RLGY
Realogy Holdings Corp
Finance/Real Estate
10/31/2019
Presented
| Date | 10/25/2019 |
| Price | $8.83 |
| Market Cap | $1.01B |
| Ent Value | $5.08B |
| P/E Ratio | 23.43x |
| Book Value | $19.68 |
| Div Yield | 4.08% |
| Shares O/S | 114.32M |
| Ave Daily Vol | 3,400,866 |
| Short Int | 49.23% |
Current
| Price | $4.67 |
| Market Cap | $0.52B |
| Realogy Holdings Corp. engages in the provision of residential real estate services, which focuses on empowering independent sales agents. It operates through the following segments: Real Estate Franchise, Company Owned Real Estate Brokerage, Relocation, and Title and Settlement Services. The Real Estate Franchise Services segment franchises Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA, Sotheby's International Realty and Better Homes, and Gardens Real Estate. The Company Owned Real Estate Brokerage Services segment comprises of residential property brokerage business under the Coldwell Banker, Corcoran, Sotheby's International Realty, ZipRealty, and Citi Habitats brand names. The Relocation Services segment offers home sale assistance, home equity advances to transferees, home finding, expense processing, relocation policy counselling and consulting services, arranging household goods moving services, and coordinating visa and immigration support. The Title and Settlement Services segment involves in assisting the closing of real estate transactions. The company was founded on December 14, 2006 and is headquartered in Madison, NJ. |
Realogy Holdings Corp (RLGY) – Long
Publicly traded companies mentioned herein: Realogy Holdings Corp (RLGY), Softbank Group (9434 JP)
Highlights
The presenter is long shares of Realogy Holdings Corp (RLGY), which he views as bullish play on the recovery in the home sales market. Shares of the stock, which are trading at ~$9 (7.7x EV/EBITDA on consensus expectations), are down ~50% YTD, and many analysts consider the business structurally broken. The presenter is more optimistic, as he thinks the company’s major issues have run their course. With an improved management team and beneficial market conditions, he expects strong performance to the tune of ~$1.50 EPS in 2020 (against consensus expectations of $1.23) and even more impressive FCF generation (~$500MM from the current quarter through the end of 2020). The presenter sees ~60% upside to RLGY’s share price as EBITDA grows, with additional potential upside if multiple expansion occurs as the company delevers and sentiment improves.
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