Unibail Rodamco Westfield (URW) AI Stock Analysis

• Market Cap: €12.67B
• Dividend Yield: 3.96%
• Average Volume (3M): 365.46K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.06
• Revenue Growth: 4.09%
• EPS Growth: N/A
• Country: FR
• Employees: 2,316
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 4.55
• Shares Outstanding: 143,244,720
• 10 Day Avg. Volume: 284,760
• 30 Day Avg. Volume: 365,459
• PEG Ratio: -0.64
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 3.12
• P/FCF Ratio: 11.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €100.80
• Price Target Upside: 15.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 62 Neutral
• Price Target: €86.00 ▼(-1.31% Downside)

The overall stock score reflects strong technical indicators suggesting bullish momentum, tempered by high valuation concerns with a significant P/E ratio. Financial performance is improving, but high leverage remains a concern.

Unibail Rodamco Westfield Business Overview & Revenue Model

Company Description

Unibail-Rodamco-Westfield is an owner, developer and operator of sustainable, high-quality real estate assets in the most dynamic cities in Europe and the United States. The Group operates 75 shopping centres in 12 countries, including 39 which carry the iconic Westfield brand. These centres attract over 900 million visits annually and provide a unique platform for retailers and brands to connect with consumers. URW also has a portfolio of high-quality offices, 10 convention and exhibition venues in Paris, and a EUR 3 Bn development pipeline of mainly mixed-use assets. Currently, its EUR 51 Bn portfolio is 87% in retail, 6% in offices, 5% in convention and exhibition venues, and 2% in services (as at June 30, 2023). URW is a committed partner to major cities on urban regeneration projects, through both mixed-use development and the retrofitting of buildings to industry-leading sustainability standards. These commitments are enhanced by the Group's Better Places 2030 agenda, which strives to make a positive environmental, social and economic impact on the cities and communities where URW operates. URW's stapled shares are listed on Euronext Paris (Ticker: URW), with a secondary listing in Australia through Chess Depositary Interests. The Group benefits from a BBB+ rating from Standard & Poor's and from a Baa2 rating from Moody's.

How the Company Makes Money

URW generates revenue primarily through rental income from its extensive portfolio of shopping centers and retail spaces, which are leased to a diverse range of tenants, including fashion brands, dining establishments, and entertainment venues. Additional revenue streams include service charges, management fees, and income from ancillary services such as advertising and sponsorships. The company's revenue model is bolstered by long-term leases with tenants, which provide stable cash flow. URW also engages in strategic partnerships and collaborations with retailers and brands, enhancing its offerings and driving foot traffic to its properties. Moreover, the company actively invests in redevelopment and modernization projects to increase asset value and attract higher rents.

Unibail Rodamco Westfield Financial Statement Overview

Summary

Unibail Rodamco Westfield shows signs of recovery with positive income and improved cash flows. The net income has transitioned from a loss to a profit, and cash flow management has improved significantly. However, the balance sheet reveals high leverage, typical for REITs, which poses risks.

Income Statement

Unibail Rodamco Westfield has shown a positive turnaround with a net income of €146.2 million in 2024 compared to a loss in 2023, indicating recovery. The gross profit margin improved to 62.85% in 2024, showing strong operational efficiency. However, revenue growth of 6.37% from 2023 to 2024 is modest. The EBIT and EBITDA margins are healthy at 24.29% and 49.96% respectively, reflecting efficient cost management.

Balance Sheet

The company's debt-to-equity ratio stands at 1.56, indicating a significant reliance on debt, which is typical for REITs but poses risks in volatile markets. The equity ratio is 33.02%, suggesting a moderate level of financial stability. Return on equity is modest at 0.83% in 2024, reflecting a need for stronger profitability to enhance shareholder returns.

Cash Flow

The operating cash flow to net income ratio is robust at 14.98, indicating strong cash generation relative to net income. Free cash flow grew by 329.06% from 2023 to 2024, highlighting substantial improvement in cash management and financial flexibility. The free cash flow to net income ratio is also positive, suggesting effective use of cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.58B	3.26B	3.06B	3.00B	2.52B	993.70M
Gross Profit	2.29B	2.05B	1.88B	1.89B	1.44B	-168.40M
EBITDA	2.15B	1.63B	1.68B	1.24B	1.31B	-261.20M
Net Income	772.20M	146.20M	-1.63B	178.20M	-972.10M	-7.21B
Balance Sheet
Total Assets	50.92B	53.55B	53.58B	54.64B	54.92B	57.28B
Cash, Cash Equivalents and Short-Term Investments	3.31B	5.29B	5.50B	3.33B	2.26B	2.14B
Total Debt	24.72B	27.56B	27.90B	26.40B	27.13B	29.83B
Total Liabilities	30.06B	32.51B	32.81B	31.69B	32.55B	34.48B
Stockholders Equity	16.98B	17.67B	17.21B	19.18B	18.92B	19.38B
Cash Flow
Free Cash Flow	1.40B	881.90M	875.50M	1.53B	831.70M	1.42B
Operating Cash Flow	2.03B	2.19B	2.06B	2.44B	1.72B	1.42B
Investing Cash Flow	751.20M	-537.10M	-791.40M	280.80M	620.80M	81.80M
Financing Cash Flow	-3.72B	-1.88B	865.40M	-1.64B	-2.24B	116.50M

Unibail Rodamco Westfield Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:URW, the sentiment is Neutral. The current price of 87.14 is below the 20-day moving average (MA) of 88.44, below the 50-day MA of 88.28, and above the 200-day MA of 78.75, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 65.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:URW.

Unibail Rodamco Westfield Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COV	71 Outperform	€6.13B	14.59	5.11%	6.37%	8.36%	―
LI	71 Outperform	€9.02B	7.75	14.13%	5.29%	6.74%	74.00%
GFC	69 Neutral	€6.08B	12.38	4.93%	6.19%	3.84%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
COVH	65 Neutral	€3.68B	18.39	6.03%	5.93%	21.24%	241.67%
URW	62 Neutral	€12.67B	16.42	―	3.96%	4.09%	―
ICAD	52 Neutral	€1.54B	―	-4.49%	21.51%	-6.91%	80.39%