Retail Opportunity Investments (ROIC) Releases 10-K Report, Shares Trade at $12.84

Today, Retail Opportunity Investments Corp. (NASDAQ: ROIC) has released its 10-K report. ROIC is a real estate investment trust specializing in grocery-anchored shopping centers across the West Coast, owning 93 shopping centers encompassing approximately 10.6 million square feet as of September 30, 2023. Despite a -0.5% market movement, the company's shares are currently trading at $12.84.

The annual report highlights the company's management of cybersecurity risks, with a dedicated Director of Information Technology overseeing a program designed to identify, protect, detect, respond to, and recover from cybersecurity threats and incidents. The company has also engaged a third-party IT expert to assist in managing cybersecurity risks and evaluating the program. Additionally, the report outlines the company's governance structure, with the board of directors overseeing strategy and risk management, and the audit committee providing oversight of cybersecurity and technology risk exposures.

For more detailed information, you can access the company's full 10-K submission here.

2018 2019 2020 2021 2022 2023
Revenue (k) $295,798 $295,040 $284,114 $284,100 $312,929 $323,274
Operating Margins 37% 39% 33% 40% 37% 33%
Net Margins 14% 17% 11% 19% 17% 11%
Net Income (k) $42,736 $48,844 $32,014 $53,508 $51,869 $36,698
Net Interest Expense (k) $62,113 $61,687 $59,726 $57,535 $59,225 $68,638
Depreciation & Amort. (k) $100,838 $97,559 $97,731 $92,929 $97,494 $102,330
Diluted Shares (k) 124,559 125,741 126,627 128,454 132,285 133,157
Earnings Per Share $0.34 $0.39 $0.25 $0.44 $0.42 $0.3
EPS Growth n/a 14.71% -35.9% 76.0% -4.55% -28.57%
Avg. Price $15.26 $15.52 $10.89 $16.01 $17.24 $12.835
P/E Ratio 40.16 36.95 40.33 36.39 41.05 42.78
Free Cash Flow (k) $91,678 $96,862 $70,145 $90,090 $90,946 $93,694

Based on the current price of $12.84 per share, the stock of Retail Opportunity Investments appears to be overvalued, likely due to market sentiment outpacing the company's fundamentals.

In terms of growth factors, Retail Opportunity Investments is showing positive signs with increasing capital expenditures and operating margins that compare favorably with the industry average. However, the company's stable revenues, declining earnings per share, and negative PEG ratio raise concerns about its growth prospects.

On the value front, Retail Opportunity Investments exhibits a poor record of retained earnings and is trading above its fair value, as indicated by its high P/E and P/B ratios. Despite decent free cash flows, the company's negative growth rate and high P/E ratio relative to the sector average suggest that the stock may not be a good value at its current price.

It's important to note that this analysis is a general overview and not personalized financial advice.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.