Árima Real Estate SOCIMI (BME:ARM) - Share price, News & Analysis

ARM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

ARM Stock Overview

Rewards

Price-To-Earnings ratio (8.4x) is below the Spanish market (16.3x)

Revenue is forecast to grow 46.83% per year

Earnings grew by 99.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 10.8% per year for the next 3 years

Large one-off items impacting financial results

Árima Real Estate SOCIMI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Árima Real Estate SOCIMI
Historical stock prices
Current Share Price	€7.95
52 Week High	€10.90
52 Week Low	€7.95
Beta	0.64
1 Month Change	-10.17%
3 Month Change	-16.14%
1 Year Change	-12.64%
3 Year Change	-19.70%
5 Year Change	n/a
Change since IPO	-11.67%

Shareholder Returns

	ARM	ES REITs	ES Market
7D	-8.6%	-0.02%	1.0%
1Y	-12.6%	-5.1%	-10.0%

Return vs Industry: ARM underperformed the Spanish REITs industry which returned -5.1% over the past year.

Return vs Market: ARM underperformed the Spanish Market which returned -10% over the past year.

Price Volatility

Is ARM's price volatile compared to industry and market?
ARM volatility
ARM Average Weekly Movement	5.0%
REITs Industry Average Movement	1.6%
Market Average Movement	3.7%
10% most volatile stocks in ES Market	6.9%
10% least volatile stocks in ES Market	1.3%

Stable Share Price: ARM is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARM's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2018	14	Luis Alfonso Lopez de Herrera-Oria	https://www.arimainmo.com

Árima Real Estate is a Spanish company that listed on the Madrid Stock Exchange as a SOCIMI (Sociedad Anónima Cotizada de Inversión Inmobiliaria) and that is led by a fully-dedicated internal management team. It was created in 2018 with the aim of becoming the leading Spanish SOCIMI in the Madrid office market. The company is headed up by Luis María Arredondo (Chairman of the Board of Directors) and Luis López de Herrera-Oria (CEO) and also boasts the same highly-reputable management team that steered Axiare Patrimonio SOCIMI to success.

Árima Real Estate SOCIMI Fundamentals Summary

How do Árima Real Estate SOCIMI's earnings and revenue compare to its market cap?
ARM fundamental statistics
Market Cap	€218.65m
Earnings (TTM)	€26.13m
Revenue (TTM)	€6.01m

8.4x

P/E Ratio

36.4x

P/S Ratio

Is ARM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARM income statement (TTM)
Revenue	€6.01m
Cost of Revenue	€0
Gross Profit	€6.01m
Other Expenses	-€20.11m
Earnings	€26.13m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.95
Gross Margin	100.00%
Net Profit Margin	434.55%
Debt/Equity Ratio	32.3%

How did ARM perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ARM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ARM. This is calculated by dividing ARM's market cap by their current preferred multiple.
What is ARM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€218.65m

ARM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	39.1x
Enterprise Value/EBITDA	-186x
PEG Ratio	-0.8x

Price to Earnings Ratio vs Peers

How does ARM's PE Ratio compare to its peers?

ARM PE Ratio vs Peers

The above table shows the PE ratio for ARM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.2x

Forward PE

Price-To-Earnings vs Peers: ARM is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (14.2x).

Price to Earnings Ratio vs Industry

How does ARM's PE Ratio compare vs other companies in the Spanish REITs Industry?

Price-To-Earnings vs Industry: ARM is good value based on its Price-To-Earnings Ratio (8.4x) compared to the Spanish REITs industry average (21.5x)

Price to Earnings Ratio vs Fair Ratio

What is ARM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.4x
Fair PE Ratio	9.7x

Price-To-Earnings vs Fair Ratio: ARM is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).

Share Price vs Fair Value

What is the Fair Price of ARM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARM (€7.95) is trading above our estimate of fair value (€0.11)

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

Price to Earnings Growth Ratio

PEG Ratio: ARM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

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

-10.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARM's earnings are forecast to decline over the next 3 years (-10.8% per year).

Earnings vs Market: ARM's earnings are forecast to decline over the next 3 years (-10.8% per year).

High Growth Earnings: ARM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ARM's revenue (46.8% per year) is forecast to grow faster than the Spanish market (4.5% per year).

High Growth Revenue: ARM's revenue (46.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ARM's Return on Equity is forecast to be low in 3 years time (5.8%).

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Past Performance

How has Árima Real Estate SOCIMI performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

99.6%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: ARM has a large one-off gain of €28.6M impacting its December 31 2021 financial results.

Growing Profit Margin: ARM's current net profit margins are higher than last year .

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ARM's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare ARM's past year earnings growth to its 5-year average.

Earnings vs Industry: ARM earnings growth over the past year (99.6%) exceeded the REITs industry 40.6%.

Return on Equity

High ROE: ARM's Return on Equity (8%) is considered low.

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Financial Health

How is Árima Real Estate SOCIMI'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: ARM's short term assets (€93.8M) exceed its short term liabilities (€8.8M).

Long Term Liabilities: ARM's short term assets (€93.8M) do not cover its long term liabilities (€105.9M).

Debt to Equity History and Analysis

Debt Level: ARM's net debt to equity ratio (5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ARM's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ARM's debt is not well covered by operating cash flow (0.1%).

Interest Coverage: Insufficient data to determine if ARM's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

0.25%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARM's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ARM has not reported any payouts.

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Management

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

3.8yrs

Average board tenure

CEO

Luis Alfonso Lopez de Herrera-Oria (65 yo)

no data

Tenure

Mr. Luis Alfonso López de Herrera-Oria was Executive Deputy-Chairman and CEO of Axiare Patrimonio SOCIMI, S.A. since June 5, 2014 until 2018. Mr. de Herrera-Oria is the Vice Chairman and Chief Executive Of...

Board Members

Experienced Board: ARM's board of directors are considered experienced (3.8 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	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31