PARAMOUNT GROUP INC (PGRE) Stock Fundamental Analysis
NYSE:PGRE - New York Stock Exchange, Inc. - US69924R1086 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to PGRE. PGRE was compared to 130 industry peers in the Diversified REITs industry. PGRE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PGRE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
PGRE had negative earnings in the past year.
In the past year PGRE had a positive cash flow from operations.
PGRE had negative earnings in each of the past 5 years.
PGRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PGRE has a Return On Assets of -0.83%. This is in the lower half of the industry: PGRE underperforms 66.15% of its industry peers.
PGRE has a Return On Equity of -2.14%. This is in the lower half of the industry: PGRE underperforms 63.85% of its industry peers.
With a Return On Invested Capital value of 1.43%, PGRE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
PGRE had an Average Return On Invested Capital over the past 3 years of 1.50%. This is in line with the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.83% | ||
| ROE | -2.14% | ||
| ROIC | 1.43% |
ROA(3y)-1.42%
ROA(5y)-0.96%
ROE(3y)-3.53%
ROE(5y)-2.37%
ROIC(3y)1.5%
ROIC(5y)1.5%
1.3 Margins
PGRE's Operating Margin of 18.73% is in line compared to the rest of the industry. PGRE outperforms 42.31% of its industry peers.
PGRE's Operating Margin has declined in the last couple of years.
PGRE's Gross Margin of 59.03% is on the low side compared to the rest of the industry. PGRE is outperformed by 70.00% of its industry peers.
In the last couple of years the Gross Margin of PGRE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.73% | ||
| PM (TTM) | N/A | ||
| GM | 59.03% |
OM growth 3Y-5.7%
OM growth 5Y-3.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.88%
GM growth 5Y-1.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PGRE is destroying value.
The number of shares outstanding for PGRE remains at a similar level compared to 1 year ago.
PGRE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PGRE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.19, we must say that PGRE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.19, PGRE is doing worse than 69.23% of the companies in the same industry.
PGRE has a debt to FCF ratio of 43.45. This is a negative value and a sign of low solvency as PGRE would need 43.45 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 43.45, PGRE is doing good in the industry, outperforming 65.38% of the companies in the same industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that PGRE has dependencies on debt financing.
PGRE has a Debt to Equity ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 43.45 | ||
| Altman-Z | 0.19 |
ROIC/WACC0.2
WACC7.08%
2.3 Liquidity
A Current Ratio of 3.92 indicates that PGRE has no problem at all paying its short term obligations.
PGRE has a Current ratio of 3.92. This is amongst the best in the industry. PGRE outperforms 91.54% of its industry peers.
A Quick Ratio of 3.92 indicates that PGRE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.92, PGRE belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.92 | ||
| Quick Ratio | 3.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.71% over the past year.
Looking at the last year, PGRE shows a small growth in Revenue. The Revenue has grown by 1.66% in the last year.
The Revenue has been growing slightly by 0.36% on average over the past years.
EPS 1Y (TTM)67.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y1.39%
Revenue growth 5Y0.36%
Sales Q2Q%-0.98%
3.2 Future
The Earnings Per Share is expected to decrease by -30.73% on average over the next years. This is quite bad
PGRE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.52% yearly.
EPS Next Y-11.71%
EPS Next 2Y-44.52%
EPS Next 3Y-30.73%
EPS Next 5YN/A
Revenue Next Year-4.45%
Revenue Next 2Y-2.96%
Revenue Next 3Y-3.52%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for PGRE. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for PGRE. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
PGRE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PGRE is cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PGRE is valued cheaply inside the industry as 85.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.61 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
A cheap valuation may be justified as PGRE's earnings are expected to decrease with -30.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.52%
EPS Next 3Y-30.73%
5. Dividend
5.1 Amount
PGRE has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 6.64, PGRE's dividend is way lower than its industry peers. On top of this 92.31% of the companies listed in the same industry pay a better dividend than PGRE!
Compared to an average S&P500 Dividend Yield of 2.42, PGRE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of PGRE decreases each year by -23.74%.
PGRE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-23.74%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PGRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of PGRE has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-25.32%
EPS Next 2Y-44.52%
EPS Next 3Y-30.73%
6.03
-0.01 (-0.17%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.54%
Inst Owner Change4.11%
Ins Owners15.7%
Ins Owner Change0.39%
Market Cap1.32B
Analysts50.91
Price Target5.29 (-12.27%)
Short Float %4.56%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.12
Dividend Growth(5Y)-23.74%
DP-25.32%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-243.14%
Min EPS beat(2)-341.18%
Max EPS beat(2)-145.1%
EPS beat(4)1
Avg EPS beat(4)-123.86%
Min EPS beat(4)-341.18%
Max EPS beat(4)21.57%
EPS beat(8)4
Avg EPS beat(8)-309.98%
EPS beat(12)6
Avg EPS beat(12)-250.12%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.47%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)6.69%
Revenue beat(8)6
Avg Revenue beat(8)1.26%
Revenue beat(12)8
Avg Revenue beat(12)0.67%
Revenue beat(16)9
Avg Revenue beat(16)0.09%
PT rev (1m)16.9%
PT rev (3m)9.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)-4.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.75 | ||
| P/FCF | 15.61 | ||
| P/OCF | 6.48 | ||
| P/B | 0.43 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)-0.31
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)0.39
FCFY6.4%
OCF(TTM)0.93
OCFY15.42%
SpS3.45
BVpS14.08
TBVpS13.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.83% | ||
| ROE | -2.14% | ||
| ROCE | 1.81% | ||
| ROIC | 1.43% | ||
| ROICexc | 1.51% | ||
| ROICexgc | 1.54% | ||
| OM | 18.73% | ||
| PM (TTM) | N/A | ||
| GM | 59.03% | ||
| FCFM | 11.2% |
ROA(3y)-1.42%
ROA(5y)-0.96%
ROE(3y)-3.53%
ROE(5y)-2.37%
ROIC(3y)1.5%
ROIC(5y)1.5%
ROICexc(3y)1.58%
ROICexc(5y)1.58%
ROICexgc(3y)1.61%
ROICexgc(5y)1.61%
ROCE(3y)1.9%
ROCE(5y)1.89%
ROICexcg growth 3Y-2.68%
ROICexcg growth 5Y-0.82%
ROICexc growth 3Y-2.45%
ROICexc growth 5Y-0.45%
OM growth 3Y-5.7%
OM growth 5Y-3.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.88%
GM growth 5Y-1.42%
F-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 43.45 | ||
| Debt/EBITDA | 9.71 | ||
| Cap/Depr | 50.25% | ||
| Cap/Sales | 15.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.92 | ||
| Quick Ratio | 3.92 | ||
| Altman-Z | 0.19 |
F-Score6
WACC7.08%
ROIC/WACC0.2
Cap/Depr(3y)48.92%
Cap/Depr(5y)46.58%
Cap/Sales(3y)15.71%
Cap/Sales(5y)15.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)67.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y-11.71%
EPS Next 2Y-44.52%
EPS Next 3Y-30.73%
EPS Next 5YN/A
Revenue 1Y (TTM)1.66%
Revenue growth 3Y1.39%
Revenue growth 5Y0.36%
Sales Q2Q%-0.98%
Revenue Next Year-4.45%
Revenue Next 2Y-2.96%
Revenue Next 3Y-3.52%
Revenue Next 5YN/A
EBIT growth 1Y8.09%
EBIT growth 3Y-4.39%
EBIT growth 5Y-2.74%
EBIT Next Year140.11%
EBIT Next 3Y25.24%
EBIT Next 5YN/A
FCF growth 1Y-31%
FCF growth 3Y3.52%
FCF growth 5Y-4.16%
OCF growth 1Y-17.08%
OCF growth 3Y2.74%
OCF growth 5Y-1.48%