Wheeler Real Estate Investment Trust, Inc. (NASDAQ: WHLR)

Sector: Real Estate Industry: REIT - Retail CIK: 0001527541
Market Cap 33.20
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) 7.56
Div Yield % 0.00
Rev 1y % (Qtr) -3.92
Total Debt (Qtr) 496.99 Mn
Debt/Equity (Qtr) -126.30
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About

Investment thesis

Bull case

  • Strong operating cash flow of 24.16M provides 2.11x coverage of SG&A expenses 11.45M, showing efficient operational cost management.
  • Retained earnings of (350.01M) represent substantial 88.95x of equity (3.94M), indicating strong internal capital generation.
  • Strong tangible asset base of 624.39M provides 799.48x coverage of intangibles 781000, indicating robust asset quality.
  • Strong free cash flow of 58.98M provides 5.15x coverage of SG&A expenses 11.45M, indicating efficient cost management.
  • Free cash flow of 58.98M provides solid 2.86x coverage of operating expenses 20.64M, showing operational efficiency.

Bear case

  • Operating cash flow of 24.16M barely covers its investment activities of 34.81M, with a coverage ratio of 0.69, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 58.98M provides weak coverage of capital expenditures of (34.81M), with a -1.69 ratio suggesting additional external financing needs for growth initiatives.
  • High depreciation of 23.73M relative to operating cash flow of 24.16M, which is 0.98x suggests significant maintenance capital requirements affecting free cash flow.
  • Retained earnings of (350.01M) provide limited buffer against comprehensive income items of 2.23M, which is -157.31x, indicating elevated exposure to market risks.
  • Operating cash flow of 24.16M barely covers operating expenses of 20.64M with a 1.17 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the REIT - Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SPG Simon Property Group Inc. 62.65 Bn 27.30 11.19 26.32 Bn
2 O Realty Income Corp 15.99 Bn 61.56 15.32 28.37 Bn
3 KIM Kimco Realty Corp 14.22 Bn 20.86 8.63 8.35 Bn
4 REG Regency Centers Corp 14.06 Bn 27.37 9.05 4.98 Bn
5 PECO Phillips Edison & Company, Inc. 11.82 Bn 3,838.00 46.61 2.38 Bn
6 FRT Federal Realty Investment Trust 8.00 Bn 23.50 8.55 5.03 Bn
7 EPRT Essential Properties Realty Trust, Inc. 6.41 Bn 25.34 11.42 2.51 Bn
8 ADC Agree Realty Corp 5.53 Bn 44.48 15.36 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 1.13
EV to Cash from Ops. EV/CFO 17.75 22.52
EV to Debt EV to Debt 0.86 2.49
EV to EBIT EV/EBIT 5.15 42.49
EV to EBITDA EV/EBITDA 7.14 19.89
EV to Free Cash Flow [EV/FCF] EV/FCF 7.27 27.13
EV to Market Cap EV to Market Cap 12,920,031.12 461,431.31
EV to Revenue EV/Rev 4.21 13.31
Price to Book Value [P/B] P/B 0.00 3.17
Price to Earnings [P/E] P/E 0.00 177.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.38 0.69
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 169.12
Dividend per Basic Share Div per Share (Qtr) 0.00 2.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -68.66
Interest Coverage Int. cover (Qtr) 2.51 2.52
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 649.05 -12.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.42 68.41
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 13.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5,152.78 224.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -6.78 0.11
EBIT Growth (1y) % EBIT 1y % (Qtr) 5,155.67 222.92
EBT Growth (1y) % EBT 1y % (Qtr) 263.69 290.94
EPS Growth (1y) % EPS 1y % (Qtr) -98.69 273.30
FCF Growth (1y) % FCF 1y % (Qtr) 192.71 -81.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.41 6.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.16 0.12
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.14
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) -126.30 -2.59
Interest Cover Ratio Int Coverage (Qtr) 2.51 2.52
Times Interest Earned Times Interest Earned (Qtr) 2.51 2.52
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 105.10 78.58
EBIT Margin % EBIT Margin % (Qtr) 81.83 45.34
EBT Margin % EBT Margin % (Qtr) 49.23 25.50
Gross Margin % Gross Margin % (Qtr) 67.20 73.99
Net Profit Margin % Net Margin % (Qtr) 28.50 23.85