HomeCo Daily Needs REIT
HomeCo Daily Needs REIT Fundamental Analysis
HomeCo Daily Needs REIT (HDNRF) shows moderate financial fundamentals with a PE ratio of 4.23, profit margin of 1.00%, and ROE of 11.96%. The company generates $0.6B in annual revenue with weak year-over-year growth of 2.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HDNRF's fundamental strength across five key dimensions:
Efficiency Score
WeakHDNRF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHDNRF trades at attractive valuation levels.
Growth Score
WeakHDNRF faces weak or negative growth trends.
Financial Health Score
ModerateHDNRF shows balanced financial health with some risks.
Profitability Score
WeakHDNRF struggles to sustain strong margins.
Key Financial Metrics
Is HDNRF Expensive or Cheap?
P/E Ratio
HDNRF trades at 4.23 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HDNRF's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values HomeCo Daily Needs REIT at 0.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.46 times EBITDA. This is generally considered low.
How Well Does HDNRF Make Money?
Net Profit Margin
For every $100 in sales, HomeCo Daily Needs REIT keeps $1.00 as profit after all expenses.
Operating Margin
Core operations generate 74.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.96 in profit for every $100 of shareholder equity.
ROA
HomeCo Daily Needs REIT generates $7.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HomeCo Daily Needs REIT generates strong operating cash flow of $217.98M, reflecting robust business health.
Free Cash Flow
HomeCo Daily Needs REIT generates strong free cash flow of $217.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
HDNRF converts 6.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HDNRF Stacks Against Its Sector Peers
| Metric | HDNRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.23 | 22.50 | Better (Cheaper) |
| ROE | 11.96% | 700.00% | Weak |
| Net Margin | 100.45% | -37372.00% (disorted) | Strong |
| Debt/Equity | 0.57 | -20.81 (disorted) | Distorted |
| Current Ratio | 0.00 | 1949.79 | Weak Liquidity |
| ROA | 7.26% | -1322.00% (disorted) | Weak |
HDNRF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HomeCo Daily Needs REIT's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
113.22%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
111.32%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
101.60%
Industry Style: Income, Inflation Hedge, REIT
High Growth