Residential Secure Income (RESI) AI Stock Analysis

• Market Cap: £107.25M
• Dividend Yield: 6.96%
• Average Volume (3M): 247.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): N/A
• Shares Outstanding: 184,909,600
• 10 Day Avg. Volume: 317,350
• 30 Day Avg. Volume: 247,341
• PEG Ratio: 0.18
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 5.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: 58.00p ▲(0.00% Upside)

The overall stock score reflects significant financial challenges, particularly in revenue and profitability, which are the most impactful factors. Technical indicators and valuation offer some positive aspects, such as a high dividend yield, but are overshadowed by the company's ongoing financial difficulties.

Positive Factors

Stable Revenue Stream

RESI's focus on rental income from residential properties provides a stable and predictable revenue stream, essential for long-term financial health.

Affordable Housing Demand

The focus on affordable housing addresses a growing market need, ensuring consistent demand and supporting long-term revenue growth.

Partnerships with Local Authorities

These partnerships enhance revenue potential and provide stability through government-backed agreements, supporting sustainable growth.

Negative Factors

Negative Revenue Growth

Negative revenue growth indicates declining business performance, which could undermine long-term financial stability and investor confidence.

Consistent Net Losses

Ongoing net losses highlight profitability issues, which can strain financial resources and limit the company's ability to invest in growth opportunities.

Declining Equity

Declining equity and negative return on equity reflect financial instability, potentially affecting the company's ability to secure financing or invest in future growth.

Residential Secure Income Business Overview & Revenue Model

Company Description

Residential Secure Income plc (ReSI) is a real estate investment trust (REIT) with the objective of delivering secure income returns by investing in Shared Ownership and other affordable residential asset classes. ReSI is listed on the premium segment of the Official List of the UK Listing Authority and was admitted to trading on the main market of the London Stock Exchange in July 2017, raising £180 million in its IPO.

How the Company Makes Money

Residential Secure Income generates revenue primarily through rental income from its portfolio of residential properties. The company leases its properties to tenants, receiving monthly rent payments, which constitute its main revenue stream. Additionally, RESI may benefit from capital appreciation of its properties, leading to potential gains when properties are sold. The company also maintains partnerships with local authorities and housing associations, which can provide opportunities for government-backed rental agreements and funding for property development, further enhancing its revenue potential. Moreover, by focusing on affordable housing, RESI positions itself in a segment with steady demand, which contributes to its overall earnings stability.

Residential Secure Income Financial Statement Overview

Summary

The company faces significant challenges in revenue generation and profitability, with negative revenue growth and net losses. Despite improvements in cash flow and debt management, persistent negative income and declining equity are major concerns.

Income Statement

The income statement reveals substantial challenges, with negative revenue and consistent net losses in recent years. Revenue growth is negative, indicating declining performance, while net profit margins are also negative. The EBIT margin improved slightly in the latest period, but overall profitability remains weak.

Balance Sheet

The balance sheet shows a reasonable equity ratio and improving debt-to-equity ratio due to reduced total debt. However, the company's stockholders' equity has declined, and the return on equity is negative, highlighting ongoing profitability issues.

Cash Flow

The cash flow statement shows positive operating cash flow and free cash flow in the latest period, which is a positive sign. However, free cash flow growth is erratic, and the ratios of cash flow to net income indicate inconsistency in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.95M	30.46M	33.55M	31.79M	39.60M	32.20M
Gross Profit	29.95M	17.57M	16.70M	15.67M	13.37M	32.20M
EBITDA	27.73M	9.38M	-87.17M	16.34M	9.70M	10.66M
Net Income	-6.06M	-10.05M	-23.15M	13.33M	11.22M	2.45M
Balance Sheet
Total Assets	338.70M	369.32M	389.43M	427.53M	389.71M	356.28M
Cash, Cash Equivalents and Short-Term Investments	5.60M	5.41M	3.22M	12.74M	5.69M	8.53M
Total Debt	156.16M	208.49M	213.34M	221.05M	199.55M	170.68M
Total Liabilities	197.95M	218.32M	220.75M	226.14M	207.32M	176.67M
Stockholders Equity	140.76M	151.00M	168.68M	201.39M	182.39M	179.61M
Cash Flow
Free Cash Flow	17.62M	17.90M	16.82M	43.29M	51.77M	39.07M
Operating Cash Flow	17.62M	17.90M	16.82M	14.13M	19.96M	3.05M
Investing Cash Flow	24.05M	8.44M	-7.07M	-28.93M	-32.61M	-36.77M
Financing Cash Flow	-39.21M	-24.05M	-16.93M	22.42M	9.80M	17.21M

Residential Secure Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RESI, the sentiment is Positive. The current price of 58 is above the 20-day moving average (MA) of 57.53, above the 50-day MA of 57.12, and above the 200-day MA of 56.86, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 37.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RESI.

Residential Secure Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRSR	75 Outperform	£620.65M	8.06	10.16%	3.85%	13.95%	-17.77%
GRI	67 Neutral	£1.44B	7.09	10.30%	3.62%	-8.66%	553.35%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESP	64 Neutral	£527.37M	18.13	3.72%	5.02%	4.90%	-50.68%
SOHO	61 Neutral	£269.92M	-6.06	-10.89%	8.16%	-4.24%	-273.62%
RESI	53 Neutral	£107.25M	―	―	6.96%	―	―
PSDL	51 Neutral	£157.94M	―	―	―	―	―

Residential Secure Income Corporate Events

Residential Secure Income Buys Shares to Settle Equity Portion of Management Fee

Residential Secure Income plc has acquired 125,694 of its own ordinary shares in the secondary market at an average price of 60 pence to satisfy the equity portion of the fund management fee payable to Gresham House Asset Management under its existing management agreement, with these shares subject to a minimum 12‑month lock‑in from 1 January 2026. The move reflects the REIT’s ongoing fee structure that partly aligns management compensation with shareholder equity at a time when the company is executing an orderly realisation of its affordable housing portfolio, aiming to maximise shareholder returns while maintaining protections and stability for residents.

The most recent analyst rating on (GB:RESI) stock is a Hold with a £58.00 price target. To see the full list of analyst forecasts on Residential Secure Income stock, see the GB:RESI Stock Forecast page.