REGENCY CENTERS CORP (REG) Stock Fundamental Analysis
NASDAQ:REG - Nasdaq - US7588491032 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to REG. REG was compared to 129 industry peers in the Diversified REITs industry. REG scores excellent on profitability, but there are concerns on its financial health. REG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year REG was profitable.
In the past year REG had a positive cash flow from operations.
Each year in the past 5 years REG has been profitable.
Each year in the past 5 years REG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.08%, REG is in the better half of the industry, outperforming 77.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.77%, REG is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.52%, REG is doing good in the industry, outperforming 67.44% of the companies in the same industry.
REG had an Average Return On Invested Capital over the past 3 years of 3.42%. This is in line with the industry average of 3.15%.
The 3 year average ROIC (3.42%) for REG is below the current ROIC(3.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 5.77% | ||
| ROIC | 3.52% |
ROA(3y)3.49%
ROA(5y)2.84%
ROE(3y)6.26%
ROE(5y)5.1%
ROIC(3y)3.42%
ROIC(5y)3.16%
1.3 Margins
With an excellent Profit Margin value of 26.28%, REG belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
In the last couple of years the Profit Margin of REG has grown nicely.
REG has a better Operating Margin (36.03%) than 78.29% of its industry peers.
REG's Operating Margin has improved in the last couple of years.
REG has a Gross Margin of 70.07%. This is comparable to the rest of the industry: REG outperforms 59.69% of its industry peers.
In the last couple of years the Gross Margin of REG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.03% | ||
| PM (TTM) | 26.28% | ||
| GM | 70.07% |
OM growth 3Y-3.04%
OM growth 5Y1.59%
PM growth 3Y-4.97%
PM growth 5Y4.71%
GM growth 3Y-0.83%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
REG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, REG has less shares outstanding
The number of shares outstanding for REG has been increased compared to 5 years ago.
Compared to 1 year ago, REG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that REG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of REG (1.34) is better than 88.37% of its industry peers.
REG has a debt to FCF ratio of 19.88. This is a negative value and a sign of low solvency as REG would need 19.88 years to pay back of all of its debts.
The Debt to FCF ratio of REG (19.88) is better than 78.29% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that REG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.69, REG is doing good in the industry, outperforming 79.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.88 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.46
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.60 indicates that REG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.60, REG is doing worse than 72.87% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that REG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.58, REG is doing worse than 73.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.91% over the past year.
The Earnings Per Share has been growing by 8.19% on average over the past years. This is quite good.
REG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
REG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)2.91%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%0%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%4.69%
3.2 Future
REG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.94% yearly.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y7.87%
EPS Next 2Y7.71%
EPS Next 3Y8.64%
EPS Next 5Y7.94%
Revenue Next Year7.01%
Revenue Next 2Y5.63%
Revenue Next 3Y5.39%
Revenue Next 5Y3.71%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 33.75 indicates a quite expensive valuation of REG.
REG's Price/Earnings ratio is in line with the industry average.
REG is valuated rather expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.09, REG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, REG is valued a bit cheaper than 75.97% of the companies in the same industry.
REG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 29.09 |
4.2 Price Multiples
79.84% of the companies in the same industry are cheaper than REG, based on the Enterprise Value to EBITDA ratio.
REG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. REG is cheaper than 61.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.61 | ||
| EV/EBITDA | 19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
REG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)4.12
EPS Next 2Y7.71%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
REG has a Yearly Dividend Yield of 3.90%. Purely for dividend investing, there may be better candidates out there.
REG's Dividend Yield is slightly below the industry average, which is at 6.68.
Compared to an average S&P500 Dividend Yield of 2.38, REG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
The dividend of REG has a limited annual growth rate of 3.44%.
REG has been paying a dividend for at least 10 years, so it has a reliable track record.
REG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years11
Div Non Decr Years14
5.3 Sustainability
131.47% of the earnings are spent on dividend by REG. This is not a sustainable payout ratio.
The dividend of REG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP131.47%
EPS Next 2Y7.71%
EPS Next 3Y8.64%
71.54
-0.41 (-0.57%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.57%
Inst Owner Change1.38%
Ins Owners0.78%
Ins Owner Change0.27%
Market Cap12.99B
Analysts80
Price Target80.4 (12.38%)
Short Float %3.68%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend2.76
Dividend Growth(5Y)3.44%
DP131.47%
Div Incr Years11
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.3%
Min EPS beat(2)-5.51%
Max EPS beat(2)2.91%
EPS beat(4)3
Avg EPS beat(4)7.58%
Min EPS beat(4)-5.51%
Max EPS beat(4)16.69%
EPS beat(8)6
Avg EPS beat(8)6.28%
EPS beat(12)10
Avg EPS beat(12)10.6%
EPS beat(16)13
Avg EPS beat(16)24.56%
Revenue beat(2)2
Avg Revenue beat(2)4.36%
Min Revenue beat(2)1.4%
Max Revenue beat(2)7.33%
Revenue beat(4)4
Avg Revenue beat(4)2.38%
Min Revenue beat(4)0.25%
Max Revenue beat(4)7.33%
Revenue beat(8)8
Avg Revenue beat(8)1.96%
Revenue beat(12)12
Avg Revenue beat(12)2.27%
Revenue beat(16)16
Avg Revenue beat(16)3.66%
PT rev (1m)-0.22%
PT rev (3m)-1.01%
EPS NQ rev (1m)2.04%
EPS NQ rev (3m)3.96%
EPS NY rev (1m)1.95%
EPS NY rev (3m)5.8%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.75 | ||
| Fwd PE | 29.09 | ||
| P/S | 8.83 | ||
| P/FCF | 55.61 | ||
| P/OCF | 16.58 | ||
| P/B | 1.94 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 19 |
EPS(TTM)2.12
EY2.96%
EPS(NY)2.46
Fwd EY3.44%
FCF(TTM)1.29
FCFY1.8%
OCF(TTM)4.32
OCFY6.03%
SpS8.1
BVpS36.91
TBVpS34.71
PEG (NY)4.29
PEG (5Y)4.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 5.77% | ||
| ROCE | 4.46% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.54% | ||
| ROICexgc | 3.67% | ||
| OM | 36.03% | ||
| PM (TTM) | 26.28% | ||
| GM | 70.07% | ||
| FCFM | 15.87% |
ROA(3y)3.49%
ROA(5y)2.84%
ROE(3y)6.26%
ROE(5y)5.1%
ROIC(3y)3.42%
ROIC(5y)3.16%
ROICexc(3y)3.44%
ROICexc(5y)3.2%
ROICexgc(3y)3.58%
ROICexgc(5y)3.32%
ROCE(3y)4.33%
ROCE(5y)4.01%
ROICexcg growth 3Y-0.47%
ROICexcg growth 5Y4.33%
ROICexc growth 3Y-0.39%
ROICexc growth 5Y4.71%
OM growth 3Y-3.04%
OM growth 5Y1.59%
PM growth 3Y-4.97%
PM growth 5Y4.71%
GM growth 3Y-0.83%
GM growth 5Y-0.77%
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.88 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 139.62% | ||
| Cap/Sales | 37.39% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 84.81% | ||
| Profit Quality | 60.41% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.34 |
F-Score7
WACC7.58%
ROIC/WACC0.46
Cap/Depr(3y)105.74%
Cap/Depr(5y)116.95%
Cap/Sales(3y)28.13%
Cap/Sales(5y)31.96%
Profit Quality(3y)88.31%
Profit Quality(5y)168.01%
High Growth Momentum
Growth
EPS 1Y (TTM)2.91%
EPS 3Y0.16%
EPS 5Y8.19%
EPS Q2Q%0%
EPS Next Y7.87%
EPS Next 2Y7.71%
EPS Next 3Y8.64%
EPS Next 5Y7.94%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%4.69%
Revenue Next Year7.01%
Revenue Next 2Y5.63%
Revenue Next 3Y5.39%
Revenue Next 5Y3.71%
EBIT growth 1Y11.08%
EBIT growth 3Y4.35%
EBIT growth 5Y6.79%
EBIT Next Year80.6%
EBIT Next 3Y24.92%
EBIT Next 5Y16.41%
FCF growth 1Y-26.91%
FCF growth 3Y75.84%
FCF growth 5Y22.26%
OCF growth 1Y16.07%
OCF growth 3Y6.22%
OCF growth 5Y4.93%