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. While FR has a great profitability rating, there are quite some concerns on its financial health. FR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FR had positive earnings in the past year.
FR had a positive operating cash flow in the past year.
In the past 5 years FR has always been profitable.
In the past 5 years FR always reported a positive cash flow from operatings.
1.2 Ratios
FR has a better Return On Assets (4.97%) than 93.85% of its industry peers.
FR has a better Return On Equity (10.24%) than 89.23% of its industry peers.
With an excellent Return On Invested Capital value of 4.41%, FR belongs to the best of the industry, outperforming 84.62% 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 3.08%.
The 3 year average ROIC (3.94%) for FR is below the current ROIC(4.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 10.24% | ||
| ROIC | 4.41% |
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
FR's Profit Margin of 38.67% is amongst the best of the industry. FR outperforms 90.00% of its industry peers.
FR's Profit Margin has declined in the last couple of years.
The Operating Margin of FR (41.69%) is better than 86.92% of its industry peers.
FR's Operating Margin has improved in the last couple of years.
FR's Gross Margin of 73.37% is fine compared to the rest of the industry. FR outperforms 68.46% of its industry peers.
FR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.69% | ||
| PM (TTM) | 38.67% | ||
| GM | 73.37% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Compared to 1 year ago, FR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that FR is in the distress zone and has some risk of bankruptcy.
FR has a Altman-Z score of 1.70. This is amongst the best in the industry. FR outperforms 93.85% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that FR is somewhat dependend on debt financing.
The Debt to Equity ratio of FR (0.90) is better than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC0.6
WACC7.36%
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.
FR has a Current ratio of 0.96. This is comparable to the rest of the industry: FR outperforms 50.00% of its industry peers.
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.
The Quick ratio of FR (0.96) 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 -4.65% in the last year.
FR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.01% yearly.
FR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.66%.
The Revenue has been growing by 9.47% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.65%
EPS 3Y1.58%
EPS 5Y3.01%
EPS Q2Q%7.69%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y12.03%
Revenue growth 5Y9.47%
Sales Q2Q%9.76%
3.2 Future
The Earnings Per Share is expected to grow by 0.31% on average over the next years.
FR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.08% yearly.
EPS Next Y-26.2%
EPS Next 2Y-9.8%
EPS Next 3Y-3.76%
EPS Next 5Y0.31%
Revenue Next Year8.41%
Revenue Next 2Y7.87%
Revenue Next 3Y7.43%
Revenue Next 5Y9.08%
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 23.21, which indicates a rather expensive current valuation of FR.
Compared to the rest of the industry, the Price/Earnings ratio of FR indicates a somewhat cheap valuation: FR is cheaper than 72.31% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. FR is around the same levels.
The Price/Forward Earnings ratio is 26.83, which means the current valuation is very expensive for FR.
Based on the Price/Forward Earnings ratio, FR is valued a bit cheaper than 79.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.87. FR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 26.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FR indicates a rather expensive valuation: FR more expensive than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
The excellent profitability rating of FR may justify a higher PE ratio.
FR's earnings are expected to decrease with -3.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)7.72
EPS Next 2Y-9.8%
EPS Next 3Y-3.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, FR has a reasonable but not impressive dividend return.
FR's Dividend Yield is slightly below the industry average, which is at 6.37.
Compared to an average S&P500 Dividend Yield of 2.39, FR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of FR is nicely growing with an annual growth rate of 9.58%!
FR has been paying a dividend for at least 10 years, so it has 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
77.76% 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.
DP77.76%
EPS Next 2Y-9.8%
EPS Next 3Y-3.76%
47.58
-0.47 (-0.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.86%
Inst Owner Change2.41%
Ins Owners0.36%
Ins Owner Change0.18%
Market Cap6.30B
Analysts77.69
Price Target56.83 (19.44%)
Short Float %3.19%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend1.46
Dividend Growth(5Y)9.58%
DP77.76%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.07%
Min EPS beat(2)-6.04%
Max EPS beat(2)5.91%
EPS beat(4)3
Avg EPS beat(4)33.39%
Min EPS beat(4)-6.04%
Max EPS beat(4)90.62%
EPS beat(8)7
Avg EPS beat(8)49.98%
EPS beat(12)11
Avg EPS beat(12)71.37%
EPS beat(16)15
Avg EPS beat(16)81.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)-0.19%
Revenue beat(8)0
Avg Revenue beat(8)-2.23%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)1.67%
PT rev (3m)-2.26%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 26.83 | ||
| P/S | 8.99 | ||
| P/FCF | N/A | ||
| P/OCF | 15.87 | ||
| P/B | 2.38 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)2.05
EY4.31%
EPS(NY)1.77
Fwd EY3.73%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)3
OCFY6.3%
SpS5.29
BVpS19.98
TBVpS19.98
PEG (NY)N/A
PEG (5Y)7.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 10.24% | ||
| ROCE | 5.59% | ||
| ROIC | 4.41% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 4.44% | ||
| OM | 41.69% | ||
| PM (TTM) | 38.67% | ||
| GM | 73.37% | ||
| 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 | 5.25 | ||
| Cap/Depr | 281.24% | ||
| Cap/Sales | 65.8% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 87.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.7 |
F-Score6
WACC7.36%
ROIC/WACC0.6
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)-4.65%
EPS 3Y1.58%
EPS 5Y3.01%
EPS Q2Q%7.69%
EPS Next Y-26.2%
EPS Next 2Y-9.8%
EPS Next 3Y-3.76%
EPS Next 5Y0.31%
Revenue 1Y (TTM)9.66%
Revenue growth 3Y12.03%
Revenue growth 5Y9.47%
Sales Q2Q%9.76%
Revenue Next Year8.41%
Revenue Next 2Y7.87%
Revenue Next 3Y7.43%
Revenue Next 5Y9.08%
EBIT growth 1Y13.22%
EBIT growth 3Y15.15%
EBIT growth 5Y11.41%
EBIT Next Year93.57%
EBIT Next 3Y31.03%
EBIT Next 5Y23.18%
FCF growth 1Y81.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.81%
OCF growth 3Y9.71%
OCF growth 5Y7.5%