GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:GRT-UN • CA3874372053
87.85 CAD
+2.07 (+2.41%)
Last: Jan 30, 2026, 07:00 PM
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. While GRT-UN has a great profitability rating, 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.
- In the past year GRT-UN had a positive cash flow from operations.
- In the past 5 years GRT-UN has always been profitable.
- GRT-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 3.02%, GRT-UN belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- With a decent Return On Equity value of 5.28%, GRT-UN is doing good in the industry, outperforming 65.79% of the companies in the same industry.
- GRT-UN's Return On Invested Capital of 3.52% is in line compared to the rest of the industry. GRT-UN outperforms 42.11% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of GRT-UN has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 82.21%, GRT-UN belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- 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
- 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 1.29, we must say that GRT-UN is in the distress zone and has some risk of bankruptcy.
- GRT-UN's Altman-Z score of 1.29 is amongst the best of 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.
- The Debt to FCF ratio of GRT-UN (8.52) is better than 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 Debt to Equity ratio of 0.56. This is amongst the best in the industry. GRT-UN outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.61
WACC5.75%
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.
- Looking at the Current ratio, with a value of 1.82, GRT-UN belongs to the top of the industry, outperforming 92.11% 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.
- Looking at the Quick ratio, with a value of 1.82, GRT-UN belongs to the top of the industry, outperforming 92.11% 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.
- 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.
- The Revenue has grown by 9.81% in the past year. This is quite good.
- 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
- GRT-UN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.59% yearly.
- 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
- The Price/Earnings ratio is 15.17, which indicates a correct valuation of GRT-UN.
- GRT-UN's Price/Earnings ratio is a bit cheaper when compared to the industry. GRT-UN is cheaper than 73.68% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, GRT-UN is valued a bit cheaper.
- The Price/Forward Earnings ratio is 13.72, which indicates a correct 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 65.79% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, GRT-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
- GRT-UN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GRT-UN is cheaper than 65.79% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRT-UN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.17 | ||
| EV/EBITDA | 18.23 |
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%.
- With a Dividend Yield of 3.94, GRT-UN pays less dividend than the industry average, which is at 7.11. 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 1.82.
| 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%
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%.