Fundamenta Real Estate (SWX:FREN) - Share price, News & Analysis

FREN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	1/6
Financial Health	2/6
Dividends	5/6

FREN Stock Overview

Fundamenta Real Estate AG engages in the acquisition, development, and maintenance of living spaces in German-speaking Switzerland.

Rewards

Revenue is forecast to grow 6.35% per year

Earnings have grown 16.7% per year over the past 5 years

Pays a reliable dividend of 2.92%

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Fundamenta Real Estate Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fundamenta Real Estate
Historical stock prices
Current Share Price	CHF18.85
52 Week High	CHF20.50
52 Week Low	CHF18.20
Beta	-0.056
1 Month Change	-4.32%
3 Month Change	-4.07%
1 Year Change	-3.83%
3 Year Change	31.82%
5 Year Change	19.30%
Change since IPO	38.10%

Shareholder Returns

	FREN	CH Real Estate	CH Market
7D	-1.1%	1.3%	-2.8%
1Y	-3.8%	2.7%	-2.4%

Return vs Industry: FREN underperformed the Swiss Real Estate industry which returned 2.7% over the past year.

Return vs Market: FREN underperformed the Swiss Market which returned -2.4% over the past year.

Price Volatility

Is FREN's price volatile compared to industry and market?
FREN volatility
FREN Average Weekly Movement	2.7%
Real Estate Industry Average Movement	2.9%
Market Average Movement	5.0%
10% most volatile stocks in CH Market	8.9%
10% least volatile stocks in CH Market	2.6%

Stable Share Price: FREN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FREN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	10	Daniel Kuster	https://www.fundamentarealestate.ch

Fundamenta Real Estate AG engages in the acquisition, development, and maintenance of living spaces in German-speaking Switzerland. The company was founded in 2006 and is based in Zug, Switzerland.

Fundamenta Real Estate Fundamentals Summary

How do Fundamenta Real Estate's earnings and revenue compare to its market cap?
FREN fundamental statistics
Market Cap	CHF566.68m
Earnings (TTM)	CHF28.94m
Revenue (TTM)	CHF37.22m

19.6x

P/E Ratio

15.2x

P/S Ratio

Is FREN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FREN income statement (TTM)
Revenue	CHF37.22m
Cost of Revenue	CHF4.99m
Gross Profit	CHF32.23m
Other Expenses	CHF3.29m
Earnings	CHF28.94m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.96
Gross Margin	86.59%
Net Profit Margin	77.76%
Debt/Equity Ratio	112.8%

How did FREN perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

54%

Payout Ratio

Valuation

Is Fundamenta Real Estate undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

19.58x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: FREN (CHF18.85) is trading above our estimate of fair value (CHF13.63)

Significantly Below Fair Value: FREN is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: FREN is poor value based on its PE Ratio (19.6x) compared to the Swiss Real Estate industry average (12.6x).

PE vs Market: FREN is poor value based on its PE Ratio (19.6x) compared to the Swiss market (17.9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FREN's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: FREN's PB Ratio (1.1x) is in line with the CH Real Estate industry average.

Future Growth

How is Fundamenta Real Estate forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.3%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FREN's forecast earnings growth is above the savings rate (-0.3%).

Earnings vs Market: Insufficient data to determine if FREN's earnings are forecast to grow faster than the Swiss market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FREN's revenue (6.3% per year) is forecast to grow faster than the Swiss market (4.2% per year).

High Growth Revenue: FREN's revenue (6.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FREN's Return on Equity is forecast to be low in 3 years time (3.9%).

Past Performance

How has Fundamenta Real Estate performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FREN has a large one-off gain of CHF15.3M impacting its December 31 2021 financial results.

Growing Profit Margin: FREN's current net profit margins (77.8%) are lower than last year (79.7%).

Past Earnings Growth Analysis

Earnings Trend: FREN's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: FREN's earnings growth over the past year (8.4%) is below its 5-year average (16.7% per year).

Earnings vs Industry: FREN earnings growth over the past year (8.4%) underperformed the Real Estate industry 61.3%.

Return on Equity

High ROE: FREN's Return on Equity (5.8%) is considered low.

Financial Health

How is Fundamenta Real Estate's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FREN's short term assets (CHF14.6M) do not cover its short term liabilities (CHF18.8M).

Long Term Liabilities: FREN's short term assets (CHF14.6M) do not cover its long term liabilities (CHF594.3M).

Debt to Equity History and Analysis

Debt Level: FREN's net debt to equity ratio (111%) is considered high.

Reducing Debt: FREN's debt to equity ratio has reduced from 138.2% to 112.8% over the past 5 years.

Debt Coverage: FREN's debt is not well covered by operating cash flow (3.8%).

Interest Coverage: FREN's interest payments on its debt are well covered by EBIT (5.4x coverage).

Balance Sheet

Dividend

What is Fundamenta Real Estate current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FREN's dividend (2.92%) is higher than the bottom 25% of dividend payers in the Swiss market (1.87%).

High Dividend: FREN's dividend (2.92%) is low compared to the top 25% of dividend payers in the Swiss market (3.91%).

Stability and Growth of Payments

Stable Dividend: FREN's dividends per share have been stable in the past 10 years.

Growing Dividend: FREN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.1%), FREN's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (77.6%), FREN's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average board tenure

CEO

Daniel Kuster

no data

Tenure

Mr. Daniel Kuster serves as Chief Executive Officer at Fundamenta Real Estate AG.

Board Members

Experienced Board: FREN's board of directors are considered experienced (7.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31