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FEDERAL REALTY INVS TRUST (FRT)

US3137451015 - REIT

99.12  +0.11 (+0.11%)

After market: 99.12 0 (0%)

Fundamental Rating

4

FRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 131 industry peers in the Diversified REITs industry. FRT has an excellent profitability rating, but there are concerns on its financial health. FRT has a expensive valuation and it also scores bad on growth.



7

1. Profitability

1.1 Basic Checks

FRT had positive earnings in the past year.
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

With an excellent Return On Assets value of 3.37%, FRT belongs to the best of the industry, outperforming 83.59% of the companies in the same industry.
FRT has a better Return On Equity (9.69%) than 90.63% of its industry peers.
With an excellent Return On Invested Capital value of 3.88%, FRT belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
FRT had an Average Return On Invested Capital over the past 3 years of 3.24%. This is in line with the industry average of 2.90%.
The last Return On Invested Capital (3.88%) for FRT is above the 3 year average (3.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.37%
ROE 9.69%
ROIC 3.88%
ROA(3y)3.16%
ROA(5y)3.65%
ROE(3y)9.16%
ROE(5y)10.2%
ROIC(3y)3.24%
ROIC(5y)3.74%

1.3 Margins

With a decent Profit Margin value of 24.92%, FRT is doing good in the industry, outperforming 77.34% of the companies in the same industry.
FRT's Profit Margin has been stable in the last couple of years.
FRT has a better Operating Margin (34.56%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of FRT has declined.
Looking at the Gross Margin, with a value of 67.57%, FRT is in line with its industry, outperforming 48.44% of the companies in the same industry.
FRT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 34.56%
PM (TTM) 24.92%
GM 67.57%
OM growth 3Y-3.79%
OM growth 5Y-2.74%
PM growth 3Y-1.69%
PM growth 5Y0.93%
GM growth 3Y-0.63%
GM growth 5Y-0.41%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FRT is destroying value.
Compared to 1 year ago, FRT has more shares outstanding
Compared to 5 years ago, FRT has more shares outstanding
The debt/assets ratio for FRT has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.02, we must say that FRT is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.02, FRT is doing good in the industry, outperforming 76.56% of the companies in the same industry.
The Debt to FCF ratio of FRT is 39.67, which is on the high side as it means it would take FRT, 39.67 years of fcf income to pay off all of its debts.
FRT has a Debt to FCF ratio (39.67) which is in line with its industry peers.
A Debt/Equity ratio of 1.57 is on the high side and indicates that FRT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.57, FRT is doing worse than 68.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF 39.67
Altman-Z 1.02
ROIC/WACC0.55
WACC7.1%

2.3 Liquidity

A Current Ratio of 1.36 indicates that FRT should not have too much problems paying its short term obligations.
FRT's Current ratio of 1.36 is in line compared to the rest of the industry. FRT outperforms 55.47% of its industry peers.
A Quick Ratio of 1.36 indicates that FRT should not have too much problems paying its short term obligations.
FRT has a Quick ratio (1.36) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.36

3

3. Growth

3.1 Past

The earnings per share for FRT have decreased strongly by -26.96% in the last year.
FRT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.44% yearly.
FRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.86%.
The Revenue has been growing slightly by 4.62% on average over the past years.
EPS 1Y (TTM)-26.96%
EPS 3Y0.58%
EPS 5Y2.44%
EPS growth Q2Q-64.55%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y4.71%
Revenue growth 5Y4.62%
Revenue growth Q2Q4.79%

3.2 Future

The Earnings Per Share is expected to decrease by -4.44% on average over the next years.
FRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y-42.73%
EPS Next 2Y-21.52%
EPS Next 3Y-11.8%
EPS Next 5Y-4.44%
Revenue Next Year5.84%
Revenue Next 2Y5.24%
Revenue Next 3Y5.61%
Revenue Next 5Y5.6%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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

The Price/Earnings ratio is 28.81, which means the current valuation is very expensive for FRT.
64.84% of the companies in the same industry are more expensive than FRT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.97. FRT is around the same levels.
A Price/Forward Earnings ratio of 34.46 indicates a quite expensive valuation of FRT.
Based on the Price/Forward Earnings ratio, FRT is valued a bit cheaper than the industry average as 67.97% 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 20.05.
Industry RankSector Rank
PE 28.81
Fwd PE 34.46

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 72.66% of the companies in the same industry.
FRT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 71.03
EV/EBITDA 17.71

4.3 Compensation for Growth

FRT has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FRT's earnings are expected to decrease with -11.80% in the coming years.
PEG (NY)N/A
PEG (5Y)11.82
EPS Next 2Y-21.52%
EPS Next 3Y-11.8%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.56%, FRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.40, FRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.58, FRT pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.56%

5.2 History

The dividend of FRT has a limited annual growth rate of 2.18%.
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)2.18%
Div Incr Years20
Div Non Decr Years20

5.3 Sustainability

128.22% of the earnings are spent on dividend by FRT. This is not a sustainable payout ratio.
The Dividend Rate of FRT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP128.22%
EPS Next 2Y-21.52%
EPS Next 3Y-11.8%

FEDERAL REALTY INVS TRUST

NYSE:FRT (12/8/2023, 7:04:00 PM)

After market: 99.12 0 (0%)

99.12

+0.11 (+0.11%)

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 Cap8.09B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.56%
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 28.81
Fwd PE 34.46
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)N/A
PEG (5Y)11.82
Profitability
Industry RankSector Rank
ROA 3.37%
ROE 9.69%
ROCE
ROIC
ROICexc
ROICexgc
OM 34.56%
PM (TTM) 24.92%
GM 67.57%
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 Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 1.57
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.36
Quick Ratio 1.36
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)-26.96%
EPS 3Y0.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-42.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.86%
Revenue growth 3Y4.71%
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