GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GRT-UN - CA3874372053 - REIT
87.14 CAD
+1.07 (+1.24%)
We assign a fundamental rating of 6 out of 10 to GRT-UN. GRT-UN was compared to 37 industry peers in the Diversified REITs industry. While GRT-UN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GRT-UN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GRT-UN had positive earnings in the past year.
GRT-UN had a positive operating cash flow in the past year.
GRT-UN had positive earnings in each of the past 5 years.
In the past 5 years GRT-UN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.02%, GRT-UN belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
GRT-UN has a Return On Equity of 5.28%. This is in the better half of the industry: GRT-UN outperforms 64.86% of its industry peers.
GRT-UN's Return On Invested Capital of 3.52% is in line compared to the rest of the industry. GRT-UN outperforms 40.54% of its industry peers.
GRT-UN had an Average Return On Invested Capital over the past 3 years of 3.16%. This is below the industry average of 5.57%.
The 3 year average ROIC (3.16%) for GRT-UN is below the current ROIC(3.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.28% | ||
| ROIC | 3.52% |
ROA(3y)2.31%
ROA(5y)5.72%
ROE(3y)3.91%
ROE(5y)9.46%
ROIC(3y)3.16%
ROIC(5y)2.98%
1.3 Margins
GRT-UN has a better Profit Margin (48.08%) than 91.89% of its industry peers.
GRT-UN's Profit Margin has declined in the last couple of years.
GRT-UN has a Operating Margin of 75.49%. This is amongst the best in the industry. GRT-UN outperforms 97.30% of its industry peers.
In the last couple of years the Operating Margin of GRT-UN has remained more or less at the same level.
With an excellent Gross Margin value of 82.21%, GRT-UN belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
GRT-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.49% | ||
| PM (TTM) | 48.08% | ||
| GM | 82.21% |
OM growth 3Y0.91%
OM growth 5Y0.32%
PM growth 3Y-42.48%
PM growth 5Y-14.61%
GM growth 3Y-0.64%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRT-UN is destroying value.
GRT-UN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GRT-UN has more shares outstanding
GRT-UN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that GRT-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.28, GRT-UN belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
The Debt to FCF ratio of GRT-UN is 8.52, which is on the high side as it means it would take GRT-UN, 8.52 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 8.52, GRT-UN belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
GRT-UN has a Debt/Equity ratio of 0.56. This is a neutral value indicating GRT-UN is somewhat dependend on debt financing.
The Debt to Equity ratio of GRT-UN (0.56) is better than 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.63
WACC5.61%
2.3 Liquidity
GRT-UN has a Current Ratio of 1.82. This is a normal value and indicates that GRT-UN is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.82, GRT-UN belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
GRT-UN has a Quick Ratio of 1.82. This is a normal value and indicates that GRT-UN is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.82, GRT-UN belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
GRT-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.59%, which is quite good.
The Earnings Per Share has been decreasing by -6.06% on average over the past years.
The Revenue has grown by 9.81% in the past year. This is quite good.
The Revenue has been growing by 15.77% on average over the past years. This is quite good.
EPS 1Y (TTM)9.59%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%10.34%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%8.04%
3.2 Future
The Earnings Per Share is expected to grow by 6.59% on average over the next years.
Based on estimates for the next years, GRT-UN will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y-11.01%
EPS Next 2Y7.53%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y6.36%
Revenue Next 3Y5.62%
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
A Price/Earnings ratio of 15.05 indicates a correct valuation of GRT-UN.
Compared to the rest of the industry, the Price/Earnings ratio of GRT-UN indicates a somewhat cheap valuation: GRT-UN is cheaper than 72.97% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. GRT-UN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.61, the valuation of GRT-UN can be described as correct.
GRT-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GRT-UN is cheaper than 64.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. GRT-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRT-UN is valued a bit cheaper than 70.27% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GRT-UN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| EV/EBITDA | 18.18 |
4.3 Compensation for Growth
The decent profitability rating of GRT-UN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.53%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, GRT-UN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.04, GRT-UN's dividend is way lower than its industry peers. On top of this 86.49% of the companies listed in the same industry pay a better dividend than GRT-UN!
Compared to an average S&P500 Dividend Yield of 1.92, GRT-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of GRT-UN has a limited annual growth rate of 1.78%.
GRT-UN has paid a dividend for at least 10 years, which is a reliable track record.
GRT-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.78%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
GRT-UN pays out 71.73% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GRT-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.73%
EPS Next 2Y7.53%
EPS Next 3Y6.59%
TSX:GRT-UN (1/12/2026, 7:00:00 PM)
87.14
+1.07 (+1.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap5.28B
Revenue(TTM)604.98M
Net Income(TTM)290.86M
Analysts83.08
Price Target91.06 (4.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend3.3
Dividend Growth(5Y)1.78%
DP71.73%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
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)0.88%
PT rev (3m)2.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.51%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 13.61 | ||
| P/S | 8.73 | ||
| P/FCF | 14.06 | ||
| P/OCF | 14.05 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 18.18 |
EPS(TTM)5.79
EY6.64%
EPS(NY)6.4
Fwd EY7.35%
FCF(TTM)6.2
FCFY7.11%
OCF(TTM)6.2
OCFY7.12%
SpS9.98
BVpS90.88
TBVpS90.88
PEG (NY)N/A
PEG (5Y)N/A
Graham Number108.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.28% | ||
| ROCE | 4.89% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.57% | ||
| ROICexgc | 3.57% | ||
| OM | 75.49% | ||
| PM (TTM) | 48.08% | ||
| GM | 82.21% | ||
| FCFM | 62.09% |
ROA(3y)2.31%
ROA(5y)5.72%
ROE(3y)3.91%
ROE(5y)9.46%
ROIC(3y)3.16%
ROIC(5y)2.98%
ROICexc(3y)3.2%
ROICexc(5y)3.12%
ROICexgc(3y)3.2%
ROICexgc(5y)3.12%
ROCE(3y)4.38%
ROCE(5y)4.14%
ROICexgc growth 3Y8.35%
ROICexgc growth 5Y-0.02%
ROICexc growth 3Y8.35%
ROICexc growth 5Y-0.02%
OM growth 3Y0.91%
OM growth 5Y0.32%
PM growth 3Y-42.48%
PM growth 5Y-14.61%
GM growth 3Y-0.64%
GM growth 5Y-0.97%
F-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 6.77 | ||
| Cap/Depr | 7.49% | ||
| Cap/Sales | 0.02% | ||
| Interest Coverage | 5.84 | ||
| Cash Conversion | 82.05% | ||
| Profit Quality | 129.14% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.28 |
F-Score6
WACC5.61%
ROIC/WACC0.63
Cap/Depr(3y)27.37%
Cap/Depr(5y)53.98%
Cap/Sales(3y)0.08%
Cap/Sales(5y)0.18%
Profit Quality(3y)166.81%
Profit Quality(5y)115.37%
High Growth Momentum
Growth
EPS 1Y (TTM)9.59%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%10.34%
EPS Next Y-11.01%
EPS Next 2Y7.53%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue 1Y (TTM)9.81%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%8.04%
Revenue Next Year8.37%
Revenue Next 2Y6.36%
Revenue Next 3Y5.62%
Revenue Next 5YN/A
EBIT growth 1Y8.36%
EBIT growth 3Y14.12%
EBIT growth 5Y16.14%
EBIT Next Year7.81%
EBIT Next 3Y6.47%
EBIT Next 5YN/A
FCF growth 1Y24.21%
FCF growth 3Y8.95%
FCF growth 5Y13.06%
OCF growth 1Y24.16%
OCF growth 3Y8.88%
OCF growth 5Y13.05%
GRANITE REAL ESTATE INVESTME / GRT-UN.CA FAQ
What is the ChartMill fundamental rating of GRANITE REAL ESTATE INVESTME (GRT-UN.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GRT-UN.CA.
What is the valuation status for GRT-UN stock?
ChartMill assigns a valuation rating of 4 / 10 to GRANITE REAL ESTATE INVESTME (GRT-UN.CA). This can be considered as Fairly Valued.
How profitable is GRANITE REAL ESTATE INVESTME (GRT-UN.CA) stock?
GRANITE REAL ESTATE INVESTME (GRT-UN.CA) has a profitability rating of 7 / 10.
What is the earnings growth outlook for GRANITE REAL ESTATE INVESTME?
The Earnings per Share (EPS) of GRANITE REAL ESTATE INVESTME (GRT-UN.CA) is expected to decline by -11.01% in the next year.
Can you provide the dividend sustainability for GRT-UN stock?
The dividend rating of GRANITE REAL ESTATE INVESTME (GRT-UN.CA) is 6 / 10 and the dividend payout ratio is 71.73%.