(12)6
Avg EPS beat(12)83.2%
EPS beat(16)7
Avg EPS beat(16)73.35%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.1%
Revenue beat(4)0
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)-0.1%
Revenue beat(8)0
Avg Revenue beat(8)-1.06%
Revenue beat(12)3
Avg Revenue beat(12)-0.26%
Revenue beat(16)5
Avg Revenue beat(16)-0.23%
PT rev (1m)-0.88%
PT rev (3m)0%
EPS NQ rev (1m)-7.24%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.68%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 26.03 | ||
| P/S | 4.47 | ||
| P/FCF | N/A | ||
| P/OCF | 13 | ||
| P/B | 1.61 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 15.77 |
EPS(TTM)0.44
EY3.3%
EPS(NY)0.51
Fwd EY3.84%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)1.02
OCFY7.69%
SpS2.98
BVpS8.28
TBVpS8.28
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 5.03% | ||
| ROCE | 4.62% | ||
| ROIC | 3.65% | ||
| ROICexc | 3.66% | ||
| ROICexgc | 3.67% | ||
| OM | 31.85% | ||
| PM (TTM) | 13.97% | ||
| GM | 69.79% | ||
| FCFM | N/A |
ROA(3y)2%
ROA(5y)1.76%
ROE(3y)5.38%
ROE(5y)4.95%
ROIC(3y)3.21%
ROIC(5y)2.94%
ROICexc(3y)3.23%
ROICexc(5y)2.98%
ROICexgc(3y)3.29%
ROICexgc(5y)3.02%
ROCE(3y)4.06%
ROCE(5y)3.72%
ROICexcg growth 3Y13.57%
ROICexcg growth 5Y5.64%
ROICexc growth 3Y13.07%
ROICexc growth 5Y5.33%
OM growth 3Y8.57%
OM growth 5Y2.91%
PM growth 3Y36.88%
PM growth 5Y-5.8%
GM growth 3Y0.72%
GM growth 5Y0%
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.44 | ||
| Cap/Depr | 201.19% | ||
| Cap/Sales | 46.32% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 62.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 0.6 |
F-Score7
WACC7%
ROIC/WACC0.52
Cap/Depr(3y)190.44%
Cap/Depr(5y)155.4%
Cap/Sales(3y)43.57%
Cap/Sales(5y)35.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.43%
EPS 3Y30.06%
EPS 5Y-15.14%
EPS Q2Q%200%
EPS Next Y123.43%
EPS Next 2Y52.51%
EPS Next 3Y36.99%
EPS Next 5Y23.27%
Revenue 1Y (TTM)4.58%
Revenue growth 3Y7.62%
Revenue growth 5Y4.16%
Sales Q2Q%4.04%
Revenue Next Year3.91%
Revenue Next 2Y4.2%
Revenue Next 3Y4.43%
Revenue Next 5Y4.55%
EBIT growth 1Y2.44%
EBIT growth 3Y16.85%
EBIT growth 5Y7.18%
EBIT Next Year807.77%
EBIT Next 3Y115.96%
EBIT Next 5YN/A
FCF growth 1Y-362.4%
FCF growth 3Y-47.69%
FCF growth 5Y-28.91%
OCF growth 1Y6.37%
OCF growth 3Y3.62%
OCF growth 5Y3.77%