DREAM OFFICE REAL ESTATE INV (D-UN.CA) Stock Fundamental Analysis
TSX:D-UN - Toronto Stock Exchange - CA26153P2035 - REIT - Currency: CAD
D-UN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 43 industry peers in the Diversified REITs industry. D-UN has a bad profitability rating. Also its financial health evaluation is rather negative. D-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year D-UN has reported negative net income.
D-UN had a positive operating cash flow in the past year.
D-UN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years D-UN had a positive operating cash flow.
1.2 Ratios
D-UN's Return On Assets of -4.89% is on the low side compared to the rest of the industry. D-UN is outperformed by 65.12% of its industry peers.
The Return On Equity of D-UN (-11.65%) is worse than 62.79% of its industry peers.
D-UN has a Return On Invested Capital of 2.58%. This is amonst the worse of the industry: D-UN underperforms 90.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for D-UN is below the industry average of 5.49%.
The last Return On Invested Capital (2.58%) for D-UN is above the 3 year average (2.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.89% | ||
| ROE | -11.65% | ||
| ROIC | 2.58% |
ROA(3y)1.4%
ROA(5y)2.88%
ROE(3y)2.56%
ROE(5y)5.49%
ROIC(3y)2.5%
ROIC(5y)2.66%
1.3 Margins
With a Operating Margin value of 35.77%, D-UN is not doing good in the industry: 88.37% of the companies in the same industry are doing better.
D-UN's Operating Margin has been stable in the last couple of years.
The Gross Margin of D-UN (54.02%) is worse than 67.44% of its industry peers.
In the last couple of years the Gross Margin of D-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.77% | ||
| PM (TTM) | N/A | ||
| GM | 54.02% |
OM growth 3Y-0.75%
OM growth 5Y-0.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), D-UN is destroying value.
The number of shares outstanding for D-UN has been reduced compared to 1 year ago.
The number of shares outstanding for D-UN has been reduced compared to 5 years ago.
The debt/assets ratio for D-UN is higher compared to a year ago.
2.2 Solvency
D-UN has an Altman-Z score of -0.41. This is a bad value and indicates that D-UN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of D-UN (-0.41) is worse than 83.72% of its industry peers.
D-UN has a debt to FCF ratio of 18.30. This is a negative value and a sign of low solvency as D-UN would need 18.30 years to pay back of all of its debts.
The Debt to FCF ratio of D-UN (18.30) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.73 indicates that D-UN is somewhat dependend on debt financing.
D-UN has a better Debt to Equity ratio (0.73) than 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 18.3 | ||
| Altman-Z | -0.41 |
ROIC/WACC0.49
WACC5.28%
2.3 Liquidity
D-UN has a Current Ratio of 0.10. 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 Current ratio, with a value of 0.10, D-UN is doing worse than 86.05% of the companies in the same industry.
A Quick Ratio of 0.10 indicates that D-UN may have some problems paying its short term obligations.
D-UN's Quick ratio of 0.10 is on the low side compared to the rest of the industry. D-UN is outperformed by 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
D-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -132.88%.
The Revenue has been growing slightly by 0.66% in the past year.
D-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.71% yearly.
EPS 1Y (TTM)-132.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-660.41%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y-2.68%
Revenue growth 5Y-4.71%
Sales Q2Q%2.62%
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 48.77% yearly.
Based on estimates for the next years, D-UN will show a small growth in Revenue. The Revenue will grow by 0.57% on average per year.
EPS Next Y-313.21%
EPS Next 2Y76.98%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue Next Year1.28%
Revenue Next 2Y-0.1%
Revenue Next 3Y0.57%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for D-UN. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 14.50, the valuation of D-UN can be described as correct.
Based on the Price/Forward Earnings ratio, D-UN is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.65. D-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, D-UN is valued a bit cheaper than 62.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, D-UN is valued cheaper than 88.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.84 | ||
| EV/EBITDA | 23.6 |
4.3 Compensation for Growth
D-UN's earnings are expected to grow with 48.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y76.98%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.98%, D-UN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.03, D-UN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, D-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
5.2 History
On average, the dividend of D-UN grows each year by 15.38%, which is quite nice.
D-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
D-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.38%
Div Incr Years0
Div Non Decr Years3
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-18.03%
EPS Next 2Y76.98%
EPS Next 3Y48.77%
TSX:D-UN (2/21/2025, 7:00:00 PM)
17.75
-0.76 (-4.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners2.06%
Inst Owner ChangeN/A
Ins Owners22.98%
Ins Owner ChangeN/A
Market Cap290.04M
Analysts49.41
Price Target19.89 (12.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend1.98
Dividend Growth(5Y)15.38%
DP-18.03%
Div Incr Years0
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)-0.43%
PT rev (3m)-1.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-10850%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.5 | ||
| P/S | 1.5 | ||
| P/FCF | 3.84 | ||
| P/OCF | 3.84 | ||
| P/B | 0.26 | ||
| P/tB | 0.26 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)-6.66
EYN/A
EPS(NY)1.22
Fwd EY6.9%
FCF(TTM)4.62
FCFY26.04%
OCF(TTM)4.62
OCFY26.04%
SpS11.85
BVpS67.39
TBVpS67.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.89% | ||
| ROE | -11.65% | ||
| ROCE | 3.59% | ||
| ROIC | 2.58% | ||
| ROICexc | 2.63% | ||
| ROICexgc | 2.63% | ||
| OM | 35.77% | ||
| PM (TTM) | N/A | ||
| GM | 54.02% | ||
| FCFM | 39% |
ROA(3y)1.4%
ROA(5y)2.88%
ROE(3y)2.56%
ROE(5y)5.49%
ROIC(3y)2.5%
ROIC(5y)2.66%
ROICexc(3y)2.51%
ROICexc(5y)2.7%
ROICexgc(3y)2.51%
ROICexgc(5y)2.7%
ROCE(3y)3.47%
ROCE(5y)3.7%
ROICexcg growth 3Y-1.24%
ROICexcg growth 5Y-1.87%
ROICexc growth 3Y-1.24%
ROICexc growth 5Y-1.86%
OM growth 3Y-0.75%
OM growth 5Y-0.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.56%
GM growth 5Y-0.24%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 18.3 | ||
| Debt/EBITDA | 11.61 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.13 | ||
| Cash Conversion | 108.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | -0.41 |
F-Score6
WACC5.28%
ROIC/WACC0.49
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-132.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-660.41%
EPS Next Y-313.21%
EPS Next 2Y76.98%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue 1Y (TTM)0.66%
Revenue growth 3Y-2.68%
Revenue growth 5Y-4.71%
Sales Q2Q%2.62%
Revenue Next Year1.28%
Revenue Next 2Y-0.1%
Revenue Next 3Y0.57%
Revenue Next 5YN/A
EBIT growth 1Y-25.73%
EBIT growth 3Y-3.4%
EBIT growth 5Y-4.88%
EBIT Next Year12.14%
EBIT Next 3Y3.33%
EBIT Next 5YN/A
FCF growth 1Y-8.18%
FCF growth 3Y-9.14%
FCF growth 5Y8.75%
OCF growth 1Y-8.18%
OCF growth 3Y-9.14%
OCF growth 5Y8.75%