Seritage (SRG) AI Stock Analysis

• Market Cap: $158.84M
• Dividend Yield: N/A
• Average Volume (3M): 155.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -36.26%
• EPS Growth: -38.17%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Retail
• EPS (TTM): -0.42
• Shares Outstanding: 56,324,608
• 10 Day Avg. Volume: 97,838
• 30 Day Avg. Volume: 155,024
• PEG Ratio: N/A
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.55
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: -8.69
• Enterprise Value/Ebitda: -0.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ―

Seritage faces significant financial challenges, with declining revenues and profitability, despite improved debt positions. Technical indicators suggest weak momentum, and poor valuation metrics reflect ongoing operational struggles. These factors collectively lead to a low overall stock score, indicating high risk and limited attractiveness.

Seritage Business Overview & Revenue Model

Company Description

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 166 wholly-owned properties and 29 unconsolidated properties totaling approximately 30.4 million square feet of space across 44 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. The Company's mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.

How the Company Makes Money

Seritage makes money through the leasing of its real estate properties to various retail and commercial tenants. The company's primary revenue stream is rental income generated from these leases. By redeveloping and repositioning properties, Seritage aims to attract new tenants and increase occupancy rates, thereby boosting rental income. Additionally, the company may engage in property sales as part of its strategy to optimize its portfolio, providing another potential revenue stream. Partnerships with leading retailers and developers also contribute to the company's earnings by enhancing the appeal and value of its properties.

Seritage Financial Statement Overview

Summary

Seritage is facing significant financial difficulties. Revenue and profitability have sharply declined, with a severe drop in revenue and negative margins indicating operational challenges. While debt reduction is a positive, the company's equity ratio and cash flow positions remain precarious.

Income Statement

Seritage has experienced a significant decline in revenue from $168.6 million in 2019 to $17.6 million in 2024, with a negative gross profit margin, indicating severe profitability issues. Net profit margin remains negative, and EBIT and EBITDA margins show consistent losses, reflecting ongoing operational challenges.

Balance Sheet

The company has significantly reduced its total debt from $1.6 billion in 2019 to zero in 2024, improving its leverage position. However, the equity ratio has decreased over the years, and the return on equity remains negative due to consistent net losses.

Cash Flow

Seritage shows a mixed cash flow picture, with a substantial reduction in free cash flow losses from 2019 to 2024, yet operating cash flow remains negative, indicating ongoing operational cash deficiencies. The significant investing cash inflows suggest asset sales or liquidation efforts.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.40M	17.62M	20.58M	107.06M	116.68M	116.50M
	Gross Profit
-8.02M	-2.65M	-6.83M	41.34M	36.42M	38.56M
	EBIT
-46.80M	-45.79M	-54.98M	-81.74M	-56.67M	-85.84M
	EBITDA
-40.92M	-144.39M	-52.62M	-6.30M	-5.47M	34.60M
	Net Income Common Stockholders
-157.98M	-153.54M	-154.91M	-120.10M	-38.98M	-152.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.27M	85.21M	134.00M	133.48M	106.60M	143.73M
	Total Assets
649.70M	677.77M	973.86M	1.84B	2.41B	2.65B
	Total Debt
0.00	240.00M	367.60M	1.04B	1.47B	1.63B
	Net Debt
-94.27M	154.79M	233.60M	902.19M	1.36B	1.48B
	Total Liabilities
267.25M	271.97M	410.70M	1.12B	1.57B	1.77B
	Stockholders Equity
381.10M	404.46M	561.99M	720.47M	687.74M	649.04M
Cash Flow		Free Cash Flow
-46.12M	-53.55M	-785.97M	-692.07M	-384.12M	-89.03M
	Operating Cash Flow
-46.12M	-53.55M	-53.06M	-117.92M	-136.00M	-47.31M
	Investing Cash Flow
117.80M	126.87M	732.91M	586.08M	260.71M	42.87M
	Financing Cash Flow
-95.31M	-125.31M	-675.09M	-436.97M	-161.21M	15.44M

Seritage Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRG, the sentiment is Negative. The current price of 2.77 is below the 20-day moving average (MA) of 2.89, below the 50-day MA of 2.92, and below the 200-day MA of 3.83, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRG.

Seritage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBL	69 Neutral	$776.49M	11.67	21.87%	6.35%	0.03%	1997.67%
BFS	67 Neutral	$830.59M	23.27	13.86%	7.01%	5.00%	-14.72%
SITC	63 Neutral	$624.09M	1.15	42.15%	9.96%	-42.71%	152.66%
Sector *	61 Neutral	$2.82B	10.77	0.50%	8439.01%	5.72%	-20.80%
PINE	59 Neutral	$220.28M	167.64	0.47%	7.31%	14.71%	―
WHLR	49 Neutral	$2.37M	―	4.42%	―	1.47%	99.15%
SRG	43 Neutral	$158.84M	―	-33.95%	―	-36.26%	-38.17%

Seritage Corporate Events

Seritage Declares Cash Dividend for Preferred Shares

On May 8, 2025, Seritage Growth Properties announced a cash dividend of $0.4375 per share for its 7.00% Series A Cumulative Redeemable Preferred Shares. This dividend will be distributed on July 15, 2025, to shareholders recorded by June 30, 2025.

Seritage Announces Leadership Change with New Interim CEO

On March 28, 2025, Seritage Growth Properties announced that Andrea L. Olshan will step down as CEO and President effective April 11, 2025, with Adam Metz appointed as Interim CEO. This leadership change aligns with the company’s strategic plan, which has seen its portfolio reduced significantly since 2022. The transition is part of Seritage’s ongoing efforts to streamline operations and pursue its shareholder-approved Plan of Sale, reflecting a shift in the company’s leadership needs.