FEDERAL REALTY INVS TRUST (FRT)

US3137451015 - REIT

102.12  +0.58 (+0.57%)

After market: 102.12 0 (0%)

Fundamental Rating

4

Overall FRT gets a fundamental rating of 4 out of 10. We evaluated FRT against 127 industry peers in the Diversified REITs industry. While FRT is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, FRT is valued expensive at the moment. Finally FRT also has an excellent dividend rating.



6

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.
In the past 5 years FRT always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of FRT (2.70%) is better than 73.39% of its industry peers.
FRT has a Return On Equity of 7.68%. This is amongst the best in the industry. FRT outperforms 80.65% of its industry peers.
With a decent Return On Invested Capital value of 3.89%, FRT is doing good in the industry, outperforming 79.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FRT is in line with the industry average of 2.93%.
The last Return On Invested Capital (3.89%) for FRT is above the 3 year average (3.63%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.7%
ROE 7.68%
ROIC 3.89%
ROA(3y)3.52%
ROA(5y)3.45%
ROE(3y)10.06%
ROE(5y)9.75%
ROIC(3y)3.63%
ROIC(5y)3.6%

1.3 Margins

FRT has a better Profit Margin (20.11%) than 73.39% of its industry peers.
In the last couple of years the Profit Margin of FRT has declined.
FRT has a Operating Margin of 35.03%. This is in the better half of the industry: FRT outperforms 78.23% of its industry peers.
In the last couple of years the Operating Margin of FRT has declined.
FRT has a Gross Margin (67.93%) which is in line with its industry peers.
FRT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 35.03%
PM (TTM) 20.11%
GM 67.93%
OM growth 3Y5.59%
OM growth 5Y-1.72%
PM growth 3Y11.05%
PM growth 5Y-4.6%
GM growth 3Y1.34%
GM growth 5Y-0.18%

3

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.
The number of shares outstanding for FRT has been increased compared to 1 year ago.
FRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FRT has a worse debt to assets ratio.

2.2 Solvency

FRT has an Altman-Z score of 1.07. This is a bad value and indicates that FRT is not financially healthy and even has some risk of bankruptcy.
FRT's Altman-Z score of 1.07 is fine compared to the rest of the industry. FRT outperforms 75.00% of its industry peers.
FRT has a debt to FCF ratio of 25.05. This is a negative value and a sign of low solvency as FRT would need 25.05 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.05, FRT is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that FRT has dependencies on debt financing.
FRT has a Debt to Equity ratio of 1.56. This is in the lower half of the industry: FRT underperforms 66.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.56
Debt/FCF 25.05
Altman-Z 1.07
ROIC/WACC0.55
WACC7.04%

2.3 Liquidity

FRT has a Current Ratio of 1.92. 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 Current ratio (1.92) than 75.00% of its industry peers.
FRT has a Quick Ratio of 1.92. 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 1.92, FRT is doing good in the industry, outperforming 78.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.92
Quick Ratio 1.92

4

3. Growth

3.1 Past

FRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.04%.
The Earnings Per Share has been decreasing by -2.45% on average over the past years.
Looking at the last year, FRT shows a small growth in Revenue. The Revenue has grown by 5.37% in the last year.
FRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.34% yearly.
EPS 1Y (TTM)-40.04%
EPS 3Y20.01%
EPS 5Y-2.45%
EPS growth Q2Q-45.71%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y10.66%
Revenue growth 5Y4.34%
Revenue growth Q2Q4.18%

3.2 Future

FRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
FRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.29% yearly.
EPS Next Y8.51%
EPS Next 2Y9.45%
EPS Next 3Y9.16%
EPS Next 5Y7.26%
Revenue Next Year5.17%
Revenue Next 2Y5.5%
Revenue Next 3Y5.63%
Revenue Next 5Y5.29%

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 accelerating: in the next years the growth will be better than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 36.47, FRT can be considered very expensive at the moment.
FRT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.48, FRT is valued a bit more expensive.
FRT is valuated quite expensively with a Price/Forward Earnings ratio of 35.19.
Based on the Price/Forward Earnings ratio, FRT is valued a bit cheaper than the industry average as 72.58% of the companies are valued more expensively.
FRT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 36.47
Fwd PE 35.19

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FRT is valued a bit more expensive than the industry average as 70.97% of the companies are valued more cheaply.
FRT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 46.04
EV/EBITDA 17.8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FRT may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)N/A
EPS Next 2Y9.45%
EPS Next 3Y9.16%

7

5. Dividend

5.1 Amount

FRT has a Yearly Dividend Yield of 4.27%, which is a nice return.
FRT's Dividend Yield is comparable with the industry average which is at 5.72.
Compared to an average S&P500 Dividend Yield of 2.34, FRT pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.27%

5.2 History

The dividend of FRT has a limited annual growth rate of 1.37%.
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)1.37%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

FRT pays out 157.76% of its income as dividend. This is not a sustainable payout ratio.
The dividend of FRT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP157.76%
EPS Next 2Y9.45%
EPS Next 3Y9.16%

FEDERAL REALTY INVS TRUST

NYSE:FRT (3/28/2024, 8:11:20 PM)

After market: 102.12 0 (0%)

102.12

+0.58 (+0.57%)

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 Cap8.47B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.27%
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 RankSector Rank
PE 36.47
Fwd PE 35.19
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)4.29
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.7%
ROE 7.68%
ROCE
ROIC
ROICexc
ROICexgc
OM 35.03%
PM (TTM) 20.11%
GM 67.93%
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 Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 1.56
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)-40.04%
EPS 3Y20.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.37%
Revenue growth 3Y10.66%
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