Modiv (MDV) AI Stock Analysis

• Market Cap: $147.38M
• Dividend Yield: 7.92%
• Average Volume (3M): 47.17K
• Price to Earnings (P/E): 75.1
• Beta (1Y): 0.18
• Revenue Growth: -2.60%
• EPS Growth: N/A
• Country: US
• Employees: 12
• Sector: Real Estate
• Sector Strength: 79
• Industry: REIT - Diversified
• EPS (TTM): -0.01
• Shares Outstanding: 10,108,147
• 10 Day Avg. Volume: 56,347
• 30 Day Avg. Volume: 47,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.15
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.13
• Price Target Upside: 24.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Modiv's overall stock score reflects its solid financial foundation with strengths in revenue growth and cash flow management. Despite these positives, challenges remain with inconsistent profitability and high leverage. The technical outlook is stable but lacks strong momentum, and valuation concerns persist due to a high P/E ratio, though mitigated by a substantial dividend yield. Recent corporate events and earnings call insights provide cautious optimism, supporting a moderate stock position.

Positive Factors

Liquidity Position

Modiv Industrial, Inc. has plenty of liquidity to continue acquiring assets when the timing is right.

Strategic Asset Location

The company's assets are strategically located in California and the Sunbelt region, areas experiencing net migration.

Tenant Commitments

The company extended leases for properties in San Diego and San Carlos, indicating long-term tenant commitments.

Negative Factors

Debt Levels

The company has $280 million of indebtedness, which is 100% fixed rate with no outstanding debt maturities until January 2027.

Leverage Levels

The company has slightly elevated leverage with debt and preferred to total market cap at approximately 66.5%.

Modiv Business Overview & Revenue Model

Company Description

Modiv Inc., (the Company) was incorporated on May 14, 2015 as a Maryland corporation. The Company was formed to primarily invest, directly or indirectly, in real estate owning entities which own single-tenant income-producing properties located in the United States, which are leased to creditworthy tenants under long-term net leases. The Company's goal is to generate current income for investors and long-term capital appreciation in the value of its properties.

How the Company Makes Money

Modiv generates revenue primarily through rental income from its portfolio of commercial properties. The company employs a net lease structure, where tenants are responsible for paying a significant portion of the property's operating expenses, such as maintenance, taxes, and insurance, in addition to the base rent. This model ensures predictable income for Modiv, as it reduces the variable costs associated with property management. Additionally, Modiv may engage in property sales or refinancing to unlock value from its assets, further contributing to its earnings. Key partnerships with real estate brokers, property managers, and institutional investors also support Modiv's growth and revenue generation.

Modiv Financial Statement Overview

Summary

Modiv has demonstrated strong revenue growth and operational efficiency but struggles with consistent profitability. The recent elimination of debt enhances financial stability, and cash flow management is robust, though free cash flow growth is inconsistent.

Income Statement

Modiv has shown growth in revenue over the years, albeit with some volatility. The gross profit margin remains strong, indicating efficient cost management, with a notable improvement in EBIT and EBITDA margins annually. However, net income has been inconsistent, showing significant losses in several years, which affects overall profitability.

Balance Sheet

The balance sheet indicates a solid equity position with a debt-free status in the latest year, which significantly improves financial stability. The return on equity has been erratic due to fluctuating net income. The equity ratio is healthy, reflecting strong financial footing, although past years show a reliance on debt financing.

Cash Flow

Cash flow from operations has steadily improved, translating into positive free cash flow, which demonstrates good cash generation capacity. The operating cash flow to net income ratio is favorable, suggesting effective conversion of income into cash flow. However, fluctuations in free cash flow growth indicate potential volatility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
46.50M	46.94M	46.17M	36.22M	38.90M
	Gross Profit
42.88M	41.78M	37.27M	29.53M	31.90M
	EBIT
21.98M	2.31M	12.53M	2.20M	5.43M
	EBITDA
42.47M	23.43M	27.46M	32.55M	21.65M
	Net Income Common Stockholders
2.33M	-6.61M	-19.93M	-8.58M	-62.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.53M	3.13M	8.61M	55.97M	8.25M
	Total Assets
507.83M	530.90M	456.03M	428.49M	407.43M
	Total Debt
279.90M	279.73M	195.45M	181.95M	191.51M
	Net Debt
268.38M	276.60M	186.85M	125.98M	183.27M
	Total Liabilities
293.78M	305.77M	214.99M	206.06M	217.18M
	Stockholders Equity
190.15M	144.44M	159.75M	171.83M	139.65M
Cash Flow		Free Cash Flow
18.24M	16.58M	10.15M	9.53M	5.01M
	Operating Cash Flow
18.24M	16.58M	16.65M	9.73M	5.58M
	Investing Cash Flow
8.39M	-93.60M	-61.06M	21.83M	24.78M
	Financing Cash Flow
-18.23M	71.54M	-5.38M	18.47M	-28.91M

Modiv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDV, the sentiment is Negative. The current price of 14.58 is below the 20-day moving average (MA) of 15.51, below the 50-day MA of 15.41, and below the 200-day MA of 15.19, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 39.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDV.

Modiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDV	61 Neutral	$147.38M	75.12	1.64%	7.92%	-2.60%	―
Sector *	60 Neutral	$2.82B	11.31	0.21%	8508.30%	6.32%	-13.73%
MDRR	53 Neutral	$20.80M	477.78	0.20%	2.09%	-3.42%	89.29%
FVR	53 Neutral	$208.49M	―	-0.37%	1.81%	―	―
SQFT	47 Neutral	$8.92M	―	-66.17%	4.02%	10.38%	-430.18%
GIPR	42 Neutral	$8.85M	―	-79.15%	28.36%	27.91%	29.34%
MKZR	39 Underperform	$18.02M	―	-23.71%	48.39%	38.79%	-167.80%

Modiv Corporate Events

Modiv Reports Q1 2025 Financial Results and Lease Renewal

On May 7, 2025, Modiv Industrial announced its first quarter 2025 financial results, reporting a revenue of $11.8 million and a net income of $2,000 attributable to common stockholders. The company achieved an 18% year-over-year increase in AFFO, beating consensus estimates. Modiv also executed a 10-year lease renewal with FujiFilm and repurchased 275,000 shares of preferred stock. The company highlighted its support for U.S. manufacturing amid tariff impacts, noting that its tenants have not experienced significant negative effects from recent tariffs, and emphasized the potential for increased utilization of existing manufacturing assets.

Spark’s Take on MDV Stock

According to Spark, TipRanks’ AI Analyst, MDV is a Neutral.

Modiv exhibits strong operational efficiency and robust cash flow management, but inconsistent profitability and high leverage pose challenges. The technical outlook is stable but lacks strong momentum. Valuation concerns exist due to a high P/E ratio, though a high dividend yield provides some compensation. Overall, the stock is moderately positioned with a cautiously optimistic outlook based on recent earnings performance.

To see Spark’s full report on MDV stock, click here.

Modiv Announces Quarterly Dividend and Monthly Distributions

On March 13, 2025, Modiv Industrial announced the declaration of a quarterly dividend for its Series A Preferred Stock and monthly distributions for its Class C common stock for April, May, and June 2025. The quarterly dividend for the Series A Preferred Stock is set at $0.4609375 per share, payable on April 15, 2025, while the monthly distribution for the common stock is $0.0975 per share, maintaining an annualized rate of $1.17. These announcements reflect Modiv’s ongoing commitment to providing consistent returns to its shareholders, with the common stock yielding a 7.67% dividend based on the closing price as of March 12, 2025.

Modiv Reports Strong 2024 Financial Results and Growth Plans

On March 4, 2025, Modiv Industrial announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a full-year net income of $2.3 million and an AFFO of $14.99 million, surpassing street expectations. Modiv also highlighted its strategic approach to acquisitions and cost savings, securing over $1.4 million in cash expense savings for 2025. The company remains focused on disciplined growth and efficiency, with plans to enhance shareholder value through prudent acquisitions and operational improvements.