La Rosa Grows Real Estate Presence With Acquisition of Fifth Franchisee Worth $3.6M in 2022
December 28, 2023
☀️Trending News
In 2022, La Rosa ($NASDAQ:LRHC) achieved a major milestone in its growth trajectory when it acquired its fifth real estate brokerage franchisee, generating $3.6M in revenue. La Rosa is a real estate investment trust that invests in residential and commercial properties located in the United States. The company is well-positioned to reap the rewards of its investments and capitalize on what is expected to be a booming real estate market in the years ahead. With the acquisition, La Rosa can now offer a wider range of services to its customers, making it an even more attractive option for both buyers and sellers.
The $3.6M of revenue generated by the acquisition is an indication that the company is on track to achieving greater success in the future. With its expanding portfolio, La Rosa is set to become one of the most successful real estate investment trusts in the United States.
Earnings
According to the latest earning report for FY2023 Q3 ending September 30 2021, LA ROSA earned 7.75M USD in total revenue and 0.34M USD in net income. Compared to the previous year, there was a 26.4% increase in total revenue and a 149.3% decrease in net income. LA ROSA’s total revenue has been on a decline over the past 3 years, from 7.75M USD to 6.79M USD.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for La Rosa. More…
| Total Revenues | Net Income | Net Margin |
| 46.74 | -14.96 | -27.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for La Rosa. More…
| Operations | Investing | Financing |
| -0.98 | – | 1.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for La Rosa. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.77 | 5.05 | 0.06 |
Key Ratios Snapshot
Some of the financial key ratios for La Rosa are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -31.6% |
| FCF Margin | ROE | ROA |
| -2.1% | -256.1% | -160.0% |
Market Price
This acquisition marks a major milestone for the company, as it continues to expand its real estate presence. The news buoyed investor confidence, and LA ROSA‘s stock opened at $1.6 and closed at the same price, representing an increase of 3.9% from its previous closing price of $1.5. This acquisition demonstrates LA ROSA’s commitment to furthering its reach in the real estate sector and helping to drive growth for the company. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of LA ROSA‘s financials. According to our Star Chart, LA ROSA is strong in growth, medium in asset, profitability and weak in dividend. This indicates that LA ROSA is a ‘cheetah’ type company, one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given the company’s intermediate health score of 4/10, considering its cashflows and debt, LA ROSA might be able to safely ride out any crisis without the risk of bankruptcy. As such, this type of company may be attractive to investors who prefer higher returns but are willing to accept higher risks. Investors who understand the markets and actively monitor their investments should find investing in a ‘cheetah’ type company to be a good fit. More…
Summary
For investors looking to capitalize on the company’s growth potential, LA ROSA has demonstrated its ability to acquire and grow new franchisees, creating a strong opportunity for returns in the future. Moreover, with a dynamic and diverse portfolio of franchisees, the company looks poised to benefit from increased demand for real estate services caused by an improving economy. As such, LA ROSA could be an attractive option for investors looking for exposure to the real estate industry.
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