WHITESTONE REIT (WSR) Stock Fundamental Analysis
NYSE:WSR - New York Stock Exchange, Inc. - US9660842041 - REIT - Currency: USD
Overall WSR gets a fundamental rating of 5 out of 10. We evaluated WSR against 130 industry peers in the Diversified REITs industry. While WSR belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, WSR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WSR had positive earnings in the past year.
In the past year WSR had a positive cash flow from operations.
Each year in the past 5 years WSR has been profitable.
Each year in the past 5 years WSR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.92%, WSR is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
The Return On Equity of WSR (7.89%) is better than 82.31% of its industry peers.
WSR's Return On Invested Capital of 3.74% is fine compared to the rest of the industry. WSR outperforms 70.00% 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 3.14%.
The last Return On Invested Capital (3.74%) for WSR is above the 3 year average (3.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.89% | ||
| ROIC | 3.74% |
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 Profit Margin of 21.70%. This is in the better half of the industry: WSR outperforms 74.62% of its industry peers.
WSR's Profit Margin has improved in the last couple of years.
WSR has a better Operating Margin (33.64%) than 71.54% of its industry peers.
WSR's Operating Margin has improved in the last couple of years.
The Gross Margin of WSR (69.83%) is comparable to the rest of the industry.
WSR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.64% | ||
| PM (TTM) | 21.7% | ||
| GM | 69.83% |
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
WSR 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, WSR has more shares outstanding
Compared to 5 years ago, WSR has more shares outstanding
Compared to 1 year ago, WSR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that WSR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.57, WSR perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
WSR has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WSR (1.57) is worse than 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC0.53
WACC7.06%
2.3 Liquidity
A Current Ratio of 1.64 indicates that WSR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.64, WSR is doing good in the industry, outperforming 70.77% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that WSR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.64, WSR is doing good in the industry, outperforming 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.18% 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.
WSR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
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)91.18%
EPS 3Y39.77%
EPS 5Y5.63%
EPS Q2Q%100%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y7.16%
Revenue growth 5Y5.28%
Sales Q2Q%0.65%
3.2 Future
The Earnings Per Share is expected to decrease by -5.85% 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-51.16%
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
EPS Next 5Y-5.85%
Revenue Next Year2.55%
Revenue Next 2Y3.83%
Revenue Next 3Y4.32%
Revenue Next 5Y4.61%
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.
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
A Price/Earnings ratio of 18.42 indicates a rather expensive valuation of WSR.
83.08% of the companies in the same industry are more expensive than WSR, based on the Price/Earnings ratio.
WSR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
WSR is valuated quite expensively with a Price/Forward Earnings ratio of 28.00.
Based on the Price/Forward Earnings ratio, WSR is valued a bit cheaper than 78.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.09. WSR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.42 | ||
| Fwd PE | 28 |
4.2 Price Multiples
WSR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The decent profitability rating of WSR may justify a higher PE ratio.
WSR's earnings are expected to decrease with -11.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.27
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
5. Dividend
5.1 Amount
WSR has a Yearly Dividend Yield of 4.46%, which is a nice return.
Compared to an average industry Dividend Yield of 6.39, WSR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, WSR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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
77.50% of the earnings are spent on dividend by WSR. This is not a sustainable payout ratio.
WSR's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP77.5%
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
11.97
-0.13 (-1.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.14%
Inst Owner Change-1%
Ins Owners3.4%
Ins Owner Change2.15%
Market Cap609.27M
Analysts80
Price Target15.23 (27.23%)
Short Float %1.05%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend0.49
Dividend Growth(5Y)-15.28%
DP77.5%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.18%
Min EPS beat(2)-18.46%
Max EPS beat(2)18.82%
EPS beat(4)3
Avg EPS beat(4)67.92%
Min EPS beat(4)-18.46%
Max EPS beat(4)206.3%
EPS beat(8)5
Avg EPS beat(8)92.25%
EPS beat(12)6
Avg EPS beat(12)95.19%
EPS beat(16)8
Avg EPS beat(16)73.19%
Revenue beat(2)0
Avg Revenue beat(2)-3.22%
Min Revenue beat(2)-3.76%
Max Revenue beat(2)-2.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.76%
Max Revenue beat(4)4.3%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)4
Avg Revenue beat(16)-0.51%
PT rev (1m)-0.95%
PT rev (3m)-2.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.23%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.42 | ||
| Fwd PE | 28 | ||
| P/S | 3.92 | ||
| P/FCF | N/A | ||
| P/OCF | 11.86 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 14.53 |
EPS(TTM)0.65
EY5.43%
EPS(NY)0.43
Fwd EY3.57%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)1.01
OCFY8.43%
SpS3.05
BVpS8.4
TBVpS8.4
PEG (NY)N/A
PEG (5Y)3.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 7.89% | ||
| ROCE | 4.73% | ||
| ROIC | 3.74% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 3.77% | ||
| OM | 33.64% | ||
| PM (TTM) | 21.7% | ||
| GM | 69.83% | ||
| 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-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.65 | ||
| Cap/Depr | 208.38% | ||
| Cap/Sales | 47.64% | ||
| Interest Coverage | 1.58 | ||
| Cash Conversion | 58.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 0.57 |
F-Score6
WACC7.06%
ROIC/WACC0.53
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)91.18%
EPS 3Y39.77%
EPS 5Y5.63%
EPS Q2Q%100%
EPS Next Y-51.16%
EPS Next 2Y-22.4%
EPS Next 3Y-11.94%
EPS Next 5Y-5.85%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y7.16%
Revenue growth 5Y5.28%
Sales Q2Q%0.65%
Revenue Next Year2.55%
Revenue Next 2Y3.83%
Revenue Next 3Y4.32%
Revenue Next 5Y4.61%
EBIT growth 1Y10.62%
EBIT growth 3Y13.37%
EBIT growth 5Y8.11%
EBIT Next Year78.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.39%
OCF growth 3Y6.01%
OCF growth 5Y4.05%