MORGUARD NORTH AMERICAN RESI (MRG-UN.CA) Stock Fundamental Analysis
TSX:MRG-UN - Toronto Stock Exchange - CA61761E1007 - REIT - Currency: CAD
Overall MRG-UN gets a fundamental rating of 4 out of 10. We evaluated MRG-UN against 16 industry peers in the Residential REITs industry. MRG-UN has a medium profitability rating, but doesn't score so well on its financial health evaluation. MRG-UN has a valuation in line with the averages, but it does not seem to be growing. MRG-UN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MRG-UN had positive earnings in the past year.
MRG-UN had a positive operating cash flow in the past year.
In the past 5 years MRG-UN has always been profitable.
In the past 5 years MRG-UN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MRG-UN (2.23%) is better than 75.00% of its industry peers.
MRG-UN's Return On Equity of 5.09% is fine compared to the rest of the industry. MRG-UN outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.05%, MRG-UN is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MRG-UN is in line with the industry average of 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 5.09% | ||
| ROIC | 3.05% |
ROA(3y)4.04%
ROA(5y)4.95%
ROE(3y)9.04%
ROE(5y)11.44%
ROIC(3y)3.13%
ROIC(5y)3.1%
1.3 Margins
MRG-UN has a Profit Margin of 29.59%. This is in the better half of the industry: MRG-UN outperforms 75.00% of its industry peers.
MRG-UN's Profit Margin has been stable in the last couple of years.
MRG-UN has a Operating Margin (52.71%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MRG-UN has remained more or less at the same level.
The Gross Margin of MRG-UN (58.91%) is worse than 68.75% of its industry peers.
MRG-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.71% | ||
| PM (TTM) | 29.59% | ||
| GM | 58.91% |
OM growth 3Y-0.01%
OM growth 5Y-0.52%
PM growth 3Y-33.04%
PM growth 5Y-1.1%
GM growth 3Y-0.62%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
The number of shares outstanding for MRG-UN has been reduced compared to 1 year ago.
The number of shares outstanding for MRG-UN has been reduced compared to 5 years ago.
Compared to 1 year ago, MRG-UN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that MRG-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, MRG-UN is in line with its industry, outperforming 50.00% of the companies in the same industry.
MRG-UN has a debt to FCF ratio of 18.37. This is a negative value and a sign of low solvency as MRG-UN would need 18.37 years to pay back of all of its debts.
MRG-UN has a Debt to FCF ratio of 18.37. This is in the lower half of the industry: MRG-UN underperforms 62.50% of its industry peers.
MRG-UN has a Debt/Equity ratio of 0.79. This is a neutral value indicating MRG-UN is somewhat dependend on debt financing.
MRG-UN has a Debt to Equity ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 18.37 | ||
| Altman-Z | 0.71 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.57 indicates that MRG-UN may have some problems paying its short term obligations.
MRG-UN has a better Current ratio (0.57) than 87.50% of its industry peers.
A Quick Ratio of 0.57 indicates that MRG-UN may have some problems paying its short term obligations.
The Quick ratio of MRG-UN (0.57) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
MRG-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.02%.
MRG-UN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.88% yearly.
MRG-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.79%.
The Revenue has been growing slightly by 6.98% on average over the past years.
EPS 1Y (TTM)-41.02%
EPS 3Y-23.43%
EPS 5Y5.88%
EPS Q2Q%98.12%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y11.91%
Revenue growth 5Y6.98%
Sales Q2Q%3.4%
3.2 Future
Based on estimates for the next years, MRG-UN will show a very negative growth in Earnings Per Share. The EPS will decrease by -28.92% on average per year.
MRG-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-51.22%
EPS Next 2Y-28.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.65%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.28, which indicates a very decent valuation of MRG-UN.
81.25% of the companies in the same industry are more expensive than MRG-UN, based on the Price/Earnings ratio.
MRG-UN is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.68, which indicates a very decent valuation of MRG-UN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRG-UN indicates a somewhat cheap valuation: MRG-UN is cheaper than 75.00% of the companies listed in the same industry.
MRG-UN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as MRG-UN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as MRG-UN's earnings are expected to decrease with -28.92% in the coming years.
PEG (NY)N/A
PEG (5Y)1.58
EPS Next 2Y-28.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRG-UN has a Yearly Dividend Yield of 4.17%, which is a nice return.
MRG-UN's Dividend Yield is comparable with the industry average which is at 4.91.
Compared to an average S&P500 Dividend Yield of 2.27, MRG-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of MRG-UN has a limited annual growth rate of 2.33%.
MRG-UN has paid a dividend for at least 10 years, which is a reliable track record.
MRG-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.33%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
26.32% of the earnings are spent on dividend by MRG-UN. This is a low number and sustainable payout ratio.
DP26.32%
EPS Next 2Y-28.92%
EPS Next 3YN/A
TSX:MRG-UN (2/21/2025, 7:00:00 PM)
16.51
-0.09 (-0.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners4.96%
Inst Owner ChangeN/A
Ins Owners4.3%
Ins Owner ChangeN/A
Market Cap597.83M
Analysts80
Price Target22.19 (34.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend0.49
Dividend Growth(5Y)2.33%
DP26.32%
Div Incr Years3
Div Non Decr Years12
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)-2.61%
PT rev (3m)-2.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.45%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.2%
Revenue NY rev (3m)2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 11.68 | ||
| P/S | 1.74 | ||
| P/FCF | 6.13 | ||
| P/OCF | 6.13 | ||
| P/B | 0.3 | ||
| P/tB | 0.3 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.78
EY10.78%
EPS(NY)1.41
Fwd EY8.56%
FCF(TTM)2.69
FCFY16.31%
OCF(TTM)2.69
OCFY16.31%
SpS9.51
BVpS55.27
TBVpS55.27
PEG (NY)N/A
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 5.09% | ||
| ROCE | 4.24% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.09% | ||
| ROICexgc | 3.09% | ||
| OM | 52.71% | ||
| PM (TTM) | 29.59% | ||
| GM | 58.91% | ||
| FCFM | 28.33% |
ROA(3y)4.04%
ROA(5y)4.95%
ROE(3y)9.04%
ROE(5y)11.44%
ROIC(3y)3.13%
ROIC(5y)3.1%
ROICexc(3y)3.15%
ROICexc(5y)3.12%
ROICexgc(3y)3.15%
ROICexgc(5y)3.12%
ROCE(3y)4.34%
ROCE(5y)4.31%
ROICexcg growth 3Y3.05%
ROICexcg growth 5Y-1.05%
ROICexc growth 3Y3.05%
ROICexc growth 5Y-1.05%
OM growth 3Y-0.01%
OM growth 5Y-0.52%
PM growth 3Y-33.04%
PM growth 5Y-1.1%
GM growth 3Y-0.62%
GM growth 5Y-0.82%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 18.37 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.82 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 95.72% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.71 |
F-Score4
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)60.15%
Profit Quality(5y)46.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-41.02%
EPS 3Y-23.43%
EPS 5Y5.88%
EPS Q2Q%98.12%
EPS Next Y-51.22%
EPS Next 2Y-28.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.79%
Revenue growth 3Y11.91%
Revenue growth 5Y6.98%
Sales Q2Q%3.4%
Revenue Next Year6.65%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.65%
EBIT growth 3Y11.9%
EBIT growth 5Y6.42%
EBIT Next Year-7.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y9.6%
FCF growth 3Y15.25%
FCF growth 5Y11.94%
OCF growth 1Y9.6%
OCF growth 3Y15.25%
OCF growth 5Y9.31%