(WEHB) Wereldhav B-Sicafi - Ratings and Ratios

Wereldhave Belgium is a regulated real estate company (REIT) specializing in commercial properties, primarily focusing on shopping centers in Belgium. The companys portfolio is heavily weighted towards retail, with a significant presence in the Belgian market. As of December 31, 2020, the total value of its real estate portfolio, including ongoing projects, stood at €921.2 million.

The operational retail portfolio, which accounts for approximately 90% of the total portfolio, is diversified across several locations, including major shopping centers in Liège, Nivelles, Tournai, Genk, and Kortrijk, as well as retail parks in Brugge, Ghent, Turnhout, Waterloo, and Tournai. Additionally, the company holds office properties in Vilvoorde and Antwerp, contributing to a diversified income stream. The development portfolio, valued at €12.6 million as of December 31, 2020, is focused on enhancing existing assets through refurbishment and expansion, notably in Waterloo and Liège.

Analyzing the technical data, the stocks current price is €50.40, indicating a positive trend given its position above the SMA20 (€49.42) and SMA50 (€48.10), and significantly above the SMA200 (€44.78). The Average True Range (ATR) of 1.12, representing a 2.23% daily volatility, suggests moderate short-term price fluctuations. The stock is near its 52-week high of €50.80, having more than recovered from its 52-week low of €40.93. This recovery indicates a strong upward momentum.

From a fundamental perspective, Wereldhave Belgium boasts a market capitalization of €449.63 million and a Price-to-Earnings (P/E) ratio of 6.25, suggesting the stock is undervalued relative to its earnings. The Return on Equity (RoE) of 15.83% is noteworthy, indicating efficient use of shareholder capital to generate profits. Given the REITs focus on high-quality retail assets and its solid financial performance, the outlook appears positive.

Forecasting future performance, we can anticipate that Wereldhave Belgium will continue to benefit from its strategic focus on Belgian shopping centers and retail parks. The technical indicators suggest a sustained upward trend, supported by the stocks position relative to its moving averages. Fundamentally, the companys strong RoE and relatively low P/E ratio provide a solid foundation for potential long-term growth. Assuming the Belgian retail market stabilizes and the company continues to effectively manage its portfolio, a target price of €55.00 within the next 12 months is plausible, representing a potential upside of approximately 9% from current levels.