FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
USA - NYSE:FRT - US3137451015 - REIT
98.03 USD
-0.19 (-0.19%)
98.03 USD
0 (0%)
Overall FRT gets a fundamental rating of 5 out of 10. We evaluated FRT against 129 industry peers in the Diversified REITs industry. FRT has an excellent profitability rating, but there are some minor concerns on its financial health. FRT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FRT was profitable.
In the past year FRT had a positive cash flow from operations.
FRT had positive earnings in each of the past 5 years.
FRT 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 3.90%, FRT belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.36%, FRT belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
FRT's Return On Invested Capital of 4.15% is fine compared to the rest of the industry. FRT outperforms 77.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FRT is in line with the industry average of 3.01%.
The 3 year average ROIC (3.87%) for FRT is below the current ROIC(4.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 10.36% | ||
| ROIC | 4.15% |
ROA(3y)3.54%
ROA(5y)3.11%
ROE(3y)9.81%
ROE(5y)8.84%
ROIC(3y)3.87%
ROIC(5y)3.53%
1.3 Margins
FRT's Profit Margin of 27.24% is amongst the best of the industry. FRT outperforms 82.95% of its industry peers.
In the last couple of years the Profit Margin of FRT has declined.
Looking at the Operating Margin, with a value of 34.99%, FRT is in the better half of the industry, outperforming 72.87% of the companies in the same industry.
FRT's Operating Margin has declined in the last couple of years.
The Gross Margin of FRT (67.26%) is comparable to the rest of the industry.
FRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.99% | ||
| PM (TTM) | 27.24% | ||
| GM | 67.26% |
OM growth 3Y2.79%
OM growth 5Y-1.69%
PM growth 3Y-3.57%
PM growth 5Y-8.39%
GM growth 3Y0.35%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
FRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FRT has more shares outstanding
Compared to 1 year ago, FRT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that FRT is in the distress zone and has some risk of bankruptcy.
FRT's Altman-Z score of 1.09 is fine compared to the rest of the industry. FRT outperforms 79.07% of its industry peers.
FRT has a debt to FCF ratio of 27.16. This is a negative value and a sign of low solvency as FRT would need 27.16 years to pay back of all of its debts.
FRT's Debt to FCF ratio of 27.16 is fine compared to the rest of the industry. FRT outperforms 72.09% of its industry peers.
A Debt/Equity ratio of 1.39 is on the high side and indicates that FRT has dependencies on debt financing.
FRT has a Debt to Equity ratio (1.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 27.16 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.62
WACC6.68%
2.3 Liquidity
FRT has a Current Ratio of 1.71. This is a normal value and indicates that FRT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.71, FRT is doing good in the industry, outperforming 73.64% of the companies in the same industry.
FRT has a Quick Ratio of 1.71. This is a normal value and indicates that FRT is financially healthy and should not expect problems in meeting its short term obligations.
FRT has a better Quick ratio (1.71) than 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
FRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.09%, which is quite impressive.
FRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.41% yearly.
Looking at the last year, FRT shows a small growth in Revenue. The Revenue has grown by 6.00% in the last year.
Measured over the past years, FRT shows a small growth in Revenue. The Revenue has been growing by 5.14% on average per year.
EPS 1Y (TTM)42.09%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%157.97%
Revenue 1Y (TTM)6%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%5.23%
3.2 Future
FRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.15% yearly.
Based on estimates for the next years, FRT will show a small growth in Revenue. The Revenue will grow by 6.06% on average per year.
EPS Next Y27.42%
EPS Next 2Y8.47%
EPS Next 3Y8.02%
EPS Next 5Y7.15%
Revenue Next Year5.04%
Revenue Next 2Y5.19%
Revenue Next 3Y4.7%
Revenue Next 5Y6.06%
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.
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 24.82, FRT is valued on the expensive side.
Based on the Price/Earnings ratio, FRT is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. FRT is around the same levels.
Based on the Price/Forward Earnings ratio of 29.75, the valuation of FRT can be described as expensive.
FRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FRT is cheaper than 77.52% of the companies in the same industry.
FRT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 29.75 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than FRT, based on the Enterprise Value to EBITDA ratio.
FRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRT is cheaper than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.04 | ||
| EV/EBITDA | 16.33 |
4.3 Compensation for Growth
FRT'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 FRT may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y8.47%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
FRT has a Yearly Dividend Yield of 4.65%, which is a nice return.
FRT's Dividend Yield is comparable with the industry average which is at 6.99.
FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
The dividend of FRT has a limited annual growth rate of 1.04%.
FRT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FRT decreased recently.
Dividend Growth(5Y)1.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
112.93% of the earnings are spent on dividend by FRT. This is not a sustainable payout ratio.
FRT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP112.93%
EPS Next 2Y8.47%
EPS Next 3Y8.02%
98.03
-0.19 (-0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.31%
Inst Owner Change-0.02%
Ins Owners1%
Ins Owner Change-6.33%
Market Cap8.46B
Analysts77.39
Price Target110.43 (12.65%)
Short Float %2.35%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Yearly Dividend4.41
Dividend Growth(5Y)1.04%
DP112.93%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.38%
Min EPS beat(2)2.2%
Max EPS beat(2)138.56%
EPS beat(4)3
Avg EPS beat(4)34.48%
Min EPS beat(4)-4.4%
Max EPS beat(4)138.56%
EPS beat(8)4
Avg EPS beat(8)17.96%
EPS beat(12)8
Avg EPS beat(12)39.91%
EPS beat(16)12
Avg EPS beat(16)47.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-0.45%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.43%
Revenue beat(12)4
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)0.8%
PT rev (1m)0.51%
PT rev (3m)-1.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.08%
EPS NY rev (1m)9.33%
EPS NY rev (3m)12.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 29.75 | ||
| P/S | 6.84 | ||
| P/FCF | 51.04 | ||
| P/OCF | 14.25 | ||
| P/B | 2.6 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)3.95
EY4.03%
EPS(NY)3.29
Fwd EY3.36%
FCF(TTM)1.92
FCFY1.96%
OCF(TTM)6.88
OCFY7.02%
SpS14.32
BVpS37.66
TBVpS37.66
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 10.36% | ||
| ROCE | 5.26% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 4.24% | ||
| OM | 34.99% | ||
| PM (TTM) | 27.24% | ||
| GM | 67.26% | ||
| FCFM | 13.41% |
ROA(3y)3.54%
ROA(5y)3.11%
ROE(3y)9.81%
ROE(5y)8.84%
ROIC(3y)3.87%
ROIC(5y)3.53%
ROICexc(3y)3.94%
ROICexc(5y)3.66%
ROICexgc(3y)3.95%
ROICexgc(5y)3.67%
ROCE(3y)4.89%
ROCE(5y)4.47%
ROICexcg growth 3Y6.41%
ROICexcg growth 5Y-1.68%
ROICexc growth 3Y6.44%
ROICexc growth 5Y-1.7%
OM growth 3Y2.79%
OM growth 5Y-1.69%
PM growth 3Y-3.57%
PM growth 5Y-8.39%
GM growth 3Y0.35%
GM growth 5Y-0.19%
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 27.16 | ||
| Debt/EBITDA | 5.75 | ||
| Cap/Depr | 122.09% | ||
| Cap/Sales | 34.61% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 49.21% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.09 |
F-Score7
WACC6.68%
ROIC/WACC0.62
Cap/Depr(3y)183.44%
Cap/Depr(5y)207.83%
Cap/Sales(3y)51.91%
Cap/Sales(5y)60.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.09%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%157.97%
EPS Next Y27.42%
EPS Next 2Y8.47%
EPS Next 3Y8.02%
EPS Next 5Y7.15%
Revenue 1Y (TTM)6%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%5.23%
Revenue Next Year5.04%
Revenue Next 2Y5.19%
Revenue Next 3Y4.7%
Revenue Next 5Y6.06%
EBIT growth 1Y6.61%
EBIT growth 3Y11.14%
EBIT growth 5Y3.37%
EBIT Next Year89.46%
EBIT Next 3Y27.78%
EBIT Next 5Y18.34%
FCF growth 1Y172.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.17%
OCF growth 3Y6.82%
OCF growth 5Y4.46%