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First Real Estate Investment Trust of New Jersey (FREVS)
OTHER OTC:FREVS
US Market

First Real Estate Investment of New Jersey (FREVS) AI Stock Analysis

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First Real Estate Investment of New Jersey

(OTC:FREVS)

67Neutral
The overall score is driven primarily by challenges in financial performance, with high leverage and declining profitability. However, positive market momentum and a favorable valuation provide support. The lack of specific earnings guidance adds uncertainty, but the recent positive stock price movement suggests investor optimism. The company's ability to enhance profitability and manage debt will be critical for future performance.

First Real Estate Investment of New Jersey (FREVS) vs. S&P 500 (SPY)

First Real Estate Investment of New Jersey Business Overview & Revenue Model

Company DescriptionFirst Real Estate Investment of New Jersey (FREVS) is a dynamic real estate investment company specializing in the acquisition, development, and management of residential and commercial properties across New Jersey. The company focuses on generating value through strategic property investments, offering comprehensive property management services, and leveraging industry expertise to optimize portfolio performance. FREVS is committed to delivering exceptional returns to its investors while fostering sustainable community development.
How the Company Makes MoneyFREVS makes money primarily through rental income from its portfolio of residential and commercial properties. The company invests in properties that have strong potential for appreciation and revenue generation. This is achieved by targeting undervalued or high-demand areas, implementing value-add strategies, and maintaining high occupancy rates through effective property management. Additionally, FREVS generates revenue through property sales, particularly when market conditions favor capitalizing on appreciated asset values. The company may also engage in real estate development projects, where it earns profits from developing and selling properties. Partnerships with local businesses, real estate agents, and financial institutions help FREVS access opportunities and resources that enhance its investment strategies and revenue generation capabilities.

First Real Estate Investment of New Jersey Financial Statement Overview

Summary
First Real Estate Investment of New Jersey faces challenges in revenue and profit growth, alongside high financial leverage. While operational efficiencies remain strong, the company should focus on improving profitability and reducing debt to enhance financial stability.
Income Statement
65
Positive
The income statement shows a significant decline in total revenue from 2022 to 2023, with a revenue decrease of 9.34%. The net profit margin has also decreased from 14.71% in 2022 to 2.68% in 2023, indicating reduced profitability. However, EBIT and EBITDA margins remain high, suggesting strong operational efficiency before accounting for interest, taxes, depreciation, and amortization.
Balance Sheet
55
Neutral
The balance sheet reflects high leverage with a debt-to-equity ratio of 5.66 in 2023, indicating significant reliance on debt financing. The equity ratio is low at 15.40%, showing limited equity funding relative to total assets. Return on equity has dropped significantly from 177.51% in 2022 to 3.10% in 2023, reflecting diminished returns for shareholders.
Cash Flow
60
Neutral
Cash flow analysis reveals a substantial decrease in operating cash flow, with a decline in free cash flow from 2022 to 2023. The free cash flow to net income ratio is low, indicating limited free cash generation relative to net income. However, operating cash flow remains positive, supporting ongoing business operations.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
28.68M28.34M31.27M50.29M52.73M
Gross Profit
22.69M11.65M25.07M42.23M44.04M
EBIT
11.87M10.35M5.79M13.50M10.84M
EBITDA
11.87M10.35M10.89M22.80M23.00M
Net Income Common Stockholders
15.85M760.00K45.99M-9.95M6.63M
Balance SheetCash, Cash Equivalents and Short-Term Investments
44.17M14.55M49.58M35.89M36.86M
Total Assets
162.26M159.12M178.65M346.11M355.21M
Total Debt
128.07M137.06M138.07M299.88M305.43M
Net Debt
-14.91M123.84M88.49M263.99M268.57M
Total Liabilities
136.08M140.64M153.91M314.15M324.35M
Stockholders Equity
33.36M24.52M25.91M36.57M34.90M
Cash FlowFree Cash Flow
20.16M1.39M5.75M10.28M1.59M
Operating Cash Flow
20.16M2.68M7.32M12.22M3.64M
Investing Cash Flow
-6.11M-25.31M249.69M-1.79M-2.98M
Financing Cash Flow
-13.19M-17.51M-237.55M-10.90M-3.63M

First Real Estate Investment of New Jersey Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.70
Price Trends
50DMA
16.81
Negative
100DMA
16.85
Negative
200DMA
16.66
Positive
Market Momentum
MACD
-0.10
Negative
RSI
52.50
Neutral
STOCH
23.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FREVS, the sentiment is Positive. The current price of 16.7 is above the 20-day moving average (MA) of 16.46, below the 50-day MA of 16.81, and above the 200-day MA of 16.66, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 23.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FREVS.

First Real Estate Investment of New Jersey Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PSPSA
75
Outperform
$53.23B28.5321.01%4.10%3.94%-3.81%
IRIRT
75
Outperform
$4.97B118.081.14%3.11%-3.17%
EQEQR
69
Neutral
$26.97B25.139.36%3.95%3.80%24.08%
68
Neutral
$1.48B13.257.06%8.07%-5.09%6.25%
67
Neutral
$124.63M7.5754.78%1.86%1.19%
UMUMH
65
Neutral
$1.48B542.122.67%4.86%8.88%
GNGNL
63
Neutral
$1.86B-5.48%14.10%56.29%55.99%
61
Neutral
$4.76B18.33-3.11%9.66%6.25%-20.78%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FREVS
First Real Estate Investment of New Jersey
16.70
1.26
8.16%
EQR
Equity Residential
68.94
8.93
14.88%
PSA
Public Storage
298.13
31.09
11.64%
UMH
Umh
18.06
3.22
21.70%
IRT
Independence Realty
20.98
6.07
40.71%
LADR
Ladder Capital
11.66
1.62
16.14%
GNL
Global Net Lease
8.06
1.53
23.43%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.