DREAM OFFICE REAL ESTATE INV (D-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:D-UN - CA26153P2035 - REIT
18.88 CAD
-0.03 (-0.16%)
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.
- D-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- D-UN's Return On Assets of -6.75% is on the low side compared to the rest of the industry. D-UN is outperformed by 76.32% of its industry peers.
- With a Return On Equity value of -16.66%, D-UN is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
- The Return On Invested Capital of D-UN (2.82%) is worse than 76.32% 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 (2.82%) 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 Operating Margin of 44.98%. This is in the lower half of the industry: D-UN underperforms 65.79% of its industry peers.
- In the last couple of years the Operating Margin of D-UN has declined.
- With a Gross Margin value of 53.94%, D-UN is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
- 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so D-UN is destroying value.
- The number of shares outstanding for D-UN remains at a similar level compared to 1 year ago.
- D-UN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, D-UN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.27, we must say that D-UN is in the distress zone and has some risk of bankruptcy.
- D-UN's Altman-Z score of -0.27 is on the low side compared to the rest of the industry. D-UN is outperformed by 81.58% of its industry peers.
- 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.
- D-UN has a Debt to FCF ratio (16.72) which is in line with its industry peers.
- A Debt/Equity ratio of 1.30 is on the high side and indicates that D-UN has dependencies on debt financing.
- D-UN has a Debt to Equity ratio of 1.30. This is comparable to the rest of the industry: D-UN outperforms 44.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 16.72 | ||
| Altman-Z | -0.27 |
ROIC/WACC0.5
WACC5.62%
2.3 Liquidity
- D-UN has a Current 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.
- D-UN has a Current ratio of 0.23. This is comparable to the rest of the industry: D-UN outperforms 55.26% of 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.
- D-UN's Quick ratio of 0.23 is in line compared to the rest of the industry. D-UN outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
- The earnings per share for D-UN have decreased strongly by -19.91% in the last year.
- The Revenue has decreased by -2.64% in the past year.
- Measured over the past years, D-UN shows a decrease in Revenue. The Revenue has been decreasing by -3.05% on average per year.
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
- Based on estimates for the next years, D-UN will show a very strong growth in Earnings Per Share. The EPS will grow by 33.02% on average per year.
- Based on estimates for the next years, D-UN will show a decrease in Revenue. The Revenue will decrease by -0.10% on average per year.
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
- D-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 14.57, which indicates a correct valuation of D-UN.
- Based on the Price/Forward Earnings ratio, D-UN is valued a bit cheaper than 60.53% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. D-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
- 71.05% of the companies in the same industry are more expensive than D-UN, based on the Enterprise Value to EBITDA ratio.
- 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 | 4.18 | ||
| EV/EBITDA | 17.98 |
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
- 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 7.11, D-UN has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, D-UN pays a better dividend.
| 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 paid a dividend for at least 10 years, which is 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.
- D-UN's earnings are growing more than its dividend. This makes the dividend growth 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.