RAM Essential Services Property Fund (REP) AI Stock Analysis

• Market Cap: AU$288.17M
• Dividend Yield: 8.7%
• Average Volume (3M): 595.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 4.56%
• EPS Growth: 35.07%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): >-0.01
• Shares Outstanding: 501,165,400
• 10 Day Avg. Volume: 744,938
• 30 Day Avg. Volume: 595,911
• PEG Ratio: 0.08
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.75
• Price Target Upside: 29.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: AU$0.50 ▼(-13.79%Downside)

RAM Essential Services Property Fund is facing financial difficulties, with declining revenue and negative profitability, significantly impacting its stock score. The strong cash flow provides a cushion, but high debt levels and negative earnings weigh heavily. Technical analysis suggests a neutral trend, while valuation metrics are unattractive due to negative earnings. The high dividend yield is a notable positive for income investors.

RAM Essential Services Property Fund Business Overview & Revenue Model

Company Description

RAM Essential Services Property Fund is an REIT. It invests in high quality Australian medical and essential retail real estate assets, leased to essential services tenants. RAM Essential Services Property Fund is based in Australia.

How the Company Makes Money

REP generates revenue primarily through the acquisition, management, and leasing of essential service properties. The company's key revenue streams include rental income from long-term leases with tenants in the healthcare, education, and government sectors. These leases often feature regular rental escalations, providing a predictable and growing income stream. Additionally, REP may engage in strategic property development and enhancement projects to increase the value and income potential of its assets. The company benefits from strong relationships and partnerships with leading operators and service providers in its target sectors, which help ensure high occupancy rates and tenant retention.

RAM Essential Services Property Fund Financial Statement Overview

Summary

RAM Essential Services Property Fund is experiencing financial challenges with declining revenue and sustained losses. Operational efficiency is decent with a gross profit margin of 57.53%, but the reliance on debt financing and negative profitability metrics pose risks. Cash flow is a relative strength, with strong operating cash inflow despite net losses, but the company needs to address its leverage and improve profitability to enhance its financial health.

Income Statement

The company shows declining revenue with a revenue growth rate of -9.84% from 2023 to 2024, and consistent negative net income, impacting profitability. The gross profit margin is 57.53% in 2024, indicating decent operational efficiency, but the negative EBITDA and net income margins indicate financial challenges, particularly as the company has been unable to convert revenue into profit over the past two years.

Balance Sheet

The balance sheet presents a high debt-to-equity ratio of 1.29, highlighting significant leverage and potential financial risk. The equity ratio stands at 29.33%, showing that a substantial portion of the company's assets is financed through equity. Return on equity is negative due to net losses, pointing to inefficiencies in generating returns for shareholders despite a reasonable stockholder's equity base.

Cash Flow

The cash flow statement reveals a strong operating cash flow to net income ratio, indicating good cash generation relative to reported losses. Free cash flow improved significantly to $31.5M, showing robust cash management. However, the high financing cash outflows suggest a focus on debt reduction or dividends, which could impact future liquidity flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	45.50M	50.78M	56.32M	36.51M
Gross Profit	35.70M	29.21M	35.03M	30.68M
EBITDA	-17.77M	-16.38M	-15.38M	70.97M
Net Income	-11.05M	-11.36M	-15.66M	42.53M
Balance Sheet
Total Assets	349.90M	751.55M	816.83M	832.33M
Cash, Cash Equivalents and Short-Term Investments	2.29M	9.41M	11.95M	15.82M
Total Debt	110.34M	284.51M	300.43M	257.01M
Total Liabilities	144.40M	307.06M	312.56M	281.68M
Stockholders Equity	205.50M	220.43M	250.60M	282.44M
Cash Flow
Free Cash Flow	28.52M	31.50M	19.72M	5.07M
Operating Cash Flow	28.52M	31.50M	19.72M	5.07M
Investing Cash Flow	27.47M	18.78M	-35.50M	-157.73M
Financing Cash Flow	-70.35M	-52.82M	11.90M	160.67M

RAM Essential Services Property Fund Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REP, the sentiment is Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.57, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 68.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:REP.

RAM Essential Services Property Fund Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$16.86B	11.64	9.71%	3.83%	11.61%	-9.60%
REP	54 Neutral	AU$288.17M	―	-4.99%	8.70%	4.56%	35.07%
CNRAF		$7.52B	12.89	7.73%	4.97%	―	―
DEXSF		$4.93B	―	-9.22%	3.34%	―	―
GPTGF		$6.22B	―	-1.94%	4.81%	―	―
STGPF		$12.52B	18.07	5.94%	4.85%	―	―
MQV		€1.26B	12.15	6.37%	6.38%	―	―

RAM Essential Services Property Fund Corporate Events

RAM Essential Services Property Fund Announces Quarterly Dividend Distribution

RAM Essential Services Property Fund announced a new dividend distribution of AUD 0.0125 per fully paid unit stapled security for the quarter ending June 30, 2025. The ex-date for the dividend is June 27, 2025, with a record date of June 30, 2025, and payment scheduled for July 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the real estate investment market.

The most recent analyst rating on (AU:REP) stock is a Buy with a A$0.82 price target. To see the full list of analyst forecasts on RAM Essential Services Property Fund stock, see the AU:REP Stock Forecast page.

RAM Essential Services Property Fund Appoints New Director with Significant Shareholding

RAM Essential Services Property Fund has announced the appointment of Kieran John Pryke as a director, effective April 30, 2025. Pryke holds 80,000 fully paid ordinary stapled securities in the company as a trustee for the Pryke Family Trust, highlighting his vested interest in the company’s future. This appointment may influence the company’s strategic direction and has potential implications for stakeholders, given Pryke’s significant shareholding.

RAM Essential Services Property Fund Announces March 2025 Quarter Distribution

RAM Essential Services Property Fund announced its March 2025 quarter distribution, detailing a payment of 1.2500 cents per stapled security, scheduled for 30 April 2025. The distribution components are estimated for managed investment trust non-resident withholding tax purposes, highlighting the fund’s focus on providing stable returns through its diversified property portfolio. This announcement underscores REP’s commitment to delivering consistent income to its investors while maintaining a robust asset base in the medical and essential retail sectors.

RAM Essential Services Property Fund Announces Board Changes

RAM Essential Services Property Fund has appointed Kieran Pryke as an independent director, effective April 30, 2025, bringing significant expertise in real estate financing and strategy to the board. This appointment follows the resignation of Bryce Mitchelson, who contributed significantly to the fund’s development into a healthcare-focused REIT, potentially impacting the company’s strategic direction and stakeholder interests.

RAM Essential Services Property Fund Announces Cessation of Securities

RAM Essential Services Property Fund announced the cessation of 1,874,113 fully paid units stapled securities due to an on-market buy-back completed on March 31, 2025. This move indicates a strategic decision to manage the company’s capital structure, potentially enhancing shareholder value and reflecting confidence in its financial position.