GRANITE REAL ESTATE INVESTME (GRP.U) Stock Fundamental Analysis
NYSE:GRP.U - New York Stock Exchange, Inc. - CA3874372053 - REIT - Currency: USD
GRP.U gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. While GRP.U has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GRP.U.
1. Profitability
1.1 Basic Checks
In the past year GRP.U was profitable.
In the past year GRP.U had a positive cash flow from operations.
GRP.U had positive earnings in each of the past 5 years.
GRP.U had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GRP.U (3.31%) is better than 80.95% of its industry peers.
GRP.U has a better Return On Equity (5.66%) than 72.22% of its industry peers.
GRP.U has a better Return On Invested Capital (3.98%) than 78.57% of its industry peers.
GRP.U had an Average Return On Invested Capital over the past 3 years of 3.17%. This is in line with the industry average of 3.11%.
The 3 year average ROIC (3.17%) for GRP.U is below the current ROIC(3.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 5.66% | ||
| ROIC | 3.98% |
ROA(3y)6.16%
ROA(5y)6.56%
ROE(3y)10.02%
ROE(5y)10.63%
ROIC(3y)3.17%
ROIC(5y)3.24%
1.3 Margins
GRP.U's Profit Margin of 55.93% is amongst the best of the industry. GRP.U outperforms 97.62% of its industry peers.
In the last couple of years the Profit Margin of GRP.U has declined.
GRP.U's Operating Margin of 76.47% is amongst the best of the industry. GRP.U outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of GRP.U has remained more or less at the same level.
GRP.U has a better Gross Margin (83.66%) than 84.13% of its industry peers.
In the last couple of years the Gross Margin of GRP.U has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.47% | ||
| PM (TTM) | 55.93% | ||
| GM | 83.66% |
OM growth 3Y-0.45%
OM growth 5Y-0.06%
PM growth 3Y-40.8%
PM growth 5Y-32.56%
GM growth 3Y-1.03%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRP.U is destroying value.
Compared to 1 year ago, GRP.U has less shares outstanding
Compared to 5 years ago, GRP.U has more shares outstanding
Compared to 1 year ago, GRP.U has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that GRP.U is in the distress zone and has some risk of bankruptcy.
GRP.U's Altman-Z score of 1.04 is fine compared to the rest of the industry. GRP.U outperforms 73.81% of its industry peers.
The Debt to FCF ratio of GRP.U is 9.10, which is on the high side as it means it would take GRP.U, 9.10 years of fcf income to pay off all of its debts.
GRP.U has a Debt to FCF ratio of 9.10. This is amongst the best in the industry. GRP.U outperforms 89.68% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that GRP.U is not too dependend on debt financing.
GRP.U has a better Debt to Equity ratio (0.43) than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 9.1 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.74
WACC5.34%
2.3 Liquidity
A Current Ratio of 0.17 indicates that GRP.U may have some problems paying its short term obligations.
GRP.U's Current ratio of 0.17 is on the low side compared to the rest of the industry. GRP.U is outperformed by 98.41% of its industry peers.
GRP.U has a Quick Ratio of 0.17. This is a bad value and indicates that GRP.U is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.17, GRP.U is doing worse than 97.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
GRP.U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1621.06%, which is quite impressive.
The earnings per share for GRP.U have been decreasing by -26.73% on average. This is quite bad
The Revenue has been growing slightly by 6.57% in the past year.
The Revenue has been growing by 16.06% on average over the past years. This is quite good.
EPS 1Y (TTM)1621.06%
EPS 3Y-33.34%
EPS 5Y-26.73%
EPS Q2Q%8.79%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y15.28%
Revenue growth 5Y16.06%
Sales Q2Q%7.3%
3.2 Future
GRP.U is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.98% yearly.
GRP.U is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.43% yearly.
EPS Next Y99.65%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
EPS Next 5YN/A
Revenue Next Year7.52%
Revenue Next 2Y6.71%
Revenue Next 3Y6.43%
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.
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
GRP.U is valuated correctly with a Price/Earnings ratio of 13.37.
Based on the Price/Earnings ratio, GRP.U is valued cheaply inside the industry as 89.68% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GRP.U to the average of the S&P500 Index (28.28), we can say GRP.U is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.17, the valuation of GRP.U can be described as correct.
Based on the Price/Forward Earnings ratio, GRP.U is valued cheaper than 97.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, GRP.U is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRP.U indicates a slightly more expensive valuation: GRP.U is more expensive than 74.60% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRP.U indicates a rather cheap valuation: GRP.U is cheaper than 84.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GRP.U may justify a higher PE ratio.
GRP.U's earnings are expected to grow with 28.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y41.3%
EPS Next 3Y28.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, GRP.U has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 18.24, GRP.U is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.27, GRP.U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of GRP.U has a limited annual growth rate of 3.51%.
GRP.U has paid a dividend for at least 10 years, which is a reliable track record.
GRP.U has decreased its dividend recently.
Dividend Growth(5Y)3.51%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GRP.U pays out 67.17% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GRP.U is growing, but earnings are growing more, so the dividend growth is sustainable.
DP67.17%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
GRANITE REAL ESTATE INVESTME
NYSE:GRP.U (1/30/2025, 1:05:23 PM)
48.94
+1.2 (+2.51%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.51%
Inst Owner Change0.43%
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap3.07B
Analysts83.08
Price Target62.79 (28.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend3.21
Dividend Growth(5Y)3.51%
DP67.17%
Div Incr Years1
Div Non Decr Years1
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)-3.91%
PT rev (3m)-4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)8.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 12.17 | ||
| P/S | 8.05 | ||
| P/FCF | 12.92 | ||
| P/OCF | 12.91 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 17.29 |
EPS(TTM)3.66
EY7.48%
EPS(NY)4.02
Fwd EY8.22%
FCF(TTM)3.79
FCFY7.74%
OCF(TTM)3.79
OCFY7.75%
SpS6.08
BVpS60.11
TBVpS60.11
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 5.66% | ||
| ROCE | 5.03% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.04% | ||
| OM | 76.47% | ||
| PM (TTM) | 55.93% | ||
| GM | 83.66% | ||
| FCFM | 62.31% |
ROA(3y)6.16%
ROA(5y)6.56%
ROE(3y)10.02%
ROE(5y)10.63%
ROIC(3y)3.17%
ROIC(5y)3.24%
ROICexc(3y)3.25%
ROICexc(5y)3.43%
ROICexgc(3y)3.25%
ROICexgc(5y)3.43%
ROCE(3y)4.01%
ROCE(5y)4.1%
ROICexcg growth 3Y-0.74%
ROICexcg growth 5Y-3.31%
ROICexc growth 3Y-0.74%
ROICexc growth 5Y-3.31%
OM growth 3Y-0.45%
OM growth 5Y-0.06%
PM growth 3Y-40.8%
PM growth 5Y-32.56%
GM growth 3Y-1.03%
GM growth 5Y-0.93%
F-Score8
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 9.1 | ||
| Debt/EBITDA | 5.52 | ||
| Cap/Depr | 13.61% | ||
| Cap/Sales | 0.03% | ||
| Interest Coverage | 5.33 | ||
| Cash Conversion | 81.27% | ||
| Profit Quality | 111.39% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 1.04 |
F-Score8
WACC5.34%
ROIC/WACC0.74
Cap/Depr(3y)39.52%
Cap/Depr(5y)56.49%
Cap/Sales(3y)0.13%
Cap/Sales(5y)0.19%
Profit Quality(3y)142.18%
Profit Quality(5y)106.19%
High Growth Momentum
Growth
EPS 1Y (TTM)1621.06%
EPS 3Y-33.34%
EPS 5Y-26.73%
EPS Q2Q%8.79%
EPS Next Y99.65%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y15.28%
Revenue growth 5Y16.06%
Sales Q2Q%7.3%
Revenue Next Year7.52%
Revenue Next 2Y6.71%
Revenue Next 3Y6.43%
Revenue Next 5YN/A
EBIT growth 1Y9.2%
EBIT growth 3Y14.76%
EBIT growth 5Y16%
EBIT Next Year60.4%
EBIT Next 3Y22.53%
EBIT Next 5YN/A
FCF growth 1Y29.59%
FCF growth 3Y8.85%
FCF growth 5Y14.85%
OCF growth 1Y29.22%
OCF growth 3Y8.63%
OCF growth 5Y14.68%