Seritage (SRG) AI Stock Analysis

• Market Cap: $166.16M
• Dividend Yield: N/A
• Average Volume (3M): 357.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -14.70%
• EPS Growth: 1.10%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Retail
• EPS (TTM): -2.82
• Shares Outstanding: 56,324,608
• 10 Day Avg. Volume: 170,789
• 30 Day Avg. Volume: 357,031
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -55.31
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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 Business Overview & Revenue Model

Company Description

Seritage Growth Properties (SRG) is a publicly traded real estate investment trust (REIT) that primarily owns, manages, and repositions retail properties throughout the United States. The company was initially formed to optimize the real estate assets previously owned by Sears Holdings, converting them into a diversified portfolio of retail, residential, and mixed-use spaces. Seritage focuses on enhancing the value of its properties through redevelopment and leasing to a wide range of retailers and commercial tenants.

How the Company Makes Money

Seritage 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

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

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

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
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
20.58M	107.06M	116.68M	116.50M	168.63M
	Gross Profit
-6.83M	41.34M	36.42M	38.56M	87.92M
	EBIT
-54.98M	-81.74M	-56.67M	-85.84M	-66.99M
	EBITDA
-52.62M	-6.30M	-5.47M	34.60M	108.69M
	Net Income Common Stockholders
-154.91M	-120.10M	-38.98M	-152.96M	-90.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.00M	133.48M	106.60M	143.73M	139.26M
	Total Assets
973.86M	1.84B	2.41B	2.65B	2.75B
	Total Debt
367.60M	1.04B	1.47B	1.63B	1.61B
	Net Debt
233.60M	902.19M	1.36B	1.48B	1.47B
	Total Liabilities
410.70M	1.12B	1.57B	1.77B	1.71B
	Stockholders Equity
561.99M	720.47M	687.74M	649.04M	731.42M
Cash Flow		Free Cash Flow
-785.97M	-692.07M	-384.12M	-89.03M	243.71M
	Operating Cash Flow
-53.06M	-117.92M	-136.00M	-47.31M	-57.66M
	Investing Cash Flow
732.91M	586.08M	260.71M	42.87M	-299.49M
	Financing Cash Flow
-675.09M	-436.97M	-161.21M	15.44M	-36.45M

Seritage Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRG, the sentiment is Neutral. The current price of 2.96 is above the 20-day moving average (MA) of 2.87, below the 50-day MA of 3.09, and below the 200-day MA of 3.97, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.34 is Neutral, neither overbought nor oversold. The STOCH value of 51.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRG.

Seritage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SITC	72 Outperform	$623.57M	1.22	42.15%	9.85%	-42.71%	152.66%
BFS	63 Neutral	$797.90M	20.17	13.86%	7.17%	5.00%	-14.72%
CBL	60 Neutral	$744.31M	11.24	21.87%	6.58%	0.03%	1997.67%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
PINE	59 Neutral	$217.28M	165.26	0.47%	7.45%	14.71%	―
WHLR	49 Neutral	$1.01M	―	4.42%	―	1.47%	99.15%
SRG	43 Neutral	$166.16M	―	-31.77%	―	-14.70%	1.10%

Seritage Corporate Events

Seritage Declares Cash Dividend for Preferred Shares

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.

Spark’s Take on SRG Stock

According to Spark, TipRanks’ AI Analyst, SRG is a Neutral.

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.

To see Spark’s full report on SRG stock, click here.

Seritage Announces Leadership Change with New Interim CEO

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.