NYSE:RESI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Unattractive dividend payer with worrying balance sheet.

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

19.2%

RESI

16.4%

US REITs

9.9%

US Market


1 Year Return

24.1%

RESI

-19.8%

US REITs

-11.9%

US Market

Return vs Industry: RESI exceeded the US REITs industry which returned -19.9% over the past year.

Return vs Market: RESI exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

RESIIndustryMarket
7 Day19.2%16.4%9.9%
30 Day-9.3%-19.9%-15.0%
90 Day-5.0%-24.2%-21.5%
1 Year28.9%24.1%-16.8%-19.8%-10.0%-11.9%
3 Year-12.1%-24.6%-0.9%-13.0%12.3%5.1%
5 Year-25.9%-46.9%12.5%-10.2%32.5%18.1%

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?

1.83x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RESI ($11.5) is trading above our estimate of fair value ($6.47)

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 overvalued based on its PB Ratio (1.8x) compared to the US REITs industry average (1.3x).


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?

16.5%

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 (5.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: RESI's revenue (5.2% 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?

-29.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RESI is currently unprofitable.

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 -29.7% 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 (5%).


Return on Equity

High ROE: RESI has a negative Return on Equity (-31.07%), as it is currently unprofitable.


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 3 years based on its current free cash flow.

Forecast Cash Runway: RESI has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 22.7% 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?

5.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RESI's dividend (5.22%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: RESI's dividend (5.22%) is low compared to the top 25% of dividend payers in the US market (5.45%).


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 7 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 (2.4% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

George Ellison (61yo)

4.75s

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
George Ellison
CEO & Director4.75yrsUS$1.75m0.64% $4.0m
Robin Lowe
Chief Financial Officerno dataUS$400.00k0.10% $618.1k
Stephen Gray
Chief Administrative Officer & Senior Counsel4.17yrsUS$400.00k0.041% $253.8k
Michael Lubin
General Counsel & Corporate Secretary4.17yrsUS$1.13m0.085% $529.9k
Alysia Cherry
Head of Investor Relationsno datano datano data
Miles Adams
Senior Vice President of Property Operationsno datano datano data

4.2yrs

Average Tenure

51yo

Average Age

Experienced Management: RESI's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Ellison
CEO & Director4.75yrsUS$1.75m0.64% $4.0m
Leslie Fox
Independent Director0.83yrno datano data
Roland Müller-Ineichen
Directorno datano data0.0029% $17.7k
Michael Eruzione
Independent Director7.25yrsUS$143.05k0.028% $172.9k
Rochelle Dobbs
Independent Chairman of the Board1.83yrsUS$213.90k0.088% $544.9k
Wade Henderson
Independent Director2.92yrsUS$145.31k0.00065% $4.0k
Leland Abrams
Independent Director0.75yrno data0.0074% $46.0k
George McDowell
Independent Director2yrsUS$151.84k0.031% $193.4k
Lazar Nikolic
Independent Director0.75yrno data0.010% $62.1k

1.9yrs

Average Tenure

60yo

Average Age

Experienced Board: RESI's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

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$619.871m
  • Shares outstanding: 53.90m
  • 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 metropolitan areas. Front Yard's tenants enjoy the space and comfort that is unique to single-family housing, at reasonable prices. Our mission is to provide our tenants with houses they are proud to call home. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 02:38
End of Day Share Price2020/03/27 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.