Opinions
Stockchase Insights
Real Matters Inc.
REAL-T
HOLD
Jan 29, 2021
Stock price when the opinion was issued
You might be interested:
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes the valuation but there needs to be some execution and growth must resume. Investors love to hate the stock so positive news tends to move the stock more. Ok to own a small weighting. Unlock Premium - Try 5i Free
REAL has had a difficult time since its IPO, but its earnings results are beginning to improve, growth is expected to pick up, and with a declining interest rate environment, it could see market tailwinds. It has slowed down on share buybacks and earnings estimates have been falling. We would like to see its earnings estimates pick back up, but with that said, growth is still expected to be strong. Its valuation is OK, but we think a pullback might be warranted after its strong recent run, and overall, the name is not as attractive as it initially was at IPO. We think it can do OK, but its track record has not been excellent.
Unlock Premium - Try 5i Free
REAL is in recovery mode; it has a solid Q2 with a 27% 'beat' on earnings. It also has good positive leverage to lower interest rates (now occurring) and the real estate market. Earnings in the next two years will still be significantly lower than they have been historically, but at least EPS is back in growth mode (3c to 14c expected 2025/2024). The balance sheet remains strong and there has been some insider buying this year. It remains expensive on expected earnings, but there is improvement occurring here.
Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The street seems to not like the slight miss. EPS missed expectations by 1 cent. Overall revenues of $44M met estimates with net revenues rising 24%. No real concern. However the price action is not good and there may be turnover before it stabilizes. 5i would not recomend adding here. Unlock Premium - Try 5i Free