NasdaqGS:ROIC

Stock Analysis Report

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.


Snowflake Analysis

6 star dividend payer and fair value.


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

-0.4%

ROIC

-0.07%

US REITs

-1.1%

US Market


1 Year Return

-0.7%

ROIC

16.0%

US REITs

17.9%

US Market

Return vs Industry: ROIC underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: ROIC underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

ROICIndustryMarket
7 Day-0.4%-0.07%-1.1%
30 Day-3.0%3.6%1.4%
90 Day-4.8%7.8%6.9%
1 Year3.9%-0.7%20.7%16.0%20.3%17.9%
3 Year-12.5%-22.8%37.9%20.6%47.8%38.3%
5 Year24.1%1.5%60.3%27.3%71.9%53.0%

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?

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROIC ($17.01) is trading below our estimate of fair value ($23.11)

Significantly Below Fair Value: ROIC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ROIC is poor value based on its PE Ratio (40.1x) compared to the REITs industry average (37.2x).

PE vs Market: ROIC is poor value based on its PE Ratio (40.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ROIC is good value based on its PB Ratio (1.7x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Retail Opportunity Investments forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROIC's earnings are forecast to decline over the next 3 years (-5.6% per year).

Earnings vs Market: ROIC's earnings are forecast to decline over the next 3 years (-5.6% per year).

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

Revenue vs Market: ROIC's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ROIC's revenue (4.6% per year) is forecast to grow slower than 20% 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 (3.9%).


Next Steps

Past Performance

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

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROIC has a large one-off gain of $12.2M impacting its December 31 2019 financial results.

Growing Profit Margin: ROIC's current net profit margins (16.4%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: ROIC's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: ROIC's earnings growth over the past year (14.3%) is below its 5-year average (17.5% per year).

Earnings vs Industry: ROIC earnings growth over the past year (14.3%) exceeded the REITs industry 7.6%.


Return on Equity

High ROE: ROIC's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Retail Opportunity Investments'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: ROIC has a high level of physical assets or inventory.

Debt Coverage by Assets: ROIC's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.70%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Retail Opportunity Investments before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: ROIC's dividend (4.7%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ROIC's dividend (4.7%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.1%), ROIC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROIC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Stuart Tanz (60yo)

10.3yrs

Tenure

US$4,944,414

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 ($USD4.94M) is about average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Stuart's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Tanz
President10.3yrsUS$4.94m1.33% $28.8m
Michael Haines
Executive VP7.2yrsUS$1.72m0.17% $3.7m
Richard Schoebel
Chief Operating Officer10.3yrsUS$1.94m0.25% $5.4m
Laurie Sneve
CAO, Senior VP & Controller7.1yrsUS$223.57k0.083% $1.8m
Ashley Rubino
Investor Relations Officer8.1yrsno datano data
Carol Merriman
Investor Relations Officer0yrsno datano data

8.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ROIC's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stuart Tanz
President10.3yrsUS$4.94m1.33% $28.8m
Edward Meyer
Independent Director12.6yrsUS$188.99k0.075% $1.6m
Lee Neibart
Independent Director12.6yrsUS$168.99k0.095% $2.1m
Laura Pomerantz
Independent Director12.6yrsUS$188.49k0.046% $997.2k
Eric Zorn
Independent Director7.9yrsUS$174.99k0.056% $1.2m
Michael Indiveri
Independent Director12.6yrsUS$196.49k0.065% $1.4m
Richard Baker
Non-Executive Chairman10.3yrsUS$785.89k0.24% $5.1m
Charles Persico
Independent Director10.3yrsUS$176.49k0.027% $577.8k

11.5yrs

Average Tenure

69yo

Average Age

Experienced Board: ROIC's board of directors are seasoned and experienced ( 11.5 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$2.168b
  • Market Cap: US$1.980b
  • Shares outstanding: 127.51m
  • 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-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast. As of December 31, 2019, ROIC owned 88 shopping centers encompassing approximately 10.1 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody's Investor Services and Standard & Poor's. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:15
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.