GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis
TSX:GRT-UN - Toronto Stock Exchange - CA3874372053 - REIT - Currency: CAD
We assign a fundamental rating of 6 out of 10 to GRT-UN. GRT-UN was compared to 38 industry peers in the Diversified REITs industry. GRT-UN has an excellent profitability rating, but there are some minor concerns on its financial health. GRT-UN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GRT-UN was profitable.
GRT-UN had a positive operating cash flow in the past year.
In the past 5 years GRT-UN has always been profitable.
In the past 5 years GRT-UN always reported a positive cash flow from operatings.
1.2 Ratios
GRT-UN has a Return On Assets of 3.27%. This is amongst the best in the industry. GRT-UN outperforms 94.74% of its industry peers.
GRT-UN has a better Return On Equity (5.57%) than 73.68% of its industry peers.
GRT-UN's Return On Invested Capital of 3.40% is on the low side compared to the rest of the industry. GRT-UN is outperformed by 73.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRT-UN is below the industry average of 5.66%.
The 3 year average ROIC (3.16%) for GRT-UN is below the current ROIC(3.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 5.57% | ||
| ROIC | 3.4% |
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
Looking at the Profit Margin, with a value of 53.92%, GRT-UN belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
GRT-UN's Profit Margin has declined in the last couple of years.
GRT-UN's Operating Margin of 76.49% is amongst the best of the industry. GRT-UN outperforms 97.37% of its industry peers.
GRT-UN's Operating Margin has been stable in the last couple of years.
GRT-UN has a better Gross Margin (82.61%) than 94.74% of its industry peers.
In the last couple of years the Gross Margin of GRT-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.49% | ||
| PM (TTM) | 53.92% | ||
| GM | 82.61% |
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
GRT-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GRT-UN has been reduced compared to 1 year ago.
The number of shares outstanding for GRT-UN has been increased compared to 5 years ago.
GRT-UN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.12, 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 (1.12) than 86.84% of its industry peers.
The Debt to FCF ratio of GRT-UN is 8.60, which is on the high side as it means it would take GRT-UN, 8.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.60, GRT-UN belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
GRT-UN has a Debt/Equity ratio of 0.55. This is a neutral value indicating GRT-UN is somewhat dependend on debt financing.
The Debt to Equity ratio of GRT-UN (0.55) is better than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 8.6 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.63
WACC5.43%
2.3 Liquidity
GRT-UN has a Current Ratio of 0.93. This is a bad value and indicates that GRT-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
GRT-UN has a better Current ratio (0.93) than 92.11% of its industry peers.
A Quick Ratio of 0.93 indicates that GRT-UN may have some problems paying its short term obligations.
GRT-UN has a Quick ratio of 0.93. This is amongst the best in the industry. GRT-UN outperforms 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.27% over the past year.
The Earnings Per Share has been decreasing by -6.06% on average over the past years.
GRT-UN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.23%.
GRT-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.77% yearly.
EPS 1Y (TTM)10.27%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%2.94%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%5.43%
3.2 Future
The Earnings Per Share is expected to grow by 5.99% on average over the next years.
GRT-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.81% yearly.
EPS Next Y5.04%
EPS Next 2Y5.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.79%
Revenue Next 2Y6.52%
Revenue Next 3Y7.81%
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
With a Price/Earnings ratio of 12.72, GRT-UN is valued correctly.
GRT-UN's Price/Earnings ratio is rather cheap when compared to the industry. GRT-UN is cheaper than 84.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, GRT-UN is valued rather cheaply.
The Price/Forward Earnings ratio is 11.41, which indicates a very decent valuation of GRT-UN.
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 76.32% of the companies listed in the same industry.
GRT-UN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.41 |
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 73.68% of the companies listed 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 | 11.89 | ||
| EV/EBITDA | 16.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GRT-UN does not grow enough to justify the current Price/Earnings ratio.
GRT-UN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)N/A
EPS Next 2Y5.99%
EPS Next 3YN/A
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 7.95, GRT-UN's dividend is way lower than its industry peers. On top of this 86.84% 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 2.42.
| 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 66.16% of its income as dividend. This is not a sustainable payout ratio.
GRT-UN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.16%
EPS Next 2Y5.99%
EPS Next 3YN/A
TSX:GRT-UN (7/4/2025, 7:00:00 PM)
70.99
+0.87 (+1.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.13%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap4.32B
Analysts83.08
Price Target83.64 (17.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend3.3
Dividend Growth(5Y)1.78%
DP66.16%
Div Incr Years14
Div Non Decr Years14
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)0.96%
PT rev (3m)-5.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 11.41 | ||
| P/S | 7.39 | ||
| P/FCF | 11.89 | ||
| P/OCF | 11.89 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 16.15 |
EPS(TTM)5.58
EY7.86%
EPS(NY)6.22
Fwd EY8.76%
FCF(TTM)5.97
FCFY8.41%
OCF(TTM)5.97
OCFY8.41%
SpS9.6
BVpS93.04
TBVpS93.04
PEG (NY)2.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 5.57% | ||
| ROCE | 4.72% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.45% | ||
| ROICexgc | 3.45% | ||
| OM | 76.49% | ||
| PM (TTM) | 53.92% | ||
| GM | 82.61% | ||
| FCFM | 62.15% |
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%
ROICexcg growth 3Y8.35%
ROICexcg 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 | 0.55 | ||
| Debt/FCF | 8.6 | ||
| Debt/EBITDA | 6.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.99 | ||
| Cash Conversion | 81.03% | ||
| Profit Quality | 115.27% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.12 |
F-Score6
WACC5.43%
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)10.27%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%2.94%
EPS Next Y5.04%
EPS Next 2Y5.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.23%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%5.43%
Revenue Next Year7.79%
Revenue Next 2Y6.52%
Revenue Next 3Y7.81%
Revenue Next 5YN/A
EBIT growth 1Y10.48%
EBIT growth 3Y14.12%
EBIT growth 5Y16.14%
EBIT Next Year7.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.22%
FCF growth 3Y8.95%
FCF growth 5Y13.06%
OCF growth 1Y24.94%
OCF growth 3Y8.88%
OCF growth 5Y13.05%