NYSE:RESI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

RESI

-1.5%

US REITs

0.5%

US Market


1 Year Return

-18.6%

RESI

-10.2%

US REITs

18.7%

US Market

Return vs Industry: RESI underperformed the US REITs industry which returned -10.2% over the past year.

Return vs Market: RESI underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

RESIIndustryMarket
7 Day0.2%-1.5%0.5%
30 Day6.4%3.3%4.9%
90 Day51.6%18.0%19.8%
1 Year-16.5%-18.6%-6.5%-10.2%21.2%18.7%
3 Year-13.5%-25.0%15.9%2.2%46.2%36.8%
5 Year-19.7%-39.1%43.7%14.8%85.3%65.1%

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?

1.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RESI ($9.17) is trading above our estimate of fair value ($0.34)

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 US 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's PB Ratio (1.4x) is in line with the US REITs industry average.


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?

0.3%

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 (3.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: RESI's revenue (3.9% 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?

-7.6%

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 7.6% 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 (1.6%).


Return on Equity

High ROE: RESI has a negative Return on Equity (-20.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Front Yard Residential's financial position?


Financial Position Analysis

Short Term Liabilities: RESI's short term assets ($171.1M) exceed its short term liabilities ($69.5M).

Long Term Liabilities: RESI's short term assets ($171.1M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: RESI's debt to equity ratio (437.8%) is considered high.

Reducing Debt: RESI's debt to equity ratio has increased from 105.2% to 437.8% over the past 5 years.


Balance Sheet


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: Whilst unprofitable RESI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RESI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 37.2% per year.


Next Steps

Dividend

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

1.62%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RESI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RESI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RESI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RESI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RESI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RESI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

George Ellison (62 yo)

5.17yrs

Tenure

US$1,749,998

Compensation

Mr. George G. Ellison is Chief Executive Officer of Front Yard Residential Corporation (formerly Altisource Residential Corporation) since March 2015 and was its President from March 31, 2015 to June 30, 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
George Ellison
CEO & Director5.17yrsUS$1.75m0.75%
$ 4.0m
Robin Lowe
Chief Financial Officer5.83yrsUS$460.00k0.15%
$ 830.9k
Stephen Gray
Chief Administrative Officer & Senior Counsel4.58yrsUS$610.00k0.078%
$ 419.3k
Michael Lubin
General Counsel & Corporate Secretary4.58yrsUS$1.22m0.14%
$ 760.5k
Alysia Cherry
Head of Investor Relationsno datano datano data
Miles Adams
Senior Vice President of Property Operationsno datano datano data

4.9yrs

Average Tenure

52yo

Average Age

Experienced Management: RESI's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Ellison
CEO & Director5.17yrsUS$1.75m0.75%
$ 4.0m
Leslie Fox
Independent Director1.25yrsUS$139.87kno data
Michael Eruzione
Independent Director7.67yrsUS$151.69k0.033%
$ 176.3k
Rochelle Dobbs
Independent Chair of the Board2.25yrsUS$281.69k0.14%
$ 739.1k
Wade Henderson
Independent Director3.33yrsUS$154.10k0.0077%
$ 41.7k
Leland Abrams
Independent Director1.17yrsUS$117.63k0.0068%
$ 36.7k
George McDowell
Independent Director2.42yrsUS$211.69k0.032%
$ 174.2k
Lazar Nikolic
Independent Director1.17yrsUS$133.45k0.11%
$ 599.7k

2.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: RESI's board of directors are not considered experienced ( 2.3 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: RESI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.


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$538.711m
  • Shares outstanding: 58.75m
  • 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 Analysis2020/08/14 11:48
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.