RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
EBR:RET - Euronext Brussels - BE0003720340 - REIT - Currency: EUR
Taking everything into account, RET scores 5 out of 10 in our fundamental rating. RET was compared to 42 industry peers in the Diversified REITs industry. RET scores excellent on profitability, but 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
RET had positive earnings in the past year.
In the past year RET had a positive cash flow from operations.
Each year in the past 5 years RET has been profitable.
In the past 5 years RET always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.78%, RET belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
The Return On Equity of RET (10.63%) is better than 90.24% of its industry peers.
With a decent Return On Invested Capital value of 4.13%, RET is doing good in the industry, outperforming 65.85% 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 4.05%.
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
With an excellent Profit Margin value of 79.78%, RET belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of RET has grown nicely.
Looking at the Operating Margin, with a value of 72.43%, RET is in line with its industry, outperforming 48.78% of the companies in the same industry.
RET's Operating Margin has been stable in the last couple of years.
RET's Gross Margin of 78.74% is in line compared to the rest of the industry. RET outperforms 56.10% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RET is destroying value.
The number of shares outstanding for RET has been increased compared to 1 year ago.
RET has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RET has a worse debt to assets ratio.
2.2 Solvency
RET has an Altman-Z score of 1.02. This is a bad value and indicates that RET is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, RET is in the better half of the industry, outperforming 63.41% 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.
RET's Debt to FCF ratio of 9.97 is fine compared to the rest of the industry. RET outperforms 78.05% of its industry peers.
RET has a Debt/Equity ratio of 0.74. This is a neutral value indicating RET is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, RET is in line with its industry, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 9.97 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.86
WACC4.83%
2.3 Liquidity
A Current Ratio of 0.34 indicates that RET may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.34, RET is doing worse than 63.41% of the companies in the same industry.
RET has a Quick Ratio of 0.34. 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 Quick ratio of 0.34 is on the low side compared to the rest of the industry. RET is outperformed by 60.98% of its industry peers.
| 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.
Measured over the past years, RET shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.21% on average per year.
The Revenue has grown by 11.00% in the past year. This is quite good.
Measured over the past years, RET shows a small growth in Revenue. The Revenue has been growing by 7.81% on average per year.
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
RET is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.04% yearly.
RET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.06% yearly.
EPS Next Y-1.17%
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
EPS Next 5YN/A
Revenue Next Year5.27%
Revenue Next 2Y4.9%
Revenue Next 3Y4.06%
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 6.99, the valuation of RET can be described as very cheap.
Based on the Price/Earnings ratio, RET is valued cheaper than 87.80% of the companies in the same industry.
RET is valuated cheaply when we compare the Price/Earnings ratio to 28.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.36 indicates a reasonable valuation of RET.
RET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RET is cheaper than 75.61% of the companies in the same industry.
RET is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RET is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
68.29% of the companies in the same industry are more expensive than RET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.58 | ||
| EV/EBITDA | 15.93 |
4.3 Compensation for Growth
RET has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
5. Dividend
5.1 Amount
RET has a Yearly Dividend Yield of 5.97%, which is a nice return.
RET's Dividend Yield is comparable with the industry average which is at 8.11.
Compared to an average S&P500 Dividend Yield of 2.39, RET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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
RET pays out 56.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
RET's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP56.14%
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
EBR:RET (3/21/2025, 7:00:00 PM)
60.1
+0.4 (+0.67%)
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 Cap884.07M
Analysts77.78
Price Target70.38 (17.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
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)0%
PT rev (3m)-5.74%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 9.36 | ||
| P/S | 5.74 | ||
| P/FCF | 9.58 | ||
| P/OCF | 9.36 | ||
| P/B | 0.76 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 15.93 |
EPS(TTM)8.6
EY14.31%
EPS(NY)6.42
Fwd EY10.68%
FCF(TTM)6.27
FCFY10.44%
OCF(TTM)6.42
OCFY10.68%
SpS10.48
BVpS78.61
TBVpS78.01
PEG (NY)N/A
PEG (5Y)0.57
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 | 1.02 |
F-Score5
WACC4.83%
ROIC/WACC0.86
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-1.17%
EPS Next 2Y-0.04%
EPS Next 3Y-0.04%
EPS Next 5YN/A
Revenue 1Y (TTM)11%
Revenue growth 3Y10.84%
Revenue growth 5Y7.81%
Sales Q2Q%5.89%
Revenue Next Year5.27%
Revenue Next 2Y4.9%
Revenue Next 3Y4.06%
Revenue Next 5YN/A
EBIT growth 1Y15.29%
EBIT growth 3Y8.51%
EBIT growth 5Y6.87%
EBIT Next Year1.77%
EBIT Next 3Y4.2%
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%