BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BTB-UN - CA11777P3007 - REIT
4.28 CAD
+0.02 (+0.47%)
Taking everything into account, BTB-UN scores 5 out of 10 in our fundamental rating. BTB-UN was compared to 38 industry peers in the Diversified REITs industry. While BTB-UN belongs to the best of the industry regarding profitability, there are concerns on its financial health. BTB-UN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- BTB-UN had positive earnings in the past year.
- In the past year BTB-UN had a positive cash flow from operations.
- BTB-UN had positive earnings in each of the past 5 years.
- Each year in the past 5 years BTB-UN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of BTB-UN (3.37%) is better than 94.74% of its industry peers.
- Looking at the Return On Equity, with a value of 8.49%, BTB-UN belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
- BTB-UN has a better Return On Invested Capital (4.43%) than 73.68% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BTB-UN is in line with the industry average of 5.49%.
- The 3 year average ROIC (4.42%) for BTB-UN is below the current ROIC(4.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.49% | ||
| ROIC | 4.43% |
ROA(3y)3.1%
ROA(5y)2.66%
ROE(3y)7.92%
ROE(5y)6.98%
ROIC(3y)4.42%
ROIC(5y)4.2%
1.3 Margins
- BTB-UN has a Profit Margin of 32.42%. This is in the better half of the industry: BTB-UN outperforms 76.32% of its industry peers.
- In the last couple of years the Profit Margin of BTB-UN has declined.
- The Operating Margin of BTB-UN (58.11%) is better than 68.42% of its industry peers.
- In the last couple of years the Operating Margin of BTB-UN has remained more or less at the same level.
- With an excellent Gross Margin value of 80.30%, BTB-UN belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
- BTB-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.11% | ||
| PM (TTM) | 32.42% | ||
| GM | 80.3% |
OM growth 3Y0.93%
OM growth 5Y1.2%
PM growth 3Y-10.4%
PM growth 5Y-11.68%
GM growth 3Y0.72%
GM growth 5Y0.59%
2. Health
2.1 Basic Checks
- BTB-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- BTB-UN has more shares outstanding than it did 1 year ago.
- BTB-UN has more shares outstanding than it did 5 years ago.
- BTB-UN has a better debt/assets ratio than last year.
2.2 Solvency
- BTB-UN has an Altman-Z score of 0.26. This is a bad value and indicates that BTB-UN is not financially healthy and even has some risk of bankruptcy.
- BTB-UN has a Altman-Z score of 0.26. This is in the lower half of the industry: BTB-UN underperforms 63.16% of its industry peers.
- BTB-UN has a debt to FCF ratio of 10.59. This is a negative value and a sign of low solvency as BTB-UN would need 10.59 years to pay back of all of its debts.
- The Debt to FCF ratio of BTB-UN (10.59) is better than 81.58% of its industry peers.
- A Debt/Equity ratio of 1.45 is on the high side and indicates that BTB-UN has dependencies on debt financing.
- BTB-UN has a Debt to Equity ratio of 1.45. This is in the lower half of the industry: BTB-UN underperforms 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 10.59 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.78
WACC5.67%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that BTB-UN may have some problems paying its short term obligations.
- The Current ratio of BTB-UN (0.35) is better than 65.79% of its industry peers.
- A Quick Ratio of 0.35 indicates that BTB-UN may have some problems paying its short term obligations.
- The Quick ratio of BTB-UN (0.35) is better than 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 95.16% over the past year.
- The earnings per share for BTB-UN have been decreasing by -12.94% on average. This is quite bad
- BTB-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.92%.
- Measured over the past years, BTB-UN shows a small growth in Revenue. The Revenue has been growing by 6.80% on average per year.
EPS 1Y (TTM)95.16%
EPS 3Y-8.84%
EPS 5Y-12.94%
EPS Q2Q%78%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y9.02%
Revenue growth 5Y6.8%
Sales Q2Q%1.14%
3.2 Future
- BTB-UN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.96% yearly.
- The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y9.38%
EPS Next 2Y6.07%
EPS Next 3Y4.96%
EPS Next 5YN/A
Revenue Next Year3.51%
Revenue Next 2Y1.95%
Revenue Next 3Y2.78%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.11, the valuation of BTB-UN can be described as reasonable.
- Based on the Price/Earnings ratio, BTB-UN is valued cheaper than 97.37% of the companies in the same industry.
- BTB-UN is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 11.77 indicates a reasonable valuation of BTB-UN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of BTB-UN indicates a rather cheap valuation: BTB-UN is cheaper than 81.58% of the companies listed in the same industry.
- BTB-UN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 11.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BTB-UN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
- 89.47% of the companies in the same industry are more expensive than BTB-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 13.99 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BTB-UN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y6.07%
EPS Next 3Y4.96%
5. Dividend
5.1 Amount
- BTB-UN has a Yearly Dividend Yield of 9.04%, which is a nice return.
- BTB-UN's Dividend Yield is a higher than the industry average which is at 7.11.
- BTB-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
5.2 History
- The dividend of BTB-UN decreases each year by -6.72%.
- BTB-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
- BTB-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.72%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- 59.75% of the earnings are spent on dividend by BTB-UN. This is a bit on the high side, but may be sustainable.
DP59.75%
EPS Next 2Y6.07%
EPS Next 3Y4.96%
BTB REAL ESTATE INVESTMENT T / BTB-UN.CA FAQ
What is the ChartMill fundamental rating of BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BTB-UN.CA.
What is the valuation status of BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to BTB REAL ESTATE INVESTMENT T (BTB-UN.CA). This can be considered as Undervalued.
How profitable is BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) stock?
BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) stock?
The Price/Earnings (PE) ratio for BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) is 9.11 and the Price/Book (PB) ratio is 0.76.
What is the expected EPS growth for BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) stock?
The Earnings per Share (EPS) of BTB REAL ESTATE INVESTMENT T (BTB-UN.CA) is expected to grow by 9.38% in the next year.