URBAN EDGE PROPERTIES (UE) Stock Fundamental Analysis
NYSE:UE - New York Stock Exchange, Inc. - US91704F1049 - REIT - Currency: USD
UE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. There are concerns on the financial health of UE while its profitability can be described as average. UE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
UE had positive earnings in the past year.
UE had a positive operating cash flow in the past year.
UE had positive earnings in each of the past 5 years.
UE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UE's Return On Assets of 2.19% is fine compared to the rest of the industry. UE outperforms 72.09% of its industry peers.
With a decent Return On Equity value of 5.67%, UE is doing good in the industry, outperforming 74.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.38%, UE is in line with its industry, outperforming 41.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UE is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 5.67% | ||
| ROIC | 2.38% |
ROA(3y)3.77%
ROA(5y)3.59%
ROE(3y)10.66%
ROE(5y)10.42%
ROIC(3y)2.82%
ROIC(5y)2.86%
1.3 Margins
UE has a better Profit Margin (16.29%) than 71.32% of its industry peers.
In the last couple of years the Profit Margin of UE has declined.
UE's Operating Margin of 21.69% is in line compared to the rest of the industry. UE outperforms 49.61% of its industry peers.
UE's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 63.91%, UE is not doing good in the industry: 63.57% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of UE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.69% | ||
| PM (TTM) | 16.29% | ||
| GM | 63.91% |
OM growth 3Y-14.67%
OM growth 5Y-6.33%
PM growth 3Y-12.28%
PM growth 5Y-10.41%
GM growth 3Y-0.98%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
UE 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 UE has been increased compared to 1 year ago.
The number of shares outstanding for UE has been increased compared to 5 years ago.
UE has a better debt/assets ratio than last year.
2.2 Solvency
UE has an Altman-Z score of 0.97. This is a bad value and indicates that UE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of UE (0.97) is better than 74.42% of its industry peers.
A Debt/Equity ratio of 1.27 is on the high side and indicates that UE has dependencies on debt financing.
UE has a Debt to Equity ratio of 1.27. This is comparable to the rest of the industry: UE outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.34
WACC7.09%
2.3 Liquidity
UE has a Current Ratio of 0.96. This is a bad value and indicates that UE is not financially healthy enough and could expect problems in meeting its short term obligations.
UE has a Current ratio (0.96) which is in line with its industry peers.
A Quick Ratio of 0.96 indicates that UE may have some problems paying its short term obligations.
The Quick ratio of UE (0.96) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for UE have decreased strongly by -60.34% in the last year.
Measured over the past years, UE shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.10% on average per year.
Looking at the last year, UE shows a small growth in Revenue. The Revenue has grown by 6.73% in the last year.
Measured over the past years, UE shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
EPS 1Y (TTM)-60.34%
EPS 3Y-12.48%
EPS 5Y-8.1%
EPS Q2Q%1650%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y1.53%
Revenue growth 5Y2.8%
Sales Q2Q%7.8%
3.2 Future
UE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.43% yearly.
The Revenue is expected to grow by 5.32% on average over the next years.
EPS Next Y-62.47%
EPS Next 2Y-26.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.02%
Revenue Next 2Y5.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.96, which indicates a rather expensive current valuation of UE.
Compared to the rest of the industry, the Price/Earnings ratio of UE indicates a somewhat cheap valuation: UE is cheaper than 73.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UE to the average of the S&P500 Index (28.10), we can say UE is valued slightly cheaper.
A Price/Forward Earnings ratio of 57.50 indicates a quite expensive valuation of UE.
The rest of the industry has a similar Price/Forward Earnings ratio as UE.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, UE is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 57.5 |
4.2 Price Multiples
63.57% of the companies in the same industry are cheaper than UE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.56 |
4.3 Compensation for Growth
A cheap valuation may be justified as UE's earnings are expected to decrease with -26.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
UE has a Yearly Dividend Yield of 4.10%, which is a nice return.
Compared to an average industry Dividend Yield of 6.64, UE is paying slightly less dividend.
UE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
The dividend of UE decreases each year by -5.42%.
UE has been paying a dividend for at least 10 years, so it has a reliable track record.
UE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.42%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
114.37% of the earnings are spent on dividend by UE. This is not a sustainable payout ratio.
The Dividend Rate of UE has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP114.37%
EPS Next 2Y-26.43%
EPS Next 3YN/A
18.36
-0.19 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.41%
Inst Owner Change-0.95%
Ins Owners0.08%
Ins Owner Change0.18%
Market Cap2.31B
Analysts83.33
Price Target23.46 (27.78%)
Short Float %4.02%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend0.68
Dividend Growth(5Y)-5.42%
DP114.37%
Div Incr Years1
Div Non Decr Years3
Ex-Date
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)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)1.98%
Max Revenue beat(2)2.54%
Revenue beat(4)2
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.54%
Revenue beat(8)6
Avg Revenue beat(8)12.91%
Revenue beat(12)8
Avg Revenue beat(12)10.25%
Revenue beat(16)12
Avg Revenue beat(16)20.75%
PT rev (1m)-1.08%
PT rev (3m)-1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-49.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)52.39%
Revenue NY rev (1m)-2.95%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 57.5 | ||
| P/S | 5.19 | ||
| P/FCF | N/A | ||
| P/OCF | 15.07 | ||
| P/B | 1.81 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 15.56 |
EPS(TTM)0.92
EY5.01%
EPS(NY)0.32
Fwd EY1.74%
FCF(TTM)-1.13
FCFYN/A
OCF(TTM)1.22
OCFY6.63%
SpS3.54
BVpS10.16
TBVpS9.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 5.67% | ||
| ROCE | 3.01% | ||
| ROIC | 2.38% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.54% | ||
| OM | 21.69% | ||
| PM (TTM) | 16.29% | ||
| GM | 63.91% | ||
| FCFM | N/A |
ROA(3y)3.77%
ROA(5y)3.59%
ROE(3y)10.66%
ROE(5y)10.42%
ROIC(3y)2.82%
ROIC(5y)2.86%
ROICexc(3y)2.9%
ROICexc(5y)3.01%
ROICexgc(3y)3.03%
ROICexgc(5y)3.14%
ROCE(3y)3.57%
ROCE(5y)3.62%
ROICexcg growth 3Y-17.41%
ROICexcg growth 5Y-9.41%
ROICexc growth 3Y-17.71%
ROICexc growth 5Y-9.63%
OM growth 3Y-14.67%
OM growth 5Y-6.33%
PM growth 3Y-12.28%
PM growth 5Y-10.41%
GM growth 3Y-0.98%
GM growth 5Y-0.1%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.45 | ||
| Cap/Depr | 190.4% | ||
| Cap/Sales | 66.32% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 60.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.97 |
F-Score5
WACC7.09%
ROIC/WACC0.34
Cap/Depr(3y)241.11%
Cap/Depr(5y)249.9%
Cap/Sales(3y)69.29%
Cap/Sales(5y)67.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-60.34%
EPS 3Y-12.48%
EPS 5Y-8.1%
EPS Q2Q%1650%
EPS Next Y-62.47%
EPS Next 2Y-26.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.73%
Revenue growth 3Y1.53%
Revenue growth 5Y2.8%
Sales Q2Q%7.8%
Revenue Next Year7.02%
Revenue Next 2Y5.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-22.71%
EBIT growth 3Y-13.36%
EBIT growth 5Y-3.71%
EBIT Next Year139.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-6.04%
OCF growth 3Y4.22%
OCF growth 5Y-0.42%