The average target price of CPINV.BR is 15 and suggests 11% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 16.0. This translates into 22% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 12.5. This is equivalent to 5% downside potential in the worst case. 

Serviceflats Invest NV, a real estate investment company, builds and finances residences for elderly residents. It engages in the letting of furnished retirement flats with a net floor area of approximately 54 square meters. The company is based in Antwerpen, Belgium.

Belgium

Care Property Invest NV

Real Estate

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. The company distributes most of its profit as dividends (payout ratio above 75%, a negative factor). It will not be easy to sustain such a high payout ratio. It may also indicate a company’s lack of profitable growth opportunities, which suggests doubtful prospects. On average, the company pays dividends annually. 

CPINV.BR reported revenue of EUR 71mn in the last 12 months, up 6% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. Market expects EPS to reach EUR 0.98 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 11ppts and its growth accelerated by 11ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 75.9% in the last 12 months, up from 14.6% in FY23. 

Historically, CPINV.BR has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 36.2%, a growth from -8.6% in FY23. 

Care Property Invest NV reported a return on equity (RoE) of 4.1% in the last 12 months, up from -1.0% in FY23. The market consensus projects an RoE of -0.9% in FY24, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 2.8%, below the peers. The consensus estimate for FY24 for RoCE is 1.2%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to 2.1% in the last 12 months, an increase from -0.5% in FY23. The market analysts predict that RoA will be -0.5% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.7 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

CPINV.BR has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity may be unstable and is unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, weak debt servicing capacity, and poor cash flow generation. We note robust profitability, among the positive credit factors. 

In highly turbulent market conditions, CPINV.BR is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, CPINV.BR is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITD. 

Care Property Invest NV

€ 13.16

5

Care Property Invest NV

€ 13.16

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 13.16

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