BSR REAL ESTATE INVESTMENT T (HOM-U.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HOM-U - CA05585D1033 - REIT
12.49 USD
+0.28 (+2.29%)
Taking everything into account, HOM-U scores 3 out of 10 in our fundamental rating. HOM-U was compared to 14 industry peers in the Residential REITs industry. HOM-U has a bad profitability rating. Also its financial health evaluation is rather negative. HOM-U has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- HOM-U had negative earnings in the past year.
- HOM-U had a positive operating cash flow in the past year.
- In multiple years HOM-U reported negative net income over the last 5 years.
- In the past 5 years HOM-U always reported a positive cash flow from operatings.
1.2 Ratios
- HOM-U has a Return On Assets of -1.46%. This is in the lower half of the industry: HOM-U underperforms 64.29% of its industry peers.
- Looking at the Return On Equity, with a value of -3.54%, HOM-U is doing worse than 64.29% of the companies in the same industry.
- HOM-U's Return On Invested Capital of 2.44% is in line compared to the rest of the industry. HOM-U outperforms 42.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HOM-U is in line with the industry average of 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.46% | ||
| ROE | -3.54% | ||
| ROIC | 2.44% |
ROA(3y)-0.93%
ROA(5y)2.84%
ROE(3y)-4.14%
ROE(5y)7.74%
ROIC(3y)2.81%
ROIC(5y)2.48%
1.3 Margins
- HOM-U's Operating Margin of 21.37% is on the low side compared to the rest of the industry. HOM-U is outperformed by 78.57% of its industry peers.
- HOM-U's Operating Margin has improved in the last couple of years.
- HOM-U has a Gross Margin (63.47%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of HOM-U has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.37% | ||
| PM (TTM) | N/A | ||
| GM | 63.47% |
OM growth 3Y3.24%
OM growth 5Y3.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.55%
GM growth 5Y-1.01%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HOM-U is destroying value.
- HOM-U has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for HOM-U has been increased compared to 5 years ago.
- The debt/assets ratio for HOM-U is higher compared to a year ago.
2.2 Solvency
- HOM-U has an Altman-Z score of 0.37. This is a bad value and indicates that HOM-U is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of HOM-U (0.37) is worse than 78.57% of its industry peers.
- HOM-U has a debt to FCF ratio of 11.73. This is a negative value and a sign of low solvency as HOM-U would need 11.73 years to pay back of all of its debts.
- The Debt to FCF ratio of HOM-U (11.73) is better than 64.29% of its industry peers.
- HOM-U has a Debt/Equity ratio of 0.64. This is a neutral value indicating HOM-U is somewhat dependend on debt financing.
- HOM-U has a better Debt to Equity ratio (0.64) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 11.73 | ||
| Altman-Z | 0.37 |
ROIC/WACC0.41
WACC6.02%
2.3 Liquidity
- A Current Ratio of 0.06 indicates that HOM-U may have some problems paying its short term obligations.
- HOM-U's Current ratio of 0.06 is on the low side compared to the rest of the industry. HOM-U is outperformed by 78.57% of its industry peers.
- HOM-U has a Quick Ratio of 0.06. This is a bad value and indicates that HOM-U is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of HOM-U (0.06) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
- HOM-U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.31%, which is quite impressive.
- The Revenue has decreased by -9.59% in the past year.
- Measured over the past years, HOM-U shows a quite strong growth in Revenue. The Revenue has been growing by 8.59% on average per year.
EPS 1Y (TTM)83.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%110.09%
Revenue 1Y (TTM)-9.59%
Revenue growth 3Y12.14%
Revenue growth 5Y8.59%
Sales Q2Q%-21.75%
3.2 Future
- Based on estimates for the next years, HOM-U will show a very strong growth in Earnings Per Share. The EPS will grow by 38.41% on average per year.
- HOM-U is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.68% yearly.
EPS Next Y6.82%
EPS Next 2Y60.26%
EPS Next 3Y38.41%
EPS Next 5YN/A
Revenue Next Year-13.98%
Revenue Next 2Y-7.69%
Revenue Next 3Y-3.68%
Revenue Next 5YN/A
3.3 Evolution
- 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 negative for HOM-U. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 11.70, the valuation of HOM-U can be described as reasonable.
- Based on the Price/Forward Earnings ratio, HOM-U is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- HOM-U's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HOM-U.
- HOM-U's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 38.9 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as HOM-U's earnings are expected to grow with 38.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.26%
EPS Next 3Y38.41%
5. Dividend
5.1 Amount
- HOM-U has a Yearly Dividend Yield of 4.72%, which is a nice return.
- HOM-U's Dividend Yield is a higher than the industry average which is at 4.73.
- HOM-U's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
5.2 History
- HOM-U has been paying a dividend for over 5 years, so it has already some track record.
- As HOM-U did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
- The earnings of HOM-U are negative and hence is the payout ratio. HOM-U will probably not be able to sustain this dividend level.
DP-131.88%
EPS Next 2Y60.26%
EPS Next 3Y38.41%
BSR REAL ESTATE INVESTMENT T / HOM-U.CA FAQ
What is the fundamental rating for HOM-U stock?
ChartMill assigns a fundamental rating of 3 / 10 to HOM-U.CA.
What is the valuation status for HOM-U stock?
ChartMill assigns a valuation rating of 4 / 10 to BSR REAL ESTATE INVESTMENT T (HOM-U.CA). This can be considered as Fairly Valued.
How profitable is BSR REAL ESTATE INVESTMENT T (HOM-U.CA) stock?
BSR REAL ESTATE INVESTMENT T (HOM-U.CA) has a profitability rating of 3 / 10.
Can you provide the financial health for HOM-U stock?
The financial health rating of BSR REAL ESTATE INVESTMENT T (HOM-U.CA) is 2 / 10.
How sustainable is the dividend of BSR REAL ESTATE INVESTMENT T (HOM-U.CA) stock?
The dividend rating of BSR REAL ESTATE INVESTMENT T (HOM-U.CA) is 5 / 10 and the dividend payout ratio is -131.88%.