GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GRT-UN - CA3874372053 - REIT
87.27 CAD
-1.59 (-1.79%)
GRT-UN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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's Return On Assets of 3.02% is amongst the best of the industry. GRT-UN outperforms 84.21% of its industry peers.
- Looking at the Return On Equity, with a value of 5.28%, GRT-UN is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.52%, GRT-UN is in line with its industry, outperforming 42.11% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for GRT-UN is below the industry average of 5.49%.
- The last Return On Invested Capital (3.52%) for GRT-UN is above the 3 year average (3.16%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 48.08%, GRT-UN belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
- In the last couple of years the Profit Margin of GRT-UN has declined.
- The Operating Margin of GRT-UN (75.49%) is better than 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 (82.21%) 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 | 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
- 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.
- GRT-UN has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GRT-UN has an improved debt to assets ratio.
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.
- GRT-UN has a Altman-Z score of 1.28. This is amongst the best in the industry. GRT-UN outperforms 86.84% of its industry peers.
- 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.
- GRT-UN has a Debt to FCF ratio of 8.52. This is amongst the best in the industry. GRT-UN outperforms 94.74% of its industry peers.
- GRT-UN has a Debt/Equity ratio of 0.56. This is a neutral value indicating GRT-UN is somewhat dependend on debt financing.
- GRT-UN has a better Debt to Equity ratio (0.56) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.61
WACC5.74%
2.3 Liquidity
- A Current Ratio of 1.82 indicates that GRT-UN should not have too much problems paying its short term obligations.
- GRT-UN has a better Current ratio (1.82) than 92.11% of its industry peers.
- A Quick Ratio of 1.82 indicates that GRT-UN should not have too much problems paying its short term obligations.
- The Quick ratio of GRT-UN (1.82) is better than 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.59% over the past year.
- Measured over the past years, GRT-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.06% on average per year.
- Looking at the last year, GRT-UN shows a quite strong growth in Revenue. The Revenue has grown by 9.81% in the last year.
- Measured over the past years, GRT-UN shows a quite strong growth in Revenue. The Revenue has been growing by 15.77% on average per year.
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.
- The Revenue is expected to grow by 5.62% on average over the next years.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.07 indicates a correct valuation of GRT-UN.
- Based on the Price/Earnings ratio, GRT-UN is valued a bit cheaper than 73.68% of the companies in the same industry.
- GRT-UN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 13.63, the valuation of GRT-UN can be described as correct.
- Based on the Price/Forward Earnings ratio, GRT-UN is valued a bit cheaper than 65.79% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GRT-UN to the average of the S&P500 Index (25.96), we can say GRT-UN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.07 | ||
| Fwd PE | 13.63 |
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 65.79% 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 | 14.08 | ||
| EV/EBITDA | 18.19 |
4.3 Compensation for Growth
- GRT-UN has a very decent profitability rating, which 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
- GRT-UN has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 7.11, 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!
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- 71.73% of the earnings are spent on dividend by GRT-UN. 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%
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%.