One-glance verdict
Undervalued
$212.94 our estimate vs market $6.80
97% below our estimate, below the bear case
Fundamentals snapshot
Power REIT
PW · ASE · Real Estate · REIT - Specialty
Current price
$6.80
52-week range
$5.00 - $12.92
Market cap
$2.50M
Balance sheet
Distressed
-0.20x Concerning
Net debt $16.51M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 38.7% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -29.3% last year — the company lost money on shareholders' equity.
What this company does
Power REIT
Power REIT owns properties used for growing plants in controlled environments like greenhouses and for renewable energy projects, with its main income coming from renting out this specialized real estate. This matters because they are focused on growing sectors of the economy, providing essential land for businesses that need specific facilities. Think of them as a landlord for innovative farms and clean energy companies.
How the company got here
Power REIT started with a railroad, the Pittsburgh & West Virginia Railroad (P&WV), which was a pioneer in the real estate investment trust (REIT) world back in the late 1960s. This railroad company was recognized by the IRS as a qualifying real estate asset, making it the first listed infrastructure REIT. In 2011, Power REIT was founded as a holding company to build upon this legacy and expand into other specialized real estate sectors. It has since evolved into a company focused on owning and leasing real estate for controlled environment agriculture, renewable energy, and transportation.
What it actually does
Power REIT is a real estate investment trust (REIT), which means it owns income-producing real estate. Instead of owning typical apartment buildings or shopping malls, Power REIT focuses on specialized properties. These properties are leased out to businesses that operate within specific industries, generating rental income for Power REIT. The company's strategy involves long-term leases, providing stable income while relying on its tenants to manage the day-to-day operations of the properties.
Controlled Environment Agriculture (CEA)
This segment involves owning and leasing greenhouses and related facilities used for growing crops. These are often referred to as CEA properties. The tenants are typically businesses involved in cultivating food or cannabis. Power REIT focuses on these properties because they use significantly less water and electricity compared to traditional farming methods, and they avoid the environmental issues associated with agricultural runoff and pesticide use. This part of the business is a key area for growth, with the company actively seeking to expand its portfolio of these specialized farms.
Renewable Energy
In this segment, Power REIT owns land that is leased to companies developing and operating solar power projects. The company owns hundreds of acres of land where large solar farms are installed. These solar farms generate clean electricity, powering thousands of homes. By leasing this land, Power REIT generates predictable income from tenants who have made substantial investments in the solar infrastructure on the land.
Transportation
This segment is rooted in the company's history, stemming from its ownership of the Pittsburgh & West Virginia Railroad (P&WV). Power REIT owns railroad infrastructure and related real estate, which is leased to a major railroad operator, Norfolk Southern Corporation. This lease is very long-term, providing a stable revenue stream. The railroad's location is also strategic, situated in an area known for natural gas development.
What management is betting on now
Power REIT's main strategic focus is on expanding its portfolio of Controlled Environment Agriculture (CEA) properties, particularly greenhouses. Management sees significant growth potential in this sector due to its sustainable farming practices and increasing demand for locally grown produce and cannabis. The company aims to acquire more of these specialized agricultural real estate assets, leveraging its expertise in long-term leasing and financing to support operators in this growing industry.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$1.29M
Net income
$435.55K
Diluted EPS
0.74
Operating cash flow
$1.06M
Free cash flow
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Sources
Revenue
$480.44K
Net income
$-893.27K
Diluted EPS
-0.29
Operating cash flow
$-147.12K
Free cash flow
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Sources
Revenue
$506.10K
Net income
$-1.33M
Diluted EPS
-0.43
Operating cash flow
$132.38K
Free cash flow
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Sources
Revenue
$513.11K
Net income
$223.55K
Diluted EPS
0.02
Operating cash flow
$476.44K
Free cash flow
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Sources
Revenue
$506.78K
Net income
$320.91K
Diluted EPS
0.05
Operating cash flow
$-240.49K
Free cash flow
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Sources
Revenue
$485.79K
Net income
$-1.41M
Diluted EPS
-0.47
Operating cash flow
$-436.65K
Free cash flow
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Sources
Revenue
$534.61K
Net income
$-2.08M
Diluted EPS
-0.66
Operating cash flow
$-288.27K
Free cash flow
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Sources
Revenue
$1.43M
Net income
$-325.01K
Diluted EPS
-0.14
Operating cash flow
$-161.79K
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $212.94 vs current price $6.80
Our most-likely fair value is $212.94 a share — about 3,031.4% above today's price of $6.80, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $16.5M. Interest coverage -0.2x.
Net debt
$16.51M
Interest coverage
-0.20x
Power REIT's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
PW
BASELINE
Power REIT
Total debt $19.65M Interest coverage -0.20x This is the baseline the peer rows are being compared against.
Total debt $7.68M Interest coverage 32.52x This peer still has a real interest-payment cushion, while PW does not.
What you should know
The case for and against PW
2 Rewards
1 Risk
Rewards
-
Revenue grew 38.7% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -29.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
1.85x
P/B
-0.66x
P/S
0.89x
EV/EBITDA
19.07x
PEG ratio
3.98x
Profitability
How much profit each dollar creates
Gross margin
85.8%
Operating margin
70.3%
Net margin
-55.9%
ROE
-29.3%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
4.19x
Current ratio
6.95x
Quick ratio
4.76x
Total debt
$19.65M
Total cash
$3.15M
Growth
How the business has been compounding
Revenue TTM
$2.79M
Revenue 5Y CAGR
-30.2%
EPS TTM
-6.20
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.52M
Free CF TTM
$-68.32K
FCF margin
-2.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2013-01-10