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NECESSITY RETAIL REIT INC/TH (RTL) Stock Fundamental Analysis

USA - NASDAQ:RTL - US02607T1097 - REIT

7.61 USD
+0.08 (+1.06%)
Last: 9/11/2023, 10:21:53 PM
7.61 USD
0 (0%)
After Hours: 9/11/2023, 10:21:53 PM
Fundamental Rating

3

Overall RTL gets a fundamental rating of 3 out of 10. We evaluated RTL against 130 industry peers in the Diversified REITs industry. RTL has a bad profitability rating. Also its financial health evaluation is rather negative. RTL does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

RTL had positive earnings in the past year.
RTL had a positive operating cash flow in the past year.
In the past 5 years RTL always reported negative net income.
In the past 5 years RTL always reported a positive cash flow from operatings.
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.
Measured over the past 3 years, the Average Return On Invested Capital for RTL is in line with the industry average of 3.05%.
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

RTL's Operating Margin of 7.48% is on the low side compared to the rest of the industry. RTL is outperformed by 83.33% of its industry peers.
In the last couple of years the Operating Margin of RTL has grown nicely.
The Gross Margin of RTL (69.50%) is better than 60.61% of its industry peers.
RTL's Gross Margin has declined in the last couple of years.
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

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3

2. Health

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.
The number of shares outstanding for RTL has been increased compared to 1 year ago.
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.
With a Altman-Z score value of -0.13, RTL is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
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

RTL has a Current Ratio of 2.34. This indicates that RTL is financially healthy and has no problem in meeting its short term obligations.
RTL has a better Current ratio (2.34) than 81.06% of its industry peers.
RTL has a Quick Ratio of 2.34. This indicates that RTL is financially healthy and has no problem in meeting 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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2

3. Growth

3.1 Past

The earnings per share for RTL have decreased strongly by -143.65% in the last year.
The Revenue has grown by 17.76% in the past year. This is quite good.
The Revenue has been growing by 10.51% on average over the past years. This is quite good.
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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3

4. Valuation

4.1 Price/Earnings Ratio

With a 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.
RTL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
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 is on the same level as 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

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.17%, RTL is a good candidate for dividend investing.
RTL's Dividend Yield is rather good when compared to the industry average which is at 6.66. RTL pays more dividend than 94.70% of the companies in the same industry.
RTL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
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.
The dividend of RTL decreased 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

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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 2023-08-02/amc
Earnings (Next)10-31 2023-10-31/amc
Inst OwnersN/A
Inst Owner Change-17.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap0
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
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%
ROICexcg growth 3Y-10.1%
ROICexcg 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%