WHITESTONE REIT (WSR)
US9660842041 - REIT
WSR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. While WSR has a great profitability rating, there are quite some concerns on its financial health. WSR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WSR had positive earnings in the past year.
WSR had a positive operating cash flow in the past year.
WSR had positive earnings in each of the past 5 years.
In the past 5 years WSR always reported a positive cash flow from operatings.
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 67.72% 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 71.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.65%, WSR is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WSR is in line with the industry average of 3.06%.
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
The Profit Margin of WSR (13.97%) is better than 66.93% of its industry peers.
WSR's Profit Margin has declined in the last couple of years.
WSR's Operating Margin of 31.85% is fine compared to the rest of the industry. WSR outperforms 70.08% of its industry peers.
In the last couple of years the Operating Margin of WSR has grown nicely.
WSR has a Gross Margin (69.79%) which is in line with 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 | 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
WSR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, WSR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that WSR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.66, WSR perfoms like the industry average, outperforming 51.18% of the companies in the same industry.
WSR has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WSR (1.47) is worse than 62.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.55
WACC6.61%
2.3 Liquidity
A Current Ratio of 1.19 indicates that WSR should not have too much problems paying its short term obligations.
WSR has a Current ratio (1.19) which is comparable to the rest of the industry.
A Quick Ratio of 1.19 indicates that WSR should not have too much problems paying its short term obligations.
WSR's Quick ratio of 1.19 is in line compared to the rest of the industry. WSR outperforms 48.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
WSR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.43%.
WSR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.14% yearly.
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
WSR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.50% yearly.
WSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y127.25%
EPS Next 2Y58.9%
EPS Next 3Y36.58%
EPS Next 5Y-25.5%
Revenue Next Year3.66%
Revenue Next 2Y4.01%
Revenue Next 3Y4.75%
Revenue Next 5Y4.33%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
WSR is valuated quite expensively with a Price/Earnings ratio of 33.23.
Based on the Price/Earnings ratio, WSR is valued a bit cheaper than 66.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of WSR to the average of the S&P500 Index (29.20), we can say WSR is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.32, WSR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WSR is valued cheaply inside the industry as 85.04% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, WSR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 26.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WSR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WSR has a very decent profitability rating, which may justify a higher PE ratio.
WSR's earnings are expected to grow with 36.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y58.9%
EPS Next 3Y36.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.46%, WSR has a reasonable but not impressive dividend return.
WSR's Dividend Yield is slightly below the industry average, which is at 5.96.
Compared to an average S&P500 Dividend Yield of 2.21, WSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
The dividend of WSR decreases each year by -15.91%.
WSR has been paying a dividend for at least 10 years, so it has a reliable track record.
WSR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.91%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
114.97% 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.
DP114.97%
EPS Next 2Y58.9%
EPS Next 3Y36.58%
WHITESTONE REIT
NYSE:WSR (11/12/2024, 4:33:38 PM)
After market: 14.3301 -0.29 (-1.98%)14.62
-0.04 (-0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap740.50M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 26.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 5.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.85% | ||
| PM (TTM) | 13.97% | ||
| GM | 69.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-21.43%
EPS 3Y30.06%
EPS 5Y
EPS Q2Q%
EPS Next Y127.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.58%
Revenue growth 3Y7.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y