In This Article:
- By GF Value
The stock of Federal Realty Investment Trust (NYSE:FRT, 30-year Financials) shows every sign of being fairly valued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $102.53 per share and the market cap of $8 billion, Federal Realty Investment Trust stock shows every sign of being fairly valued. GF Value for Federal Realty Investment Trust is shown in the chart below.
Because Federal Realty Investment Trust is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth.
Link: These companies may deliever higher future returns at reduced risk.
It is always important to check the financial strength of a company before buying its stock. Investing in companies with poor financial strength have a higher risk of permanent loss. Looking at the cash-to-debt ratio and interest coverage is a great way to understand the financial strength of a company. Federal Realty Investment Trust has a cash-to-debt ratio of 0.18, which is better than 76% of the companies in REITs industry. The overall financial strength of Federal Realty Investment Trust is 3 out of 10, which indicates that the financial strength of Federal Realty Investment Trust is poor. This is the debt and cash of Federal Realty Investment Trust over the past years:
Investing in profitable companies carries less risk, especially in companies that have demonstrated consistent profitability over the long term. Typically, a company with high profit margins offers better performance potential than a company with low profit margins. Federal Realty Investment Trust has been profitable 10 years over the past 10 years. During the past 12 months, the company had revenues of $835.5 million and earnings of $1.62 a share. Its operating margin of 29.76% worse than 70% of the companies in REITs industry. Overall, GuruFocus ranks Federal Realty Investment Trust's profitability as strong. This is the revenue and net income of Federal Realty Investment Trust over the past years: