GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis
TSX:GRT-UN - Toronto Stock Exchange - CA3874372053 - REIT - Currency: CAD
Overall GRT-UN gets a fundamental rating of 6 out of 10. We evaluated GRT-UN against 43 industry peers in the Diversified REITs industry. GRT-UN scores excellent on profitability, but there are some minor concerns on its financial health. GRT-UN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GRT-UN had positive earnings in the past year.
In the past year GRT-UN had a positive cash flow from operations.
GRT-UN had positive earnings in each of the past 5 years.
Each year in the past 5 years GRT-UN had a positive operating cash flow.
1.2 Ratios
GRT-UN has a better Return On Assets (3.31%) than 95.35% of its industry peers.
With an excellent Return On Equity value of 5.66%, GRT-UN belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
The Return On Invested Capital of GRT-UN (3.62%) is worse than 79.07% of its industry peers.
GRT-UN had an Average Return On Invested Capital over the past 3 years of 2.89%. This is below the industry average of 5.49%.
The last Return On Invested Capital (3.62%) for GRT-UN is above the 3 year average (2.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 5.66% | ||
| ROIC | 3.62% |
ROA(3y)6.16%
ROA(5y)6.56%
ROE(3y)10.02%
ROE(5y)10.63%
ROIC(3y)2.89%
ROIC(5y)2.95%
1.3 Margins
Looking at the Profit Margin, with a value of 55.93%, GRT-UN belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
GRT-UN's Profit Margin has declined in the last couple of years.
GRT-UN has a better Operating Margin (76.47%) than 100.00% 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.
GRT-UN has a better Gross Margin (83.66%) than 95.35% of its industry peers.
GRT-UN's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GRT-UN is destroying value.
Compared to 1 year ago, GRT-UN has less shares outstanding
GRT-UN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GRT-UN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that GRT-UN is in the distress zone and has some risk of bankruptcy.
GRT-UN has a better Altman-Z score (1.03) than 79.07% of its industry peers.
The Debt to FCF ratio of GRT-UN is 9.10, which is on the high side as it means it would take GRT-UN, 9.10 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 9.10, GRT-UN belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
GRT-UN has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.43, GRT-UN belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 9.1 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.68
WACC5.36%
2.3 Liquidity
A Current Ratio of 0.17 indicates that GRT-UN may have some problems paying its short term obligations.
GRT-UN's Current ratio of 0.17 is in line compared to the rest of the industry. GRT-UN outperforms 44.19% of its industry peers.
A Quick Ratio of 0.17 indicates that GRT-UN may have some problems paying its short term obligations.
With a Quick ratio value of 0.17, GRT-UN perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
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 1621.06%, which is quite impressive.
The earnings per share for GRT-UN have been decreasing by -26.73% on average. This is quite bad
GRT-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.57%.
GRT-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.06% yearly.
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
Based on estimates for the next years, GRT-UN will show a very strong growth in Earnings Per Share. The EPS will grow by 28.98% on average per year.
Based on estimates for the next years, GRT-UN will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
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
A Price/Earnings ratio of 12.67 indicates a correct valuation of GRT-UN.
Compared to the rest of the industry, the Price/Earnings ratio of GRT-UN indicates a rather cheap valuation: GRT-UN is cheaper than 88.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GRT-UN to the average of the S&P500 Index (29.53), we can say GRT-UN is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.52, the valuation of GRT-UN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRT-UN indicates a somewhat cheap valuation: GRT-UN is cheaper than 74.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, GRT-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRT-UN indicates a somewhat cheap valuation: GRT-UN is cheaper than 76.74% of the companies listed in the same industry.
GRT-UN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 17.14 |
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 decent profitability rating of GRT-UN may justify a higher PE ratio.
A more expensive valuation may be justified as GRT-UN's earnings are expected to grow with 28.98% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y41.3%
EPS Next 3Y28.98%
5. Dividend
5.1 Amount
GRT-UN has a Yearly Dividend Yield of 3.94%.
Compared to an average industry Dividend Yield of 8.03, GRT-UN's dividend is way lower than its industry peers. On top of this 86.05% of the companies listed in the same industry pay a better dividend than GRT-UN!
GRT-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 | 3.94% |
5.2 History
The dividend of GRT-UN has a limited annual growth rate of 3.51%.
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)3.51%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
GRT-UN pays out 67.17% 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.
DP67.17%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
TSX:GRT-UN (2/24/2025, 7:00:00 PM)
66.9
-1.06 (-1.56%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners72.27%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap4.19B
Analysts83.08
Price Target90.65 (35.5%)
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 Years13
Div Non Decr Years13
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)-0.64%
PT rev (3m)-0.64%
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 | 12.67 | ||
| Fwd PE | 11.52 | ||
| P/S | 7.61 | ||
| P/FCF | 12.22 | ||
| P/OCF | 12.21 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)5.28
EY7.89%
EPS(NY)5.81
Fwd EY8.68%
FCF(TTM)5.47
FCFY8.18%
OCF(TTM)5.48
OCFY8.19%
SpS8.79
BVpS86.85
TBVpS86.85
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 5.66% | ||
| ROCE | 5.03% | ||
| ROIC | 3.62% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 3.68% | ||
| 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)2.89%
ROIC(5y)2.95%
ROICexc(3y)2.96%
ROICexc(5y)3.12%
ROICexgc(3y)2.96%
ROICexgc(5y)3.12%
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 | 1.03 |
F-Score8
WACC5.36%
ROIC/WACC0.68
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 Year11.09%
EBIT Next 3Y8.41%
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%