Residential Secure Income plc (“ReSI”) is a real estate investment trust (REIT) with the objective of delivering secure income returns by investing in Shared Ownership and other affordable residential asset classes.
Moderate growth potential and slightly overvalued.
Share Price & News
How has Residential Secure Income's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RESI has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RESI exceeded the UK REITs industry which returned -16.1% over the past year.
Return vs Market: RESI exceeded the UK Market which returned -15.4% over the past year.
Price Volatility Vs. Market
How volatile is Residential Secure Income's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 months ago | Simply Wall StWhat Residential Secure Income plc's (LON:RESI) ROE Can Tell Us
7 months ago | Simply Wall StShould Residential Secure Income plc (LON:RESI) Be Part Of Your Income Portfolio?
1 year ago | Simply Wall StHere's What You Should Know About Residential Secure Income plc's (LON:RESI) 5.1% Dividend Yield
Is Residential Secure Income undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RESI (£0.92) is trading below our estimate of fair value (£1.03)
Significantly Below Fair Value: RESI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: RESI is poor value based on its PE Ratio (21.4x) compared to the GB REITs industry average (15.5x).
PE vs Market: RESI is poor value based on its PE Ratio (21.4x) compared to the UK market (15.2x).
Price to Earnings Growth Ratio
PEG Ratio: RESI is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: RESI is overvalued based on its PB Ratio (0.9x) compared to the GB REITs industry average (0.7x).
How is Residential Secure Income forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RESI's forecast earnings growth (47.3% per year) is above the savings rate (1.2%).
Earnings vs Market: RESI's earnings (47.3% per year) are forecast to grow faster than the UK market (21.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RESI's revenue is expected to decline over the next 3 years (-7.1% per year).
High Growth Revenue: RESI's revenue is forecast to decline over the next 3 years (-7.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RESI's Return on Equity is forecast to be low in 3 years time (3.8%).
How has Residential Secure Income performed over the past 5 years?
Last years earnings growth
Earnings and Revenue History
Quality Earnings: RESI has a large one-off gain of £2.4M impacting its March 31 2020 financial results.
Growing Profit Margin: RESI's current net profit margins (25.8%) are lower than last year (87.1%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if RESI's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: RESI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RESI had negative earnings growth (-44%) over the past year, making it difficult to compare to the REITs industry average (-9%).
Return on Equity
High ROE: RESI's Return on Equity (4%) is considered low.
How is Residential Secure Income's financial position?
Financial Position Analysis
Short Term Liabilities: RESI's short term assets (£18.9M) exceed its short term liabilities (£6.2M).
Long Term Liabilities: RESI's short term assets (£18.9M) do not cover its long term liabilities (£136.4M).
Debt to Equity History and Analysis
Debt Level: RESI's debt to equity ratio (59.1%) is considered high.
Reducing Debt: Insufficient data to determine if RESI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: RESI's debt is not well covered by operating cash flow (7%).
Interest Coverage: RESI's interest payments on its debt are not well covered by EBIT (2x coverage).
What is Residential Secure Income current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RESI's dividend (5.46%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).
High Dividend: RESI's dividend (5.46%) is low compared to the top 25% of dividend payers in the UK market (5.5%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RESI has been paying a dividend for less than 10 years.
Growing Dividend: RESI's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (113.3%), RESI's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RESI's dividends in 3 years are forecast to be covered by earnings (95.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Jon Slater (53yo)
Mr. Jonathan David Slater, also known as Jon, serves as Chief Executive of ReSI Capital Management Limited, Manager of Residential Secure Income plc. Mr. Slater has been the Joint Chief Executive and Found ...
|CEO of TradeRisks & Director of ReSI Capital Management Limited||no data||no data||0.73% £1.1m|
|Independent Non-Executive Director of ReSI Capital Management Limited||3.08yrs||no data||0.063% £99.3k|
|Independent Non-Executive Chairman of ReSI Capital Management Limited||2.33yrs||no data||0.0029% £4.6k|
|Independent Non Executive Director||0.25yr||no data||no data|
|Independent Non-Executive Director of ReSI Capital Management Limited||3.08yrs||no data||0.0028% £4.4k|
|Independent Non-Executive Chairman of ReSI Housing Limited||1.75yrs||no data||no data|
Experienced Board: RESI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Residential Secure Income plc's company bio, employee growth, exchange listings and data sources
- Name: Residential Secure Income plc
- Ticker: RESI
- Exchange: LSE
- Founded: 2017
- Industry: Residential REITs
- Sector: Real Estate
- Market Cap: UK£156.483m
- Shares outstanding: 171.02m
- Website: https://www.resi-reit.com
- Residential Secure Income plc
- 5 Old Bailey
- Greater London
- EC4M 7BA
- United Kingdom
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RESI||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||Jul 2017|
|RESIL||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Ordinary Shares||GB||GBP||Jul 2017|
Residential Secure Income plc (“ReSI”) is a real estate investment trust (REIT) with the objective of delivering secure income returns by investing in Shared Ownership and other affordable residential asset classes. ReSI is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the main market of the London Stock Exchange.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/11 21:03|
|End of Day Share Price||2020/07/10 00:00|
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.