RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
EBR:RET - Euronext Brussels - BE0003720340 - REIT - Currency: EUR
RET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 41 industry peers in the Diversified REITs industry. While RET belongs to the best of the industry regarding profitability, there are concerns on its financial health. RET is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RET was profitable.
RET had positive earnings in each of the past 5 years.
RET had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.94%, RET belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
RET's Return On Equity of 8.74% is fine compared to the rest of the industry. RET outperforms 78.05% of its industry peers.
The Return On Invested Capital of RET (4.22%) is better than 75.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RET is in line with the industry average of 3.55%.
The last Return On Invested Capital (4.22%) for RET is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.74% | ||
| ROIC | 4.22% |
ROA(3y)6.59%
ROA(5y)6.11%
ROE(3y)11.91%
ROE(5y)11.53%
ROIC(3y)3.99%
ROIC(5y)3.98%
1.3 Margins
Looking at the Profit Margin, with a value of 67.13%, RET is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
In the last couple of years the Profit Margin of RET has grown nicely.
RET has a Operating Margin (72.91%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RET has remained more or less at the same level.
Looking at the Gross Margin, with a value of 77.89%, RET is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
In the last couple of years the Gross Margin of RET has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 72.91% | ||
| PM (TTM) | 67.13% | ||
| GM | 77.89% |
OM growth 3Y-0.98%
OM growth 5Y-0.9%
PM growth 3Y-13.36%
PM growth 5Y6.76%
GM growth 3Y-1.27%
GM growth 5Y-0.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RET is destroying value.
RET has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RET has been increased compared to 5 years ago.
The debt/assets ratio for RET has been reduced compared to a year ago.
2.2 Solvency
RET has an Altman-Z score of 1.11. This is a bad value and indicates that RET is not financially healthy and even has some risk of bankruptcy.
RET has a better Altman-Z score (1.11) than 70.73% of its industry peers.
RET has a Debt/Equity ratio of 0.68. This is a neutral value indicating RET is somewhat dependend on debt financing.
RET has a better Debt to Equity ratio (0.68) than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.87
WACC4.84%
2.3 Liquidity
RET has a Current Ratio of 0.43. This is a bad value and indicates that RET is not financially healthy enough and could expect problems in meeting its short term obligations.
RET's Current ratio of 0.43 is in line compared to the rest of the industry. RET outperforms 48.78% of its industry peers.
A Quick Ratio of 0.43 indicates that RET may have some problems paying its short term obligations.
The Quick ratio of RET (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
RET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.21%.
RET shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
RET shows a small growth in Revenue. In the last year, the Revenue has grown by 3.12%.
RET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.78% yearly.
EPS 1Y (TTM)-15.21%
EPS 3Y-10.65%
EPS 5Y9.19%
EPS Q2Q%188.64%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y7.56%
Revenue growth 5Y5.78%
Sales Q2Q%99.51%
3.2 Future
The Earnings Per Share is expected to decrease by -0.46% on average over the next years.
Based on estimates for the next years, RET will show a small growth in Revenue. The Revenue will grow by 0.83% on average per year.
EPS Next Y0.99%
EPS Next 2Y1.66%
EPS Next 3Y-0.46%
EPS Next 5YN/A
Revenue Next Year3.94%
Revenue Next 2Y3.65%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.29, the valuation of RET can be described as very reasonable.
Based on the Price/Earnings ratio, RET is valued cheaper than 85.37% of the companies in the same industry.
RET is valuated cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
RET is valuated reasonably with a Price/Forward Earnings ratio of 9.42.
Based on the Price/Forward Earnings ratio, RET is valued a bit cheaper than 78.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. RET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RET does not grow enough to justify the current Price/Earnings ratio.
RET has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.4
PEG (5Y)0.9
EPS Next 2Y1.66%
EPS Next 3Y-0.46%
5. Dividend
5.1 Amount
RET has a Yearly Dividend Yield of 5.47%, which is a nice return.
RET's Dividend Yield is comparable with the industry average which is at 5.44.
Compared to an average S&P500 Dividend Yield of 2.38, RET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
5.2 History
The dividend of RET has a limited annual growth rate of 4.49%.
Dividend Growth(5Y)4.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y1.66%
EPS Next 3Y-0.46%
EBR:RET (6/3/2025, 9:18:33 AM)
60.4
+0.6 (+1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners21.44%
Inst Owner ChangeN/A
Ins Owners3.98%
Ins Owner ChangeN/A
Market Cap888.48M
Analysts75.56
Price Target68.34 (13.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
Yearly Dividend4.85
Dividend Growth(5Y)4.49%
DP0%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 9.42 | ||
| P/S | 5.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.73 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.29
EY12.07%
EPS(NY)6.41
Fwd EY10.61%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS10.81
BVpS83.01
TBVpS82.42
PEG (NY)8.4
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.74% | ||
| ROCE | 5.62% | ||
| ROIC | 4.22% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 4.24% | ||
| OM | 72.91% | ||
| PM (TTM) | 67.13% | ||
| GM | 77.89% | ||
| FCFM | N/A |
ROA(3y)6.59%
ROA(5y)6.11%
ROE(3y)11.91%
ROE(5y)11.53%
ROIC(3y)3.99%
ROIC(5y)3.98%
ROICexc(3y)4%
ROICexc(5y)3.99%
ROICexgc(3y)4.01%
ROICexgc(5y)4.01%
ROCE(3y)5.4%
ROCE(5y)5.47%
ROICexcg growth 3Y1.39%
ROICexcg growth 5Y-0.14%
ROICexc growth 3Y1.53%
ROICexc growth 5Y-0.21%
OM growth 3Y-0.98%
OM growth 5Y-0.9%
PM growth 3Y-13.36%
PM growth 5Y6.76%
GM growth 3Y-1.27%
GM growth 5Y-0.91%
F-ScoreN/A
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.11 |
F-ScoreN/A
WACC4.84%
ROIC/WACC0.87
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.21%
EPS 3Y-10.65%
EPS 5Y9.19%
EPS Q2Q%188.64%
EPS Next Y0.99%
EPS Next 2Y1.66%
EPS Next 3Y-0.46%
EPS Next 5YN/A
Revenue 1Y (TTM)3.12%
Revenue growth 3Y7.56%
Revenue growth 5Y5.78%
Sales Q2Q%99.51%
Revenue Next Year3.94%
Revenue Next 2Y3.65%
Revenue Next 3Y0.83%
Revenue Next 5YN/A
EBIT growth 1Y3.81%
EBIT growth 3Y6.5%
EBIT growth 5Y4.83%
EBIT Next Year10.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A