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.
