BME:ARM

Stock Analysis Report

Árima Real Estate SOCIMI

Executive Summary

Árima Real Estate SOCIMI, S.A. operates as a real estate investment company in Spain.

Snowflake

Fundamentals

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

How has Árima Real Estate SOCIMI's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

ARM

0.3%

ES REITs

0.5%

ES Market


1 Year Return

n/a

ARM

15.0%

ES REITs

4.6%

ES Market

Return vs Industry: Insufficient data to determine how ARM performed against the Spanish REITs industry.

Return vs Market: Insufficient data to determine how ARM performed against the Spanish Market.


Shareholder returns

ARMIndustryMarket
7 Day1.0%0.3%0.5%
30 Day1.0%2.4%0.9%
90 Day1.5%7.3%0.4%
1 Yearn/a18.8%15.0%8.1%4.6%
3 Yearn/a50.5%37.3%13.6%3.1%
5 Yearn/a104.4%60.8%9.0%-11.5%

Price Volatility Vs. Market

How volatile is Árima Real Estate SOCIMI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

18.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARM (€10.1) is trading above our estimate of fair value (€3.81)

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


Price To Earnings Ratio

PE vs Industry: ARM is poor value based on its PE Ratio (18.1x) compared to the REITs industry average (17.7x).

PE vs Market: ARM is poor value based on its PE Ratio (18.1x) compared to the Spanish market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: ARM is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: ARM is good value based on its PB Ratio (1x) compared to the ES REITs industry average (1.2x).


Next Steps

Future Growth

How is Árima Real Estate SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARM's forecast earnings growth (4.4% per year) is above the savings rate (1.5%).

Earnings vs Market: ARM's earnings (4.4% per year) are forecast to grow slower than the Spanish market (7.6% per year).

High Growth Earnings: ARM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ARM's revenue (31.9% per year) is forecast to grow faster than the Spanish market (3.7% per year).

High Growth Revenue: ARM's revenue (31.9% 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 (12.5%).


Next Steps

Past Performance

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

31.6%

Historical Real Estate annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if ARM's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare ARM's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if ARM's earnings growth over the past year exceeded the REITs industry average.


Return on Equity

High ROE: ARM's Return on Equity (2%) is considered low.


Return on Assets

ROA vs Industry: ARM's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: ARM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Árima Real Estate SOCIMI's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ARM has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ARM's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: ARM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ARM has a sufficient allowance for bad loans.

Low Risk Liabilities: ARM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ARM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ARM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ARM has an appropriate level of bad loans.


Next Steps

Dividend

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

1.46%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.7%industryaverage3.1%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARM's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

What is the CEO of Árima Real Estate SOCIMI's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average board tenure


CEO

Luis Alfonso López de Herrera-Oria (63yo)

0yrs

Tenure

0

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 Vice Chairman and Chief Executive Office ...


Board Age and Tenure

1.1yrs

Average Tenure

62yo

Average Age

Experienced Board: ARM's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Luis Alfonso López de Herrera-Oria (63yo)

    Vice Chairman & CEO

    • Tenure: 0yrs
  • Chony Martín Vicente-Mazariegos (45yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Guillermo Fernández-Cuesta Laborde (44yo)

    Real Estate Director & Deputy CEO

    • Tenure: 0yrs
  • Carmen Boyero-Klossner (42yo)

    Chief Investor Relations Officer

    • Tenure: 0yrs
  • Iván Azinovic Gamo

    Secretary

    • Tenure: 1.1yrs
  • Sebastián Suárez Vilardi

    Supervisor of Compliance

    • Tenure: 0.8yrs

Board Members

  • Cato Stonex (56yo)

    Non-Executive Independent Director

    • Tenure: 1.1yrs
  • Luis Alfonso López de Herrera-Oria (63yo)

    Vice Chairman & CEO

    • Tenure: 0yrs
  • Fernando Bautista Sagüés (62yo)

    Non-Executive Independent Director

    • Tenure: 1.1yrs
  • David Jiménez-Blanco Carrillo de Albornoz (56yo)

    Non-Executive Independent Director

    • Tenure: 1.1yrs
  • Luis María Arredondo Malo (76yo)

    Non-Executive Chairman

    • Tenure: 0yrs

Company Information

Árima Real Estate SOCIMI, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Árima Real Estate SOCIMI, S.A.
  • Ticker: ARM
  • Exchange: BME
  • Founded: 2018
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: €140.936m
  • Shares outstanding: 13.95m
  • Website: https://www.arimainmo.com

Number of Employees


Location

  • Árima Real Estate SOCIMI, S.A.
  • Fernando El Santo 15
  • 4 Pl. Atico
  • Madrid
  • Madrid
  • 28010
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARMBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEUROct 2018
ARMEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEUROct 2018

Biography

Árima Real Estate SOCIMI, S.A. operates as a real estate investment company in Spain. It invests primarily in commercial properties. The company was incorporated in 2018 and is based in Madrid, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 22:18
End of Day Share Price2019/10/18 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.