NECESSITY RETAIL REIT INC/TH (RTL) Fundamental Analysis & Valuation

NASDAQ:RTL • US02607T1097

7.61 USD
+0.08 (+1.06%)
At close: Sep 11, 2023
7.61 USD
0 (0%)
After Hours: 9/11/2023, 10:21:53 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This RTL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

Taking everything into account, RTL scores 3 out of 10 in our fundamental rating. RTL was compared to 123 industry peers in the Diversified REITs industry. RTL may be in some trouble as it scores bad on both profitability and health. RTL does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

2

1. RTL Profitability Analysis

1.1 Basic Checks

  • In the past year RTL was profitable.
  • RTL had a positive operating cash flow in the past year.
RTL Yearly Net Income VS EBIT VS OCF VS FCFRTL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 -200M -400M -600M -800M

1.2 Ratios

  • RTL has negative profitability rations, so we won't be analyzing them here.
  • With a Return On Invested Capital value of 0.63%, RTL is not doing good in the industry: 84.85% of the companies in the same industry are doing better.
  • The Average Return On Invested Capital over the past 3 years for RTL is in line with the industry average of 3.11%.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 0.63%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)1.37%
ROIC(5y)1.23%
RTL Yearly ROA, ROE, ROICRTL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -2 -4 -6

1.3 Margins

  • With a Operating Margin value of 7.48%, RTL is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
  • RTL's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 69.50%, RTL is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
  • In the last couple of years the Gross Margin of RTL has declined.
Industry RankSector Rank
OM 7.48%
PM (TTM) N/A
GM 69.5%
OM growth 3Y-9.47%
OM growth 5Y5.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y-1.75%
RTL Yearly Profit, Operating, Gross MarginsRTL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. RTL Health Analysis

2.1 Basic Checks

  • RTL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, RTL has more shares outstanding
  • The debt/assets ratio for RTL is higher compared to a year ago.
RTL Yearly Shares OutstandingRTL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
RTL Yearly Total Debt VS Total AssetsRTL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of -0.13, we must say that RTL is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of RTL (-0.13) is worse than 81.82% of its industry peers.
  • A Debt/Equity ratio of 1.85 is on the high side and indicates that RTL has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.85, RTL is doing worse than 70.45% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Altman-Z -0.13
ROIC/WACC0.1
WACC6.56%
RTL Yearly LT Debt VS Equity VS FCFRTL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B

2.3 Liquidity

  • A Current Ratio of 2.34 indicates that RTL has no problem at all paying its short term obligations.
  • RTL has a better Current ratio (2.34) than 81.06% of its industry peers.
  • A Quick Ratio of 2.34 indicates that RTL has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.34, RTL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 2.34
RTL Yearly Current Assets VS Current LiabilitesRTL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. RTL Growth Analysis

3.1 Past

  • The earnings per share for RTL have decreased strongly by -143.65% in the last year.
  • RTL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.76%.
  • RTL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.51% yearly.
EPS 1Y (TTM)-143.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.59%
Revenue 1Y (TTM)17.76%
Revenue growth 3Y14.2%
Revenue growth 5Y10.51%
Sales Q2Q%-8.75%

3.2 Future

  • No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
  • No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
RTL Yearly Revenue VS EstimatesRTL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M
RTL Yearly EPS VS EstimatesRTL Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 0 0.5

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Find the best growth stocksShow best growing peers

3

4. RTL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.85, the valuation of RTL can be described as very cheap.
  • Based on the Price/Earnings ratio, RTL is valued cheaper than 99.24% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RTL to the average of the S&P500 Index (25.71), we can say RTL is valued rather cheaply.
Industry RankSector Rank
PE 7.85
Fwd PE N/A
RTL Price Earnings VS Forward Price EarningsRTL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

  • RTL's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.09
RTL Per share dataRTL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. RTL Dividend Analysis

5.1 Amount

  • RTL has a Yearly Dividend Yield of 11.17%, which is a nice return.
  • RTL's Dividend Yield is rather good when compared to the industry average which is at 7.59. RTL pays more dividend than 94.70% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, RTL pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.17%

5.2 History

  • The dividend of RTL decreases each year by -1.15%.
  • RTL has been paying a dividend for over 5 years, so it has already some track record.
  • RTL has decreased its dividend recently.
Dividend Growth(5Y)-1.15%
Div Incr Years0
Div Non Decr Years1
RTL Yearly Dividends per shareRTL Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 0.5 1 1.5

5.3 Sustainability

  • RTL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-84.63%
EPS Next 2YN/A
EPS Next 3YN/A
RTL Yearly Income VS Free CF VS DividendRTL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 -200M -400M -600M -800M

More info and screens

Find the best dividend stocksShow peers with best dividend

RTL Fundamentals: All Metrics, Ratios and Statistics

NECESSITY RETAIL REIT INC/TH

NASDAQ:RTL (9/11/2023, 10:21:53 PM)

After market: 7.61 0 (0%)

7.61

+0.08 (+1.06%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)08-02
Earnings (Next)10-31
Inst OwnersN/A
Inst Owner Change-17.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap0
Revenue(TTM)454.86M
Net Income(TTM)-161.75M
Analysts80
Price Target10.71 (40.74%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.17%
Yearly Dividend1.05
Dividend Growth(5Y)-1.15%
DP-84.63%
Div Incr Years0
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)10.53%
PT rev (3m)10.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 7.85
Fwd PE N/A
P/S 2.25
P/FCF N/A
P/OCF 10.9
P/B 0.71
P/tB 0.71
EV/EBITDA 14.09
EPS(TTM)0.97
EY12.75%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0.7
OCFY9.17%
SpS3.38
BVpS10.67
TBVpS10.67
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE 0.8%
ROIC 0.63%
ROICexc 0.64%
ROICexgc 0.64%
OM 7.48%
PM (TTM) N/A
GM 69.5%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)1.37%
ROIC(5y)1.23%
ROICexc(3y)1.42%
ROICexc(5y)1.27%
ROICexgc(3y)1.43%
ROICexgc(5y)1.33%
ROCE(3y)1.73%
ROCE(5y)1.57%
ROICexgc growth 3Y-10.1%
ROICexgc growth 5Y6.61%
ROICexc growth 3Y-5.7%
ROICexc growth 5Y8.8%
OM growth 3Y-9.47%
OM growth 5Y5.39%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.73%
GM growth 5Y-1.75%
F-Score4
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Debt/EBITDA 10.33
Cap/Depr 47.63%
Cap/Sales 23.3%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.34
Quick Ratio 2.34
Altman-Z -0.13
F-Score4
WACC6.56%
ROIC/WACC0.1
Cap/Depr(3y)285.4%
Cap/Depr(5y)279.41%
Cap/Sales(3y)121.61%
Cap/Sales(5y)119.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-143.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.59%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.76%
Revenue growth 3Y14.2%
Revenue growth 5Y10.51%
Sales Q2Q%-8.75%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-60.69%
EBIT growth 3Y3.39%
EBIT growth 5Y16.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1643.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.63%
OCF growth 3Y13.62%
OCF growth 5Y10.86%

NECESSITY RETAIL REIT INC/TH / RTL FAQ

What is the fundamental rating for RTL stock?

ChartMill assigns a fundamental rating of 3 / 10 to RTL.


Can you provide the valuation status for NECESSITY RETAIL REIT INC/TH?

ChartMill assigns a valuation rating of 3 / 10 to NECESSITY RETAIL REIT INC/TH (RTL). This can be considered as Overvalued.


Can you provide the profitability details for NECESSITY RETAIL REIT INC/TH?

NECESSITY RETAIL REIT INC/TH (RTL) has a profitability rating of 3 / 10.


What is the financial health of NECESSITY RETAIL REIT INC/TH (RTL) stock?

The financial health rating of NECESSITY RETAIL REIT INC/TH (RTL) is 3 / 10.