NECESSITY RETAIL REIT INC/TH(NASDAQ:RTL) stock Fundamental Analysis

Fundamental Rating

Overall RTL gets a fundamental rating of 3 out of 10. We evaluated RTL against 129 industry peers in the Diversified REITs industry. RTL may be in some trouble as it scores bad on both profitability and health. RTL is valued expensive and it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year RTL was profitable.

RTL had a positive operating cash flow in the past year.

RTL had negative earnings in each of the past 5 years.

In the past 5 years RTL always reported a positive cash flow from operatings.

1.2 Ratios

RTL has negative profitability rations, so we won't be analyzing them here.

RTL has a worse Return On Invested Capital (0.63%) than 84.85% of its industry peers.

RTL had an Average Return On Invested Capital over the past 3 years of 1.37%. This is in line with the industry average of 3.15%.

		Industry Rank	Sector 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%

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.

In the last couple of years the Operating Margin of RTL has grown nicely.

With a decent Gross Margin value of 69.50%, RTL is doing good in 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 Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTL is destroying value.

RTL has more shares outstanding than it did 1 year ago.

Compared to 1 year ago, RTL has a worse debt to assets ratio.

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.

RTL has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.

The Debt to Equity ratio of RTL (1.85) is worse than 70.45% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.85
Debt/FCF	N/A
Altman-Z	-0.13

ROIC/WACC0.1

WACC6.56%

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.

Looking at the Quick ratio, with a value of 2.34, RTL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.34
Quick Ratio	2.34

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

RTL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -143.65%.

The Revenue has grown by 17.76% in the past year. This is quite good.

Measured over the past years, RTL shows a quite strong growth in Revenue. The Revenue has been growing by 10.51% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.85, which indicates a rather cheap valuation of RTL.

99.24% of the companies in the same industry are more expensive than RTL, based on the Price/Earnings ratio.

When comparing the Price/Earnings ratio of RTL to the average of the S&P500 Index (26.70), we can say RTL is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.85
Fwd PE	N/A

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RTL is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	14.09

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. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.17%, RTL is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 6.62, RTL pays a better dividend. On top of this RTL pays more dividend than 94.70% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.36, RTL pays a better dividend.

		Industry Rank	Sector 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

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

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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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens