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Transcontinental Realty Investors (TCI)
:TCI

Transcontinental Realty Investors (TCI) AI Stock Analysis

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Transcontinental Realty Investors

(NYSE:TCI)

Rating:59Neutral
Price Target:
$39.00
▲(3.97%Upside)
The overall score reflects mixed financial performance and valuation concerns, balanced by strong technical indicators showing bullish momentum. The company's operational inefficiencies and high leverage present significant risks, while the current stock price indicates potential overvaluation.

Transcontinental Realty Investors (TCI) vs. SPDR S&P 500 ETF (SPY)

Transcontinental Realty Investors Business Overview & Revenue Model

Company DescriptionTranscontinental Realty Investors (TCI) is a real estate investment company primarily focused on the acquisition, development, and management of residential and commercial properties across the United States. TCI operates within the real estate sector, offering a diverse portfolio that includes multifamily units, office buildings, and retail spaces. The company's primary services involve property management, leasing, and real estate development activities.
How the Company Makes MoneyTranscontinental Realty Investors generates revenue through various streams, including rental income from its portfolio of residential and commercial properties. The company also benefits from property sales, capitalizing on market appreciation and strategic divestments. Additionally, TCI engages in real estate development projects, creating value through the construction and subsequent leasing or sale of new properties. Partnership agreements and joint ventures with other real estate entities further enhance revenue potential by leveraging shared resources and expertise.

Transcontinental Realty Investors Financial Statement Overview

Summary
Transcontinental Realty Investors shows a solid financial foundation with notable improvements in profitability and operational efficiency. The balance sheet is strong, with no debt and a high equity ratio, indicative of a low-risk profile. However, cash flow concerns remain due to potential liquidity issues despite improvements.
Income Statement
62
Positive
The gross profit margin has improved significantly, reaching 100% in 2024 compared to 40.7% in 2023, indicating efficient cost management. However, the net profit margin decreased slightly to 12.5% from 12.6% in 2023. Revenue growth was marginal at 0.1% in 2024, showing stability but not substantial growth. The EBIT margin improved to 42.5% from negative figures in previous years, reflecting improved operational efficiency. Despite these improvements, the EBITDA margin decreased to 18.2% in 2024, suggesting that some operational challenges remain.
Balance Sheet
75
Positive
The company's balance sheet shows strong equity levels with an equity ratio of 77.8% in 2024, indicating a low-risk profile with minimal leverage, as total debt was eliminated by the end of 2024. The return on equity decreased slightly to 0.7% from 0.7% in 2023, suggesting stable, albeit low, returns to shareholders. The high equity ratio signals financial stability and low leverage risk; however, it limits the potential for amplified returns from debt financing.
Cash Flow
50
Neutral
Operating cash flow improved to $1.31 million from a negative cash flow in 2023, showing better cash management. Free cash flow also turned positive, reflecting operational improvements. However, the free cash flow to net income ratio is low, indicating that cash generation from operations is not robust relative to net income. This suggests potential liquidity challenges despite improved cash management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
46.08M47.07M47.02M36.66M40.77M57.02M
Gross Profit
14.85M20.01M19.13M18.32M19.91M32.66M
EBIT
-5.08M-5.77M-9.99M-9.28M-16.16M-28.00K
EBITDA
18.66M28.76M3.65M471.92M13.40M18.03M
Net Income Common Stockholders
7.93M5.86M5.94M468.26M9.40M6.67M
Balance SheetCash, Cash Equivalents and Short-Term Investments
88.64M99.72M127.15M233.21M66.74M36.76M
Total Assets
1.08B1.07B1.04B1.22B788.41M879.08M
Total Debt
198.15M181.86M179.14M313.68M366.20M473.96M
Net Debt
184.37M161.94M142.44M200.26M315.47M437.20M
Total Liabilities
226.63M217.73M196.09M377.55M416.80M517.55M
Stockholders Equity
837.26M832.28M826.01M819.47M351.20M341.81M
Cash FlowFree Cash Flow
-4.26M1.31M-31.07M-64.08M-19.06M-11.87M
Operating Cash Flow
-9.98M1.31M-31.07M-45.39M-10.99M5.63M
Investing Cash Flow
-69.73M-41.52M26.81M307.36M100.33M381.00K
Financing Cash Flow
18.71M1.66M-139.02M-112.38M-103.58M-2.31M

Transcontinental Realty Investors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.51
Price Trends
50DMA
31.03
Positive
100DMA
29.53
Positive
200DMA
29.02
Positive
Market Momentum
MACD
1.94
Negative
RSI
62.18
Neutral
STOCH
51.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCI, the sentiment is Positive. The current price of 37.51 is above the 20-day moving average (MA) of 35.09, above the 50-day MA of 31.03, and above the 200-day MA of 29.02, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 51.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCI.

Transcontinental Realty Investors Risk Analysis

Transcontinental Realty Investors disclosed 17 risk factors in its most recent earnings report. Transcontinental Realty Investors 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

Transcontinental Realty Investors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RMRMR
70
Outperform
$495.37M12.958.36%11.58%-18.14%-55.82%
61
Neutral
$303.59M17.492.01%-4.61%
61
Neutral
$2.82B10.840.42%8439.00%5.74%-20.95%
TCTCI
59
Neutral
$312.22M40.860.95%-5.86%59.60%
58
Neutral
$394.67M-6.84%2.47%-74.15%
MLMLP
53
Neutral
$324.16M-47.84%57.16%-372.16%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TCI
Transcontinental Realty Investors
37.51
8.91
31.15%
MLP
Maui Land & Pineapple Company
16.91
-3.97
-19.01%
HOUS
Anywhere Real Estate ate
3.60
-0.12
-3.23%
RMAX
Re/Max Holdings
7.58
-0.27
-3.44%
RMR
The RMR Group
15.41
-5.90
-27.69%
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.