EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) Stock Fundamental Analysis
TSX:ERE-UN - Toronto Stock Exchange - CA29880W1032 - REIT - Currency: CAD
Overall ERE-UN gets a fundamental rating of 3 out of 10. We evaluated ERE-UN against 16 industry peers in the Residential REITs industry. There are concerns on the financial health of ERE-UN while its profitability can be described as average. ERE-UN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ERE-UN has reported negative net income.
In the past year ERE-UN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ERE-UN reported negative net income in multiple years.
Each year in the past 5 years ERE-UN had a positive operating cash flow.
1.2 Ratios
ERE-UN has a worse Return On Assets (-7.43%) than 81.25% of its industry peers.
ERE-UN has a Return On Equity of -24.63%. This is amonst the worse of the industry: ERE-UN underperforms 93.75% of its industry peers.
ERE-UN has a better Return On Invested Capital (7.83%) than 100.00% of its industry peers.
ERE-UN had an Average Return On Invested Capital over the past 3 years of 4.40%. This is in line with the industry average of 3.07%.
The 3 year average ROIC (4.40%) for ERE-UN is below the current ROIC(7.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.43% | ||
| ROE | -24.63% | ||
| ROIC | 7.83% |
ROA(3y)-2.69%
ROA(5y)0.99%
ROE(3y)-10.07%
ROE(5y)5.02%
ROIC(3y)4.4%
ROIC(5y)3.47%
1.3 Margins
The Operating Margin of ERE-UN (69.08%) is better than 87.50% of its industry peers.
In the last couple of years the Operating Margin of ERE-UN has grown nicely.
Looking at the Gross Margin, with a value of 81.26%, ERE-UN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ERE-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 69.08% | ||
| PM (TTM) | N/A | ||
| GM | 81.26% |
OM growth 3Y2.16%
OM growth 5Y2.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.41%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
ERE-UN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ERE-UN has been increased compared to 5 years ago.
ERE-UN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that ERE-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.24, ERE-UN is doing worse than 81.25% of the companies in the same industry.
ERE-UN has a debt to FCF ratio of 6.27. This is a slightly negative value and a sign of low solvency as ERE-UN would need 6.27 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.27, ERE-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ERE-UN has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.19, ERE-UN is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 6.27 | ||
| Altman-Z | 0.24 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.28 indicates that ERE-UN may have some problems paying its short term obligations.
ERE-UN has a Current ratio (0.28) which is in line with its industry peers.
ERE-UN has a Quick Ratio of 0.28. This is a bad value and indicates that ERE-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
ERE-UN has a Quick ratio (0.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.08% over the past year.
The Revenue has decreased by -2.84% in the past year.
Measured over the past years, ERE-UN shows a quite strong growth in Revenue. The Revenue has been growing by 17.52% on average per year.
EPS 1Y (TTM)44.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-45.69%
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-16.49%
3.2 Future
ERE-UN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -50.00% yearly.
Based on estimates for the next years, ERE-UN will show a very negative growth in Revenue. The Revenue will decrease by -28.54% on average per year.
EPS Next Y-75%
EPS Next 2Y-50%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-41.67%
Revenue Next 2Y-28.54%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ERE-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 23.90 indicates a rather expensive valuation of ERE-UN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERE-UN indicates a slightly more expensive valuation: ERE-UN is more expensive than 75.00% of the companies listed in the same industry.
ERE-UN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.9 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than ERE-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.84 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ERE-UN's earnings are expected to decrease with -50.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-50%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.05%, ERE-UN is a good candidate for dividend investing.
The stock price of ERE-UN dropped by -31.61% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.91, ERE-UN pays a better dividend. On top of this ERE-UN pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, ERE-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.05% |
5.2 History
On average, the dividend of ERE-UN grows each year by 102.17%, which is quite nice.
ERE-UN has been paying a dividend for over 5 years, so it has already some track record.
ERE-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)102.17%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
The earnings of ERE-UN are negative and hence is the payout ratio. ERE-UN will probably not be able to sustain this dividend level.
DP-158.55%
EPS Next 2Y-50%
EPS Next 3YN/A
TSX:ERE-UN (2/21/2025, 7:00:00 PM)
2.51
+0.04 (+1.62%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners42.81%
Inst Owner ChangeN/A
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap231.85M
Analysts76.67
Price Target2.93 (16.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.05% |
Yearly Dividend0.44
Dividend Growth(5Y)102.17%
DP-158.55%
Div Incr Years3
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)-21.77%
PT rev (3m)-25.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-12.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-18.18%
Revenue NY rev (3m)-16.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 23.9 | ||
| P/S | 1.68 | ||
| P/FCF | 2.84 | ||
| P/OCF | 2.84 | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.41
EYN/A
EPS(NY)0.11
Fwd EY4.18%
FCF(TTM)0.88
FCFY35.17%
OCF(TTM)0.88
OCFY35.17%
SpS1.5
BVpS4.2
TBVpS4.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.43% | ||
| ROE | -24.63% | ||
| ROCE | 10.88% | ||
| ROIC | 7.83% | ||
| ROICexc | 7.93% | ||
| ROICexgc | 7.93% | ||
| OM | 69.08% | ||
| PM (TTM) | N/A | ||
| GM | 81.26% | ||
| FCFM | 59.03% |
ROA(3y)-2.69%
ROA(5y)0.99%
ROE(3y)-10.07%
ROE(5y)5.02%
ROIC(3y)4.4%
ROIC(5y)3.47%
ROICexc(3y)4.44%
ROICexc(5y)3.5%
ROICexgc(3y)4.44%
ROICexgc(5y)3.5%
ROCE(3y)6.12%
ROCE(5y)4.83%
ROICexcg growth 3Y58.14%
ROICexcg growth 5Y41.76%
ROICexc growth 3Y58.45%
ROICexc growth 5Y41.98%
OM growth 3Y2.16%
OM growth 5Y2.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.41%
GM growth 5Y0.55%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 6.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.35 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 0.24 |
F-Score5
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)44.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-45.69%
EPS Next Y-75%
EPS Next 2Y-50%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.84%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-16.49%
Revenue Next Year-41.67%
Revenue Next 2Y-28.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.57%
EBIT growth 3Y8.84%
EBIT growth 5Y20.39%
EBIT Next Year-64.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-0.6%
FCF growth 3Y0.46%
FCF growth 5Y18.98%
OCF growth 1Y-0.6%
OCF growth 3Y0.46%
OCF growth 5Y18.98%