Transcontinental Realty Investors, Inc. Fundamental Analysis (NYSE: TCI)
Transcontinental Realty Investors, Inc. Fundamental Analysis (NYSE: TCI)
Transcontinental Realty Investors, Inc. (NYSE: TCI) shows weak financial fundamentals with a PE ratio of 39.55, profit margin of 15.88%, and ROE of 0.95%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 9.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TCI's fundamental strength across five key dimensions:
Efficiency Score
WeakTCI struggles to generate sufficient returns from assets.
Valuation Score
ModerateTCI shows balanced valuation metrics.
Growth Score
ModerateTCI shows steady but slowing expansion.
Financial Health Score
ExcellentTCI maintains a strong and stable balance sheet.
Profitability Score
ModerateTCI maintains healthy but balanced margins.
Key Financial Metrics
Is TCI Expensive or Cheap?
P/E Ratio
TCI trades at 39.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TCI's PEG of 1.77 indicates fair valuation.
Price to Book
The market values Transcontinental Realty Investors, Inc. at 0.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.29 times EBITDA. This is generally considered low.
How Well Does TCI Make Money?
Net Profit Margin
For every $100 in sales, Transcontinental Realty Investors, Inc. keeps $15.88 as profit after all expenses.
Operating Margin
Core operations generate -18.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.95 in profit for every $100 of shareholder equity.
ROA
Transcontinental Realty Investors, Inc. generates $0.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transcontinental Realty Investors, Inc. generates limited operating cash flow of $2.09M, signaling weaker underlying cash strength.
Free Cash Flow
Transcontinental Realty Investors, Inc. generates weak or negative free cash flow of $-24.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.78 in free cash annually.
FCF Yield
TCI converts -7.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
864.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How TCI Stacks Against Its Sector Peers
| Metric | TCI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.55 | 23.60 | Worse (Expensive) |
| ROE | 0.95% | 753.00% | Weak |
| Net Margin | 15.88% | 2518.00% | Weak |
| Debt/Equity | 0.25 | -36.91 (disorted) | Distorted |
| Current Ratio | 864.25 | 32.48 | Strong Liquidity |
| ROA | 0.71% | 251.00% | Weak |
TCI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Transcontinental Realty Investors, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.49%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
106.97%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-151.25%
Industry Style: Income, Inflation Hedge, REIT
Declining