NasdaqGS:ROIC

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Retail Opportunity Investments

Executive Summary

Retail Opportunity Investments Corp. (NASDAQ: ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Retail Opportunity Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ROIC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

ROIC

-1.7%

US REITs

-1.4%

US Market


1 Year Return

-42.9%

ROIC

-15.9%

US REITs

17.8%

US Market

Return vs Industry: ROIC underperformed the US REITs industry which returned -15.9% over the past year.

Return vs Market: ROIC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ROICIndustryMarket
7 Day0.2%-1.7%-1.4%
30 Day8.4%2.1%4.7%
90 Day6.1%1.6%8.2%
1 Year-41.2%-42.9%-12.6%-15.9%20.5%17.8%
3 Year-34.1%-41.2%14.6%1.0%42.2%32.7%
5 Year-29.3%-41.3%38.3%10.5%83.4%62.7%

Price Volatility Vs. Market

How volatile is Retail Opportunity Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Retail Opportunity Investments undervalued compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROIC ($10.74) is trading below our estimate of fair value ($12.48)

Significantly Below Fair Value: ROIC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ROIC is good value based on its PE Ratio (28x) compared to the US REITs industry average (34.5x).

PE vs Market: ROIC is poor value based on its PE Ratio (28x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ROIC is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ROIC is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Retail Opportunity Investments forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROIC's forecast earnings growth (27.9% per year) is above the savings rate (2.2%).

Earnings vs Market: ROIC's earnings (27.9% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: ROIC's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: ROIC's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROIC's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Retail Opportunity Investments performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROIC has a large one-off gain of $10.4M impacting its June 30 2020 financial results.

Growing Profit Margin: ROIC's current net profit margins (15.4%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: ROIC's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: ROIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ROIC had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the REITs industry average (1.6%).


Return on Equity

High ROE: ROIC's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Retail Opportunity Investments's financial position?


Financial Position Analysis

Short Term Liabilities: ROIC's short term assets ($207.5M) exceed its short term liabilities ($25.4M).

Long Term Liabilities: ROIC's short term assets ($207.5M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ROIC's debt to equity ratio (124.1%) is considered high.

Reducing Debt: ROIC's debt to equity ratio has increased from 89.8% to 124.1% over the past 5 years.

Debt Coverage: ROIC's debt is not well covered by operating cash flow (7.5%).

Interest Coverage: ROIC's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Retail Opportunity Investments's current dividend yield, its reliability and sustainability?

5.41%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ROIC'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 ROIC's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: ROIC is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Stuart Tanz (61 yo)

11yrs

Tenure

US$6,001,136

Compensation

Mr. Stuart A. Tanz has been the Chief Executive Officer and President of Retail Opportunity Investments GP LLC - General Partner of Retail Opportunity Investments Partnership, LP since 2009. Mr. Tanz has b ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD6.00M) is above average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Tanz
President11yrsUS$6.00m1.4%
$ 18.5m
Michael Haines
Executive VP7.83yrsUS$2.04m0.20%
$ 2.6m
Richard Schoebel
Chief Operating Officer10.92yrsUS$2.30m0.28%
$ 3.7m
Laurie Sneve
CAO, Senior VP & Controller7.75yrsUS$223.57k0.099%
$ 1.3m
Ashley Rubino
Investor Relations Officer8.75yrsno datano data
Carol Merriman
Investor Relations Officerno datano datano data

8.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ROIC's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Tanz
President11yrsUS$6.00m1.4%
$ 18.5m
Edward Meyer
Independent Director13.25yrsUS$184.50k0.074%
$ 971.4k
Lee Neibart
Independent Director13.25yrsUS$172.00k0.094%
$ 1.2m
Laura Pomerantz
Independent Director13.25yrsUS$188.50k0.045%
$ 599.2k
Eric Zorn
Independent Director8.58yrsUS$173.50k0.080%
$ 1.1m
Michael Indiveri
Independent Director13.25yrsUS$195.00k0.064%
$ 841.7k
Richard Baker
Non-Executive Chairman11yrsUS$903.72k0.24%
$ 3.2m
Charles Persico
Independent Director11yrsUS$175.00k0.020%
$ 263.6k

12.1yrs

Average Tenure

70yo

Average Age

Experienced Board: ROIC's board of directors are seasoned and experienced ( 12.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Retail Opportunity Investments Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Retail Opportunity Investments Corp.
  • Ticker: ROIC
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.319b
  • Market Cap: US$1.267b
  • Shares outstanding: 127.34m
  • Website: https://www.roireit.net

Number of Employees


Location

  • Retail Opportunity Investments Corp.
  • 11250 El Camino Real
  • Suite 200
  • San Diego
  • California
  • 92130
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROICNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2007

Biography

Retail Opportunity Investments Corp. (NASDAQ: ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchore ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 23:53
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.