DREAM INDUSTRIAL REAL ESTATE (DIR-UN.CA) Stock Fundamental Analysis
TSX:DIR-UN - Toronto Stock Exchange - CA26153W1095 - REIT - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DIR-UN. DIR-UN was compared to 43 industry peers in the Diversified REITs industry. DIR-UN has an excellent profitability rating, but there are some minor concerns on its financial health. DIR-UN is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
DIR-UN had positive earnings in the past year.
In the past year DIR-UN had a positive cash flow from operations.
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 1.75%, DIR-UN belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
DIR-UN has a Return On Equity of 3.03%. This is in the better half of the industry: DIR-UN outperforms 67.44% of its industry peers.
The Return On Invested Capital of DIR-UN (2.82%) is worse than 88.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DIR-UN is below the industry average of 5.49%.
The last Return On Invested Capital (2.82%) for DIR-UN is above the 3 year average (2.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 3.03% | ||
| ROIC | 2.82% |
ROA(3y)7.02%
ROA(5y)6.59%
ROE(3y)11.84%
ROE(5y)11.5%
ROIC(3y)2.48%
ROIC(5y)2.64%
1.3 Margins
With an excellent Profit Margin value of 30.85%, DIR-UN belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
DIR-UN's Profit Margin has declined in the last couple of years.
DIR-UN has a Operating Margin of 65.81%. This is amongst the best in the industry. DIR-UN outperforms 95.35% of its industry peers.
DIR-UN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 76.30%, DIR-UN belongs to the best of the industry, outperforming 88.37% 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 | 65.81% | ||
| PM (TTM) | 30.85% | ||
| GM | 76.3% |
OM growth 3Y5.06%
OM growth 5Y4.17%
PM growth 3Y-34.5%
PM growth 5Y-24.66%
GM growth 3Y2.6%
GM growth 5Y1.41%
2. Health
2.1 Basic Checks
DIR-UN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DIR-UN has been increased compared to 5 years ago.
The debt/assets ratio for DIR-UN is higher compared to a year ago.
2.2 Solvency
DIR-UN has an Altman-Z score of 0.92. 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 (0.92) than 69.77% of its industry peers.
DIR-UN has a debt to FCF ratio of 9.43. This is a negative value and a sign of low solvency as DIR-UN would need 9.43 years to pay back of all of its debts.
DIR-UN's Debt to FCF ratio of 9.43 is amongst the best of the industry. DIR-UN outperforms 90.70% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that DIR-UN is somewhat dependend on debt financing.
DIR-UN has a better Debt to Equity ratio (0.62) than 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 9.43 | ||
| Altman-Z | 0.92 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
DIR-UN has a Current Ratio of 0.32. 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.
Looking at the Current ratio, with a value of 0.32, DIR-UN is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
DIR-UN has a Quick Ratio of 0.32. 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.
With a decent Quick ratio value of 0.32, DIR-UN is doing good in the industry, outperforming 67.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 74.58% over the past year.
The earnings per share for DIR-UN have been decreasing by -23.95% on average. This is quite bad
The Revenue has been growing slightly by 7.54% in the past year.
The Revenue has been growing by 22.23% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)74.58%
EPS 3Y-31.97%
EPS 5Y-23.95%
EPS Q2Q%-73.28%
Revenue 1Y (TTM)7.54%
Revenue growth 3Y22.87%
Revenue growth 5Y22.23%
Sales Q2Q%6.78%
3.2 Future
The Earnings Per Share is expected to grow by 20.51% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.48% on average over the next years. This is quite good.
EPS Next Y20.31%
EPS Next 2Y29.9%
EPS Next 3Y20.51%
EPS Next 5YN/A
Revenue Next Year6.55%
Revenue Next 2Y8.35%
Revenue Next 3Y8.48%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.98, which indicates a rather expensive current valuation of DIR-UN.
Based on the Price/Earnings ratio, DIR-UN is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.53, DIR-UN is valued at the same level.
The Price/Forward Earnings ratio is 10.77, which indicates a very decent valuation of DIR-UN.
Based on the Price/Forward Earnings ratio, DIR-UN is valued a bit cheaper than the industry average as 76.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.65. DIR-UN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 10.77 |
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 | 10.48 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
DIR-UN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DIR-UN has a very decent profitability rating, which may justify a higher PE ratio.
DIR-UN's earnings are expected to grow with 20.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y29.9%
EPS Next 3Y20.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, DIR-UN is a good candidate for dividend investing.
DIR-UN's Dividend Yield is slightly below the industry average, which is at 8.03.
DIR-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
The dividend of DIR-UN has a limited annual growth rate of 2.56%.
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)2.56%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
DIR-UN pays out 97.73% of its income as dividend. This is not a sustainable payout ratio.
The dividend of DIR-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.73%
EPS Next 2Y29.9%
EPS Next 3Y20.51%
TSX:DIR-UN (2/21/2025, 7:00:00 PM)
11.75
-0.1 (-0.84%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners31.14%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap3.27B
Analysts81.33
Price Target16.07 (36.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
Yearly Dividend0.49
Dividend Growth(5Y)2.56%
DP97.73%
Div Incr Years0
Div Non Decr Years11
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)-1.87%
PT rev (3m)-2.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-21.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 10.77 | ||
| P/S | 7.14 | ||
| P/FCF | 10.48 | ||
| P/OCF | 10.48 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.49
EY4.17%
EPS(NY)1.09
Fwd EY9.28%
FCF(TTM)1.12
FCFY9.54%
OCF(TTM)1.12
OCFY9.54%
SpS1.65
BVpS16.75
TBVpS16.75
PEG (NY)1.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 3.03% | ||
| ROCE | 3.91% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 2.85% | ||
| OM | 65.81% | ||
| PM (TTM) | 30.85% | ||
| GM | 76.3% | ||
| FCFM | 68.13% |
ROA(3y)7.02%
ROA(5y)6.59%
ROE(3y)11.84%
ROE(5y)11.5%
ROIC(3y)2.48%
ROIC(5y)2.64%
ROICexc(3y)2.52%
ROICexc(5y)2.82%
ROICexgc(3y)2.52%
ROICexgc(5y)2.82%
ROCE(3y)3.44%
ROCE(5y)3.67%
ROICexcg growth 3Y-3.49%
ROICexcg growth 5Y-1.52%
ROICexc growth 3Y-3.49%
ROICexc growth 5Y-1.52%
OM growth 3Y5.06%
OM growth 5Y4.17%
PM growth 3Y-34.5%
PM growth 5Y-24.66%
GM growth 3Y2.6%
GM growth 5Y1.41%
F-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 9.43 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 4.77 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 220.89% | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 0.92 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)116.5%
Profit Quality(5y)96.71%
High Growth Momentum
Growth
EPS 1Y (TTM)74.58%
EPS 3Y-31.97%
EPS 5Y-23.95%
EPS Q2Q%-73.28%
EPS Next Y20.31%
EPS Next 2Y29.9%
EPS Next 3Y20.51%
EPS Next 5YN/A
Revenue 1Y (TTM)7.54%
Revenue growth 3Y22.87%
Revenue growth 5Y22.23%
Sales Q2Q%6.78%
Revenue Next Year6.55%
Revenue Next 2Y8.35%
Revenue Next 3Y8.48%
Revenue Next 5YN/A
EBIT growth 1Y8.84%
EBIT growth 3Y29.09%
EBIT growth 5Y27.33%
EBIT Next Year17.51%
EBIT Next 3Y12.88%
EBIT Next 5YN/A
FCF growth 1Y53.93%
FCF growth 3Y30.94%
FCF growth 5Y31.26%
OCF growth 1Y53.93%
OCF growth 3Y30.81%
OCF growth 5Y31.16%