One Liberty Properties (OLP) AI Stock Analysis

• Market Cap: $572.49M
• Dividend Yield: 6.98%
• Average Volume (3M): 72.60K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.79
• Revenue Growth: -0.09%
• EPS Growth: 1.93%
• Country: US
• Employees: 10
• Sector: Real Estate
• Sector Strength: 74
• Industry: REIT - Diversified
• EPS (TTM): 1.41
• Shares Outstanding: 21,586,979
• 10 Day Avg. Volume: 87,105
• 30 Day Avg. Volume: 72,596
• PEG Ratio: 9.80
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.25
• Price to Cash Flow (P/CF): 12.20
• P/FCF Ratio: 14.00
• 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: $29.00
• Price Target Upside: 12.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

One Liberty Properties scores well due to its strong financial stability, characterized by zero debt and robust profitability margins. The valuation metrics, including a reasonable P/E ratio and high dividend yield, add to its appeal. However, technical indicators are mixed, and declining revenue and cash flow growth present challenges that need addressing to ensure sustained future performance.

Positive Factors

Earnings

The company reported FFO numbers of $0.46 which was two cents higher than consensus estimates and analyst's estimate.

Occupancy Rate

OLP portfolio's occupancy as of September 30, 2024, stands at 99.1%, up from 98.2% the previous quarter.

Portfolio Strategy

The company is focused on shifting its portfolio towards industrial, with approximately 72% of their current base rent being derived from this sector.

Negative Factors

Debt Levels

The company does have a slightly higher than average level of debt and preferred totaling ~42.5% to total capitalization.

Valuation

The company trades at a 5.9% discount to NAV versus 3.0% for the triple net sector.

One Liberty Properties Business Overview & Revenue Model

Company Description

One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness and theater properties. Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property's real estate taxes, insurance and ordinary maintenance and repairs.

How the Company Makes Money

One Liberty Properties generates revenue primarily through leasing its owned properties to tenants under long-term lease agreements. The company's key revenue streams include rental income from its diversified property portfolio, which comprises industrial warehouses, retail centers, and other commercial spaces. OLP's business model is structured around acquiring properties with strong income potential, often with tenants in place, to ensure a steady cash flow. Additionally, the company may engage in property sales or acquisitions to optimize its portfolio and enhance shareholder value. Strategic partnerships with tenants and real estate developers also contribute to OLP's ability to maintain occupancy rates and secure favorable lease terms, further supporting its revenue generation.

One Liberty Properties Financial Statement Overview

Summary

One Liberty Properties exhibits financial stability with no debt, strong profitability margins, and efficient cash conversion. While the company's profitability and equity position are commendable, challenges remain in terms of growth, as evidenced by declining revenues and cash flow metrics. The focus should be on revitalizing growth to sustain long-term performance in the REITs sector.

Income Statement

One Liberty Properties has demonstrated stable revenue figures, with a slight decline in the most recent TTM period compared to the previous year. The gross profit margin remains strong at 67.0% for TTM, and net profit margin is healthy at 33.6%. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the revenue growth rate has been negative recently, which is a concern for future growth potential.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 40.1%. The elimination of total debt in the TTM period has significantly improved the company's financial stability. Return on Equity (ROE) stands strong at 9.9%, reflecting good profitability relative to shareholder investments. Although the overall asset base has slightly decreased, the zero debt position is a notable strength.

Cash Flow

The cash flow statement reveals a decrease in operating cash flow in TTM compared to the previous year, but free cash flow remains positive. With a high free cash flow to net income ratio of 85.5%, the company shows strong cash conversion from earnings. However, the decline in free cash flow growth rate raises concerns about future cash generation capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
90.56M	90.65M	92.22M	82.74M	81.90M
	Gross Profit
72.66M	74.20M	76.71M	68.94M	68.27M
	EBIT
49.90M	50.31M	54.15M	31.49M	29.76M
	EBITDA
74.55M	73.49M	77.93M	79.80M	71.14M
	Net Income Common Stockholders
30.42M	29.61M	42.18M	19.96M	8.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.31M	26.43M	6.72M	16.16M	12.71M
	Total Assets
766.95M	761.61M	783.25M	752.95M	776.14M
	Total Debt
420.56M	431.81M	426.23M	407.83M	442.23M
	Net Debt
378.24M	405.38M	419.51M	391.66M	429.52M
	Total Liabilities
458.38M	453.86M	466.32M	446.68M	484.18M
	Stockholders Equity
307.43M	306.70M	315.96M	305.33M	290.77M
Cash Flow		Free Cash Flow
39.06M	46.05M	39.62M	44.45M	34.09M
	Operating Cash Flow
39.06M	46.05M	44.20M	48.56M	35.13M
	Investing Cash Flow
9.71M	32.95M	-25.32M	23.37M	333.00K
	Financing Cash Flow
-32.88M	-56.69M	-28.27M	-68.83M	-33.86M

One Liberty Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLP, the sentiment is Negative. The current price of 25.77 is below the 20-day moving average (MA) of 26.11, below the 50-day MA of 25.78, and above the 200-day MA of 25.69, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 52.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLP.

One Liberty Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
O	80 Outperform	$50.88B	58.13	2.40%	5.49%	29.49%	-22.38%
NNN	79 Outperform	$7.99B	19.74	9.32%	5.50%	4.97%	-0.26%
FRT	72 Outperform	$8.38B	28.35	9.58%	4.72%	6.21%	22.32%
WPC	72 Outperform	$13.79B	30.16	5.38%	5.73%	-9.09%	-36.58%
OLP	70 Outperform	$572.49M	18.88	9.80%	6.98%	-0.09%	1.93%
KIM	63 Neutral	$13.64B	36.33	4.03%	4.88%	14.51%	-45.53%
Sector *	61 Neutral	$4.72B	17.64	-3.07%	10.89%	5.99%	-21.86%