First Real Estate Investment of New Jersey (FREVS) AI Stock Analysis

• Market Cap: $108.33M
• Dividend Yield: 2.48%
• Average Volume (3M): 727.00
• Price to Earnings (P/E): 31.6
• Beta (1Y): 0.18
• Revenue Growth: 1.59%
• EPS Growth: -77.87%
• Country: US
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.12
• Shares Outstanding: 7,471,344
• 10 Day Avg. Volume: 276
• 30 Day Avg. Volume: 727
• PEG Ratio: <0.01
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 4.55
• P/FCF Ratio: 6.90
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 6.48
• Enterprise Value/Gross Profit: 7.91
• Enterprise Value/Ebitda: 14.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $13.00 ▼(-10.34% Downside)

The overall stock score of 53 reflects a mix of strong financial performance and attractive dividend yield, offset by bearish technical indicators and a high P/E ratio. The company's high leverage is a risk factor, but its robust cash flow management provides some reassurance. The lack of recent earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Cash Generation Ability

Strong cash flow growth indicates effective income conversion, supporting reinvestment and debt management, enhancing long-term stability.

Operating Efficiency

High operating margins reflect efficient operations, allowing the company to maintain profitability and competitive positioning in the market.

Return on Equity

High ROE indicates effective use of equity to generate profits, showcasing strong management performance and shareholder value creation.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting the company's ability to manage debt obligations and invest in growth.

Net Profit Margin Concerns

Volatile net profit margins can indicate instability in earnings, affecting long-term profitability and financial predictability.

Earnings Volatility

Negative EPS growth highlights earnings volatility, which can undermine investor confidence and impact future investment and expansion plans.

First Real Estate Investment of New Jersey Business Overview & Revenue Model

Company Description

First Real Estate Investment Trust of New Jersey is a publicly traded (over-the-counter – symbol FREVS.) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey, New York and Maryland, with the largest concentration in northern New Jersey.

How the Company Makes Money

FREVS generates revenue primarily through three key streams: property acquisition and resale, rental income from managed properties, and property management services. The company identifies undervalued properties, invests in renovations, and sells them at a higher market value, thereby realizing capital gains. Additionally, FREVS earns consistent rental income by leasing out both residential and commercial spaces. The property management segment provides services to other property owners, generating fees based on a percentage of the rental income. Strategic partnerships with local contractors, real estate agents, and financial institutions also enhance FREVS's ability to efficiently manage costs and access funding, contributing to its overall profitability.

First Real Estate Investment of New Jersey Financial Statement Overview

Summary

First Real Estate Investment of New Jersey has shown strong profitability and cash flow management despite high leverage levels. The company demonstrates efficient operations and robust cash generation capabilities. However, the high debt levels could pose a risk if not managed carefully in the future.

Income Statement

The company has shown a modest revenue growth from $28.34 million to $28.68 million in the most recent year, with a gross profit margin of approximately 79.1%. However, the net profit margin is concerning at around 55.3% due to the fluctuations in net income in prior years. The EBIT and EBITDA margins are strong at 41.4%, indicating efficient operating performance.

Balance Sheet

The debt-to-equity ratio is high at 3.84, indicating significant leverage, which poses a risk. However, the company maintains a solid equity ratio of 20.6%, reflecting a stable capital structure. Return on Equity stands impressively high at 47.5%, driven by substantial net income.

Cash Flow

The company has demonstrated a robust free cash flow growth rate of 1,260.4%, with a strong operating cash flow to net income ratio of 1.27. This suggests effective cash conversion from income, although the free cash flow to net income ratio of 1.19 highlights potential volatility in cash generation relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.03M	28.68M	28.34M	31.27M	50.29M	52.73M
Gross Profit	23.77M	22.69M	11.65M	25.07M	42.23M	44.04M
EBITDA	13.36M	11.40M	10.35M	10.89M	22.80M	23.00M
Net Income	3.43M	15.85M	760.00K	45.99M	-9.95M	6.63M
Balance Sheet
Total Assets	150.23M	162.26M	159.12M	178.65M	346.11M	355.21M
Cash, Cash Equivalents and Short-Term Investments	35.08M	44.17M	14.55M	49.58M	35.89M	36.86M
Total Debt	0.00	128.07M	137.06M	138.07M	299.88M	305.43M
Total Liabilities	124.68M	136.08M	140.64M	153.91M	314.15M	324.35M
Stockholders Equity	33.74M	33.36M	24.52M	25.91M	36.57M	34.90M
Cash Flow
Free Cash Flow	3.56M	18.92M	1.39M	5.75M	10.28M	1.59M
Operating Cash Flow	4.11M	20.16M	2.68M	7.32M	12.22M	3.64M
Investing Cash Flow	-3.39M	-6.11M	-25.31M	249.69M	-1.79M	-2.98M
Financing Cash Flow	-16.15M	-13.19M	-17.51M	-237.55M	-10.90M	-3.63M

First Real Estate Investment of New Jersey Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FREVS, the sentiment is Positive. The current price of 14.5 is above the 20-day moving average (MA) of 12.45, above the 50-day MA of 12.84, and below the 200-day MA of 14.75, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 70.00 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FREVS.

First Real Estate Investment of New Jersey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MDV	54 Neutral	$152.07M	-54.77	0.37%	7.86%	-0.59%	-160.22%
FREVS	53 Neutral	$108.33M	31.59	9.60%	2.48%	1.59%	-77.87%
MDRR	48 Neutral	$28.87M	-7.84	-18.66%	2.06%	-0.05%	-150.66%
MKZR	46 Neutral	$6.98M	-0.25	-33.51%	92.84%	26.56%	-20.97%
GIPR	44 Neutral	$4.57M	-0.44	-904.27%	―	-4.77%	23.08%
SQFT	40 Underperform	$4.62M	-0.41	-26.78%	―	-2.79%	72.36%

First Real Estate Investment of New Jersey Corporate Events

FREIT Declares Fourth Quarter Dividend Amid Uncertainty

On October 8, 2025, FREIT’s Board of Directors declared a fourth quarter dividend of $0.10 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025. The announcement highlights the Board’s ongoing evaluation of dividends on a quarterly basis, with no assurance of future declarations, reflecting the company’s cautious approach amidst various industry and economic uncertainties.

The most recent analyst rating on (FREVS) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on First Real Estate Investment of New Jersey stock, see the FREVS Stock Forecast page.