CBL  Cbl & Associates Properties In...

Exchange

NYSE

Sector

Consumer Services

Industry

Real Estate Investment Trusts

Market Cap.

1.70B

Vuru Grade

28.20/100

Current Price

$9.97
-0.40 (-3.86%)

Growth Price

$10.71
Undervalued by 7.44%

Company Metrics

  • P/E 13.29
  • P/S 1.69
  • P/B 1.44
  • EPS 0.75
  • Cash ROIC 2.30%
  • Cash Ratio -
  • Dividend 1.06 / 10.09%
  • Avg. Vol. 2.08M
  • Shares 170.51M
  • Market Cap. 1.70B

Company Description

CBL & Associates Properties, Inc. is a public real estate investment trust. It engages in acquisition, development, and management of properties. The fund invests in the real estate markets of United States. Its portfolio consists of enclosed malls and open-air centers. CBL & Associates Properties is based in Oak Brook, Illinois. CBL & Associates Properties was founded in 1978 and is based in Chat... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

CBL & Associates Properties Declares Common Stock Dividend and Preferred Stock ...
Business Wire (press release) - 22 hours ago
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--CBL & Associates Properties, Inc. (NYSE: CBL) today announced that its Board of Directors has declared a quarterly cash dividend for the Company's Common Stock of $0.265 per share for the quarter ending ...
CBL & Associates Properties Becomes Oversold
Nasdaq - Feb 24, 2017
In trading on Friday, shares of CBL & Associates Properties Inc (Symbol: CBL) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $9.77 per share.
CBL & Associates Properties Inc. (CBL) Moves Lower on Volume Spike for February 24 - Equities.com
Which insiders are buying CBL & Associates Properties, Inc. (NYSE:CBL)? - Post Analyst
Strong Buy on CBL & Associates Properties
Yahoo Finance - Feb 16, 2017
This REIT review is an update on CBL & Associates Properties Inc. (CBL), a publicly traded REIT that is engaged in the ownership, acquisition, development, leasing, management and operation of regional shopping malls, retail centers, outlet centers and ...
Dividend Growth of CBL & Associates Properties, Inc.(CBL) - Highland Mirror
CBL & Associates Properties, Inc. (CBL): How technical indicators have come out? - Post Analyst
CBL & Associates Properties, Inc. Announces Addition of Dillard's to Layton ...
Yahoo Finance - Feb 2, 2017
CBL & Associates Properties, Inc. (CBL) today announced that fashion retailer Dillard's, Inc. (DDS) (Dillard's) will open a new store in the former Macy's location at Layton Hills Mall.
Option Trading: CBL & Associates Properties Inc (NYSE:CBL) Powerful Short Put ...
CML News - Feb 24, 2017
There is a lot less 'luck' involved in successful option trading than many people have come to understand. We can get specific with short put spreads on CBL in this dossier. Let's look at a one-year back-test of a short put spread strategy and use the ...
What's Happening With CBL?
Seeking Alpha - Jan 31, 2017
Sure, in terms of sales per sq.ft, CBL boasts figures lower than that of tier 1 mall owners such as Simon Property (NYSE:SPG), Macerich (NYSE:MAC), and General Growth (NYSE:GGP), but that in itself is not a problem, since CBL is not at all a competitor ...
CBL & Associates Properties' (CBL) CEO Stephen Lebovitz on Q4 2016 Results ...
Seeking Alpha - Feb 3, 2017
We appreciate your participation in the CBL & Associates Properties, Inc. conference call to discuss fourth quarter results.
CBL & Associates Properties, Inc. (CBL) Receives Consensus Rating of “Hold ... - Sports Perspectives
CBL & Associates Properties Inc. (NYSE:CBL) Eps and Price target Analysis - TopChronicle
CBL: 10% Yield And Growing
Seeking Alpha - Feb 3, 2017
CBL is a Class B Mall REIT trading at an extremely cheap valuation due to overblown fears over ecommerce. Despite the fears, CBL has been consistently performing just fine. CBL just announced its full-year 2016 results, and the news is very encouraging.
CBL & Associates Properties Inc Stock Volatility Hits An Unsually High Level
CML News - Feb 8, 2017
This is a proprietary realized volatility rating created by Capital Market Laboratories (CMLviz) based on a large number of data interactions for CBL & Associates Properties Inc (NYSE:CBL) . We examine the little used gem of daily stock volatility over ...
FY2017 Earnings Estimate for CBL & Associates Properties, Inc. Issued By ... - Community Financial News
Eye Catching Stocks: CBL & Associates Properties, Inc. (CBL), Arrowhead ... - iStreetWire
Redevelopment Of Sears Holdings Corp (NASDAQ:SHLD) Space By CBL & Associates ...
Market Exclusive - Feb 3, 2017
New development opportunities are being explored for the Sears Holdings Corp (NASDAQ:SHLD) store that CBL & Associates Properties, Inc. (NYSE:CBL) recently acquired in a sale-leaseback transaction. Though the Sears store is still operational, it was ...
CBL & Associates Properties, Inc. (CBL) Updates FY17 Earnings Guidance - Sports Perspectives
CBL & Associates Properties, Inc. (CBL) Upgraded to “C” at TheStreet - Community Financial News
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CBL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CBL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$9.97 Current Price

$10.71 Growth Price (DCF)

Undervalued by 7.44%


Growth Rate Assumed by Market: -6.96%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.28 Book Price

Undervalued by 23.16%


Poor Cash Return on Invested Capital over the past 5 years

CBL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CBL has only created $2.30 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 224.96M 167.59M 109.01M 190.44M 84.14M
divided by
Invested Capital 6.72B 7.09B 6.79B 6.62B 6.48B
Cash ROIC 3.35% 2.36% 1.61% 2.88% 1.30%

Satisfactory Return on Equity over the past 5 years

CBL has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

CBL has generated $12.58 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 184.99M 174.52M 110.37M 253.03M 119.02M
divided by
Stockholders' Equity 1.26B 1.33B 1.40B 1.41B 1.28B
Return on Equity 14.64% 13.13% 7.86% 17.99% 9.26%

Good Business Performance over the past 10 years

It's likely CBL has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is CBL has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

CBL has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -63.47M -94.44M -18.67M 201.91M 286.21M 224.96M 167.59M 109.01M 190.44M 84.14M

Weak Balance Sheet

CBL's financial position is not ideal. The key is to check whether CBL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 6.52B 8.11B 8.03B 7.73B 7.51B 6.72B 7.09B 6.79B 6.62B 6.48B
Current Liabilities - - - - - - - - - -
Total Liabilities 5.43B 7.18B 7.24B 6.61B 6.21B 5.46B 5.76B 5.38B 5.21B 5.20B
Stockholder' Equity 1.08B 920.55M 793.66M 1.12B 1.30B 1.26B 1.33B 1.40B 1.41B 1.28B
Current Ratio - - - - - - - - - -
TL-to-TA 0.83 0.89 0.90 0.86 0.83 0.81 0.81 0.79 0.79 0.80

Low or No Reinvestment of Profits over the past 10 years

CBL has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CBL operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 9.70M -70.15M -193.31M -283.64M -366.53M -399.58M -453.56M -570.78M -566.79M -689.03M
Retained Earnings Growth - -823.16% -175.55% -46.73% -29.22% -9.02% -13.51% -25.84% 0.70% -21.57%

Inconsistent Net Profit Margins over the past 10 years

CBL potentially has a competitive advantage, however inconsistent profit margins are a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$11.14 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 117.50M 89.15M 31.59M -7.07M 98.17M 184.99M 174.52M 110.37M 253.03M 119.02M
divided by
Revenue 1.00B 1.04B 1.14B 1.09B 1.07B 1.07B 1.03B 1.05B 1.06B 1.06B
Net Profit Margin 11.72% 8.57% 2.78% -0.65% 9.16% 17.33% 16.87% 10.48% 23.85% 11.28%

Weak Pricing Power over the past 10 years

CBL is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that CBL has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue 1.00B 1.04B 1.14B 1.09B 1.07B 1.07B 1.03B 1.05B 1.06B 1.06B
Gross Margin - - - - - - - - - -

High Capital Intensity over the past 10 years

CBL spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

402.78% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 452.38M 564.72M 437.77M 229.73M 143.59M 216.88M 313.93M 355.74M 277.62M 410.88M
divided by
Net Income 117.50M 89.15M 31.59M -7.07M 98.17M 184.99M 174.52M 110.37M 253.03M 119.02M
Capital Expenditure Ratio 385.00% 633.47% 1,385.90% -3,251.69% 146.26% 117.24% 179.88% 322.32% 109.72% 345.23%

Very Strong Dividend History over the past 10 years

CBL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CBL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 153.44M 158.71M 166.32M 78.28M 125.40M 165.42M 243.11M 261.43M 264.41M 273.24M
divided by
Shares Outstanding 65.27M 65.91M 66.15M 106.37M 138.42M 148.33M 154.81M 167.03M 170.25M 170.50M
Dividend Paid Per Share 2.35 2.41 2.51 0.74 0.91 1.12 1.57 1.57 1.55 1.60
Price at Year End 27.83 16.29 4.69 8.87 16.79 15.70 20.83 18.06 19.75 12.53
Dividend Yield 8.45% 14.78% 53.61% 8.30% 5.40% 7.10% 7.54% 8.67% 7.86% 12.79%

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that CBL hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 65.27M 65.91M 66.15M 106.37M 138.42M 148.33M 154.81M 167.03M 170.25M 170.50M
Stock Bought Back - -0.98% -0.36% -37.81% -23.15% -6.69% -4.18% -7.32% -1.89% -0.15%
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