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 slightly 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


Market Performance


7 Day Return

2.1%

NYSE:RESI

1.6%

US REITs

2.9%

US Market


1 Year Return

-11.2%

NYSE:RESI

9.9%

US REITs

0.2%

US Market

RESI underperformed the REITs industry which returned 9.1% over the past year.

RESI underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

RESIIndustryMarket
7 Day2.1%1.6%2.9%
30 Day-4.8%3.8%-2.3%
90 Day-3.3%3.3%3.1%
1 Year-5.7%-11.2%14.9%9.9%2.4%0.2%
3 Year22.9%4.3%25.0%8.7%41.7%32.4%
5 Year-33.7%-53.7%59.2%25.3%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Front Yard Residential's share price is below the future cash flow value, and at a moderate discount (> 20%).

Front Yard Residential's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Front Yard Residential is loss making, we can't compare its value to the US REITs industry average.

Front Yard Residential is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Front Yard Residential, we can't assess if its growth is good value.


Price Based on Value of Assets

Front Yard Residential is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

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

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Front Yard Residential's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

Front Yard Residential is not considered high growth as it is expected to be loss making for the next 1-3 years.

Front Yard Residential's revenue growth is expected to exceed the United States of America market average.

Unable to compare Front Yard Residential's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Front Yard Residential's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Front Yard Residential will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

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

-44.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Front Yard Residential does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Front Yard Residential's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Front Yard Residential's 1-year growth to the US REITs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Front Yard Residential has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Front Yard Residential has efficiently used its assets last year compared to the US REITs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Front Yard Residential improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Front Yard Residential's financial position?


Financial Position Analysis

Front Yard Residential is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Front Yard Residential's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Front Yard Residential's level of debt (400.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (97.1% vs 400.8% today).


Balance Sheet

High level of physical assets or inventory.

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.

Front Yard Residential has less than a year of cash runway based on current free cash flow.

Front Yard Residential has less than a year of cash runway if free cash flow continues to reduce at historical rates of -60% each year.


Next Steps

Dividend

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

5.41%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Front Yard Residential's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Front Yard Residential's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Front Yard Residential has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Front Yard Residential only paid a dividend in the past 6 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (56.8x coverage).


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?

3.6yrs

Average management tenure


CEO

George Ellison (61yo)

4.2yrs

Tenure

US$1,750,004

Compensation

Mr. George G. Ellison has been the Chief Executive Officer of Front Yard Residential Corporation (formerly Altisource Residential Corporation) since March 2015 and served as its President from March 31, 20 ...


CEO Compensation Analysis

George's remuneration is lower than average for companies of similar size in United States of America.

George's compensation has increased whilst company is loss making.


Management Age and Tenure

3.6yrs

Average Tenure

51yo

Average Age

The tenure for the Front Yard Residential management team is about average.


Board Age and Tenure

1.3yrs

Average Tenure

60.5yo

Average Age

The average tenure for the Front Yard Residential board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Front Yard Residential individual insiders in the past 3 months.


Recent Insider Transactions

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
Chairman of the Board
Shares10,000
Max PriceUS$11.38
BuyUS$115,90029 May 19
Rochelle Dobbs
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$11.59
BuyUS$271,70020 May 19
Rochelle Dobbs
EntityIndividual
Role
Chairman of the Board
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
BuyUS$95,42416 Nov 18
Michael Lubin
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares11,333
Max PriceUS$8.42
BuyUS$55,44013 Nov 18
Rene Dittrich
EntityIndividual
Shares6,600
Max PriceUS$8.40
BuyUS$27,22513 Nov 18
George McDowell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,300
Max PriceUS$8.25
BuyUS$231,84913 Nov 18
George Ellison
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares27,900
Max PriceUS$8.31
BuyUS$98,28013 Nov 18
Robin Lowe
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares12,000
Max PriceUS$8.19

Ownership Breakdown


Management Team

  • George Ellison (61yo)

    CEO & Director

    • Tenure: 4.2yrs
    • Compensation: US$1.75m
  • Stephen Gray (48yo)

    Chief Administrative Officer & Senior Counsel

    • Tenure: 3.6yrs
    • Compensation: US$400.00k
  • Robin Lowe (54yo)

    Chief Financial Officer

    • Tenure: 0.0yrs
    • Compensation: US$400.00k
  • Michael Lubin (43yo)

    General Counsel & Corporate Secretary

    • Tenure: 3.6yrs
    • Compensation: US$1.13m
  • Miles Adams

    Senior Vice President of Property Operations

    • Tenure: 0.0yrs
  • Alysia Cherry

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Leslie Fox (60yo)

    Director

    • Tenure: 0.3yrs
  • George Ellison (61yo)

    CEO & Director

    • Tenure: 4.2yrs
    • Compensation: US$1.75m
  • Mike Eruzione (64yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$143.05k
  • Rochelle Dobbs (57yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$213.90k
  • Wade Henderson (70yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$145.31k
  • Leland Abrams (36yo)

    Independent Director

    • Tenure: 0.2yrs
  • Whit McDowell (67yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$151.84k
  • Lazar Nikolic (39yo)

    Independent Director

    • Tenure: 0.2yrs
  • Roland Müller-Ineichen

    Director

    • Tenure: 0.0yrs

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$605.548m
  • Shares outstanding: 53.83m
  • 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 Analysis2019/08/22 00:32
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
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.