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Seritage (SRG)
NYSE:SRG

Seritage (SRG) AI Stock Analysis

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Seritage

(NYSE:SRG)

Rating:43Neutral
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 (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. 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
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
16.40M17.62M20.58M107.06M116.68M116.50M
Gross Profit
-8.02M-2.65M-6.83M41.34M36.42M38.56M
EBIT
-46.80M-45.79M-54.98M-81.74M-56.67M-85.84M
EBITDA
-40.92M-144.39M-52.62M-6.30M-5.47M34.60M
Net Income Common Stockholders
-157.98M-153.54M-154.91M-120.10M-38.98M-152.96M
Balance SheetCash, Cash Equivalents and Short-Term Investments
94.27M85.21M134.00M133.48M106.60M143.73M
Total Assets
649.70M677.77M973.86M1.84B2.41B2.65B
Total Debt
0.00240.00M367.60M1.04B1.47B1.63B
Net Debt
-94.27M154.79M233.60M902.19M1.36B1.48B
Total Liabilities
267.25M271.97M410.70M1.12B1.57B1.77B
Stockholders Equity
381.10M404.46M561.99M720.47M687.74M649.04M
Cash FlowFree 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
117.80M126.87M732.91M586.08M260.71M42.87M
Financing Cash Flow
-95.31M-125.31M-675.09M-436.97M-161.21M15.44M

Seritage Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.77
Price Trends
50DMA
2.92
Negative
100DMA
3.30
Negative
200DMA
3.83
Negative
Market Momentum
MACD
-0.04
Positive
RSI
38.45
Neutral
STOCH
22.22
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 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 1 New Risks
1.
We have been, and in the future may be, subject to securities class action and other litigation, which may harm our business and results of operations. Q3, 2024

Seritage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CBCBL
69
Neutral
$776.49M11.6721.87%6.35%0.03%1997.67%
BFBFS
67
Neutral
$830.59M23.2713.86%7.01%5.00%-14.72%
63
Neutral
$624.09M1.1542.15%9.96%-42.71%152.66%
61
Neutral
$2.82B10.770.50%8439.01%5.72%-20.80%
59
Neutral
$220.28M167.640.47%7.31%14.71%
49
Neutral
$2.37M4.42%1.47%99.15%
SRSRG
43
Neutral
$158.84M-33.95%-36.26%-38.17%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRG
Seritage
2.77
-2.43
-46.73%
SITC
SITE Centers
11.90
0.63
5.59%
BFS
Saul Centers
34.30
-0.17
-0.49%
WHLR
Wheeler Real Estate Investment
4.32
-7,765.68
-99.94%
PINE
Alpine Income Property Trust Inc
15.44
0.99
6.85%
CBL
CBL & Associates Properties
25.10
4.10
19.52%

Seritage Corporate Events

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.

Executive/Board ChangesBusiness Operations and Strategy
Seritage Announces Leadership Change with New Interim CEO
Neutral
Mar 28, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.