REGENCY CENTERS CORP (REG) Stock Fundamental Analysis
NASDAQ:REG - Nasdaq - US7588491032 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to REG. REG was compared to 129 industry peers in the Diversified REITs industry. While REG has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, REG is valued expensive at the moment. Finally REG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
REG had positive earnings in the past year.
REG had a positive operating cash flow in the past year.
REG had positive earnings in each of the past 5 years.
REG had a positive operating cash flow in each of the past 5 years.
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.
REG's Return On Equity of 5.77% is fine compared to the rest of the industry. REG outperforms 73.64% of its industry peers.
REG has a better Return On Invested Capital (3.52%) than 67.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REG is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.52%) for REG is above the 3 year average (3.42%), which is a sign of increasing profitability.
| 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
REG's Profit Margin of 26.28% is amongst the best of the industry. REG outperforms 82.17% of its industry peers.
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.
In the last couple of years the Operating Margin of REG has grown nicely.
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.
REG's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so REG is destroying value.
Compared to 1 year ago, REG has less shares outstanding
Compared to 5 years ago, REG has more shares outstanding
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.
With an excellent Altman-Z score value of 1.34, REG belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
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.
REG has a better Debt to FCF ratio (19.88) than 78.29% of its industry peers.
REG has a Debt/Equity ratio of 0.69. This is a neutral value indicating REG is somewhat dependend on debt financing.
REG has a better Debt to Equity ratio (0.69) than 79.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 19.88 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.47
WACC7.53%
2.3 Liquidity
REG has a Current Ratio of 0.60. This is a bad value and indicates that REG is not financially healthy enough and could expect problems in meeting its short term obligations.
REG's Current ratio of 0.60 is on the low side compared to the rest of the industry. REG is outperformed by 72.87% of its industry peers.
REG has a Quick Ratio of 0.60. This is a bad value and indicates that REG is not financially healthy enough and could expect problems in meeting its short term obligations.
REG has a worse Quick ratio (0.58) than 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
REG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.91%.
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%.
The Revenue has been growing slightly by 5.11% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.46% on average over the next years. This is quite good.
REG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.71% yearly.
EPS Next Y8.11%
EPS Next 2Y7.93%
EPS Next 3Y8.85%
EPS Next 5Y8.46%
Revenue Next Year6.94%
Revenue Next 2Y5.46%
Revenue Next 3Y5.17%
Revenue Next 5Y3.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 33.58 indicates a quite expensive valuation of REG.
The rest of the industry has a similar Price/Earnings ratio as REG.
Compared to an average S&P500 Price/Earnings ratio of 28.04, REG is valued at the same level.
With a Price/Forward Earnings ratio of 28.82, REG can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, REG is valued a bit cheaper than the industry average as 78.29% of the companies are valued more expensively.
REG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 28.82 |
4.2 Price Multiples
81.40% 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 62.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.33 | ||
| 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.
The decent profitability rating of REG may justify a higher PE ratio.
PEG (NY)4.14
PEG (5Y)4.1
EPS Next 2Y7.93%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
REG has a Yearly Dividend Yield of 6.78%, which is a nice return.
REG's Dividend Yield is a higher than the industry average which is at 6.65.
REG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
5.2 History
The dividend of REG has a limited annual growth rate of 3.44%.
REG has paid a dividend for at least 10 years, which is 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
REG pays out 131.47% of its income as dividend. 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 2Y7.93%
EPS Next 3Y8.85%
71.18
-0.35 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.83%
Inst Owner Change-0.18%
Ins Owners0.73%
Ins Owner Change0.54%
Market Cap12.92B
Analysts80
Price Target80.41 (12.97%)
Short Float %3.55%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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)0.01%
PT rev (3m)-1.3%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 28.82 | ||
| P/S | 8.78 | ||
| P/FCF | 55.33 | ||
| P/OCF | 16.49 | ||
| P/B | 1.93 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 19 |
EPS(TTM)2.12
EY2.98%
EPS(NY)2.47
Fwd EY3.47%
FCF(TTM)1.29
FCFY1.81%
OCF(TTM)4.32
OCFY6.06%
SpS8.1
BVpS36.91
TBVpS34.71
PEG (NY)4.14
PEG (5Y)4.1
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
WACC7.53%
ROIC/WACC0.47
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 Y8.11%
EPS Next 2Y7.93%
EPS Next 3Y8.85%
EPS Next 5Y8.46%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y7.63%
Revenue growth 5Y5.11%
Sales Q2Q%4.69%
Revenue Next Year6.94%
Revenue Next 2Y5.46%
Revenue Next 3Y5.17%
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%