CITY OFFICE REIT INC (CIO) Stock Fundamental Analysis
NYSE:CIO - New York Stock Exchange, Inc. - US1785871013 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to CIO. CIO was compared to 129 industry peers in the Diversified REITs industry. The financial health of CIO is average, but there are quite some concerns on its profitability. CIO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CIO has reported negative net income.
In the past year CIO had a positive cash flow from operations.
In multiple years CIO reported negative net income over the last 5 years.
Each year in the past 5 years CIO had a positive operating cash flow.
1.2 Ratios
CIO has a worse Return On Assets (-1.72%) than 73.64% of its industry peers.
The Return On Equity of CIO (-3.42%) is worse than 69.77% of its industry peers.
CIO has a worse Return On Invested Capital (1.52%) than 78.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIO is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.72% | ||
| ROE | -3.42% | ||
| ROIC | 1.52% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
1.3 Margins
With a Operating Margin value of 15.86%, CIO is not doing good in the industry: 64.34% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CIO has declined.
CIO's Gross Margin of 59.41% is on the low side compared to the rest of the industry. CIO is outperformed by 68.99% of its industry peers.
CIO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.86% | ||
| PM (TTM) | N/A | ||
| GM | 59.41% |
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
2. Health
2.1 Basic Checks
CIO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CIO has been increased compared to 1 year ago.
The number of shares outstanding for CIO has been reduced compared to 5 years ago.
The debt/assets ratio for CIO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that CIO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CIO (0.55) is comparable to the rest of the industry.
CIO has a debt to FCF ratio of 21.09. This is a negative value and a sign of low solvency as CIO would need 21.09 years to pay back of all of its debts.
CIO's Debt to FCF ratio of 21.09 is fine compared to the rest of the industry. CIO outperforms 73.64% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that CIO is somewhat dependend on debt financing.
CIO's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. CIO outperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 21.09 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.24
WACC6.43%
2.3 Liquidity
A Current Ratio of 1.66 indicates that CIO should not have too much problems paying its short term obligations.
CIO has a Current ratio of 1.66. This is in the better half of the industry: CIO outperforms 72.09% of its industry peers.
CIO has a Quick Ratio of 1.66. This is a normal value and indicates that CIO is financially healthy and should not expect problems in meeting its short term obligations.
CIO's Quick ratio of 1.66 is fine compared to the rest of the industry. CIO outperforms 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
CIO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -148.00%.
CIO shows a decrease in Revenue. In the last year, the revenue decreased by -4.45%.
CIO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.83% yearly.
EPS 1Y (TTM)-148%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-181.82%
Revenue 1Y (TTM)-4.45%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%-5.42%
3.2 Future
The Earnings Per Share is expected to grow by 21.60% on average over the next years. This is a very strong growth
CIO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.33% yearly.
EPS Next Y39.73%
EPS Next 2Y21.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.51%
Revenue Next 2Y1.51%
Revenue Next 3Y1.33%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings Ratio is negative for CIO. In the last year negative earnings were reported.
Also next year CIO is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIO indicates a rather cheap valuation: CIO is cheaper than 86.82% of the companies listed in the same industry.
96.12% of the companies in the same industry are more expensive than CIO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.69 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
A more expensive valuation may be justified as CIO's earnings are expected to grow with 21.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CIO has a Yearly Dividend Yield of 7.78%, which is a nice return.
CIO's Dividend Yield is rather good when compared to the industry average which is at 19.22. CIO pays more dividend than 82.17% of the companies in the same industry.
CIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
5.2 History
The dividend of CIO decreases each year by -10.58%.
CIO has paid a dividend for at least 10 years, which is a reliable track record.
CIO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.58%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of CIO are negative and hence is the payout ratio. CIO will probably not be able to sustain this dividend level.
DP-93.47%
EPS Next 2Y21.6%
EPS Next 3YN/A
5.1
-0.04 (-0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners65.18%
Inst Owner Change-2.14%
Ins Owners4.26%
Ins Owner Change7.53%
Market Cap205.84M
Analysts75.56
Price Target6.25 (22.55%)
Short Float %0.73%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
Yearly Dividend0.59
Dividend Growth(5Y)-10.58%
DP-93.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-104.13%
Min EPS beat(2)-217.5%
Max EPS beat(2)9.24%
EPS beat(4)2
Avg EPS beat(4)-54.26%
Min EPS beat(4)-217.5%
Max EPS beat(4)54.3%
EPS beat(8)5
Avg EPS beat(8)-31.67%
EPS beat(12)7
Avg EPS beat(12)6.47%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.61%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)5
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)0.11%
PT rev (1m)-9.93%
PT rev (3m)-11.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)18.98%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.2 | ||
| P/FCF | 6.69 | ||
| P/OCF | 3.5 | ||
| P/B | 0.28 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | 9.66 |
EPS(TTM)-0.62
EYN/A
EPS(NY)-0.37
Fwd EYN/A
FCF(TTM)0.76
FCFY14.94%
OCF(TTM)1.46
OCFY28.6%
SpS4.24
BVpS18.18
TBVpS17.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.72% | ||
| ROE | -3.42% | ||
| ROCE | 1.92% | ||
| ROIC | 1.52% | ||
| ROICexc | 1.54% | ||
| ROICexgc | 1.58% | ||
| OM | 15.86% | ||
| PM (TTM) | N/A | ||
| GM | 59.41% | ||
| FCFM | 17.97% |
ROA(3y)-0.59%
ROA(5y)5.55%
ROE(3y)-1.18%
ROE(5y)10.12%
ROIC(3y)1.69%
ROIC(5y)1.79%
ROICexc(3y)1.72%
ROICexc(5y)1.83%
ROICexgc(3y)1.79%
ROICexgc(5y)1.9%
ROCE(3y)2.14%
ROCE(5y)2.27%
ROICexcg growth 3Y-4.09%
ROICexcg growth 5Y-6.09%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y-5.38%
OM growth 3Y-7.81%
OM growth 5Y-2.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.77%
GM growth 5Y-1.27%
F-Score2
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 21.09 | ||
| Debt/EBITDA | 7.5 | ||
| Cap/Depr | 47.39% | ||
| Cap/Sales | 16.43% | ||
| Interest Coverage | 0.8 | ||
| Cash Conversion | 68.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 0.55 |
F-Score2
WACC6.43%
ROIC/WACC0.24
Cap/Depr(3y)52.99%
Cap/Depr(5y)267.48%
Cap/Sales(3y)18.45%
Cap/Sales(5y)93.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-148%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-181.82%
EPS Next Y39.73%
EPS Next 2Y21.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.45%
Revenue growth 3Y1.43%
Revenue growth 5Y1.83%
Sales Q2Q%-5.42%
Revenue Next Year-0.51%
Revenue Next 2Y1.51%
Revenue Next 3Y1.33%
Revenue Next 5YN/A
EBIT growth 1Y-13.21%
EBIT growth 3Y-6.49%
EBIT growth 5Y-1.18%
EBIT Next Year226.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.87%
OCF growth 3Y-7.01%
OCF growth 5Y3.53%