H&R REAL ESTATE INV-REIT UTS (HR-UN.CA) Stock Fundamental Analysis
TSX:HR-UN - Toronto Stock Exchange - CA4039254079 - REIT - Currency: CAD
We assign a fundamental rating of 4 out of 10 to HR-UN. HR-UN was compared to 43 industry peers in the Diversified REITs industry. There are concerns on the financial health of HR-UN while its profitability can be described as average. HR-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HR-UN had negative earnings in the past year.
In the past year HR-UN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HR-UN reported negative net income in multiple years.
HR-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HR-UN has a Return On Assets (-1.13%) which is comparable to the rest of the industry.
HR-UN has a Return On Equity (-2.27%) which is in line with its industry peers.
HR-UN has a worse Return On Invested Capital (3.70%) than 76.74% of its industry peers.
HR-UN had an Average Return On Invested Capital over the past 3 years of 3.58%. This is in line with the industry average of 5.49%.
The 3 year average ROIC (3.58%) for HR-UN is below the current ROIC(3.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.27% | ||
| ROIC | 3.7% |
ROA(3y)2.28%
ROA(5y)1.57%
ROE(3y)4.77%
ROE(5y)3.31%
ROIC(3y)3.58%
ROIC(5y)3.86%
1.3 Margins
HR-UN has a better Operating Margin (61.12%) than 74.42% of its industry peers.
HR-UN's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 63.64%, HR-UN is doing good in the industry, outperforming 60.47% of the companies in the same industry.
HR-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.12% | ||
| PM (TTM) | N/A | ||
| GM | 63.64% |
OM growth 3Y0.65%
OM growth 5Y0.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.82%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
HR-UN has more shares outstanding than it did 1 year ago.
HR-UN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HR-UN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that HR-UN is in the distress zone and has some risk of bankruptcy.
HR-UN has a Altman-Z score of 0.33. This is in the lower half of the industry: HR-UN underperforms 67.44% of its industry peers.
HR-UN has a debt to FCF ratio of 13.52. This is a negative value and a sign of low solvency as HR-UN would need 13.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.52, HR-UN is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
HR-UN has a Debt/Equity ratio of 0.59. This is a neutral value indicating HR-UN is somewhat dependend on debt financing.
HR-UN has a Debt to Equity ratio of 0.59. This is amongst the best in the industry. HR-UN outperforms 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 13.52 | ||
| Altman-Z | 0.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.14 indicates that HR-UN may have some problems paying its short term obligations.
HR-UN has a worse Current ratio (0.14) than 60.47% of its industry peers.
A Quick Ratio of 0.14 indicates that HR-UN may have some problems paying its short term obligations.
HR-UN's Quick ratio of 0.14 is in line compared to the rest of the industry. HR-UN outperforms 41.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
HR-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -293.07%.
HR-UN shows a decrease in Revenue. In the last year, the revenue decreased by -3.55%.
HR-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.60% yearly.
EPS 1Y (TTM)-293.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1256.3%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y-8.47%
Revenue growth 5Y-6.6%
Sales Q2Q%-1.73%
3.2 Future
HR-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 115.18% yearly.
The Revenue is expected to grow by 2.51% on average over the next years.
EPS Next Y354.35%
EPS Next 2Y115.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.15%
Revenue Next 2Y2.51%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for HR-UN. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 8.38, the valuation of HR-UN can be described as very reasonable.
HR-UN's Price/Forward Earnings ratio is rather cheap when compared to the industry. HR-UN is cheaper than 90.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HR-UN to the average of the S&P500 Index (22.70), we can say HR-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
67.44% of the companies in the same industry are more expensive than HR-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HR-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HR-UN's earnings are expected to grow with 115.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y115.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HR-UN has a Yearly Dividend Yield of 5.61%, which is a nice return.
HR-UN's Dividend Yield is slightly below the industry average, which is at 8.03.
Compared to an average S&P500 Dividend Yield of 2.27, HR-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
The dividend of HR-UN decreases each year by -12.29%.
HR-UN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of HR-UN decreased recently.
Dividend Growth(5Y)-12.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HR-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-153.17%
EPS Next 2Y115.18%
EPS Next 3YN/A
TSX:HR-UN (2/21/2025, 7:00:00 PM)
10.1
-0.07 (-0.69%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners25.15%
Inst Owner ChangeN/A
Ins Owners1.54%
Ins Owner ChangeN/A
Market Cap2.65B
Analysts78.57
Price Target11.6 (14.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.72
Dividend Growth(5Y)-12.29%
DP-153.17%
Div Incr Years1
Div Non Decr Years1
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%
PT rev (3m)-2.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.41%
EPS NY rev (3m)-5.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.38 | ||
| P/S | 3.25 | ||
| P/FCF | 9.68 | ||
| P/OCF | 9.68 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.46
EYN/A
EPS(NY)1.21
Fwd EY11.93%
FCF(TTM)1.04
FCFY10.33%
OCF(TTM)1.04
OCFY10.33%
SpS3.11
BVpS20.1
TBVpS20.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.13% | ||
| ROE | -2.27% | ||
| ROCE | 5.14% | ||
| ROIC | 3.7% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 3.75% | ||
| OM | 61.12% | ||
| PM (TTM) | N/A | ||
| GM | 63.64% | ||
| FCFM | 33.55% |
ROA(3y)2.28%
ROA(5y)1.57%
ROE(3y)4.77%
ROE(5y)3.31%
ROIC(3y)3.58%
ROIC(5y)3.86%
ROICexc(3y)3.61%
ROICexc(5y)3.89%
ROICexgc(3y)3.62%
ROICexgc(5y)3.9%
ROCE(3y)4.97%
ROCE(5y)5.36%
ROICexcg growth 3Y-7.4%
ROICexcg growth 5Y1.29%
ROICexc growth 3Y-7.45%
ROICexc growth 5Y1.26%
OM growth 3Y0.65%
OM growth 5Y0.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.82%
GM growth 5Y0.57%
F-Score3
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 13.52 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 3.27 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.33 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-293.07%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1256.3%
EPS Next Y354.35%
EPS Next 2Y115.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y-8.47%
Revenue growth 5Y-6.6%
Sales Q2Q%-1.73%
Revenue Next Year2.15%
Revenue Next 2Y2.51%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.36%
EBIT growth 3Y-7.87%
EBIT growth 5Y-6.09%
EBIT Next Year23.04%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.98%
FCF growth 3Y-15.37%
FCF growth 5Y-8.1%
OCF growth 1Y-6.98%
OCF growth 3Y-15.37%
OCF growth 5Y-8.1%