DREAM OFFICE REAL ESTATE INV (D-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:D-UN - CA26153P2035 - REIT
19.1 CAD
+0.33 (+1.76%)
D-UN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 38 industry peers in the Diversified REITs industry. Both the profitability and financial health of D-UN have multiple concerns. D-UN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- D-UN had negative earnings in the past year.
- In the past year D-UN had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: D-UN reported negative net income in multiple years.
- In the past 5 years D-UN always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of -6.75%, D-UN is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
- D-UN has a worse Return On Equity (-16.66%) than 76.32% of its industry peers.
- With a Return On Invested Capital value of 2.82%, D-UN is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
- D-UN had an Average Return On Invested Capital over the past 3 years of 2.50%. This is below the industry average of 5.49%.
- The last Return On Invested Capital (2.82%) for D-UN is above the 3 year average (2.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.75% | ||
| ROE | -16.66% | ||
| ROIC | 2.82% |
ROA(3y)-1.63%
ROA(5y)1.26%
ROE(3y)-4%
ROE(5y)1.96%
ROIC(3y)2.5%
ROIC(5y)2.51%
1.3 Margins
- D-UN has a worse Operating Margin (44.98%) than 65.79% of its industry peers.
- In the last couple of years the Operating Margin of D-UN has declined.
- Looking at the Gross Margin, with a value of 53.94%, D-UN is doing worse than 60.53% of the companies in the same industry.
- D-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.98% | ||
| PM (TTM) | N/A | ||
| GM | 53.94% |
OM growth 3Y-11.8%
OM growth 5Y-7.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.34%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
- D-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, D-UN has about the same amount of shares outstanding.
- Compared to 5 years ago, D-UN has less shares outstanding
- D-UN has a worse debt/assets ratio than last year.
2.2 Solvency
- D-UN has an Altman-Z score of -0.27. This is a bad value and indicates that D-UN is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -0.27, D-UN is not doing good in the industry: 81.58% of the companies in the same industry are doing better.
- The Debt to FCF ratio of D-UN is 16.72, which is on the high side as it means it would take D-UN, 16.72 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 16.72, D-UN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- D-UN has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of D-UN (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 16.72 | ||
| Altman-Z | -0.27 |
ROIC/WACC0.5
WACC5.64%
2.3 Liquidity
- A Current Ratio of 0.23 indicates that D-UN may have some problems paying its short term obligations.
- D-UN has a Current ratio (0.23) which is in line with its industry peers.
- D-UN has a Quick Ratio of 0.23. This is a bad value and indicates that D-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.23, D-UN is in line with its industry, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
- D-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.91%.
- D-UN shows a decrease in Revenue. In the last year, the revenue decreased by -2.64%.
- D-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.05% yearly.
EPS 1Y (TTM)-19.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.24%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y0.03%
Revenue growth 5Y-3.05%
Sales Q2Q%-5.84%
3.2 Future
- D-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.02% yearly.
- The Revenue is expected to decrease by -0.10% on average over the next years.
EPS Next Y-51.14%
EPS Next 2Y51.33%
EPS Next 3Y33.02%
EPS Next 5YN/A
Revenue Next Year-5.03%
Revenue Next 2Y-1.28%
Revenue Next 3Y-0.1%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for D-UN. In the last year negative earnings were reported.
- With a Price/Forward Earnings ratio of 14.74, D-UN is valued correctly.
- Based on the Price/Forward Earnings ratio, D-UN is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, D-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.74 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of D-UN indicates a somewhat cheap valuation: D-UN is cheaper than 73.68% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, D-UN is valued cheaper than 92.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.23 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
- D-UN's earnings are expected to grow with 33.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.33%
EPS Next 3Y33.02%
5. Dividend
5.1 Amount
- D-UN has a Yearly Dividend Yield of 6.98%, which is a nice return.
- Compared to an average industry Dividend Yield of 7.11, D-UN has a dividend in line with its industry peers.
- D-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
5.2 History
- The dividend of D-UN has a limited annual growth rate of 3.10%.
- D-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.1%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of D-UN are negative and hence is the payout ratio. D-UN will probably not be able to sustain this dividend level.
- The dividend of D-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-10.56%
EPS Next 2Y51.33%
EPS Next 3Y33.02%
DREAM OFFICE REAL ESTATE INV / D-UN.CA FAQ
Can you provide the ChartMill fundamental rating for DREAM OFFICE REAL ESTATE INV?
ChartMill assigns a fundamental rating of 3 / 10 to D-UN.CA.
What is the valuation status for D-UN stock?
ChartMill assigns a valuation rating of 4 / 10 to DREAM OFFICE REAL ESTATE INV (D-UN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for DREAM OFFICE REAL ESTATE INV?
DREAM OFFICE REAL ESTATE INV (D-UN.CA) has a profitability rating of 2 / 10.
How financially healthy is DREAM OFFICE REAL ESTATE INV?
The financial health rating of DREAM OFFICE REAL ESTATE INV (D-UN.CA) is 2 / 10.