Seritage (SRG) AI Stock Analysis

• Market Cap: $192.07M
• Dividend Yield: N/A
• Average Volume (3M): 139.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -17.76%
• EPS Growth: 44.68%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): -0.24
• Shares Outstanding: 56,324,608
• 10 Day Avg. Volume: 197,130
• 30 Day Avg. Volume: 139,064
• PEG Ratio: 2.14
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 13.15
• P/FCF Ratio: -4.33
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 20.59
• Enterprise Value/Gross Profit: 208.80
• Enterprise Value/Ebitda: -11.26
• 1Y Price Target: $6.27
• Price Target Upside: 66.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $3.50 ▼(-7.16% Downside)

The overall stock score is heavily impacted by Seritage's weak financial performance, characterized by negative profitability and high leverage. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to ongoing losses. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Redevelopment Strategy

The company's strategy of transforming underutilized properties into vibrant retail spaces can drive long-term value creation and attract new tenants, enhancing revenue potential.

Partnerships and Leasing

Strategic partnerships and a focus on leasing to national and regional retailers can stabilize occupancy rates and provide a steady revenue stream, supporting sustainable growth.

Revenue Model Diversification

Diversifying revenue sources through management fees and development projects can mitigate risks associated with tenant turnover and enhance financial resilience.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth initiatives and manage economic downturns.

Negative Profitability

Ongoing negative profitability indicates operational inefficiencies and challenges in generating sufficient returns, which can hinder long-term growth and shareholder value.

Cash Flow Issues

Negative cash flows highlight liquidity challenges, limiting the company's ability to fund operations and invest in redevelopment projects, potentially affecting future growth.

Seritage Business Overview & Revenue Model

Company Description

Seritage Growth Properties (SRG) is a real estate investment trust (REIT) focused on the ownership, leasing, and development of retail and mixed-use properties across the United States. The company primarily specializes in redeveloping former Sears and Kmart locations, transforming these spaces into vibrant shopping, dining, and entertainment destinations. Seritage aims to enhance the value of its properties through strategic partnerships and innovative redevelopment projects, catering to the evolving needs of consumers and retailers.

How the Company Makes Money

Seritage makes money primarily through leasing its retail and commercial properties to tenants. The company's revenue model includes long-term leases with national and regional retailers, as well as potential income from short-term leases and pop-up shops. Additionally, Seritage generates income from property management fees and development projects that enhance the value of its real estate portfolio. Significant partnerships with retailers and local businesses, combined with a focus on redevelopment, contribute to its earnings by attracting new tenants and increasing property occupancy rates.

Seritage Financial Statement Overview

Summary

Seritage faces significant financial challenges with negative profitability, high leverage, and cash flow issues. Despite minor improvements in revenue growth and debt management, the company's financial health remains weak.

Income Statement

Seritage's income statement shows significant challenges with negative net profit margins and EBIT margins over the periods. The TTM data indicates a slight improvement in revenue growth, but profitability remains a concern with negative margins across the board. The company has struggled to maintain a stable gross profit margin, and the overall trajectory suggests ongoing financial difficulties.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio that has improved slightly but remains concerning. Return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is relatively stable, but the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis reveals persistent negative operating and free cash flows, indicating cash management issues. The free cash flow to net income ratio is positive, suggesting some alignment between cash flow and accounting profits, but the overall negative cash flow growth and operating cash flow coverage ratio highlight liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.42M	17.62M	20.78M	107.06M	116.68M	116.50M
Gross Profit	1.82M	-2.65M	-6.63M	41.34M	36.42M	38.56M
EBITDA	-33.69M	-113.67M	-95.66M	8.44M	120.56M	34.60M
Net Income	-74.48M	-153.54M	-154.91M	-73.94M	-28.15M	-105.03M
Balance Sheet
Total Assets	558.61M	677.77M	973.86M	1.84B	2.41B	2.65B
Cash, Cash Equivalents and Short-Term Investments	51.54M	85.21M	134.00M	133.48M	106.60M	143.73M
Total Debt	196.67M	240.00M	367.60M	1.03B	1.46B	1.62B
Total Liabilities	219.52M	271.97M	410.70M	1.12B	1.57B	1.77B
Stockholders Equity	337.72M	404.46M	561.99M	720.47M	687.74M	649.04M
Cash Flow
Free Cash Flow	-47.67M	-53.55M	-785.97M	-692.07M	-384.12M	-89.03M
Operating Cash Flow	-47.67M	-53.55M	-53.06M	-117.92M	-136.00M	-47.31M
Investing Cash Flow	98.71M	126.87M	732.91M	586.08M	260.71M	42.87M
Financing Cash Flow	-89.38M	-125.31M	-675.09M	-436.97M	-161.21M	15.44M

Seritage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.77
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3.77 is below the 20-day moving average (MA) of 3.87, below the 50-day MA of 4.03, and above the 200-day MA of 3.41, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRG.

Seritage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBL	71 Outperform	$1.02B	8.37	37.88%	7.47%	5.74%	294.33%
BFS	68 Neutral	$759.96M	27.04	11.88%	7.58%	5.75%	-37.69%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SITC	55 Neutral	$386.65M	13.35	2.46%	6.04%	-69.63%	-95.99%
PINE	55 Neutral	$246.32M	―	-2.16%	6.85%	14.81%	-245.25%
WHLR	47 Neutral	$1.95M	―	116.25%	―	-1.01%	504.95%
SRG	38 Underperform	$192.07M	―	-19.72%	―	-17.76%	44.68%

Seritage Corporate Events

Seritage Declares Dividend for Preferred Shares

On October 29, 2025, Seritage Growth Properties’ Board of Trustees declared a cash dividend of $0.4375 per share for its 7.00% Series A Cumulative Redeemable Preferred Shares. This dividend is scheduled for payment on January 15, 2026, to shareholders recorded by December 31, 2025.

The most recent analyst rating on (SRG) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Seritage stock, see the SRG Stock Forecast page.

Seritage Subsidiary Sells Aventura Property for $131M

On September 2, 2025, Seritage‘s subsidiary entered into a purchase and sale agreement with Boulevard Step Ventures LLC for the sale of its property in Aventura, Florida, for $131.0 million, adjusted for unpaid leasing costs. The agreement includes a $5.0 million non-refundable deposit from the buyer, with the closing scheduled for 30 days after the effective date, subject to customary conditions. The buyer can extend the closing by 45 days with an additional non-refundable deposit.

The most recent analyst rating on (SRG) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Seritage stock, see the SRG Stock Forecast page.

Seritage Growth Properties Reports Q2 2025 Financial Results

Seritage Growth Properties, a Maryland-based real estate company, primarily engages in the ownership, development, and management of retail and mixed-use properties across the United States. In its latest earnings report for the quarter ended June 30, 2025, the company highlighted ongoing efforts to execute a strategic plan of asset sales, amidst a challenging financial performance. Key financial metrics revealed a net loss of $28.5 million for the quarter, a significant improvement from the $101.2 million loss in the same period last year, driven by gains on real estate sales and reduced impairment charges. Despite these gains, the company’s revenue from rental income decreased slightly to $4.5 million, and operating expenses remained high, contributing to the overall loss. Looking forward, Seritage continues to focus on asset sales to meet its financial obligations and is exploring strategic alternatives to maximize shareholder value, although uncertainties remain about the timing and success of these efforts.