NYSE:RESI

Stock Analysis Report

Executive Summary

Front Yard is an industry leader in providing quality, affordable rental homes to America’s families.

Snowflake

Fundamentals

Second-rate dividend payer and overvalued.

Share Price & News

How has Front Yard Residential'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.


Market Performance


7 Day Return

0.4%

RESI

2.4%

US REITs

0.9%

US Market


1 Year Return

27.5%

RESI

15.7%

US REITs

16.8%

US Market

Return vs Industry: RESI exceeded the US REITs industry which returned 15.7% over the past year.

Return vs Market: RESI exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

RESIIndustryMarket
7 Day0.4%2.4%0.9%
30 Day-9.5%-2.0%4.5%
90 Day-3.0%1.7%6.2%
1 Year35.4%27.5%20.6%15.7%19.4%16.8%
3 Year6.4%-9.7%40.0%22.5%47.5%38.0%
5 Year-25.1%-47.3%57.1%24.4%62.0%44.1%

Price Volatility Vs. Market

How volatile is Front Yard Residential's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Front Yard Residential undervalued compared to its fair value and its price relative to the market?

1.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RESI ($10.84) is trading above our estimate of fair value ($5.01)

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


Price To Earnings Ratio

PE vs Industry: RESI is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: RESI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RESI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RESI is good value based on its PB Ratio (1.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Front Yard Residential forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RESI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RESI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RESI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RESI's revenue (4.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: RESI's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RESI is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Front Yard Residential performed over the past 5 years?

-38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RESI has high quality earnings.

Growing Profit Margin: RESI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RESI is unprofitable, and losses have increased over the past 5 years at a rate of -38.2% per year.

Accelerating Growth: Unable to compare RESI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RESI is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.7%).


Return on Equity

High ROE: RESI has a negative Return on Equity (-31.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Front Yard Residential'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: RESI has a high level of physical assets or inventory.

Debt Coverage by Assets: RESI's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RESI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RESI has sufficient cash runway for 1.271346 years if free cash flow continues to grow at historical rates of 54.9% each year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Front Yard Residential's current dividend yield, its reliability and sustainability?

5.54%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: RESI's dividend (5.54%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RESI's dividend (5.54%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

Stable Dividend: RESI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RESI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: RESI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RESI's dividends in 3 years are forecast to be thoroughly covered by earnings (2.5% payout ratio).


Next Steps

Management

What is the CEO of Front Yard Residential's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

George Ellison (61yo)

4.4yrs

Tenure

US$1,750,004

Compensation

Mr. George G. Ellison is Chief Executive Officer of Front Yard Residential Corporation (formerly Altisource Residential Corporation) since March 2015 and is its President from March 31, 2015 to June 30, 20 ...


Management Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: RESI's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

60yo

Average Age

Experienced Board: RESI's board of directors are not considered experienced ( 1.6 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.


Recent Insider Transactions

SellUS$55,09228 Aug 19
Deer Park Road Corporation
EntityCompany
Shares5,000
Max PriceUS$11.02
SellUS$813,71001 Aug 19
Deer Park Road Corporation
EntityCompany
Shares67,083
Max PriceUS$12.13
SellUS$2,569,40029 Jul 19
Deer Park Road Corporation
EntityCompany
Shares213,137
Max PriceUS$12.16
SellUS$119,57603 Jul 19
Deer Park Road Corporation
EntityCompany
Shares9,780
Max PriceUS$12.23
SellUS$6,161,18720 Jun 19
Altisource Portfolio Solutions S.A.
EntityCompany
Shares538,917
Max PriceUS$12.51
BuyUS$113,80003 Jun 19
Rochelle Dobbs
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$11.38
BuyUS$115,90029 May 19
Rochelle Dobbs
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$11.59
BuyUS$271,70020 May 19
Rochelle Dobbs
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares25,000
Max PriceUS$10.96
BuyUS$54,35014 May 19
George McDowell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$10.87
BuyUS$1,042,50003 Jan 19
Deer Park Road Corporation
EntityCompany
Shares125,000
Max PriceUS$8.34
BuyUS$3,368,00027 Dec 18
Deer Park Road Corporation
EntityCompany
Shares400,000
Max PriceUS$8.54
BuyUS$2,275,00007 Dec 18
Deer Park Road Corporation
EntityCompany
Shares250,000
Max PriceUS$9.30
BuyUS$2,578,00003 Dec 18
Deer Park Road Corporation
EntityCompany
Shares300,000
Max PriceUS$8.71

Ownership Breakdown

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


Management Team

  • George Ellison (61yo)

    CEO & Director

    • Tenure: 4.4yrs
    • Compensation: US$1.75m
  • Stephen Gray (48yo)

    Chief Administrative Officer & Senior Counsel

    • Tenure: 3.8yrs
    • Compensation: US$400.00k
  • Robin Lowe (54yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: US$400.00k
  • Michael Lubin (43yo)

    General Counsel & Corporate Secretary

    • Tenure: 3.8yrs
    • Compensation: US$1.13m
  • Miles Adams

    Senior Vice President of Property Operations

    • Tenure: 0yrs
  • Alysia Cherry

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Leslie Fox (60yo)

    Independent Director

    • Tenure: 0.5yrs
  • George Ellison (61yo)

    CEO & Director

    • Tenure: 4.4yrs
    • Compensation: US$1.75m
  • Roland Müller-Ineichen (58yo)

    Director

    • Tenure: 0yrs
  • Mike Eruzione (64yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$143.05k
  • Rochelle Dobbs (57yo)

    Independent Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$213.90k
  • Wade Henderson (70yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$145.31k
  • Leland Abrams (36yo)

    Independent Director

    • Tenure: 0.4yrs
  • Whit McDowell (67yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$151.84k
  • Lazar Nikolic (39yo)

    Independent Director

    • Tenure: 0.4yrs

Company Information

Front Yard Residential Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Front Yard Residential Corporation
  • Ticker: RESI
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: US$584.065m
  • Shares outstanding: 53.88m
  • Website: https://www.FrontYardResidential.com

Number of Employees


Location

  • Front Yard Residential Corporation
  • 5100 Tamarind Reef
  • Christiansted
  • Virgin Islands
  • 820
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RESINYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2012
41ADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2012

Biography

Front Yard is an industry leader in providing quality, affordable rental homes to America’s families. Our homes offer exceptional value in a variety of suburban communities that have easy accessibility to  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:25
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.