Seritage Growth Properties (SRG) AI Stock Analysis
SRG AI stock analysis summary
AI ResearchSeritage Growth Properties (SRG) is a self-administered real estate investment trust focused on redeveloping former Sears Holdings properties. The company generated $18.2M in FY2025 revenue and posted a net income of -$68.2M. For the trailing twelve months ended June 30, 2026, operating margin stood at -178.4% with revenue of $12.5M.
- Market cap
- $91.2M
- Revenue (TTM)
- $12.5M
- P/E
- — fwd 11.3x
- 1Y return
- -59.4% S&P 500 16.8%
- Avg. target
- $6.50 301.2% vs last close
Bull case
- The company maintains a low debt-to-equity ratio of 0.17 with total debt of $50.3M nearly offset by $48.4M in cash.
- Seritage's stock trades at a price-to-book ratio of 0.4x relative to shareholders' equity of $292.2M.
- Analyst targets indicate potential upside, with a mean price target of $6.50 compared to the last close of $1.62.
Bear case
- Operating cash flow and free cash flow remained negative in FY2025 at -$34.9M.
- Revenue has experienced a steep multi-year decline, reflecting a 5-year revenue CAGR of -31.0% through FY2025.
- Shares have significantly lagged broader markets, falling 59.4% over the past year while the S&P 500 gained 16.8%.
What Seritage Growth Properties does
Seritage Growth Properties operates as a publicly-traded Real Estate Investment Trust (REIT) that is self-administered and self-managed. The company owns 166 wholly-owned properties and has interests in 29 unconsolidated properties, totaling approximately 30.4 million square feet of space across 44 states and Puerto Rico. Formed in July 2015 through the acquisition of a retail portfolio from Sears Holdings, Seritage focuses on unlocking real estate value by redeveloping and repositioning assets into mixed-use, dining, entertainment, and retail destinations to attract new tenants.
Growth and profitability
Seritage has experienced significant contraction, with revenue falling from $116.7M in FY2021 to $107.1M in FY2022 and $20.8M in FY2023. Revenue further dropped to $17.6M in FY2024 before a slight rebound to $18.2M in FY2025, reflecting a 5-year revenue CAGR of -31.0%. The company has remained unprofitable throughout this period, reporting net income of -$28.1M in FY2021, -$154.9M in FY2023, and -$68.2M in FY2025. In FY2025, gross margin recovered to 9.7%, though operating margin remained negative at -200.3%. In the latest quarter ended June 30, 2026, quarterly revenue fell 56.0% year-over-year, and quarterly earnings fell 97.6%.
Balance sheet and cash flow
As of June 30, 2026, Seritage held $48.4M in cash and short-term investments against total debt of $50.3M, yielding net debt of $1.8M. Shareholders' equity was $292.2M, with a debt-to-equity ratio of 0.17 and a current ratio of 4.67. Free cash flow was -$34.9M in FY2025, matching an operating cash flow of -$34.9M. In FY2025, the company allocated $126,000 to share buybacks and paid $4.9M in dividends.
Valuation and performance
At a market cap of $91.2M and enterprise value of $105.5M, SRG trades at a forward P/E of 11.3x, compared to the median of 23.5x for its US-listed Real Estate peers. Its price-to-sales ratio is 7.3x versus the peer median of 3.7x, and its EV-to-EBITDA stands at 74.5x compared to the peer median of 14.7x. Over the past year, SRG returned -59.4%, trailing the S&P 500 return of 16.8%, and its 5-year return of -89.1% lags the S&P 500 return of 83.0%.
What analysts expect
Wall Street analysts have a mean price target of $6.50 for Seritage, representing an upside of 301.2% from its last close of $1.62 on October 16, 2026. Over the last four quarters, the company recorded 0 EPS beats. The next scheduled earnings report date is November 13, 2026.
Key risks and what to watch
- Trailing twelve-month operating margin stands at -178.4%, showing continued operational losses.
- The stock carries elevated market sensitivity, evidenced by a high beta of 2.24.
- Short interest represents 10.8% of the float, reflecting meaningful short positioning.
- Quarterly revenue fell 56.0% year-over-year in the quarter ended June 30, 2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SRG AI stock analysis
This page is an AI-written research summary of Seritage Growth Properties (SRG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SRG income statement, SRG balance sheet, SRG key metrics, SRG chart. See the SRG stock overview for the latest quote and news.
SRG AI stock analysis FAQ
What is Seritage Growth Properties' current cash position?
As of June 30, 2026, the company held $48.4M in cash and short-term investments, with net debt standing at $1.8M.
What is Seritage's market capitalization and enterprise value?
Seritage has a market cap of $91.2M and an enterprise value of $105.5M as of October 16, 2026.
How did Seritage perform financially in FY2025?
In FY2025, Seritage reported revenue of $18.2M, an operating margin of -200.3%, and a net income of -$68.2M.
When is Seritage's next earnings date?
The company's next earnings release is scheduled for November 13, 2026.