FIRST INDUSTRIAL REALTY TR (FR) Stock Fundamental Analysis
NYSE:FR - New York Stock Exchange, Inc. - US32054K1034 - REIT - Currency: USD
FR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. FR scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, FR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
FR had positive earnings in the past year.
In the past year FR had a positive cash flow from operations.
Each year in the past 5 years FR has been profitable.
Each year in the past 5 years FR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.90%, FR belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
FR has a Return On Equity of 10.07%. This is amongst the best in the industry. FR outperforms 87.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.25%, FR belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
FR had an Average Return On Invested Capital over the past 3 years of 3.94%. This is in line with the industry average of 3.17%.
The 3 year average ROIC (3.94%) for FR is below the current ROIC(4.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 10.07% | ||
| ROIC | 4.25% |
ROA(3y)6%
ROA(5y)5.93%
ROE(3y)12.03%
ROE(5y)11.74%
ROIC(3y)3.94%
ROIC(5y)3.81%
1.3 Margins
The Profit Margin of FR (39.01%) is better than 90.00% of its industry peers.
FR's Profit Margin has declined in the last couple of years.
FR's Operating Margin of 41.11% is amongst the best of the industry. FR outperforms 87.69% of its industry peers.
In the last couple of years the Operating Margin of FR has grown nicely.
With a decent Gross Margin value of 73.10%, FR is doing good in the industry, outperforming 67.69% of the companies in the same industry.
In the last couple of years the Gross Margin of FR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.11% | ||
| PM (TTM) | 39.01% | ||
| GM | 73.1% |
OM growth 3Y2.79%
OM growth 5Y1.77%
PM growth 3Y-8.94%
PM growth 5Y-5.16%
GM growth 3Y0.12%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FR is destroying value.
FR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FR has more shares outstanding
The debt/assets ratio for FR has been reduced compared to a year ago.
2.2 Solvency
FR has an Altman-Z score of 1.70. This is a bad value and indicates that FR is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.70, FR belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.
FR has a Debt/Equity ratio of 0.90. This is a neutral value indicating FR is somewhat dependend on debt financing.
FR has a better Debt to Equity ratio (0.90) than 62.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.58
WACC7.38%
2.3 Liquidity
FR has a Current Ratio of 0.96. This is a bad value and indicates that FR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.96, FR perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
FR has a Quick Ratio of 0.96. This is a bad value and indicates that FR is not financially healthy enough and could expect problems in meeting its short term obligations.
FR 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
The earnings per share for FR have decreased by -6.91% in the last year.
Measured over the past 5 years, FR shows a small growth in Earnings Per Share. The EPS has been growing by 3.01% on average per year.
Looking at the last year, FR shows a quite strong growth in Revenue. The Revenue has grown by 9.19% in the last year.
FR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.47% yearly.
EPS 1Y (TTM)-6.91%
EPS 3Y1.58%
EPS 5Y3.01%
EPS Q2Q%-30.77%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y12.03%
Revenue growth 5Y9.47%
Sales Q2Q%9.12%
3.2 Future
FR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.31% yearly.
FR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.67% yearly.
EPS Next Y-23.66%
EPS Next 2Y-7.52%
EPS Next 3Y-2.64%
EPS Next 5Y0.31%
Revenue Next Year7.55%
Revenue Next 2Y7.58%
Revenue Next 3Y8.44%
Revenue Next 5Y9.67%
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
With a Price/Earnings ratio of 23.64, FR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of FR indicates a somewhat cheap valuation: FR is cheaper than 73.08% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FR to the average of the S&P500 Index (28.87), we can say FR is valued inline with the index average.
FR is valuated quite expensively with a Price/Forward Earnings ratio of 25.61.
Based on the Price/Forward Earnings ratio, FR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
FR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 25.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FR is valued more expensive than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
The excellent profitability rating of FR may justify a higher PE ratio.
A cheap valuation may be justified as FR's earnings are expected to decrease with -2.64% in the coming years.
PEG (NY)N/A
PEG (5Y)7.87
EPS Next 2Y-7.52%
EPS Next 3Y-2.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.74%, FR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 16.32, FR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.46, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of FR is nicely growing with an annual growth rate of 9.58%!
FR has paid a dividend for at least 10 years, which is a reliable track record.
FR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.58%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
75.04% of the earnings are spent on dividend by FR. This is not a sustainable payout ratio.
The dividend of FR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP75.04%
EPS Next 2Y-7.52%
EPS Next 3Y-2.64%
47.75
+0.44 (+0.93%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.72%
Inst Owner Change0.42%
Ins Owners0.37%
Ins Owner Change-0.04%
Market Cap6.32B
Analysts77.04
Price Target58.14 (21.76%)
Short Float %1.63%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend1.46
Dividend Growth(5Y)9.58%
DP75.04%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)18.52%
Min EPS beat(2)-6.04%
Max EPS beat(2)43.08%
EPS beat(4)3
Avg EPS beat(4)33.35%
Min EPS beat(4)-6.04%
Max EPS beat(4)90.62%
EPS beat(8)7
Avg EPS beat(8)54.26%
EPS beat(12)11
Avg EPS beat(12)88.12%
EPS beat(16)15
Avg EPS beat(16)85.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)-0.19%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.12%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)-2.04%
PT rev (3m)-1.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.64 | ||
| Fwd PE | 25.61 | ||
| P/S | 9.24 | ||
| P/FCF | N/A | ||
| P/OCF | 16.7 | ||
| P/B | 2.38 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 19.66 |
EPS(TTM)2.02
EY4.23%
EPS(NY)1.86
Fwd EY3.9%
FCF(TTM)-0.49
FCFYN/A
OCF(TTM)2.86
OCFY5.99%
SpS5.17
BVpS20.02
TBVpS20.02
PEG (NY)N/A
PEG (5Y)7.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 10.07% | ||
| ROCE | 5.38% | ||
| ROIC | 4.25% | ||
| ROICexc | 4.28% | ||
| ROICexgc | 4.28% | ||
| OM | 41.11% | ||
| PM (TTM) | 39.01% | ||
| GM | 73.1% | ||
| FCFM | N/A |
ROA(3y)6%
ROA(5y)5.93%
ROE(3y)12.03%
ROE(5y)11.74%
ROIC(3y)3.94%
ROIC(5y)3.81%
ROICexc(3y)4%
ROICexc(5y)3.89%
ROICexgc(3y)4.02%
ROICexgc(5y)3.91%
ROCE(3y)4.99%
ROCE(5y)4.82%
ROICexcg growth 3Y5.91%
ROICexcg growth 5Y2.55%
ROICexc growth 3Y5.96%
ROICexc growth 5Y2.65%
OM growth 3Y2.79%
OM growth 5Y1.77%
PM growth 3Y-8.94%
PM growth 5Y-5.16%
GM growth 3Y0.12%
GM growth 5Y0.02%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.4 | ||
| Cap/Depr | 278.03% | ||
| Cap/Sales | 64.73% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 85.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.7 |
F-Score6
WACC7.38%
ROIC/WACC0.58
Cap/Depr(3y)369.66%
Cap/Depr(5y)388.68%
Cap/Sales(3y)92.27%
Cap/Sales(5y)102.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.91%
EPS 3Y1.58%
EPS 5Y3.01%
EPS Q2Q%-30.77%
EPS Next Y-23.66%
EPS Next 2Y-7.52%
EPS Next 3Y-2.64%
EPS Next 5Y0.31%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y12.03%
Revenue growth 5Y9.47%
Sales Q2Q%9.12%
Revenue Next Year7.55%
Revenue Next 2Y7.58%
Revenue Next 3Y8.44%
Revenue Next 5Y9.67%
EBIT growth 1Y11.74%
EBIT growth 3Y15.15%
EBIT growth 5Y11.41%
EBIT Next Year90.09%
EBIT Next 3Y31.25%
EBIT Next 5Y24.19%
FCF growth 1Y79.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.15%
OCF growth 3Y9.71%
OCF growth 5Y7.5%