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DREAM RESIDENTIAL REAL ESTAT (DRR-U.CA) Stock Fundamental Analysis

TSX:DRR-U - Toronto Stock Exchange - CA26154C1023 - REIT - Currency: USD

8  +0.18 (+2.3%)

Fundamental Rating

3

DRR-U gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 16 industry peers in the Residential REITs industry. While DRR-U seems to be doing ok healthwise, there are quite some concerns on its profitability. DRR-U has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

DRR-U had negative earnings in the past year.
In the past year DRR-U had a positive cash flow from operations.
DRR-U.CA Yearly Net Income VS EBIT VS OCF VS FCFDRR-U.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2022 2023 0 20M 40M 60M 80M 100M

1.2 Ratios

DRR-U's Return On Assets of -2.63% is in line compared to the rest of the industry. DRR-U outperforms 43.75% of its industry peers.
With a Return On Equity value of -4.52%, DRR-U perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
The Return On Invested Capital of DRR-U (3.81%) is better than 87.50% of its industry peers.
Industry RankSector Rank
ROA -2.63%
ROE -4.52%
ROIC 3.81%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
DRR-U.CA Yearly ROA, ROE, ROICDRR-U.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2022 2023 0 10 20 30 40

1.3 Margins

With an excellent Operating Margin value of 85.19%, DRR-U belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DRR-U does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 85.19%
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
DRR-U.CA Yearly Profit, Operating, Gross MarginsDRR-U.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2022 2023 0 200 400 600 800

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4

2. Health

2.1 Basic Checks

The number of shares outstanding for DRR-U has been reduced compared to 1 year ago.
The debt/assets ratio for DRR-U is higher compared to a year ago.
DRR-U.CA Yearly Shares OutstandingDRR-U.CA Yearly Shares OutstandingYearly Shares Outstanding 2022 2023 2M 4M 6M 8M 10M
DRR-U.CA Yearly Total Debt VS Total AssetsDRR-U.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2022 2023 100M 200M 300M 400M

2.2 Solvency

DRR-U has an Altman-Z score of 0.79. This is a bad value and indicates that DRR-U is not financially healthy and even has some risk of bankruptcy.
DRR-U's Altman-Z score of 0.79 is fine compared to the rest of the industry. DRR-U outperforms 62.50% of its industry peers.
The Debt to FCF ratio of DRR-U is 7.62, which is on the high side as it means it would take DRR-U, 7.62 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 7.62, DRR-U belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that DRR-U is somewhat dependend on debt financing.
DRR-U has a Debt to Equity ratio (0.70) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 7.62
Altman-Z 0.79
ROIC/WACCN/A
WACCN/A
DRR-U.CA Yearly LT Debt VS Equity VS FCFDRR-U.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2022 2023 50M 100M 150M 200M

2.3 Liquidity

DRR-U has a Current Ratio of 0.35. This is a bad value and indicates that DRR-U is not financially healthy enough and could expect problems in meeting its short term obligations.
DRR-U has a better Current ratio (0.35) than 68.75% of its industry peers.
DRR-U has a Quick Ratio of 0.35. This is a bad value and indicates that DRR-U is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.35, DRR-U is doing good in the industry, outperforming 68.75% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.35
Quick Ratio 0.35
DRR-U.CA Yearly Current Assets VS Current LiabilitesDRR-U.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2022 2023 10M 20M 30M 40M 50M

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2

3. Growth

3.1 Past

DRR-U shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -520.80%.
The Revenue has been growing slightly by 4.49% in the past year.
EPS 1Y (TTM)-520.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25.55%
Revenue 1Y (TTM)4.49%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.79%

3.2 Future

Based on estimates for the next years, DRR-U will show a very strong growth in Earnings Per Share. The EPS will grow by 71.81% on average per year.
DRR-U is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.32% yearly.
EPS Next Y-42.86%
EPS Next 2Y120.39%
EPS Next 3Y71.81%
EPS Next 5YN/A
Revenue Next Year1%
Revenue Next 2Y2.27%
Revenue Next 3Y2.32%
Revenue Next 5YN/A

3.3 Evolution

DRR-U.CA Yearly Revenue VS EstimatesDRR-U.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2022 2023 2024 2025 2026 10M 20M 30M 40M 50M
DRR-U.CA Yearly EPS VS EstimatesDRR-U.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

DRR-U reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 8.05, the valuation of DRR-U can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DRR-U is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DRR-U to the average of the S&P500 Index (22.70), we can say DRR-U is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 8.05
DRR-U.CA Price Earnings VS Forward Price EarningsDRR-U.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, DRR-U is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.15
EV/EBITDA N/A
DRR-U.CA Per share dataDRR-U.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

A more expensive valuation may be justified as DRR-U's earnings are expected to grow with 71.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y120.39%
EPS Next 3Y71.81%

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4

5. Dividend

5.1 Amount

DRR-U has a Yearly Dividend Yield of 5.12%, which is a nice return.
DRR-U's Dividend Yield is a higher than the industry average which is at 4.91.
DRR-U's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 5.12%

5.2 History

DRR-U has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
DRR-U.CA Yearly Dividends per shareDRR-U.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

The earnings of DRR-U are negative and hence is the payout ratio. DRR-U will probably not be able to sustain this dividend level.
DP-56.95%
EPS Next 2Y120.39%
EPS Next 3Y71.81%
DRR-U.CA Yearly Income VS Free CF VS DividendDRR-U.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2022 2023 0 20M 40M 60M 80M 100M

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DREAM RESIDENTIAL REAL ESTAT

TSX:DRR-U (2/21/2025, 7:00:00 PM)

8

+0.18 (+2.3%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-19 2025-02-19/amc
Earnings (Next)N/A N/A
Inst Owners14.34%
Inst Owner ChangeN/A
Ins Owners0.53%
Ins Owner ChangeN/A
Market Cap127.92M
Analysts77.5
Price Target8.88 (11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.12%
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP-56.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-31 2025-01-31 (0.035)
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)1.85%
PT rev (3m)-3.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-80%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 8.05
P/S 3.59
P/FCF 4.15
P/OCF 4.15
P/B 0.38
P/tB 0.38
EV/EBITDA N/A
EPS(TTM)-1.25
EYN/A
EPS(NY)0.99
Fwd EY12.43%
FCF(TTM)1.93
FCFY24.1%
OCF(TTM)1.93
OCFY24.1%
SpS2.23
BVpS21.12
TBVpS21.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.63%
ROE -4.52%
ROCE 5.68%
ROIC 3.81%
ROICexc 3.89%
ROICexgc 3.89%
OM 85.19%
PM (TTM) N/A
GM N/A
FCFM 86.51%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 7.62
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 2.08
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.35
Quick Ratio 0.35
Altman-Z 0.79
F-Score4
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)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-520.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25.55%
EPS Next Y-42.86%
EPS Next 2Y120.39%
EPS Next 3Y71.81%
EPS Next 5YN/A
Revenue 1Y (TTM)4.49%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.79%
Revenue Next Year1%
Revenue Next 2Y2.27%
Revenue Next 3Y2.32%
Revenue Next 5YN/A
EBIT growth 1Y3.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-26.52%
EBIT Next 3Y-7.67%
EBIT Next 5YN/A
FCF growth 1Y92.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y92.51%
OCF growth 3YN/A
OCF growth 5YN/A