NYSE:RVI

Stock Analysis Report

Executive Summary

RVI is an independent publicly traded company trading under the ticker symbol “RVI” on the New York Stock Exchange.

Rewards

Trading at 79.7% below its fair value

Became profitable this year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued second-rate dividend payer.

Share Price & News

How has Retail Value's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RVI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

RVI

-3.0%

US REITs

0.6%

US Market


1 Year Return

31.9%

RVI

11.0%

US REITs

20.8%

US Market

Return vs Industry: RVI exceeded the US REITs industry which returned 11% over the past year.

Return vs Market: RVI exceeded the US Market which returned 20.8% over the past year.


Shareholder returns

RVIIndustryMarket
7 Day1.5%-3.0%0.6%
30 Day-2.9%-2.2%2.5%
90 Day-4.6%-1.7%4.9%
1 Year39.3%31.9%15.7%11.0%23.5%20.8%
3 Yearn/a32.0%15.4%46.5%37.0%
5 Yearn/a49.0%18.1%64.6%46.5%

Price Volatility Vs. Market

How volatile is Retail Value's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Retail Value undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RVI ($36) is trading below our estimate of fair value ($177.38)

Significantly Below Fair Value: RVI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RVI is good value based on its PE Ratio (7.6x) compared to the REITs industry average (36.8x).

PE vs Market: RVI is good value based on its PE Ratio (7.6x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RVI is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Retail Value forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-52.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RVI's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if RVI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RVI's revenue is expected to decline over the next 3 years (-52.6% per year).

High Growth Revenue: RVI's revenue is forecast to decline over the next 3 years (-52.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Retail Value performed over the past 5 years?

32.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RVI has a large one-off gain of $75.1M impacting its September 30 2019 financial results.

Growing Profit Margin: RVI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RVI has become profitable over the past 5 years, growing earnings by 32.8% per year.

Accelerating Growth: RVI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RVI has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (8.3%).


Return on Equity

High ROE: RVI's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Retail Value'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: RVI has a high level of physical assets or inventory.

Debt Coverage by Assets: RVI's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.69%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: RVI's dividend (5.69%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RVI's dividend (5.69%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether RVI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RVI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.5%), RVI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Retail Value's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

David Lukes (49yo)

1.8yrs

Tenure

0

Mr. David R. Lukes has been the Chief Executive Officer and President of SITE Centers Corp. since March 2, 2017. Mr. Lukes has been Chief Executive Officer and President of Retail Value Inc. since February ...


Management Age and Tenure

1.8yrs

Average Tenure

49yo

Average Age

Experienced Management: RVI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

50yo

Average Age

Experienced Board: RVI's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: RVI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$3,727,66925 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares103,452
Max PriceUS$36.49
SellUS$2,355,70225 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares65,600
Max PriceUS$36.01
SellUS$1,371,96723 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares37,852
Max PriceUS$36.49
SellUS$27,666,88021 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares731,135
Max PriceUS$37.84
SellUS$1,056,96221 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares29,248
Max PriceUS$36.33
SellUS$1,722,99117 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares47,525
Max PriceUS$36.33
SellUS$1,060,13415 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares29,127
Max PriceUS$36.83
SellUS$3,68410 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares100
Max PriceUS$36.84
SellUS$480,95808 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares13,040
Max PriceUS$36.89
SellUS$1,162,15604 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares31,513
Max PriceUS$36.89
SellUS$955,59702 Oct 19
Katharina Otto-Bernstein
EntityIndividual
Shares25,694
Max PriceUS$37.29
SellUS$700,13930 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares18,700
Max PriceUS$37.44
SellUS$5,530,21527 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares147,836
Max PriceUS$37.71
SellUS$2,474,37425 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares66,799
Max PriceUS$37.09
SellUS$2,173,36923 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares58,053
Max PriceUS$37.52
SellUS$953,15520 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares25,400
Max PriceUS$37.53
SellUS$1,042,49318 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares27,800
Max PriceUS$37.52
SellUS$1,817,50116 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares48,600
Max PriceUS$37.84
SellUS$1,137,70212 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares30,800
Max PriceUS$36.95
SellUS$1,070,86610 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares28,600
Max PriceUS$37.68
SellUS$1,278,25506 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares34,381
Max PriceUS$37.51
SellUS$472,02604 Sep 19
Katharina Otto-Bernstein
EntityIndividual
Shares12,715
Max PriceUS$37.15
SellUS$1,102,68530 Aug 19
Katharina Otto-Bernstein
EntityIndividual
Shares29,534
Max PriceUS$37.38
SellUS$956,78329 Aug 19
Katharina Otto-Bernstein
EntityIndividual
Shares25,670
Max PriceUS$37.27
BuyUS$31,49918 Mar 19
Gary Boston
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$31.50
BuyUS$10,998,00725 Jan 19
Luxor Capital Group, LP
EntityCompany
Shares380,588
Max PriceUS$28.90
BuyUS$459,67509 Jan 19
Luxor Capital Group, LP
EntityCompany
Shares16,080
Max PriceUS$28.89

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Christa Vesy (48yo)

    Executive VP

    • Tenure: 0.08yrs
  • David Lukes (49yo)

    President

    • Tenure: 1.8yrs
  • Conor Fennerty

    Senior Vice President of Capital Markets

    • Tenure: 0yrs
  • Joseph Lopez

    Senior Vice President of Operations

    • Tenure: 0yrs
  • Mike Makinen (54yo)

    Executive VP & COO

    • Tenure: 1.8yrs
  • Rob McGovern

    Senior Vice President of Leasing

    • Tenure: 0yrs
  • Kim Scharf

    Senior Vice President of Technology

    • Tenure: 0yrs
  • John Cattonar

    Senior Vice President of Investments

    • Tenure: 0yrs
  • Eric Cotton

    Deputy General Counsel & Corporate Compliance Officer

    • Tenure: 0yrs
  • Joe Chura

    Senior Vice President of Construction Management

    • Tenure: 0yrs

Board Members

  • Barry Sholem (63yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$326.28k
  • Scott Roulston (61yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$365.03k
  • Matt Ostrower (48yo)

    Director

    • Tenure: 1.8yrs
  • Gary Boston (51yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$331.28k
  • David Lukes (49yo)

    President

    • Tenure: 1.8yrs
  • Henrie Koetter (45yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$303.41k

Company Information

Retail Value Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Retail Value Inc.
  • Ticker: RVI
  • Exchange: NYSE
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: US$685.877m
  • Shares outstanding: 19.05m
  • Website: https://retailvalueinc.com

Location

  • Retail Value Inc.
  • 3300 Enterprise Parkway
  • Beachwood
  • Ohio
  • 44122
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RVINYSE (New York Stock Exchange)YesCommon SharesUSUSDJun 2018

Biography

RVI is an independent publicly traded company trading under the ticker symbol “RVI” on the New York Stock Exchange. RVI holds assets in the continental U.S. and Puerto Rico and is managed by one or more su ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:56
End of Day Share Price2019/12/13 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.