Seritage Growth Properties (SRG)
Valuation Overview•Is Seritage Growth Properties Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 36/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
SRG struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($411,000) and minimal debt risk.
The company is facing top-line contraction (-44.6% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-146.3%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.0M | +3.3% | -44.6% | -31.0% | -16.7% | |
| EBITDA | -$5.0M | — | -70.3% | — | — | |
| Net Income | -$31.5M | +55.6% | +2.7% | — | -11.8% | |
| EPS (Diluted) | $-0.56 | +53.9% | — | — | -6.2% | |
| Free Cash Flow | -$5.7M | +34.8% | +63.1% | +17.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 3.1% | -12.4% | 6.5% | 33.1% |
| Operating Margin | -146.3% | -261.0% | -175.2% | -109.8% |
| Net Margin | -497.0% | -663.8% | -416.9% | -229.6% |
| FCF Margin | -201.4% | -1426.0% | -1050.8% | -522.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $-0.56 | — | ||
| Q1'26 | — | $-0.11 | — | ||
| Q4'25 | — | $-0.24 | — | ||
| Q4'25 | — | $-0.22 | — | ||
| Q3'25 | — | $-0.53 | — | ||
| Q2'25 | — | $-0.42 | — | ||
| Q1'25 | — | $-0.23 | — | ||
| Q4'24 | — | $-0.41 | — |
Total return is -7.0% (1Y), lagging the benchmark by -32.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -21.8% | -31.1% | — |
| 1Y | -7.0% | -32.0% | — |
| 3YCAGR | -31.9% | -51.7% | — |
| 5YCAGR | -32.1% | -45.1% | — |
| 10YCAGR | -19.7% | -33.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Seritage Growth Properties (SRG) valuation, health, and returns.
Based on peer relative multiples, Seritage Growth Properties appears Limited: Cheap versus peers compared to industry peers.
Seritage Growth Properties has multiple valuation anchors: Peer Relative Fair Value: $3.24. A convergence of these signals offers higher conviction.
Seritage Growth Properties displays weak financial health with a composite quality score of 36/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of -6.1%.
Seritage Growth Properties pays a 3.3% dividend yield, covered by a 0% payout ratio with 0 years of growth, supplemented by a 0.1% buyback yield.
Seritage Growth Properties's current growth trajectory is Accelerating. The company achieved +3.3% 1Y revenue growth and +53.9% 1Y EPS growth, compared to its 3Y revenue CAGR of -44.6%.
Wall Street consensus is Hold based on 1 analysts, beating EPS expectations in 22% of recent quarters with a -3-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Seritage Growth Properties include: -47.8% 1-year max drawdown. Volatility risk is characterized by a beta of 1.20x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.