RETAIL ESTATES (RET.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:RET - BE0003720340 - REIT
63.8 EUR
-0.3 (-0.47%)
RET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Diversified REITs industry. RET scores excellent on profitability, but there are concerns on its financial health. RET has a correct valuation and a medium growth rate.
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.
- In the past 5 years RET has always been profitable.
- Each year in the past 5 years RET had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 5.18%, RET belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
- RET's Return On Equity of 9.24% is amongst the best of the industry. RET outperforms 85.71% of its industry peers.
- With a decent Return On Invested Capital value of 4.34%, RET is doing good in the industry, outperforming 78.57% 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 3.45%.
- The last Return On Invested Capital (4.34%) for RET is above the 3 year average (3.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 9.24% | ||
| ROIC | 4.34% |
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 (69.77%) is better than 80.95% of its industry peers.
- In the last couple of years the Profit Margin of RET has grown nicely.
- The Operating Margin of RET (72.89%) 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.
- RET has a better Gross Margin (77.87%) than 64.29% of its industry peers.
- RET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 72.89% | ||
| PM (TTM) | 69.77% | ||
| GM | 77.87% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RET 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
- Compared to 1 year ago, RET has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.09, we must say that RET is in the distress zone and has some risk of bankruptcy.
- RET has a Altman-Z score of 1.09. This is in the better half of the industry: RET outperforms 73.81% of its industry peers.
- The Debt to FCF ratio of RET is 10.48, which is on the high side as it means it would take RET, 10.48 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.48, RET is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
- RET has a Debt/Equity ratio of 0.66. This is a neutral value indicating RET is somewhat dependend on debt financing.
- The Debt to Equity ratio of RET (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.89
WACC4.87%
2.3 Liquidity
- A Current Ratio of 0.23 indicates that RET may have some problems paying its short term obligations.
- With a Current ratio value of 0.23, RET is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- A Quick Ratio of 0.23 indicates that RET may have some problems paying its short term obligations.
- With a Quick ratio value of 0.23, RET is not doing good in the industry: 69.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.17% over the past year.
- Measured over the past years, RET shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.19% on average per year.
- Looking at the last year, RET shows a small growth in Revenue. The Revenue has grown by 1.24% in the last year.
- Measured over the past years, RET shows a small growth in Revenue. The Revenue has been growing by 5.78% on average per year.
EPS 1Y (TTM)40.17%
EPS 3Y-10.65%
EPS 5Y9.19%
EPS Q2Q%10.12%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y7.56%
Revenue growth 5Y5.78%
Sales Q2Q%1.96%
3.2 Future
- The Earnings Per Share is expected to grow by 0.97% on average over the next years.
- The Revenue is expected to grow by 3.12% on average over the next years.
EPS Next Y-0.45%
EPS Next 2Y0.84%
EPS Next 3Y0.97%
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y3.25%
Revenue Next 3Y3.12%
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.
- 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 8.42 indicates a reasonable valuation of RET.
- Based on the Price/Earnings ratio, RET is valued cheaper than 88.10% of the companies in the same industry.
- RET is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.89, which indicates a very decent valuation of RET.
- Based on the Price/Forward Earnings ratio, RET is valued a bit cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. RET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RET is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
- 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 | 11.13 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
- RET has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y0.84%
EPS Next 3Y0.97%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.68%, RET is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.43, RET pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, RET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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 68.34% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of RET is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.34%
EPS Next 2Y0.84%
EPS Next 3Y0.97%
RETAIL ESTATES / RET.BR FAQ
What is the fundamental rating for RET stock?
ChartMill assigns a fundamental rating of 5 / 10 to RET.BR.
What is the valuation status of RETAIL ESTATES (RET.BR) stock?
ChartMill assigns a valuation rating of 6 / 10 to RETAIL ESTATES (RET.BR). This can be considered as Fairly Valued.
Can you provide the profitability details for RETAIL ESTATES?
RETAIL ESTATES (RET.BR) has a profitability rating of 8 / 10.
What is the valuation of RETAIL ESTATES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RETAIL ESTATES (RET.BR) is 8.42 and the Price/Book (PB) ratio is 0.79.
How sustainable is the dividend of RETAIL ESTATES (RET.BR) stock?
The dividend rating of RETAIL ESTATES (RET.BR) is 6 / 10 and the dividend payout ratio is 68.34%.