CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis
TSX:CHP-UN - Toronto Stock Exchange - CA17039A1066 - REIT - Currency: CAD
Overall CHP-UN gets a fundamental rating of 5 out of 10. We evaluated CHP-UN against 43 industry peers in the Diversified REITs industry. CHP-UN has an excellent profitability rating, but there are concerns on its financial health. CHP-UN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
CHP-UN had positive earnings in the past year.
In the past year CHP-UN had a positive cash flow from operations.
Each year in the past 5 years CHP-UN has been profitable.
CHP-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CHP-UN (4.47%) is better than 97.67% of its industry peers.
CHP-UN's Return On Equity of 16.01% is amongst the best of the industry. CHP-UN outperforms 100.00% of its industry peers.
CHP-UN's Return On Invested Capital of 3.75% is on the low side compared to the rest of the industry. CHP-UN is outperformed by 74.42% of its industry peers.
CHP-UN had an Average Return On Invested Capital over the past 3 years of 3.76%. This is in line with the industry average of 5.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 16.01% | ||
| ROIC | 3.75% |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
ROIC(3y)3.76%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 57.28%, CHP-UN belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CHP-UN has grown nicely.
CHP-UN has a Operating Margin of 61.77%. This is amongst the best in the industry. CHP-UN outperforms 81.40% of its industry peers.
In the last couple of years the Operating Margin of CHP-UN has declined.
CHP-UN has a Gross Margin of 71.46%. This is in the better half of the industry: CHP-UN outperforms 74.42% of its industry peers.
CHP-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.77% | ||
| PM (TTM) | 57.28% | ||
| GM | 71.46% |
OM growth 3YN/A
OM growth 5Y-2.05%
PM growth 3Y218.06%
PM growth 5YN/A
GM growth 3Y0.42%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CHP-UN is destroying value.
The number of shares outstanding for CHP-UN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CHP-UN has more shares outstanding
Compared to 1 year ago, CHP-UN has an improved debt to assets ratio.
2.2 Solvency
CHP-UN has an Altman-Z score of 0.46. This is a bad value and indicates that CHP-UN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CHP-UN (0.46) is comparable to the rest of the industry.
The Debt to FCF ratio of CHP-UN is 9.23, which is on the high side as it means it would take CHP-UN, 9.23 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 9.23, CHP-UN belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that CHP-UN has dependencies on debt financing.
CHP-UN's Debt to Equity ratio of 1.23 is in line compared to the rest of the industry. CHP-UN outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 9.23 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.66
WACC5.73%
2.3 Liquidity
CHP-UN has a Current Ratio of 0.09. This is a bad value and indicates that CHP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
CHP-UN has a Current ratio of 0.09. This is amonst the worse of the industry: CHP-UN underperforms 88.37% of its industry peers.
CHP-UN has a Quick Ratio of 0.09. This is a bad value and indicates that CHP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
CHP-UN's Quick ratio of 0.09 is on the low side compared to the rest of the industry. CHP-UN is outperformed by 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
CHP-UN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.54%.
Measured over the past years, CHP-UN shows a very strong growth in Earnings Per Share. The EPS has been growing by 224.17% on average per year.
Looking at the last year, CHP-UN shows a small growth in Revenue. The Revenue has grown by 2.59% in the last year.
Measured over the past years, CHP-UN shows a small growth in Revenue. The Revenue has been growing by 1.22% on average per year.
EPS 1Y (TTM)-1.54%
EPS 3Y224.17%
EPS 5YN/A
EPS Q2Q%277.66%
Revenue 1Y (TTM)2.59%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%-2.79%
3.2 Future
CHP-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.13% yearly.
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y3.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.53, which indicates a correct valuation of CHP-UN.
Based on the Price/Earnings ratio, CHP-UN is valued cheaper than 90.70% of the companies in the same industry.
CHP-UN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
CHP-UN is valuated correctly with a Price/Forward Earnings ratio of 13.01.
Based on the Price/Forward Earnings ratio, CHP-UN is valued a bit cheaper than 65.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. CHP-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
86.05% of the companies in the same industry are more expensive than CHP-UN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CHP-UN is valued cheaper than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| EV/EBITDA | 13.08 |
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.
CHP-UN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHP-UN's earnings are expected to grow with 40.13% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y40.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.20%, CHP-UN is a good candidate for dividend investing.
CHP-UN's Dividend Yield is slightly below the industry average, which is at 8.03.
Compared to an average S&P500 Dividend Yield of 2.27, CHP-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
5.2 History
The dividend of CHP-UN decreases each year by -9.71%.
CHP-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
CHP-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.71%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
31.66% of the earnings are spent on dividend by CHP-UN. This is a low number and sustainable payout ratio.
DP31.66%
EPS Next 2Y40.13%
EPS Next 3YN/A
TSX:CHP-UN (2/21/2025, 7:00:00 PM)
13.53
-0.12 (-0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners28.77%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap4.44B
Analysts75.38
Price Target15.81 (16.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend0.34
Dividend Growth(5Y)-9.71%
DP31.66%
Div Incr Years1
Div Non Decr Years3
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)-1.59%
PT rev (3m)-2.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.96%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 13.01 | ||
| P/S | 3.24 | ||
| P/FCF | 6.12 | ||
| P/OCF | 6.12 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 13.08 |
EPS(TTM)1.08
EY7.98%
EPS(NY)1.04
Fwd EY7.69%
FCF(TTM)2.21
FCFY16.33%
OCF(TTM)2.21
OCFY16.33%
SpS4.18
BVpS14.94
TBVpS14.9
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 16.01% | ||
| ROCE | 5.21% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 3.77% | ||
| OM | 61.77% | ||
| PM (TTM) | 57.28% | ||
| GM | 71.46% | ||
| FCFM | 52.92% |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
ROIC(3y)3.76%
ROIC(5y)N/A
ROICexc(3y)3.77%
ROICexc(5y)N/A
ROICexgc(3y)3.78%
ROICexgc(5y)N/A
ROCE(3y)5.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-2.29%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.3%
OM growth 3YN/A
OM growth 5Y-2.05%
PM growth 3Y218.06%
PM growth 5YN/A
GM growth 3Y0.42%
GM growth 5Y0.01%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 9.23 | ||
| Debt/EBITDA | 7.09 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 85.58% | ||
| Profit Quality | 92.39% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 0.46 |
F-Score5
WACC5.73%
ROIC/WACC0.66
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)87.59%
Profit Quality(5y)662.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.54%
EPS 3Y224.17%
EPS 5YN/A
EPS Q2Q%277.66%
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.59%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%-2.79%
Revenue Next Year3.78%
Revenue Next 2Y3.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y45.3%
EBIT growth 3YN/A
EBIT growth 5Y-0.85%
EBIT Next Year24.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.89%
FCF growth 3Y2.68%
FCF growth 5Y4.53%
OCF growth 1Y12.89%
OCF growth 3Y2.68%
OCF growth 5Y4.53%