DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIR-UN - CA26153W1095 - REIT
12.99 CAD
-0.36 (-2.7%)
We assign a fundamental rating of 5 out of 10 to DIR-UN. DIR-UN was compared to 38 industry peers in the Diversified REITs industry. While DIR-UN has a great profitability rating, there are quite some concerns on its financial health. DIR-UN is not valued too expensively and it also shows a decent growth rate. DIR-UN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year DIR-UN was profitable.
- DIR-UN had a positive operating cash flow in the past year.
- DIR-UN had positive earnings in each of the past 5 years.
- In the past 5 years DIR-UN always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.95%, DIR-UN is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
- DIR-UN's Return On Equity of 5.18% is fine compared to the rest of the industry. DIR-UN outperforms 63.16% of its industry peers.
- With a Return On Invested Capital value of 3.07%, DIR-UN is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
- The Average Return On Invested Capital over the past 3 years for DIR-UN is below the industry average of 5.49%.
- The 3 year average ROIC (2.81%) for DIR-UN is below the current ROIC(3.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 5.18% | ||
| ROIC | 3.07% |
ROA(3y)4.74%
ROA(5y)5.99%
ROE(3y)7.87%
ROE(5y)10.3%
ROIC(3y)2.81%
ROIC(5y)2.7%
1.3 Margins
- DIR-UN has a better Profit Margin (50.71%) than 97.37% of its industry peers.
- DIR-UN's Profit Margin has declined in the last couple of years.
- DIR-UN has a better Operating Margin (65.13%) than 92.11% of its industry peers.
- DIR-UN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 76.46%, DIR-UN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- DIR-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.13% | ||
| PM (TTM) | 50.71% | ||
| GM | 76.46% |
OM growth 3Y2.22%
OM growth 5Y2.97%
PM growth 3Y-35.75%
PM growth 5Y-9.53%
GM growth 3Y0.46%
GM growth 5Y1.38%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, DIR-UN has more shares outstanding
- Compared to 5 years ago, DIR-UN has more shares outstanding
- Compared to 1 year ago, DIR-UN has a worse debt to assets ratio.
2.2 Solvency
- DIR-UN has an Altman-Z score of 0.91. This is a bad value and indicates that DIR-UN is not financially healthy and even has some risk of bankruptcy.
- DIR-UN has a better Altman-Z score (0.91) than 84.21% of its industry peers.
- The Debt to FCF ratio of DIR-UN is 9.99, which is on the high side as it means it would take DIR-UN, 9.99 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 9.99, DIR-UN belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- DIR-UN has a Debt/Equity ratio of 0.52. This is a neutral value indicating DIR-UN is somewhat dependend on debt financing.
- DIR-UN's Debt to Equity ratio of 0.52 is amongst the best of the industry. DIR-UN outperforms 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 9.99 | ||
| Altman-Z | 0.91 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.17 indicates that DIR-UN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.17, DIR-UN is in line with its industry, outperforming 42.11% of the companies in the same industry.
- DIR-UN has a Quick Ratio of 0.17. This is a bad value and indicates that DIR-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- DIR-UN has a Quick ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
- DIR-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 74.68%, which is quite impressive.
- The Earnings Per Share has been decreasing by -7.45% on average over the past years.
- DIR-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
- DIR-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.01% yearly.
EPS 1Y (TTM)74.68%
EPS 3Y-31.68%
EPS 5Y-7.45%
EPS Q2Q%227.94%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y17.17%
Revenue growth 5Y19.01%
Sales Q2Q%8.39%
3.2 Future
- DIR-UN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.64% yearly.
- DIR-UN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.12% yearly.
EPS Next Y-3.9%
EPS Next 2Y18.43%
EPS Next 3Y13.64%
EPS Next 5YN/A
Revenue Next Year8.36%
Revenue Next 2Y8.62%
Revenue Next 3Y8.12%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.28, the valuation of DIR-UN can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of DIR-UN indicates a somewhat cheap valuation: DIR-UN is cheaper than 71.05% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, DIR-UN is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 11.91, the valuation of DIR-UN can be described as very reasonable.
- 76.32% of the companies in the same industry are more expensive than DIR-UN, based on the Price/Forward Earnings ratio.
- DIR-UN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
- DIR-UN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- DIR-UN has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DIR-UN's earnings are expected to grow with 13.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.43%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
- DIR-UN has a Yearly Dividend Yield of 5.00%, which is a nice return.
- DIR-UN's Dividend Yield is slightly below the industry average, which is at 7.11.
- Compared to an average S&P500 Dividend Yield of 1.82, DIR-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
- The dividend of DIR-UN has a limited annual growth rate of 3.03%.
- DIR-UN has paid a dividend for at least 10 years, which is a reliable track record.
- DIR-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.03%
Div Incr Years1
Div Non Decr Years12
5.3 Sustainability
- DIR-UN pays out 57.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of DIR-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.44%
EPS Next 2Y18.43%
EPS Next 3Y13.64%
DREAM INDUSTRIAL REAL ESTATE / DIR-UN.CA FAQ
What is the ChartMill fundamental rating of DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DIR-UN.CA.
What is the valuation status of DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA). This can be considered as Fairly Valued.
How profitable is DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) stock?
DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) has a profitability rating of 7 / 10.
What is the valuation of DREAM INDUSTRIAL REAL ESTATE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) is 15.28 and the Price/Book (PB) ratio is 0.77.
What is the financial health of DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) stock?
The financial health rating of DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) is 3 / 10.