RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
EBR:RET - BE0003720340 - REIT
66.5 EUR
-0.4 (-0.6%)
RET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RET was profitable.
In the past year RET had a positive cash flow from operations.
Each year in the past 5 years RET has been profitable.
Each year in the past 5 years RET had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RET (4.94%) is better than 82.50% of its industry peers.
RET's Return On Equity of 8.74% is amongst the best of the industry. RET outperforms 82.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.16%, RET is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
RET had an Average Return On Invested Capital over the past 3 years of 3.97%. This is in line with the industry average of 3.48%.
The 3 year average ROIC (3.97%) for RET is below the current ROIC(4.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.74% | ||
| ROIC | 4.16% |
ROA(3y)6.59%
ROA(5y)6.11%
ROE(3y)11.91%
ROE(5y)11.53%
ROIC(3y)3.97%
ROIC(5y)3.97%
1.3 Margins
The Profit Margin of RET (67.13%) is better than 75.00% of its industry peers.
RET's Profit Margin has improved in the last couple of years.
RET has a Operating Margin of 73.30%. This is comparable to the rest of the industry: RET outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of RET has remained more or less at the same level.
The Gross Margin of RET (78.89%) is better than 62.50% 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 | 73.3% | ||
| PM (TTM) | 67.13% | ||
| GM | 78.89% |
OM growth 3Y-0.81%
OM growth 5Y-0.79%
PM growth 3Y-13.36%
PM growth 5Y6.76%
GM growth 3Y-0.84%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RET is destroying value.
RET has more shares outstanding than it did 1 year ago.
RET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RET has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that RET is in the distress zone and has some risk of bankruptcy.
RET has a Altman-Z score of 1.17. This is in the better half of the industry: RET outperforms 72.50% of its industry peers.
RET has a debt to FCF ratio of 9.44. This is a negative value and a sign of low solvency as RET would need 9.44 years to pay back of all of its debts.
RET's Debt to FCF ratio of 9.44 is fine compared to the rest of the industry. RET outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that RET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, RET perfoms like the industry average, outperforming 47.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 9.44 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.85
WACC4.89%
2.3 Liquidity
A Current Ratio of 0.43 indicates that RET may have some problems paying its short term obligations.
RET has a Current ratio of 0.43. This is comparable to the rest of the industry: RET outperforms 45.00% of its industry peers.
RET has a Quick 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 has a Quick ratio (0.43) which 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%.
The Revenue has been growing slightly by 5.78% on average over the past years.
EPS 1Y (TTM)-15.21%
EPS 3Y-10.65%
EPS 5Y9.19%
EPS Q2Q%74.41%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y7.56%
Revenue growth 5Y5.78%
Sales Q2Q%0.52%
3.2 Future
Based on estimates for the next years, RET will show a small growth in Earnings Per Share. The EPS will grow by 2.95% on average per year.
Based on estimates for the next years, RET will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y1.46%
EPS Next 2Y3.9%
EPS Next 3Y2.95%
EPS Next 5YN/A
Revenue Next Year2.82%
Revenue Next 2Y3.51%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
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.
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 9.12 indicates a reasonable valuation of RET.
RET's Price/Earnings ratio is rather cheap when compared to the industry. RET is cheaper than 85.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. RET is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.33, the valuation of RET can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RET indicates a somewhat cheap valuation: RET is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. RET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RET is valued a bit cheaper than 65.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RET is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 15.69 |
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 RET may justify a higher PE ratio.
PEG (NY)6.23
PEG (5Y)0.99
EPS Next 2Y3.9%
EPS Next 3Y2.95%
5. Dividend
5.1 Amount
RET has a Yearly Dividend Yield of 5.30%, which is a nice return.
Compared to an average industry Dividend Yield of 5.38, RET has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, RET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
5.2 History
On average, the dividend of RET grows each year by 18.46%, which is quite nice.
Dividend Growth(5Y)18.46%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RET pays out 67.37% of its income as dividend. This is not a sustainable payout ratio.
RET's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP67.37%
EPS Next 2Y3.9%
EPS Next 3Y2.95%
EBR:RET (8/27/2025, 5:29:50 PM)
66.5
-0.4 (-0.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners17.94%
Inst Owner ChangeN/A
Ins Owners3.98%
Ins Owner ChangeN/A
Market Cap999.50M
Analysts73.33
Price Target69.16 (4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
Yearly Dividend4.94
Dividend Growth(5Y)18.46%
DP67.37%
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)1.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.47%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 10.33 | ||
| P/S | 6.29 | ||
| P/FCF | 10.6 | ||
| P/OCF | 10.47 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 15.69 |
EPS(TTM)7.29
EY10.96%
EPS(NY)6.44
Fwd EY9.68%
FCF(TTM)6.27
FCFY9.43%
OCF(TTM)6.35
OCFY9.55%
SpS10.58
BVpS81.24
TBVpS80.66
PEG (NY)6.23
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 8.74% | ||
| ROCE | 5.65% | ||
| ROIC | 4.16% | ||
| ROICexc | 4.17% | ||
| ROICexgc | 4.18% | ||
| OM | 73.3% | ||
| PM (TTM) | 67.13% | ||
| GM | 78.89% | ||
| FCFM | 59.33% |
ROA(3y)6.59%
ROA(5y)6.11%
ROE(3y)11.91%
ROE(5y)11.53%
ROIC(3y)3.97%
ROIC(5y)3.97%
ROICexc(3y)3.98%
ROICexc(5y)3.98%
ROICexgc(3y)3.99%
ROICexgc(5y)4%
ROCE(3y)5.41%
ROCE(5y)5.47%
ROICexcg growth 3Y0.91%
ROICexcg growth 5Y-0.42%
ROICexc growth 3Y1.06%
ROICexc growth 5Y-0.49%
OM growth 3Y-0.81%
OM growth 5Y-0.79%
PM growth 3Y-13.36%
PM growth 5Y6.76%
GM growth 3Y-0.84%
GM growth 5Y-0.65%
F-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 9.44 | ||
| Debt/EBITDA | 7.36 | ||
| Cap/Depr | 73.46% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 6.08 | ||
| Cash Conversion | 80.83% | ||
| Profit Quality | 88.38% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.17 |
F-Score5
WACC4.89%
ROIC/WACC0.85
Cap/Depr(3y)262.29%
Cap/Depr(5y)286.92%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.76%
Profit Quality(3y)65.65%
Profit Quality(5y)71.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.21%
EPS 3Y-10.65%
EPS 5Y9.19%
EPS Q2Q%74.41%
EPS Next Y1.46%
EPS Next 2Y3.9%
EPS Next 3Y2.95%
EPS Next 5YN/A
Revenue 1Y (TTM)3.12%
Revenue growth 3Y7.56%
Revenue growth 5Y5.78%
Sales Q2Q%0.52%
Revenue Next Year2.82%
Revenue Next 2Y3.51%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y4.37%
EBIT growth 3Y6.69%
EBIT growth 5Y4.94%
EBIT Next Year10.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.29%
FCF growth 3Y6.57%
FCF growth 5Y14.32%
OCF growth 1Y25.83%
OCF growth 3Y5.55%
OCF growth 5Y12.31%