CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis
TSX:CHP-UN - Toronto Stock Exchange - CA17039A1066 - REIT - Currency: CAD
CHP-UN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 industry peers in the Diversified REITs industry. CHP-UN has an excellent profitability rating, but there are concerns on its financial health. CHP-UN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year CHP-UN was profitable.
CHP-UN had a positive operating cash flow in the past year.
In the past 5 years CHP-UN has always been profitable.
In the past 5 years CHP-UN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHP-UN (4.47%) is better than 97.30% of its industry peers.
The Return On Equity of CHP-UN (16.01%) is better than 100.00% of its industry peers.
CHP-UN has a Return On Invested Capital of 3.75%. This is in the lower half of the industry: CHP-UN underperforms 72.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHP-UN is in line with the industry average of 4.57%.
| 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 94.59% of the companies in the same industry.
CHP-UN's Profit Margin has improved in the last couple of years.
CHP-UN has a better Operating Margin (61.77%) than 78.38% of its industry peers.
CHP-UN's Operating Margin has declined in the last couple of years.
CHP-UN has a better Gross Margin (71.46%) than 72.97% of its industry peers.
In the last couple of years the Gross Margin of CHP-UN has remained more or less at the same level.
| 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.
CHP-UN has about the same amout of shares outstanding than it did 1 year ago.
CHP-UN has more shares outstanding than it did 5 years ago.
CHP-UN has a better debt/assets ratio than last year.
2.2 Solvency
CHP-UN has an Altman-Z score of 0.48. This is a bad value and indicates that CHP-UN is not financially healthy and even has some risk of bankruptcy.
CHP-UN has a Altman-Z score (0.48) which is in line with its industry peers.
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.
CHP-UN has a better Debt to FCF ratio (9.23) than 91.89% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that CHP-UN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.23, CHP-UN is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 9.23 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.65
WACC5.74%
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.
With a Current ratio value of 0.09, CHP-UN is not doing good in the industry: 86.49% of the companies in the same industry are doing better.
A Quick Ratio of 0.09 indicates that CHP-UN may have some problems paying 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 83.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The earnings per share for CHP-UN have decreased by -1.55% in the last year.
CHP-UN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 224.24% yearly.
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)-1.55%
EPS 3Y224.24%
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
The Earnings Per Share is expected to grow by 40.13% on average over the next years. This is a very strong growth
CHP-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
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
A Price/Earnings ratio of 13.72 indicates a correct valuation of CHP-UN.
CHP-UN's Price/Earnings ratio is a bit cheaper when compared to the industry. CHP-UN is cheaper than 78.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, CHP-UN is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.25, CHP-UN is valued correctly.
CHP-UN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CHP-UN to the average of the S&P500 Index (21.38), we can say CHP-UN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHP-UN indicates a rather cheap valuation: CHP-UN is cheaper than 83.78% of the companies listed in the same industry.
CHP-UN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHP-UN is cheaper than 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
CHP-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CHP-UN 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)0.16
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.
With a Dividend Yield of 5.20, CHP-UN pays less dividend than the industry average, which is at 8.01. 81.08% of the companies listed in the same industry pay a better dividend than CHP-UN!
CHP-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| 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 paid a dividend for at least 10 years, which is 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 (4/25/2025, 7:00:00 PM)
14.82
+0.12 (+0.82%)
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 Cap4.86B
Analysts75.38
Price Target15.87 (7.09%)
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)0%
PT rev (3m)-1.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 14.25 | ||
| P/S | 3.55 | ||
| P/FCF | 6.71 | ||
| P/OCF | 6.71 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)1.08
EY7.29%
EPS(NY)1.04
Fwd EY7.02%
FCF(TTM)2.21
FCFY14.91%
OCF(TTM)2.21
OCFY14.91%
SpS4.17
BVpS14.94
TBVpS14.9
PEG (NY)0.16
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 | 0.48 |
F-Score5
WACC5.74%
ROIC/WACC0.65
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)-1.55%
EPS 3Y224.24%
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 Year24.72%
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%