CTO Realty Growth, Inc. (CTO.PA) stock analysis

P/E below its 5-year median

CTO Realty Growth's P/E of 14.5 is below its own 5-year median of 31.7.

P/E below the industry

CTO Realty Growth's P/E of 14.5 is below the Miscellaneous Investing median of 25.0.

EV/EBITDA below its 5-year median

CTO Realty Growth's EV/EBITDA of 5.9 is below its 5-year median of 7.4.

P/B below the industry

CTO Realty Growth's price-to-book of 1.11 is below the Miscellaneous Investing median of 1.20.

Trading below fair value

The share price of $19.71 is below our fair value estimate of $30.67.

Margin of safety over 20%

The price is 35.7% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 22.0% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 14.3% over the last twelve months; the Miscellaneous Investing median is 4.4%.

Guidance issued

The latest outlook (2026 Core FFO per Common Share - Diluted, Jul 28, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 75.1% over the last twelve months, against 74.2% a year earlier.

Return on equity under 15%

Return on equity was 8.5% over the last twelve months and averaged 2.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 10.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

CTO Realty Growth's return on equity of 8.5% is above the Miscellaneous Investing median of 3.4%.

Earnings shrank over 5 years

Net income shrank 33.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 32.6% over the last twelve months, against a 5-year average of 11.3%.

Net margin above the industry

CTO Realty Growth's net margin of 32.6% is above the Miscellaneous Investing median of 11.4%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 2.2 times; we look for at least 5.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CTO Realty Growth paid dividends worth 7.7% of the share price over the last twelve months.

Yield above Treasuries

The 7.7% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 4.0% or more; CTO Realty Growth yields 7.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Not covered by earnings

Dividends take 97.2% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.