WHITESTONE REIT (WSR) Stock Fundamental Analysis
NYSE:WSR - New York Stock Exchange, Inc. - US9660842041 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to WSR. WSR was compared to 129 industry peers in the Diversified REITs industry. WSR scores excellent on profitability, but there are concerns on its financial health. WSR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSR was profitable.
WSR had a positive operating cash flow in the past year.
Each year in the past 5 years WSR has been profitable.
WSR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WSR's Return On Assets of 2.77% is fine compared to the rest of the industry. WSR outperforms 75.19% of its industry peers.
WSR has a Return On Equity of 7.25%. This is amongst the best in the industry. WSR outperforms 82.95% of its industry peers.
The Return On Invested Capital of WSR (3.71%) is better than 70.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WSR is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.71%) for WSR is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.25% | ||
| ROIC | 3.71% |
ROA(3y)2.72%
ROA(5y)1.97%
ROE(3y)7.16%
ROE(5y)5.27%
ROIC(3y)3.59%
ROIC(5y)3.15%
1.3 Margins
WSR has a better Profit Margin (20.15%) than 75.97% of its industry peers.
In the last couple of years the Profit Margin of WSR has grown nicely.
WSR's Operating Margin of 32.62% is fine compared to the rest of the industry. WSR outperforms 69.77% of its industry peers.
WSR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 69.92%, WSR is in line with its industry, outperforming 58.91% of the companies in the same industry.
WSR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.62% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.92% |
OM growth 3Y5.79%
OM growth 5Y2.69%
PM growth 3Y35.51%
PM growth 5Y3.87%
GM growth 3Y0.75%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WSR is destroying value.
WSR has more shares outstanding than it did 1 year ago.
WSR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WSR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that WSR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.62, WSR perfoms like the industry average, outperforming 55.04% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that WSR has dependencies on debt financing.
The Debt to Equity ratio of WSR (1.49) is worse than 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.62 |
ROIC/WACC0.51
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.79 indicates that WSR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.79, WSR is doing good in the industry, outperforming 75.19% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that WSR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.79, WSR is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 143.75% over the past year.
Measured over the past 5 years, WSR shows a small growth in Earnings Per Share. The EPS has been growing by 5.63% on average per year.
The Revenue has been growing slightly by 4.61% in the past year.
Measured over the past years, WSR shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
EPS 1Y (TTM)143.75%
EPS 3Y39.77%
EPS 5Y5.63%
EPS Q2Q%38.89%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y7.16%
Revenue growth 5Y5.28%
Sales Q2Q%2.25%
3.2 Future
The Earnings Per Share is expected to decrease by -1.25% on average over the next years.
WSR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.61% yearly.
EPS Next Y-42.39%
EPS Next 2Y-16.51%
EPS Next 3Y-5.14%
EPS Next 5Y-1.25%
Revenue Next Year1.63%
Revenue Next 2Y3.19%
Revenue Next 3Y4.35%
Revenue Next 5Y4.61%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.13, which indicates a correct valuation of WSR.
WSR's Price/Earnings ratio is rather cheap when compared to the industry. WSR is cheaper than 85.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. WSR is valued slightly cheaper when compared to this.
WSR is valuated quite expensively with a Price/Forward Earnings ratio of 25.42.
WSR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WSR is cheaper than 79.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.99. WSR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
WSR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.83 |
4.3 Compensation for Growth
WSR has a very decent profitability rating, which may justify a higher PE ratio.
WSR's earnings are expected to decrease with -5.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.87
EPS Next 2Y-16.51%
EPS Next 3Y-5.14%
5. Dividend
5.1 Amount
WSR has a Yearly Dividend Yield of 4.27%, which is a nice return.
Compared to an average industry Dividend Yield of 6.69, WSR is paying slightly less dividend.
WSR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
5.2 History
The dividend of WSR decreases each year by -15.28%.
WSR has been paying a dividend for at least 10 years, so it has a reliable track record.
WSR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.28%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WSR pays out 81.42% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of WSR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP81.42%
EPS Next 2Y-16.51%
EPS Next 3Y-5.14%
12.58
-0.15 (-1.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.98%
Inst Owner Change1.99%
Ins Owners3.25%
Ins Owner Change3.27%
Market Cap640.20M
Analysts80
Price Target15.66 (24.48%)
Short Float %0.72%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Yearly Dividend0.49
Dividend Growth(5Y)-15.28%
DP81.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)198.75%
Min EPS beat(2)191.21%
Max EPS beat(2)206.3%
EPS beat(4)3
Avg EPS beat(4)106.1%
Min EPS beat(4)-38.12%
Max EPS beat(4)206.3%
EPS beat(8)5
Avg EPS beat(8)107.89%
EPS beat(12)7
Avg EPS beat(12)111.68%
EPS beat(16)9
Avg EPS beat(16)100.08%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)4.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-3.77%
Max Revenue beat(4)4.3%
Revenue beat(8)1
Avg Revenue beat(8)-0.51%
Revenue beat(12)2
Avg Revenue beat(12)-0.53%
Revenue beat(16)5
Avg Revenue beat(16)-0.14%
PT rev (1m)-4.87%
PT rev (3m)-4.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.07%
Revenue NQ rev (1m)-2.37%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-3.04%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 25.42 | ||
| P/S | 4.13 | ||
| P/FCF | N/A | ||
| P/OCF | 12.86 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 14.83 |
EPS(TTM)0.78
EY6.2%
EPS(NY)0.49
Fwd EY3.93%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)0.98
OCFY7.78%
SpS3.05
BVpS8.47
TBVpS8.47
PEG (NY)N/A
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 7.25% | ||
| ROCE | 4.69% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 3.73% | ||
| OM | 32.62% | ||
| PM (TTM) | 20.15% | ||
| GM | 69.92% | ||
| FCFM | N/A |
ROA(3y)2.72%
ROA(5y)1.97%
ROE(3y)7.16%
ROE(5y)5.27%
ROIC(3y)3.59%
ROIC(5y)3.15%
ROICexc(3y)3.61%
ROICexc(5y)3.18%
ROICexgc(3y)3.65%
ROICexgc(5y)3.22%
ROCE(3y)4.54%
ROCE(5y)3.99%
ROICexcg growth 3Y12.11%
ROICexcg growth 5Y6.64%
ROICexc growth 3Y12.38%
ROICexc growth 5Y6.74%
OM growth 3Y5.79%
OM growth 5Y2.69%
PM growth 3Y35.51%
PM growth 5Y3.87%
GM growth 3Y0.75%
GM growth 5Y0.35%
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.46 | ||
| Cap/Depr | 145.93% | ||
| Cap/Sales | 33.41% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 57.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 0.62 |
F-Score7
WACC7.22%
ROIC/WACC0.51
Cap/Depr(3y)159.87%
Cap/Depr(5y)164.15%
Cap/Sales(3y)36.2%
Cap/Sales(5y)37.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)143.75%
EPS 3Y39.77%
EPS 5Y5.63%
EPS Q2Q%38.89%
EPS Next Y-42.39%
EPS Next 2Y-16.51%
EPS Next 3Y-5.14%
EPS Next 5Y-1.25%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y7.16%
Revenue growth 5Y5.28%
Sales Q2Q%2.25%
Revenue Next Year1.63%
Revenue Next 2Y3.19%
Revenue Next 3Y4.35%
Revenue Next 5Y4.61%
EBIT growth 1Y7.98%
EBIT growth 3Y13.37%
EBIT growth 5Y8.11%
EBIT Next Year81.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-153.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.05%
OCF growth 3Y6.01%
OCF growth 5Y4.05%