RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
EBR:RET - Euronext Brussels - BE0003720340 - REIT - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RET. RET was compared to 42 industry peers in the Diversified REITs industry. RET has an excellent profitability rating, but there are concerns on its financial health. RET is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RET had positive earnings in the past year.
In the past year RET had a positive cash flow from operations.
In the past 5 years RET has always been profitable.
In the past 5 years RET always reported a positive cash flow from operatings.
1.2 Ratios
RET has a better Return On Assets (5.78%) than 90.48% of its industry peers.
The Return On Equity of RET (10.63%) is better than 90.48% of its industry peers.
With a decent Return On Invested Capital value of 4.13%, RET is doing good in the industry, outperforming 73.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RET is in line with the industry average of 3.70%.
The 3 year average ROIC (3.92%) for RET is below the current ROIC(4.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 10.63% | ||
| ROIC | 4.13% |
ROA(3y)7.37%
ROA(5y)5.77%
ROE(3y)13.77%
ROE(5y)11.24%
ROIC(3y)3.92%
ROIC(5y)3.94%
1.3 Margins
RET has a Profit Margin of 79.78%. This is amongst the best in the industry. RET outperforms 83.33% of its industry peers.
RET's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 72.43%, RET is in line with its industry, outperforming 57.14% of the companies in the same industry.
RET's Operating Margin has been stable in the last couple of years.
The Gross Margin of RET (78.74%) is better than 61.90% of its industry peers.
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 | 72.43% | ||
| PM (TTM) | 79.78% | ||
| GM | 78.74% |
OM growth 3Y-2.1%
OM growth 5Y-0.87%
PM growth 3Y13.7%
PM growth 5Y9.15%
GM growth 3Y-1.79%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
RET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RET has been increased compared to 1 year ago.
Compared to 5 years ago, RET has more shares outstanding
RET has a worse debt/assets ratio than last year.
2.2 Solvency
RET has an Altman-Z score of 1.07. This is a bad value and indicates that RET is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.07, RET is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of RET is 9.97, which is on the high side as it means it would take RET, 9.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.97, RET is doing good in the industry, outperforming 76.19% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that RET is somewhat dependend on debt financing.
RET has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 9.97 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.81
WACC5.07%
2.3 Liquidity
A Current Ratio of 0.34 indicates that RET may have some problems paying its short term obligations.
With a Current ratio value of 0.34, RET is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that RET may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.34, RET is in line with its industry, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The earnings per share for RET have decreased strongly by -33.75% in the last year.
The Earnings Per Share has been growing by 12.21% on average over the past years. This is quite good.
Looking at the last year, RET shows a quite strong growth in Revenue. The Revenue has grown by 11.00% in the last year.
RET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.81% yearly.
EPS 1Y (TTM)-33.75%
EPS 3Y21%
EPS 5Y12.21%
EPS Q2Q%-52.78%
Revenue 1Y (TTM)11%
Revenue growth 3Y10.84%
Revenue growth 5Y7.81%
Sales Q2Q%5.89%
3.2 Future
Based on estimates for the next years, RET will show a decrease in Earnings Per Share. The EPS will decrease by -0.66% on average per year.
RET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
EPS Next Y-1.23%
EPS Next 2Y-0.13%
EPS Next 3Y0.68%
EPS Next 5Y-0.66%
Revenue Next Year4.26%
Revenue Next 2Y4.1%
Revenue Next 3Y3.85%
Revenue Next 5Y1.68%
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 decreasing.
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
The Price/Earnings ratio is 7.68, which indicates a rather cheap valuation of RET.
Compared to the rest of the industry, the Price/Earnings ratio of RET indicates a rather cheap valuation: RET is cheaper than 88.10% of the companies listed in the same industry.
RET's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
RET is valuated reasonably with a Price/Forward Earnings ratio of 10.31.
RET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RET is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. RET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
61.90% of the companies in the same industry are more expensive than RET, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RET indicates a somewhat cheap valuation: RET is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | 16.62 |
4.3 Compensation for Growth
The excellent profitability rating of RET may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-0.13%
EPS Next 3Y0.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, RET is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.56, RET has a dividend in line with its industry peers.
RET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
The dividend of RET has a limited annual growth rate of 4.49%.
Dividend Growth(5Y)4.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
56.14% of the earnings are spent on dividend by RET. This is a bit on the high side, but may be sustainable.
The Dividend Rate of RET has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP56.14%
EPS Next 2Y-0.13%
EPS Next 3Y0.68%
EBR:RET (5/5/2025, 5:29:47 PM)
66.05
+0.65 (+0.99%)
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 Cap971.60M
Analysts75.56
Price Target68.34 (3.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend4.85
Dividend Growth(5Y)4.49%
DP56.14%
Div Incr Years1
Div Non Decr Years1
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)-2.9%
PT rev (3m)-2.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 10.31 | ||
| P/S | 6.3 | ||
| P/FCF | 10.53 | ||
| P/OCF | 10.29 | ||
| P/B | 0.84 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 16.62 |
EPS(TTM)8.6
EY13.02%
EPS(NY)6.41
Fwd EY9.7%
FCF(TTM)6.27
FCFY9.5%
OCF(TTM)6.42
OCFY9.72%
SpS10.48
BVpS78.61
TBVpS78.01
PEG (NY)N/A
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 10.63% | ||
| ROCE | 5.51% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 4.15% | ||
| OM | 72.43% | ||
| PM (TTM) | 79.78% | ||
| GM | 78.74% | ||
| FCFM | 59.88% |
ROA(3y)7.37%
ROA(5y)5.77%
ROE(3y)13.77%
ROE(5y)11.24%
ROIC(3y)3.92%
ROIC(5y)3.94%
ROICexc(3y)3.93%
ROICexc(5y)4%
ROICexgc(3y)3.95%
ROICexgc(5y)4.02%
ROCE(3y)5.42%
ROCE(5y)5.47%
ROICexcg growth 3Y0.71%
ROICexcg growth 5Y0.46%
ROICexc growth 3Y0.91%
ROICexc growth 5Y0.38%
OM growth 3Y-2.1%
OM growth 5Y-0.87%
PM growth 3Y13.7%
PM growth 5Y9.15%
GM growth 3Y-1.79%
GM growth 5Y-0.77%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 9.97 | ||
| Debt/EBITDA | 7.6 | ||
| Cap/Depr | 145.39% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 4.79 | ||
| Cash Conversion | 83.49% | ||
| Profit Quality | 75.06% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.07 |
F-Score5
WACC5.07%
ROIC/WACC0.81
Cap/Depr(3y)391.22%
Cap/Depr(5y)553.93%
Cap/Sales(3y)2.46%
Cap/Sales(5y)2.46%
Profit Quality(3y)55.89%
Profit Quality(5y)70.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.75%
EPS 3Y21%
EPS 5Y12.21%
EPS Q2Q%-52.78%
EPS Next Y-1.23%
EPS Next 2Y-0.13%
EPS Next 3Y0.68%
EPS Next 5Y-0.66%
Revenue 1Y (TTM)11%
Revenue growth 3Y10.84%
Revenue growth 5Y7.81%
Sales Q2Q%5.89%
Revenue Next Year4.26%
Revenue Next 2Y4.1%
Revenue Next 3Y3.85%
Revenue Next 5Y1.68%
EBIT growth 1Y15.29%
EBIT growth 3Y8.51%
EBIT growth 5Y6.87%
EBIT Next Year0.74%
EBIT Next 3Y3.25%
EBIT Next 5YN/A
FCF growth 1Y22.66%
FCF growth 3Y5.28%
FCF growth 5Y9.94%
OCF growth 1Y18.72%
OCF growth 3Y6.77%
OCF growth 5Y10.64%