CBL  Cbl & Associates Properties In...

Exchange

NYSE

Sector

Consumer Services

Industry

Real Estate Investment Trusts

Market Cap.

1.30B

Vuru Grade

51.01/100

Current Price

$7.62
-0.07 (-0.91%)

Growth Price

$15.52
Undervalued by 103.71%

Company Metrics

  • P/E 10.73
  • P/S 1.31
  • P/B 1.09
  • EPS 0.71
  • Cash ROIC 2.35%
  • Cash Ratio -
  • Dividend 1.06 / 13.78 %
  • Avg. Vol. 4.70M
  • Shares 170.60M
  • Market Cap. 1.30B

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

Retail Massacre Provides Arbitrage Opportunity
Seeking Alpha - May 22, 2017
CBL & Associates Properties, Inc. (NYSE:CBL) is a retail real estate investment trust (REIT); it primarily owns regional malls that are the dominant retail facility in middle market areas.
CBL & Associates Properties, Inc. (CBL) Stock Rating Upgraded by ValuEngine - Sports Perspectives
Brokerages Set CBL & Associates Properties, Inc. (CBL) Target Price at $13.00 - Petro Global News 24
CBL & Associates - A Look At Liquidity
Seeking Alpha - May 19, 2017
As REIT investors found out in 2007-2009, concerns about liquidity can impede even the strongest REIT - never mind a REIT undergoing fundamental changes.
The Case for and Against CBL & Associates Properties, Inc. (CBL)
StockNewsJournal - 16 hours ago
CBL & Associates Properties, Inc. (CBL) is an interesting player in the Financial space, with a focus on REIT - Retail.
CBL & Associates Properties Inc (NYSE:CBL) Institutional Investors Sentiment - Finance News Daily
CBL & Associates Properties Inc. (CBL) closed its previous trading session at ... - TopChronicle
CBL & Associates Properties, Inc. Plans Mixed-Use Redevelopment at Cary Towne ...
Business Wire (press release) - 21 hours ago
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--CBL & Associates Properties, Inc. (NYSE:CBL) today announced future plans to transform Cary Towne Center in Cary, North Carolina, into a dynamic mixed-use destination.
Officials planning to turn Cary mall into mixed-use shopping center - WRAL.com
Ikea to catalyze Cary Towne Center's change to mixed-use, company says - WNCN
CBL & Associates Properties' (CBL) CEO Stephen Lebovitz on Q1 2017 Results ...
Seeking Alpha - May 4, 2017
Good morning and welcome to the CBL & Associates Properties Inc. First Quarter Earnings Conference Call. All participants will be in listen-only-mode.
CBL & Associates selling Foothills Mall and College Square for $53.5 million - Maryville Daily Times
CBL & Associates Properties Reports Results for First Quarter 2017
Yahoo Finance - May 3, 2017
CBL & Associates Properties, Inc. (CBL) announced results for the first quarter ended March 31, 2017. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at ...
What's Acceptable Profitability For CBL & Associates Properties, Inc. (CBL ...
USA Commerce Daily - 20 hours ago
Shares of CBL & Associates Properties, Inc. (NYSE:CBL) observed rebound of 7.63% since bottoming out at $7.15 on May.
CBL & Associates Properties Inc (CBL) Needle Moving on Volume
The Times - May 19, 2017
Needle moving action has been spotted in CBL & Associates Properties Inc (CBL) as shares are moving today on volatility 5.09% or $0.38 from the open.
CBL & Associates Properties Announces the Sale of the Outlet Shoppes at ...
Yahoo Finance - May 1, 2017
CBL & Associates Properties, Inc. (CBL) today announced that it, along with its joint venture partner Horizon Group Properties, closed on the sale of The Outlet Shoppes at Oklahoma City in Oklahoma City, OK, for a gross sales price of $130.0 million.
Horizon Group Properties Announces the Sale of The Outlet Shoppes at Oklahoma City - PR Newswire (press release)
Just the Facts on CBL & Associates Properties, Inc. (CBL)
StockNewsJournal - May 16, 2017
CBL & Associates Properties, Inc. (CBL) is an interesting player in the Financial space, with a focus on REIT - Retail.
Will CBL & Associates Properties Inc's (CBL) Earnings Grow In The Year Ahead? - Simply Wall St
Analyst's Indicator Review for CBL & Associates Properties, Inc. (CBL), HP Inc ... - The USA Commerce
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.

$7.62 Current Price

$15.52 Growth Price (DCF)

Undervalued by 103.71%


Growth Rate Assumed by Market: -95.70%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$11.79 Book Price

Undervalued by 54.67%


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 $2.35 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 167.59M 109.01M 190.44M 84.14M 220.58M
divided by
Invested Capital 7.09B 6.79B 6.62B 6.48B 6.10B
Cash ROIC 2.36% 1.61% 2.88% 1.30% 3.61%

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 $12.83 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 174.52M 110.37M 253.03M 119.02M 195.53M
divided by
Stockholders' Equity 1.33B 1.40B 1.41B 1.28B 1.23B
Return on Equity 13.13% 7.86% 17.99% 9.26% 15.91%

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
2007200820092010201120122013201420152016
Free Cash Flow -94.44M -18.67M 201.91M 286.21M 224.96M 167.59M 109.01M 190.44M 84.14M 220.58M

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
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 8.11B 8.03B 7.73B 7.51B 6.72B 7.09B 6.79B 6.62B 6.48B 6.10B
Current Liabilities - - - - - - - - - -
Total Liabilities 7.18B 7.24B 6.61B 6.21B 5.46B 5.76B 5.38B 5.21B 5.20B 4.88B
Stockholder' Equity 920.55M 793.66M 1.12B 1.30B 1.26B 1.33B 1.40B 1.41B 1.28B 1.23B
Current Ratio - - - - - - - - - -
TL-to-TA 0.89 0.90 0.86 0.83 0.81 0.81 0.79 0.79 0.80 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
2007200820092010201120122013201420152016
Retained Earnings -70.15M -193.31M -283.64M -366.53M -399.58M -453.56M -570.78M -566.79M -689.03M -742.08M
Retained Earnings Growth - -175.55% -46.73% -29.22% -9.02% -13.51% -25.84% 0.70% -21.57% -7.70%

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.

$11.87 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 89.15M 31.59M -7.07M 98.17M 184.99M 174.52M 110.37M 253.03M 119.02M 195.53M
divided by
Revenue 1.04B 1.14B 1.09B 1.07B 1.07B 1.03B 1.05B 1.06B 1.06B 1.03B
Net Profit Margin 8.57% 2.78% -0.65% 9.16% 17.33% 16.87% 10.48% 23.85% 11.28% 19.02%

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
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 1.04B 1.14B 1.09B 1.07B 1.07B 1.03B 1.05B 1.06B 1.06B 1.03B
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.

374.10% 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
2007200820092010201120122013201420152016
Capital Expenditure 564.72M 437.77M 229.73M 143.59M 216.88M 313.93M 355.74M 277.62M 410.88M 248.00M
divided by
Net Income 89.15M 31.59M -7.07M 98.17M 184.99M 174.52M 110.37M 253.03M 119.02M 195.53M
Capital Expenditure Ratio 633.47% 1,385.90% -3,251.69% 146.26% 117.24% 179.88% 322.32% 109.72% 345.23% 126.84%

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
2007200820092010201120122013201420152016
Dividend Paid 158.71M 166.32M 78.28M 125.40M 165.42M 243.11M 261.43M 264.41M 273.24M 225.85M
divided by
Shares Outstanding 65.91M 66.15M 106.37M 138.42M 148.33M 154.81M 167.03M 170.25M 170.50M 170.84M
Dividend Paid Per Share 2.41 2.51 0.74 0.91 1.12 1.57 1.57 1.55 1.60 1.32
Price at Year End 16.29 4.69 8.87 16.79 15.70 20.83 18.06 19.75 12.53 11.50
Dividend Yield 14.78% 53.61% 8.30% 5.40% 7.10% 7.54% 8.67% 7.86% 12.79% 11.50%

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
2007200820092010201120122013201420152016
Shares Outstanding 65.91M 66.15M 106.37M 138.42M 148.33M 154.81M 167.03M 170.25M 170.50M 170.84M
Stock Bought Back - -0.36% -37.81% -23.15% -6.69% -4.18% -7.32% -1.89% -0.15% -0.20%
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