Q: Your analysis about the future earnings of the companies. What is the major catalyst in order for Real Inc. to recover from recent lows? Which companies are major competitor of Real Inc.?
Thanks
Piyush
Thanks
Piyush
5i Research Answer:
REAL is closely tied to the real estate sector, and it really needs that sector to improve in order to do better. It grew nicely many years ago, but forecasted EPS for 2025 is a fraction of what it used to be ($1.91 in 2019, estimates $0.10 this year). EPS is expected to double in 2026 but even so it will be well below historical levels. It does have $48M cash but the last quarter was mixed, with a miss on earnings and sales. The stock is also still quite expensive at 44X earnings (note it reports in US$). Competitors include Plunk and Regorra (private) as well as divisions of other companies. All in, it is still fairly hard to get too excited about this stock.