Federal Realty Investment Trust
Federal Realty Investment Trust Fundamental Analysis
Federal Realty Investment Trust (FRT) shows moderate financial fundamentals with a PE ratio of 22.31, profit margin of 32.13%, and ROE of 12.74%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 6.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FRT's fundamental strength across five key dimensions:
Efficiency Score
WeakFRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFRT trades at attractive valuation levels.
Growth Score
ExcellentFRT delivers strong and consistent growth momentum.
Financial Health Score
ModerateFRT shows balanced financial health with some risks.
Profitability Score
ModerateFRT maintains healthy but balanced margins.
Key Financial Metrics
Is FRT Expensive or Cheap?
P/E Ratio
FRT trades at 22.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FRT's PEG of 1.14 indicates fair valuation.
Price to Book
The market values Federal Realty Investment Trust at 2.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.40 times EBITDA. This is generally considered low.
How Well Does FRT Make Money?
Net Profit Margin
For every $100 in sales, Federal Realty Investment Trust keeps $32.13 as profit after all expenses.
Operating Margin
Core operations generate 41.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.74 in profit for every $100 of shareholder equity.
ROA
Federal Realty Investment Trust generates $4.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Federal Realty Investment Trust generates strong operating cash flow of $624.50M, reflecting robust business health.
Free Cash Flow
Federal Realty Investment Trust generates strong free cash flow of $530.05M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.14 in free cash annually.
FCF Yield
FRT converts 5.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FRT Stacks Against Its Sector Peers
| Metric | FRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.31 | 23.43 | Neutral |
| ROE | 12.74% | 685.00% | Weak |
| Net Margin | 32.13% | 2002.00% | Weak |
| Debt/Equity | 1.55 | -21.97 (disorted) | Distorted |
| Current Ratio | 1.02 | 11.11 | Neutral |
| ROA | 4.50% | 166.00% | Weak |
FRT outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Federal Realty Investment Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.97%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-25.36%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
11.30%
Industry Style: Income, Inflation Hedge, REIT
High Growth