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. FRT has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, FRT is valued expensive at the moment.
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.
Each year in the past 5 years FRT has been profitable.
FRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FRT's Return On Assets of 3.40% is amongst the best of the industry. FRT outperforms 83.08% of its industry peers.
FRT's Return On Equity of 9.18% is amongst the best of the industry. FRT outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.09%, FRT is in the better half of the industry, outperforming 76.15% 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 3.16%.
The last Return On Invested Capital (4.09%) for FRT is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 9.18% | ||
| ROIC | 4.09% |
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
With a decent Profit Margin value of 24.00%, FRT is doing good in the industry, outperforming 78.46% of the companies in the same industry.
FRT's Profit Margin has declined in the last couple of years.
FRT has a better Operating Margin (34.83%) than 73.85% of its industry peers.
In the last couple of years the Operating Margin of FRT has declined.
FRT's Gross Margin of 67.18% is in line compared to the rest of the industry. FRT outperforms 52.31% of its industry peers.
FRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.83% | ||
| PM (TTM) | 24% | ||
| GM | 67.18% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FRT is destroying value.
FRT has more shares outstanding than it did 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
Based on the Altman-Z score of 1.03, we must say that FRT is in the distress zone and has some risk of bankruptcy.
FRT's Altman-Z score of 1.03 is fine compared to the rest of the industry. FRT outperforms 75.38% of its industry peers.
FRT has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
FRT has a Debt to Equity ratio (1.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.59
WACC6.88%
2.3 Liquidity
A Current Ratio of 1.54 indicates that FRT should not have too much problems paying its short term obligations.
The Current ratio of FRT (1.54) is better than 71.54% of its industry peers.
FRT has a Quick Ratio of 1.54. 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 Quick ratio value of 1.54, FRT is doing good in the industry, outperforming 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.78% over the past year.
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 6.07% in the last year.
FRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.14% yearly.
EPS 1Y (TTM)1.78%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.12%
3.2 Future
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
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 Y12.78%
EPS Next 2Y7.66%
EPS Next 3Y7.32%
EPS Next 5Y7.15%
Revenue Next Year4.62%
Revenue Next 2Y4.88%
Revenue Next 3Y4.65%
Revenue Next 5Y5.9%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 33.17, the valuation of FRT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FRT is on the same level as its industry peers.
FRT is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.23, the valuation of FRT can be described as expensive.
Based on the Price/Forward Earnings ratio, FRT is valued a bit cheaper than the industry average as 77.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, FRT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.17 | ||
| Fwd PE | 29.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FRT is valued a bit more expensive than the industry average as 63.85% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FRT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y7.66%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.65%, FRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.44, FRT is paying slightly less dividend.
FRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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
128.27% 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.
DP128.27%
EPS Next 2Y7.66%
EPS Next 3Y7.32%
94.88
+0.27 (+0.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.86%
Inst Owner Change0%
Ins Owners1%
Ins Owner Change5.78%
Market Cap8.18B
Analysts76.19
Price Target112.54 (18.61%)
Short Float %2.92%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Yearly Dividend4.41
Dividend Growth(5Y)1.04%
DP128.27%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)1.55%
Max EPS beat(2)2.2%
EPS beat(4)2
Avg EPS beat(4)-1.01%
Min EPS beat(4)-4.4%
Max EPS beat(4)2.2%
EPS beat(8)4
Avg EPS beat(8)1.67%
EPS beat(12)8
Avg EPS beat(12)30.3%
EPS beat(16)12
Avg EPS beat(16)42.51%
Revenue beat(2)0
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-0.33%
Revenue beat(12)5
Avg Revenue beat(12)0.26%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)-1.31%
PT rev (3m)-6.02%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.17 | ||
| Fwd PE | 29.23 | ||
| P/S | 6.71 | ||
| P/FCF | N/A | ||
| P/OCF | 13.36 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 16.34 |
EPS(TTM)2.86
EY3.01%
EPS(NY)3.25
Fwd EY3.42%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)7.1
OCFY7.48%
SpS14.15
BVpS37
TBVpS37
PEG (NY)2.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 9.18% | ||
| ROCE | 5.17% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.14% | ||
| OM | 34.83% | ||
| PM (TTM) | 24% | ||
| GM | 67.18% | ||
| FCFM | N/A |
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 | 1.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.87 | ||
| Cap/Depr | 183.85% | ||
| Cap/Sales | 52.15% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 79.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.03 |
F-Score7
WACC6.88%
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)1.78%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%9.09%
EPS Next Y12.78%
EPS Next 2Y7.66%
EPS Next 3Y7.32%
EPS Next 5Y7.15%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.12%
Revenue Next Year4.62%
Revenue Next 2Y4.88%
Revenue Next 3Y4.65%
Revenue Next 5Y5.9%
EBIT growth 1Y5.56%
EBIT growth 3Y11.14%
EBIT growth 5Y3.37%
EBIT Next Year88.9%
EBIT Next 3Y27.79%
EBIT Next 5Y17.96%
FCF growth 1Y92.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y10.01%
OCF growth 3Y6.82%
OCF growth 5Y4.46%