FIRST INDUSTRIAL REALTY TR (FR)
US32054K1034 - REIT
We assign a fundamental rating of 5 out of 10 to FR. FR was compared to 126 industry peers in the Diversified REITs industry. While FR has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, FR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year FR was profitable.
In the past year FR had a positive cash flow from operations.
FR had positive earnings in each of the past 5 years.
FR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.30%, FR belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
The Return On Equity of FR (10.71%) is better than 88.62% of its industry peers.
FR's Return On Invested Capital of 3.95% is amongst the best of the industry. FR outperforms 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FR is in line with the industry average of 2.95%.
The 3 year average ROIC (3.71%) for FR is below the current ROIC(3.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 10.71% | ||
| ROIC | 3.95% |
ROA(3y)6.34%
ROA(5y)6.19%
ROE(3y)12.55%
ROE(5y)12.29%
ROIC(3y)3.71%
ROIC(5y)3.71%
1.3 Margins
Looking at the Profit Margin, with a value of 44.72%, FR belongs to the top of the industry, outperforming 91.06% of the companies in the same industry.
FR's Profit Margin has improved in the last couple of years.
The Operating Margin of FR (40.44%) is better than 86.18% of its industry peers.
FR's Operating Margin has improved in the last couple of years.
FR has a better Gross Margin (73.02%) than 65.85% of its industry peers.
FR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.44% | ||
| PM (TTM) | 44.72% | ||
| GM | 73.02% |
OM growth 3Y2.71%
OM growth 5Y2.71%
PM growth 3Y0.78%
PM growth 5Y2.12%
GM growth 3Y-0.17%
GM growth 5Y0.54%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FR is destroying value.
Compared to 1 year ago, FR has about the same amount of shares outstanding.
Compared to 5 years ago, FR has more shares outstanding
FR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that FR is in the distress zone and has some risk of bankruptcy.
FR has a better Altman-Z score (1.75) than 92.68% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that FR is somewhat dependend on debt financing.
FR has a better Debt to Equity ratio (0.87) than 64.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC0.52
WACC7.57%
2.3 Liquidity
FR has a Current Ratio of 1.92. This is a normal value and indicates that FR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.92, FR is doing good in the industry, outperforming 76.42% of the companies in the same industry.
A Quick Ratio of 1.92 indicates that FR should not have too much problems paying its short term obligations.
FR has a Quick ratio of 1.92. This is in the better half of the industry: FR outperforms 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
FR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.62%.
The Earnings Per Share has been growing by 9.75% on average over the past years. This is quite good.
The Revenue has grown by 13.72% in the past year. This is quite good.
Measured over the past years, FR shows a quite strong growth in Revenue. The Revenue has been growing by 8.73% on average per year.
EPS 1Y (TTM)-23.62%
EPS 3Y10.6%
EPS 5Y9.75%
EPS growth Q2Q8.06%
Revenue 1Y (TTM)13.72%
Revenue growth 3Y11.08%
Revenue growth 5Y8.73%
Revenue growth Q2Q8.77%
3.2 Future
Based on estimates for the next years, FR will show a small growth in Earnings Per Share. The EPS will grow by 0.88% on average per year.
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
EPS Next Y-29.44%
EPS Next 2Y-8.57%
EPS Next 3Y-3.37%
EPS Next 5Y0.88%
Revenue Next Year9.08%
Revenue Next 2Y9.16%
Revenue Next 3Y10.21%
Revenue Next 5Y9.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 22.24, the valuation of FR can be described as rather expensive.
Based on the Price/Earnings ratio, FR is valued a bit cheaper than the industry average as 73.98% of the companies are valued more expensively.
FR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.52 indicates a quite expensive valuation of FR.
Based on the Price/Forward Earnings ratio, FR is valued a bit cheaper than the industry average as 74.80% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FR to the average of the S&P500 Index (21.63), we can say FR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 31.52 |
4.2 Price Multiples
FR's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. FR is more expensive than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.8 |
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 -3.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.28
EPS Next 2Y-8.57%
EPS Next 3Y-3.37%
5. Dividend
5.1 Amount
FR has a Yearly Dividend Yield of 3.18%.
Compared to an average industry Dividend Yield of 6.12, FR is paying slightly less dividend.
FR's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of FR is nicely growing with an annual growth rate of 7.55%!
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)7.55%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
61.69% of the earnings are spent on dividend by FR. This is not a sustainable payout ratio.
FR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.69%
EPS Next 2Y-8.57%
EPS Next 3Y-3.37%
FIRST INDUSTRIAL REALTY TR
NYSE:FR (4/25/2024, 7:04:00 PM)
After market: 46.04 0 (0%)46.04
+0.01 (+0.02%)
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 Cap6.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 22.24 | ||
| Fwd PE | 31.52 | ||
| 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)N/A
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 10.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.44% | ||
| PM (TTM) | 44.72% | ||
| GM | 73.02% | ||
| 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.92 | ||
| 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)
Growth
EPS 1Y (TTM)-23.62%
EPS 3Y10.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y-29.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.72%
Revenue growth 3Y11.08%
Revenue growth 5Y
Revenue growth 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