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Seritage (SRG)
NYSE:SRG

Seritage (SRG) AI Stock Analysis

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Seritage

(NYSE:SRG)

Rating:53Neutral
Price Target:
$3.00
▼(-2.28%Downside)
Seritage's significant financial difficulties, including declining revenue and negative profitability, weigh heavily on its stock score. However, recent positive corporate events, such as leadership changes and debt reduction, provide a stabilizing influence. The technical indicators suggest a cautious outlook amid mixed momentum signals.

Seritage (SRG) vs. SPDR S&P 500 ETF (SPY)

Seritage Business Overview & Revenue Model

Company DescriptionSeritage 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 MoneySeritage 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 with a drastic decline in revenue and negative profitability margins. Although the company has reduced its debt to zero, the negative equity and operating cash flow issues indicate severe financial instability.
Income Statement
35
Negative
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.40M17.62M20.58M107.06M116.68M116.50M
Gross Profit-8.02M-2.65M-6.83M41.34M36.42M38.56M
EBITDA-40.92M-144.39M-52.62M-6.30M-5.47M34.60M
Net Income-157.98M-153.54M-154.91M-120.10M-38.98M-152.96M
Balance Sheet
Total Assets649.70M677.77M973.86M1.84B2.41B2.65B
Cash, Cash Equivalents and Short-Term Investments94.27M85.21M134.00M133.48M106.60M143.73M
Total Debt0.00240.00M367.60M1.04B1.47B1.63B
Total Liabilities267.25M271.97M410.70M1.12B1.57B1.77B
Stockholders Equity381.10M404.46M561.99M720.47M687.74M649.04M
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 Flow117.80M126.87M732.91M586.08M260.71M42.87M
Financing Cash Flow-95.31M-125.31M-675.09M-436.97M-161.21M15.44M

Seritage Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.07
Price Trends
50DMA
2.91
Positive
100DMA
3.12
Negative
200DMA
3.68
Negative
Market Momentum
MACD
0.04
Negative
RSI
58.90
Neutral
STOCH
63.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRG, the sentiment is Positive. The current price of 3.07 is above the 20-day moving average (MA) of 2.95, above the 50-day MA of 2.91, and below the 200-day MA of 3.68, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 63.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRG.

Seritage Risk Analysis

Seritage disclosed 43 risk factors in its most recent earnings report. Seritage reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Seritage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CBCBL
72
Outperform
$799.38M12.0121.87%6.30%0.03%1997.67%
72
Outperform
$602.07M1.1142.15%3.88%-42.71%152.66%
BFBFS
71
Outperform
$840.28M23.5413.86%6.91%5.00%-14.72%
63
Neutral
$6.96B19.11-1.16%6.97%4.71%-24.99%
60
Neutral
$208.86M158.960.47%7.79%14.71%
SRSRG
53
Neutral
$172.92M-33.95%-36.26%-38.17%
48
Neutral
$6.66M4.42%1.47%99.15%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRG
Seritage
3.07
-1.60
-34.26%
SITC
SITE Centers
11.68
1.68
16.80%
BFS
Saul Centers
34.70
0.31
0.90%
WHLR
Wheeler Real Estate Investment
5.82
-16,382.58
-99.96%
PINE
Alpine Income Property Trust Inc
14.64
0.44
3.10%
CBL
CBL & Associates Properties
25.84
4.39
20.47%

Seritage Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Seritage Appoints Adam Metz as CEO and President
Positive
Jul 1, 2025

Seritage Growth Properties has appointed Adam Metz as its Chief Executive Officer and President on a non-interim basis, effective July 1, 2025. Metz, who has a significant background in real estate and has held leadership roles in various companies, including Hammerson plc and Carlyle Group, will continue as Board Chairman. His appointment follows his interim role starting April 11, 2025. The new employment agreement includes a one-year term with a base salary of $1,100,000 and a target bonus of $1,225,000, subject to performance goals. This move is expected to bring stability and experienced leadership to Seritage as it navigates its strategic goals.

Private Placements and FinancingBusiness Operations and Strategy
Seritage Announces $40 Million Loan Prepayment
Positive
Jun 11, 2025

On June 11, 2025, Seritage Growth Properties announced a voluntary prepayment of $40 million on its $1.6 billion Senior Secured Term Loan Agreement with Berkshire Hathaway Life Insurance Company of Nebraska. This prepayment reduces the outstanding amount to $200 million and decreases the company’s annual interest expenses by approximately $2.8 million. Since December 2021, Seritage has repaid a total of $1.4 billion, significantly lowering its interest expenses by about $99.4 million, which reflects a strategic move to improve its financial position and reduce debt-related costs.

Executive/Board ChangesShareholder Meetings
Seritage Shareholders Re-elect Trustees, Reject Compensation Plan
Neutral
Jun 11, 2025

On June 10, 2025, Seritage held its annual meeting of shareholders, where several key decisions were made. The shareholders re-elected six trustees, including John T. McClain and Adam Metz, each receiving the required two-thirds majority vote. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2025 was ratified. However, the shareholders rejected the advisory, non-binding resolution to approve the executive compensation program for the company’s named executive officers, as it did not receive the majority vote needed for approval.

Dividends
Seritage Declares Cash Dividend for Preferred Shares
Neutral
May 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025