FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
NYSE:FRT - New York Stock Exchange, Inc. - US3137451015 - REIT - Currency: USD
Overall FRT gets a fundamental rating of 4 out of 10. We evaluated FRT against 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FRT was profitable.
FRT had a positive operating cash flow in the past year.
In the past 5 years FRT has always been profitable.
FRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FRT has a Return On Assets of 3.40%. This is amongst the best in the industry. FRT outperforms 80.77% of its industry peers.
With an excellent Return On Equity value of 9.18%, FRT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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 3.14%.
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
FRT has a Profit Margin of 24.00%. This is in the better half of the industry: FRT outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of FRT has declined.
With a decent Operating Margin value of 34.83%, FRT is doing good in the industry, outperforming 73.85% of the companies in the same industry.
FRT's Operating Margin has declined in the last couple of years.
The Gross Margin of FRT (67.18%) 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 | 34.83% | ||
| 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
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 1.00. This is a bad value and indicates that FRT is not financially healthy and even has some risk of bankruptcy.
FRT has a Altman-Z score of 1.00. This is in the better half of the industry: FRT outperforms 74.62% 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 |
ROIC/WACC0.61
WACC6.72%
2.3 Liquidity
FRT has a Current 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.
FRT's Current ratio of 1.54 is fine compared to the rest of the industry. FRT outperforms 68.46% 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.
FRT has a Quick ratio of 1.54. This is in the better half of the industry: FRT outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.76% 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.
FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.21%.
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)46.76%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%176.81%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%5.22%
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 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.
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
A Price/Earnings ratio of 22.38 indicates a rather expensive valuation of FRT.
Based on the Price/Earnings ratio, FRT is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. FRT is around the same levels.
FRT is valuated quite expensively with a Price/Forward Earnings ratio of 28.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRT indicates a somewhat cheap valuation: FRT is cheaper than 77.69% of the companies listed in the same industry.
FRT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 28.13 |
4.2 Price Multiples
FRT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FRT is more expensive than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.94 |
4.3 Compensation for Growth
FRT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FRT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)N/A
EPS Next 2Y7.66%
EPS Next 3Y7.32%
5. Dividend
5.1 Amount
FRT has a Yearly Dividend Yield of 4.89%, which is a nice return.
FRT's Dividend Yield is comparable with the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 2.40, FRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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
FRT pays out 128.27% of its income as dividend. 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%
91.3
-1.06 (-1.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.53%
Inst Owner Change-1.09%
Ins Owners1%
Ins Owner Change5.64%
Market Cap7.88B
Analysts76.36
Price Target111.56 (22.19%)
Short Float %1.97%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)-0.87%
PT rev (3m)-3.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.38 | ||
| Fwd PE | 28.13 | ||
| P/S | 6.45 | ||
| P/FCF | N/A | ||
| P/OCF | 12.86 | ||
| P/B | 2.47 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 15.94 |
EPS(TTM)4.08
EY4.47%
EPS(NY)3.25
Fwd EY3.55%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)7.1
OCFY7.78%
SpS14.15
BVpS37
TBVpS37
PEG (NY)1.75
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 |
F-Score7
WACC6.72%
ROIC/WACC0.61
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)46.76%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%176.81%
EPS Next Y12.78%
EPS Next 2Y7.66%
EPS Next 3Y7.32%
EPS Next 5Y7.15%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%5.22%
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 Year89.1%
EBIT Next 3Y27.69%
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%