ARTIS REAL ESTATE INVESTMENT (AX-UN.CA) Stock Fundamental Analysis
TSX:AX-UN - Toronto Stock Exchange - CA04315L1058 - REIT - Currency: CAD
We assign a fundamental rating of 3 out of 10 to AX-UN. AX-UN was compared to 43 industry peers in the Diversified REITs industry. AX-UN has only an average score on both its financial health and profitability. AX-UN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AX-UN had negative earnings in the past year.
In the past year AX-UN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AX-UN reported negative net income in multiple years.
Each year in the past 5 years AX-UN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.16%, AX-UN is in line with its industry, outperforming 41.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of -7.33%, AX-UN is in line with its industry, outperforming 44.19% of the companies in the same industry.
The Return On Invested Capital of AX-UN (5.29%) is better than 81.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AX-UN is in line with the industry average of 5.49%.
The last Return On Invested Capital (5.29%) for AX-UN is above the 3 year average (4.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.16% | ||
| ROE | -7.33% | ||
| ROIC | 5.29% |
ROA(3y)-0.53%
ROA(5y)0.09%
ROE(3y)-1.97%
ROE(5y)-0.31%
ROIC(3y)4.52%
ROIC(5y)4.55%
1.3 Margins
AX-UN has a Operating Margin (50.97%) which is in line with its industry peers.
AX-UN's Operating Margin has declined in the last couple of years.
AX-UN has a worse Gross Margin (54.70%) than 60.47% of its industry peers.
AX-UN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.97% | ||
| PM (TTM) | N/A | ||
| GM | 54.7% |
OM growth 3Y-1.69%
OM growth 5Y-1.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.26%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AX-UN is destroying value.
AX-UN has less shares outstanding than it did 1 year ago.
AX-UN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AX-UN is higher compared to a year ago.
2.2 Solvency
AX-UN has an Altman-Z score of 0.23. This is a bad value and indicates that AX-UN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.23, AX-UN is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
The Debt to FCF ratio of AX-UN is 18.14, which is on the high side as it means it would take AX-UN, 18.14 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 18.14, AX-UN is doing good in the industry, outperforming 60.47% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that AX-UN is not too dependend on debt financing.
The Debt to Equity ratio of AX-UN (0.34) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 18.14 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.82
WACC6.48%
2.3 Liquidity
AX-UN has a Current Ratio of 0.46. This is a bad value and indicates that AX-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
AX-UN has a Current ratio of 0.46. This is amongst the best in the industry. AX-UN outperforms 86.05% of its industry peers.
A Quick Ratio of 0.46 indicates that AX-UN may have some problems paying its short term obligations.
The Quick ratio of AX-UN (0.46) is better than 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.88% over the past year.
Looking at the last year, AX-UN shows a very negative growth in Revenue. The Revenue has decreased by -10.50% in the last year.
AX-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.12% yearly.
EPS 1Y (TTM)67.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.93%
Revenue 1Y (TTM)-10.5%
Revenue growth 3Y-9.88%
Revenue growth 5Y-8.12%
Sales Q2Q%-17.46%
3.2 Future
AX-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.18% yearly.
AX-UN is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.28% yearly.
EPS Next Y89.86%
EPS Next 2Y39.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.75%
Revenue Next 2Y-11.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AX-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AX-UN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AX-UN is valued cheaper than 90.70% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AX-UN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.31 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AX-UN's earnings are expected to grow with 39.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AX-UN has a Yearly Dividend Yield of 8.45%, which is a nice return.
Compared to an average industry Dividend Yield of 8.03, AX-UN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, AX-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.45% |
5.2 History
The dividend of AX-UN decreases each year by -7.06%.
AX-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of AX-UN are negative and hence is the payout ratio. AX-UN will probably not be able to sustain this dividend level.
DP-74.47%
EPS Next 2Y39.18%
EPS Next 3YN/A
TSX:AX-UN (2/21/2025, 7:00:00 PM)
7.69
-0.09 (-1.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners21.98%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap769.92M
Analysts42.5
Price Target7.65 (-0.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.45% |
Yearly Dividend0.83
Dividend Growth(5Y)-7.06%
DP-74.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)7.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.46 | ||
| P/FCF | 12.31 | ||
| P/OCF | 12.23 | ||
| P/B | 0.48 | ||
| P/tB | 0.48 | ||
| EV/EBITDA | 11.59 |
EPS(TTM)-1.1
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.62
FCFY8.12%
OCF(TTM)0.63
OCFY8.18%
SpS3.12
BVpS16.12
TBVpS16.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.16% | ||
| ROE | -7.33% | ||
| ROCE | 7.34% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.4% | ||
| ROICexgc | 5.4% | ||
| OM | 50.97% | ||
| PM (TTM) | N/A | ||
| GM | 54.7% | ||
| FCFM | 20.02% |
ROA(3y)-0.53%
ROA(5y)0.09%
ROE(3y)-1.97%
ROE(5y)-0.31%
ROIC(3y)4.52%
ROIC(5y)4.55%
ROICexc(3y)4.67%
ROICexc(5y)4.66%
ROICexgc(3y)4.67%
ROICexgc(5y)4.66%
ROCE(3y)6.28%
ROCE(5y)6.31%
ROICexcg growth 3Y-0.07%
ROICexcg growth 5Y1.74%
ROICexc growth 3Y-0.07%
ROICexc growth 5Y1.74%
OM growth 3Y-1.69%
OM growth 5Y-1.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.26%
GM growth 5Y-1.58%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 18.14 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 34.91% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | 1.38 | ||
| Cash Conversion | 39.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.23 |
F-Score6
WACC6.48%
ROIC/WACC0.82
Cap/Depr(3y)10.9%
Cap/Depr(5y)39.27%
Cap/Sales(3y)0.04%
Cap/Sales(5y)0.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)67.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.93%
EPS Next Y89.86%
EPS Next 2Y39.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.5%
Revenue growth 3Y-9.88%
Revenue growth 5Y-8.12%
Sales Q2Q%-17.46%
Revenue Next Year-11.75%
Revenue Next 2Y-11.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.88%
EBIT growth 3Y-11.4%
EBIT growth 5Y-9.5%
EBIT Next Year27.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-64.88%
FCF growth 3Y-23.29%
FCF growth 5Y-17.88%
OCF growth 1Y-64.65%
OCF growth 3Y-23.17%
OCF growth 5Y-17.85%