New England Realty Associates Limited Partnership (NYSE: NEN)

Sector: Real Estate Industry: Real Estate Services CIK: 0000746514
Market Cap 256.60 Mn
P/B -11.84
P/E 26.33
P/S 7.54
ROIC (Qtr) 5.59
Div Yield % 2.08
Rev 1y % (Qtr) 17.21
Total Debt (Qtr) 511.25 Mn
Debt/Equity (Qtr) -7.20

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 32.32M provides 10.77x coverage of SG&A expenses 3M, showing efficient operational cost management.
  • Free cash flow of (105.47M) provides excellent 6.27x coverage of dividends (16.81M), indicating sustainable shareholder returns.
  • Cash reserves of 13.37M provide ample 7.03x coverage of acquisition spending 1.90M, enabling strategic growth opportunities.
  • Strong tangible asset base of 492.85M provides 259.05x coverage of acquisition spending 1.90M, enabling strategic growth.
  • Operating cash flow of 32.32M exceeds receivables of 1.39M by 23.24x, demonstrating excellent collection efficiency.

Bear case

  • Operating cash flow of 32.32M barely covers its investment activities of (51.95M), with a coverage ratio of -0.62, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 32.32M provides thin coverage of dividend payments of (16.81M) with a -1.92 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (105.47M) provides weak coverage of capital expenditures of 137.80M, with a -0.77 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 28.84M show weak coverage of depreciation charges of 20.01M, with a 1.44 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 20.01M relative to operating cash flow of 32.32M, which is 0.62x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 1.34
EV to Cash from Ops. EV/CFO 41.08 2.97
EV to Debt EV to Debt 0.77 6.15
EV to EBIT EV/EBIT 22.36 5.23
EV to EBITDA EV/EBITDA 22.12 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF 70.08 -9.39
EV to Market Cap EV to Market Cap 1.53 4.27
EV to Revenue EV/Rev 11.56 3.62
Price to Book Value [P/B] P/B -11.84 2.10
Price to Earnings [P/E] P/E 26.33 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.69 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 144.40 -6.05
Dividend per Basic Share Div per Share (Qtr) 4.80 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -15.91 0.42
Interest Coverage Int. cover (Qtr) 1.68 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -658.27 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -11.25 23.84
Dividend Growth (1y) % Div 1y % (Qtr) 50.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.67 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.59 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.67 12.80
EBT Growth (1y) % EBT 1y % (Qtr) -15.32 21.27
EPS Growth (1y) % EPS 1y % (Qtr) -14.92 22.42
FCF Growth (1y) % FCF 1y % (Qtr) -927.60 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.21 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 1.45
Cash Payout Ratio Cash Payout (Qtr) 0.10 -0.01
Cash Ratio Cash Ratio 0.00 1.45
Current Ratio Current Ratio 0.00 2.16
Debt to Equity Ratio Debt/Equity (Qtr) -7.20 -0.06
Interest Cover Ratio Int Coverage (Qtr) 1.68 -2.22
Times Interest Earned Times Interest Earned (Qtr) 1.68 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 56.80 -121.98
EBIT Margin % EBIT Margin % (Qtr) 33.53 -136.76
EBT Margin % EBT Margin % (Qtr) 13.54 -144.54
Gross Margin % Gross Margin % (Qtr) 90.00 32.87
Net Profit Margin % Net Margin % (Qtr) 13.50 -139.89