FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
NYSE:FRT - New York Stock Exchange, Inc. - US3137451015 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to FRT. FRT was compared to 130 industry peers in the Diversified REITs industry. While FRT has a great profitability rating, there are quite some concerns on its financial health. FRT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
FRT had positive earnings in the past year.
FRT had a positive operating cash flow in the past year.
FRT had positive earnings in each of the past 5 years.
Each year in the past 5 years FRT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.35%, FRT belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
FRT has a better Return On Equity (9.01%) than 85.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.06%, FRT is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
FRT had an Average Return On Invested Capital over the past 3 years of 3.87%. This is in line with the industry average of 3.19%.
The last Return On Invested Capital (4.06%) for FRT is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.01% | ||
| ROIC | 4.06% |
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 has a Profit Margin of 23.78%. This is in the better half of the industry: FRT outperforms 77.69% of its industry peers.
FRT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 34.79%, FRT is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
FRT's Operating Margin has declined in the last couple of years.
FRT's Gross Margin of 67.42% is in line compared to the rest of the industry. FRT outperforms 53.08% of its industry peers.
In the last couple of years the Gross Margin of FRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.79% | ||
| PM (TTM) | 23.78% | ||
| GM | 67.42% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FRT is destroying value.
The number of shares outstanding for FRT has been increased compared to 1 year ago.
The number of shares outstanding for FRT has been increased compared to 5 years ago.
Compared to 1 year ago, FRT has an improved debt to assets ratio.
2.2 Solvency
FRT has an Altman-Z score of 1.05. This is a bad value and indicates that FRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, FRT is in the better half of the industry, outperforming 77.69% of the companies in the same industry.
The Debt to FCF ratio of FRT is 83.27, which is on the high side as it means it would take FRT, 83.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 83.27, FRT is in line with its industry, outperforming 54.62% of the companies in the same industry.
A Debt/Equity ratio of 1.41 is on the high side and indicates that FRT has dependencies on debt financing.
FRT has a Debt to Equity ratio of 1.41. This is comparable to the rest of the industry: FRT outperforms 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 83.27 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.59
WACC6.86%
2.3 Liquidity
FRT has a Current Ratio of 1.65. This is a normal value and indicates that FRT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.65, FRT is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
FRT has a Quick Ratio of 1.65. 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 Quick ratio of 1.65. This is in the better half of the industry: FRT outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
FRT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
Measured over the past years, FRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.41% on average per year.
FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.20%.
The Revenue has been growing slightly by 5.14% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%-1.32%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.83%
3.2 Future
Based on estimates for the next years, FRT will show a small growth in Earnings Per Share. The EPS will grow by 7.15% on average per year.
Based on estimates for the next years, FRT will show a small growth in Revenue. The Revenue will grow by 5.90% on average per year.
EPS Next Y11.3%
EPS Next 2Y8.07%
EPS Next 3Y8.9%
EPS Next 5Y7.15%
Revenue Next Year4.71%
Revenue Next 2Y5.15%
Revenue Next 3Y5.35%
Revenue Next 5Y5.9%
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
Based on the Price/Earnings ratio of 34.11, the valuation of FRT can be described as expensive.
FRT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.92. FRT is around the same levels.
With a Price/Forward Earnings ratio of 30.65, FRT can be considered very expensive at the moment.
75.38% of the companies in the same industry are more expensive than FRT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, FRT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 30.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FRT is valued a bit more expensive than 70.00% of the companies in the same industry.
FRT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 152.07 | ||
| EV/EBITDA | 16.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FRT does not grow enough to justify the current Price/Earnings ratio.
FRT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)N/A
EPS Next 2Y8.07%
EPS Next 3Y8.9%
5. Dividend
5.1 Amount
FRT has a Yearly Dividend Yield of 4.69%, which is a nice return.
Compared to an average industry Dividend Yield of 16.86, FRT is paying slightly less dividend.
FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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.
FRT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.04%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
129.97% of the earnings are spent on dividend by FRT. This is not a sustainable payout ratio.
The dividend of FRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP129.97%
EPS Next 2Y8.07%
EPS Next 3Y8.9%
95.51
+0.84 (+0.89%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.43%
Inst Owner Change0.29%
Ins Owners1.06%
Ins Owner Change9.38%
Market Cap8.19B
Analysts78.1
Price Target119.75 (25.38%)
Short Float %2.69%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Yearly Dividend4.41
Dividend Growth(5Y)1.04%
DP129.97%
Div Incr Years32
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.43%
Min EPS beat(2)-4.4%
Max EPS beat(2)1.55%
EPS beat(4)1
Avg EPS beat(4)-2.31%
Min EPS beat(4)-4.4%
Max EPS beat(4)1.55%
EPS beat(8)4
Avg EPS beat(8)2.22%
EPS beat(12)8
Avg EPS beat(12)32.68%
EPS beat(16)12
Avg EPS beat(16)49.89%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)6
Avg Revenue beat(12)0.43%
Revenue beat(16)10
Avg Revenue beat(16)1.29%
PT rev (1m)-2.47%
PT rev (3m)-6.02%
EPS NQ rev (1m)-3.29%
EPS NQ rev (3m)-4.45%
EPS NY rev (1m)0.47%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 30.65 | ||
| P/S | 6.81 | ||
| P/FCF | 152.07 | ||
| P/OCF | 14.26 | ||
| P/B | 2.58 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 16.5 |
EPS(TTM)2.8
EY2.93%
EPS(NY)3.12
Fwd EY3.26%
FCF(TTM)0.63
FCFY0.66%
OCF(TTM)6.7
OCFY7.01%
SpS14.02
BVpS36.97
TBVpS36.97
PEG (NY)3.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 9.01% | ||
| ROCE | 5.14% | ||
| ROIC | 4.06% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.12% | ||
| OM | 34.79% | ||
| PM (TTM) | 23.78% | ||
| GM | 67.42% | ||
| FCFM | 4.48% |
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-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 83.27 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 151.98% | ||
| Cap/Sales | 43.3% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 75.51% | ||
| Profit Quality | 18.84% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.05 |
F-Score6
WACC6.86%
ROIC/WACC0.59
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)0%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%-1.32%
EPS Next Y11.3%
EPS Next 2Y8.07%
EPS Next 3Y8.9%
EPS Next 5Y7.15%
Revenue 1Y (TTM)6.2%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.83%
Revenue Next Year4.71%
Revenue Next 2Y5.15%
Revenue Next 3Y5.35%
Revenue Next 5Y5.9%
EBIT growth 1Y5.48%
EBIT growth 3Y11.14%
EBIT growth 5Y3.37%
EBIT Next Year89.76%
EBIT Next 3Y27.29%
EBIT Next 5Y17.96%
FCF growth 1Y-70.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.37%
OCF growth 3Y6.82%
OCF growth 5Y4.46%