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Retail Opportunity Investments

Market Cap

US$2.2b

Last Updated

2021/04/18 22:53 UTC

Data Sources

Company Financials +

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

Average dividend payer and slightly overvalued.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ROIC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

6.3%

ROIC

2.4%

US REITs

1.3%

US Market


1 Year Return

113.7%

ROIC

26.1%

US REITs

53.8%

US Market

Return vs Industry: ROIC exceeded the US REITs industry which returned 26.1% over the past year.

Return vs Market: ROIC exceeded the US Market which returned 53.8% over the past year.


Shareholder returns

ROICIndustryMarket
7 Day6.3%2.4%1.3%
30 Day6.1%6.4%5.1%
90 Day21.1%13.5%8.9%
1 Year115.2%113.7%31.4%26.1%56.6%53.8%
3 Year15.3%4.3%46.4%28.7%64.4%53.6%
5 Year8.1%-9.2%53.3%22.4%120.4%95.7%

Long-Term 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?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROIC ($17.33) is trading below our estimate of fair value ($21.67)

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 (63.4x) compared to the US REITs industry average (47.1x).

PE vs Market: ROIC is poor value based on its PE Ratio (63.4x) compared to the US market (22.4x).


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's PB Ratio (1.7x) is in line with the US REITs industry average.


Future Growth

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

-3.5%

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 (-3.5% per year).

Earnings vs Market: ROIC's earnings are forecast to decline over the next 3 years (-3.5% per year).

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

Revenue vs Market: ROIC's revenue (1.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ROIC's revenue (1.5% 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 (2.7%).


Past Performance

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

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROIC has high quality earnings.

Growing Profit Margin: ROIC's current net profit margins (11.2%) are lower than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: ROIC's earnings have grown by 8.4% 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 (-34.1%) over the past year, making it difficult to compare to the REITs industry average (-4.4%).


Return on Equity

High ROE: ROIC's Return on Equity (2.7%) is considered low.


Financial Health

How is Retail Opportunity Investments's financial position?


Financial Position Analysis

Short Term Liabilities: ROIC's short term assets ($70.2M) exceed its short term liabilities ($39.1M).

Long Term Liabilities: ROIC's short term assets ($70.2M) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ROIC's debt to equity ratio (107.1%) is considered high.

Reducing Debt: ROIC's debt to equity ratio has increased from 84.4% to 107.1% over the past 5 years.

Debt Coverage: ROIC's debt is not well covered by operating cash flow (7.7%).

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


Balance Sheet


Dividend

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

2.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROIC's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: ROIC's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: ROIC's dividend payments have been volatile 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 low payout ratio (18%), ROIC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROIC's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Stuart Tanz (61 yo)

11.5yrs

Tenure

US$5,821,977

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 ($USD5.82M) is above average for companies of similar size in the US market ($USD3.75M).

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


Leadership Team

Experienced Management: ROIC's management team is seasoned and experienced (9.3 years average tenure).


Board Members

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: ROIC insiders have only sold shares 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: NaN
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.209b
  • Market Cap: US$2.054b
  • Shares outstanding: 127.48m
  • 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


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 Analysis2021/04/18 22:53
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.