MeritValue

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC.

FREVSdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'incomeTaxExpense'

The thesis, from the filings

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. earns about 59% on invested capital, far above its ~9% cost of capital, but has diluted owners by 6% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $4,868.48 and $12,900.18 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$50.3M1$31.3M2$28.3M3$28.7M3$29.3M3
Net income$927,0004$46M5$760,0006$15.9M6$3.51M6
Operating cash flow$12.2M7$7.32M8$2.68M9$20.2M9$6.25M9
Capital expenditure$1.94M10$1.57M11$1.29M12$1.24M12$759,00012
Free cash flow (derived)$10.3M7$5.75M8$1.39M9$18.9M9$5.49M9
Total debt$299.9M13$138.1M14$137.1M14——
Cash & equivalents$35.9M15$49.6M16$13.2M17$14.9M17$17.9M17
Diluted shares7,0227,1327,4477,4597,469

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$45,573.7
your share of equity
Profit it earned you last year
$4,698.09
Free cash flow it threw off
$7,349.04
Debt you’d be carrying
—

10 shares is a claim on $45,573.7 of net worth that earned you $4,698.09 and generated $7,349.04 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
59% avg · 5y
FY21 —FY22 17%FY23 12%FY24 96%FY25 110%

It earned about 59% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+6% shares · 5y

Share count is up 6% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 54% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $4,868.48 and $12,900.18 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$12,109.6
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$5.49M
DCF · Growth Exit 5Y
$12,900.18
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$5.49M
Earnings Power Value
$4,868.48
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.51M
  • growthAssumed0.0%
Graham Number
$219.53
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $12,900.18
The three cases
Bear0.0%$12,900.18
Base0.0%$12,900.18
Bull5.0%$15,441.7

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-10-31 · accession 0001174947-24-000132 (Revenues)
  2. 10-K · period ending 2022-10-31 · accession 0001174947-25-000074 (Revenues)
  3. 10-K · period ending 2023-10-31 · accession 0001174947-26-000102 (Revenues)
  4. 10-K · period ending 2021-10-31 · accession 0001174947-24-000132 (NetIncomeLoss)
  5. 10-K · period ending 2022-10-31 · accession 0001174947-25-000074 (NetIncomeLoss)
  6. 10-K · period ending 2023-10-31 · accession 0001174947-26-000102 (NetIncomeLoss)
  7. 10-K · period ending 2021-10-31 · accession 0001174947-24-000132 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-10-31 · accession 0001174947-25-000074 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-10-31 · accession 0001174947-26-000102 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-10-31 · accession 0001174947-24-000132 (PaymentsForCapitalImprovements)
  11. 10-K · period ending 2022-10-31 · accession 0001174947-25-000074 (PaymentsForCapitalImprovements)
  12. 10-K · period ending 2023-10-31 · accession 0001174947-26-000102 (PaymentsForCapitalImprovements)
  13. 10-K · period ending 2021-10-31 · accession 0001174947-23-000058 (LongTermDebt)
  14. 10-K · period ending 2022-10-31 · accession 0001174947-24-000132 (LongTermDebt)
  15. 10-K · period ending 2021-10-31 · accession 0001174947-23-000058 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-10-31 · accession 0001174947-24-000132 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-10-31 · accession 0001174947-26-000102 (CashAndCashEquivalentsAtCarryingValue)