FEDERAL REALTY INVS TRUST (FRT) Stock Fundamental Analysis
NYSE:FRT - New York Stock Exchange, Inc. - US3137451015 - REIT - Currency: USD
Taking everything into account, FRT scores 5 out of 10 in our fundamental rating. FRT was compared to 129 industry peers in the Diversified REITs industry. FRT scores excellent on profitability, but there are some minor concerns on its financial health. FRT is quite expensive at the moment. It does show a decent growth rate. Finally FRT also has an excellent dividend rating.
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.
In the past 5 years FRT has always been profitable.
Each year in the past 5 years FRT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.35%, FRT belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
With an excellent Return On Equity value of 9.01%, FRT belongs to the best of the industry, outperforming 84.50% of the companies in the same industry.
FRT has a better Return On Invested Capital (4.06%) than 76.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRT is in line with the industry average of 3.15%.
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
Looking at the Profit Margin, with a value of 23.78%, FRT is in the better half of the industry, outperforming 78.29% of the companies in the same industry.
FRT's Profit Margin has declined in the last couple of years.
FRT has a Operating Margin of 34.79%. This is in the better half of the industry: FRT outperforms 73.64% of its industry peers.
In the last couple of years the Operating Margin of FRT has declined.
FRT has a Gross Margin of 67.42%. This is comparable to the rest of the industry: FRT outperforms 51.94% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FRT is destroying value.
Compared to 1 year ago, FRT has more shares outstanding
FRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FRT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that FRT is in the distress zone and has some risk of bankruptcy.
FRT has a Altman-Z score of 1.06. This is in the better half of the industry: FRT outperforms 76.74% of its industry peers.
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.
The Debt to FCF ratio of FRT (83.27) is better than 60.47% of its industry peers.
FRT has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
FRT's Debt to Equity ratio of 1.41 is in line compared to the rest of the industry. FRT outperforms 43.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 83.27 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.58
WACC6.99%
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 73.64% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that FRT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.65, FRT is doing good in the industry, outperforming 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
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.
FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.21%.
The Revenue has been growing slightly by 5.14% on average over the past years.
EPS 1Y (TTM)1.78%
EPS 3Y-3.13%
EPS 5Y-9.41%
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.12%
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 Y12.26%
EPS Next 2Y7.96%
EPS Next 3Y8.9%
EPS Next 5Y7.15%
Revenue Next Year4.54%
Revenue Next 2Y5.15%
Revenue Next 3Y5.2%
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 33.08 indicates a quite expensive valuation of FRT.
The rest of the industry has a similar Price/Earnings ratio as FRT.
The average S&P500 Price/Earnings ratio is at 26.60. FRT is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 28.99, 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 75.97% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. FRT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
68.22% of the companies in the same industry are cheaper than FRT, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as FRT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 150.64 | ||
| EV/EBITDA | 16.61 |
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.
The decent profitability rating of FRT may justify a higher PE ratio.
PEG (NY)2.7
PEG (5Y)N/A
EPS Next 2Y7.96%
EPS Next 3Y8.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, FRT is a good candidate for dividend investing.
FRT's Dividend Yield is comparable with the industry average which is at 6.62.
Compared to an average S&P500 Dividend Yield of 2.36, FRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.04%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
FRT pays out 129.97% 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.
DP129.97%
EPS Next 2Y7.96%
EPS Next 3Y8.9%
NYSE:FRT (5/21/2025, 1:33:00 PM)
94.61
-1.83 (-1.9%)
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 Change-1.84%
Ins Owners1.06%
Ins Owner Change9.38%
Market Cap8.12B
Analysts78.1
Price Target115.74 (22.33%)
Short Float %2.65%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)-3.35%
PT rev (3m)-7.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)0.86%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.08 | ||
| Fwd PE | 28.99 | ||
| P/S | 6.75 | ||
| P/FCF | 150.64 | ||
| P/OCF | 14.12 | ||
| P/B | 2.56 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 16.61 |
EPS(TTM)2.86
EY3.02%
EPS(NY)3.26
Fwd EY3.45%
FCF(TTM)0.63
FCFY0.66%
OCF(TTM)6.7
OCFY7.08%
SpS14.02
BVpS36.97
TBVpS36.97
PEG (NY)2.7
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 | 1.06 |
F-Score6
WACC6.99%
ROIC/WACC0.58
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 Y12.26%
EPS Next 2Y7.96%
EPS Next 3Y8.9%
EPS Next 5Y7.15%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.13%
Revenue growth 5Y5.14%
Sales Q2Q%6.12%
Revenue Next Year4.54%
Revenue Next 2Y5.15%
Revenue Next 3Y5.2%
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%