MELCOR REAL ESTATE INVESTMEN (MR-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MR-UN - CA58546R1091 - REIT
5.49 CAD
-0.01 (-0.18%)
Overall MR-UN gets a fundamental rating of 3 out of 10. We evaluated MR-UN against 38 industry peers in the Diversified REITs industry. MR-UN has a bad profitability rating. Also its financial health evaluation is rather negative. MR-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- MR-UN had negative earnings in the past year.
- In the past year MR-UN had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: MR-UN reported negative net income in multiple years.
- In the past 5 years MR-UN always reported a positive cash flow from operatings.
1.2 Ratios
- MR-UN has a worse Return On Assets (-4.62%) than 71.05% of its industry peers.
- The Return On Equity of MR-UN (-18.19%) is worse than 71.05% of its industry peers.
- MR-UN has a Return On Invested Capital of 5.51%. This is amongst the best in the industry. MR-UN outperforms 92.11% of its industry peers.
- MR-UN had an Average Return On Invested Capital over the past 3 years of 4.96%. This is in line with the industry average of 5.49%.
- The 3 year average ROIC (4.96%) for MR-UN is below the current ROIC(5.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.62% | ||
| ROE | -18.19% | ||
| ROIC | 5.51% |
ROA(3y)0.59%
ROA(5y)0.07%
ROE(3y)1.88%
ROE(5y)-0.22%
ROIC(3y)4.96%
ROIC(5y)4.78%
1.3 Margins
- Looking at the Operating Margin, with a value of 47.88%, MR-UN is in line with its industry, outperforming 42.11% of the companies in the same industry.
- MR-UN's Operating Margin has declined in the last couple of years.
- MR-UN has a Gross Margin of 57.06%. This is in the lower half of the industry: MR-UN underperforms 60.53% of its industry peers.
- In the last couple of years the Gross Margin of MR-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.88% | ||
| PM (TTM) | N/A | ||
| GM | 57.06% |
OM growth 3Y-4.56%
OM growth 5Y-2.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-0.86%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, MR-UN has more shares outstanding
- MR-UN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MR-UN has about the same debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.11, we must say that MR-UN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.11, MR-UN is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
- The Debt to FCF ratio of MR-UN is 24.71, which is on the high side as it means it would take MR-UN, 24.71 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MR-UN (24.71) is worse than 65.79% of its industry peers.
- MR-UN has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.68, MR-UN is not doing good in the industry: 81.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 24.71 | ||
| Altman-Z | 0.11 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- MR-UN has a Current Ratio of 0.28. This is a bad value and indicates that MR-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- MR-UN has a Current ratio (0.28) which is in line with its industry peers.
- MR-UN has a Quick Ratio of 0.28. This is a bad value and indicates that MR-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.28, MR-UN perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
- The earnings per share for MR-UN have decreased strongly by -852.16% in the last year.
- MR-UN shows a decrease in Revenue. In the last year, the revenue decreased by -2.12%.
- The Revenue has been growing slightly by 0.33% on average over the past years.
EPS 1Y (TTM)-852.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-312.35%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y-0.8%
Revenue growth 5Y0.33%
Sales Q2Q%-2.08%
3.2 Future
- MR-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.20% yearly.
- MR-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.36% yearly.
EPS Next Y91.18%
EPS Next 2Y37.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.37%
Revenue Next 2Y1.36%
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
- MR-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 8.20, which indicates a very decent valuation of MR-UN.
- 94.74% of the companies in the same industry are more expensive than MR-UN, based on the Price/Forward Earnings ratio.
- MR-UN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, MR-UN is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- MR-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- MR-UN's earnings are expected to grow with 37.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- MR-UN has a Yearly Dividend Yield of 10.00%, which is a nice return.
- Compared to an average industry Dividend Yield of 7.11, MR-UN pays a better dividend. On top of this MR-UN pays more dividend than 86.84% of the companies listed in the same industry.
- MR-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 | 10% |
5.2 History
- The dividend of MR-UN decreases each year by -42.81%.
- MR-UN has paid a dividend for at least 10 years, which is a reliable track record.
- MR-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-42.81%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- MR-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1.69%
EPS Next 2Y37.2%
EPS Next 3YN/A
MELCOR REAL ESTATE INVESTMEN / MR-UN.CA FAQ
What is the fundamental rating for MR-UN stock?
ChartMill assigns a fundamental rating of 3 / 10 to MR-UN.CA.
What is the valuation status of MELCOR REAL ESTATE INVESTMEN (MR-UN.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to MELCOR REAL ESTATE INVESTMEN (MR-UN.CA). This can be considered as Fairly Valued.
What is the profitability of MR-UN stock?
MELCOR REAL ESTATE INVESTMEN (MR-UN.CA) has a profitability rating of 3 / 10.
What is the expected EPS growth for MELCOR REAL ESTATE INVESTMEN (MR-UN.CA) stock?
The Earnings per Share (EPS) of MELCOR REAL ESTATE INVESTMEN (MR-UN.CA) is expected to grow by 91.18% in the next year.