NEXUS INDUSTRIAL REIT (NXR-UN.CA) Stock Fundamental Analysis
TSX:NXR-UN - Toronto Stock Exchange - CA65344U1012 - REIT - Currency: CAD
Overall NXR-UN gets a fundamental rating of 4 out of 10. We evaluated NXR-UN against 43 industry peers in the Diversified REITs industry. While NXR-UN is still in line with the averages on profitability rating, there are concerns on its financial health. NXR-UN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NXR-UN was profitable.
In the past year NXR-UN had a positive cash flow from operations.
In the past 5 years NXR-UN has always been profitable.
Each year in the past 5 years NXR-UN had a positive operating cash flow.
1.2 Ratios
NXR-UN has a better Return On Assets (1.66%) than 69.77% of its industry peers.
NXR-UN has a better Return On Equity (4.24%) than 74.42% of its industry peers.
The Return On Invested Capital of NXR-UN (2.45%) is worse than 93.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.24% | ||
| ROIC | 2.45% |
ROA(3y)6.09%
ROA(5y)6.03%
ROE(3y)14.47%
ROE(5y)14.25%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NXR-UN's Profit Margin of 25.05% is amongst the best of the industry. NXR-UN outperforms 81.40% of its industry peers.
NXR-UN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 43.67%, NXR-UN is doing worse than 72.09% of the companies in the same industry.
In the last couple of years the Operating Margin of NXR-UN has grown nicely.
The Gross Margin of NXR-UN (71.05%) is better than 72.09% of its industry peers.
In the last couple of years the Gross Margin of NXR-UN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.67% | ||
| PM (TTM) | 25.05% | ||
| GM | 71.05% |
OM growth 3Y5.4%
OM growth 5Y6.94%
PM growth 3Y20.98%
PM growth 5Y7.19%
GM growth 3Y3.62%
GM growth 5Y2.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NXR-UN is destroying value.
NXR-UN has more shares outstanding than it did 1 year ago.
NXR-UN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NXR-UN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that NXR-UN is in the distress zone and has some risk of bankruptcy.
NXR-UN has a Altman-Z score of 0.43. This is in the lower half of the industry: NXR-UN underperforms 65.12% of its industry peers.
The Debt to FCF ratio of NXR-UN is 40.31, which is on the high side as it means it would take NXR-UN, 40.31 years of fcf income to pay off all of its debts.
NXR-UN has a worse Debt to FCF ratio (40.31) than 88.37% of its industry peers.
NXR-UN has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.14, NXR-UN perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 40.31 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.42
WACC5.84%
2.3 Liquidity
NXR-UN has a Current Ratio of 0.35. This is a bad value and indicates that NXR-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.35, NXR-UN is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
A Quick Ratio of 0.35 indicates that NXR-UN may have some problems paying its short term obligations.
NXR-UN's Quick ratio of 0.35 is fine compared to the rest of the industry. NXR-UN outperforms 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
NXR-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.85%.
Measured over the past 5 years, NXR-UN shows a small growth in Earnings Per Share. The EPS has been growing by 3.78% on average per year.
NXR-UN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.46%.
Measured over the past years, NXR-UN shows a very strong growth in Revenue. The Revenue has been growing by 23.85% on average per year.
EPS 1Y (TTM)-69.85%
EPS 3Y18.53%
EPS 5Y3.78%
EPS Q2Q%-157.49%
Revenue 1Y (TTM)13.46%
Revenue growth 3Y36.93%
Revenue growth 5Y23.85%
Sales Q2Q%14.53%
3.2 Future
The Earnings Per Share is expected to decrease by -29.56% on average over the next years. This is quite bad
The Revenue is expected to grow by 7.71% on average over the next years.
EPS Next Y-68.82%
EPS Next 2Y-42.73%
EPS Next 3Y-29.56%
EPS Next 5YN/A
Revenue Next Year11.97%
Revenue Next 2Y9.8%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 15.50, NXR-UN is valued correctly.
83.72% of the companies in the same industry are more expensive than NXR-UN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.53. NXR-UN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.82, the valuation of NXR-UN can be described as reasonable.
Based on the Price/Forward Earnings ratio, NXR-UN is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.65. NXR-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXR-UN is on the same level as its industry peers.
NXR-UN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 26.15 |
4.3 Compensation for Growth
The decent profitability rating of NXR-UN may justify a higher PE ratio.
NXR-UN's earnings are expected to decrease with -29.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.1
EPS Next 2Y-42.73%
EPS Next 3Y-29.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, NXR-UN is a good candidate for dividend investing.
NXR-UN's Dividend Yield is comparable with the industry average which is at 8.03.
Compared to an average S&P500 Dividend Yield of 2.27, NXR-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
The dividend of NXR-UN decreases each year by -6.80%.
NXR-UN has paid a dividend for at least 10 years, which is a reliable track record.
NXR-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.8%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
NXR-UN pays out 91.23% of its income as dividend. This is not a sustainable payout ratio.
NXR-UN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP91.23%
EPS Next 2Y-42.73%
EPS Next 3Y-29.56%
TSX:NXR-UN (2/24/2025, 7:00:00 PM)
7.285
+0 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners14.22%
Inst Owner ChangeN/A
Ins Owners1.09%
Ins Owner ChangeN/A
Market Cap515.41M
Analysts75.38
Price Target9.15 (25.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
Yearly Dividend0.42
Dividend Growth(5Y)-6.8%
DP91.23%
Div Incr Years1
Div Non Decr Years4
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)-1.22%
PT rev (3m)-1.82%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-51.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 11.82 | ||
| P/S | 2.98 | ||
| P/FCF | 14.12 | ||
| P/OCF | 10.87 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 26.15 |
EPS(TTM)0.47
EY6.45%
EPS(NY)0.62
Fwd EY8.46%
FCF(TTM)0.52
FCFY7.08%
OCF(TTM)0.67
OCFY9.2%
SpS2.45
BVpS14.46
TBVpS14.46
PEG (NY)N/A
PEG (5Y)4.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.24% | ||
| ROCE | 3.4% | ||
| ROIC | 2.45% | ||
| ROICexc | 2.46% | ||
| ROICexgc | 2.46% | ||
| OM | 43.67% | ||
| PM (TTM) | 25.05% | ||
| GM | 71.05% | ||
| FCFM | 21.1% |
ROA(3y)6.09%
ROA(5y)6.03%
ROE(3y)14.47%
ROE(5y)14.25%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-5.07%
ROICexcg growth 5Y-6%
ROICexc growth 3Y-5.07%
ROICexc growth 5Y-6%
OM growth 3Y5.4%
OM growth 5Y6.94%
PM growth 3Y20.98%
PM growth 5Y7.19%
GM growth 3Y3.62%
GM growth 5Y2.6%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 40.31 | ||
| Debt/EBITDA | 15.44 | ||
| Cap/Depr | 9743.75% | ||
| Cap/Sales | 6.31% | ||
| Interest Coverage | 1.1 | ||
| Cash Conversion | 62.66% | ||
| Profit Quality | 84.25% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 0.43 |
F-Score6
WACC5.84%
ROIC/WACC0.42
Cap/Depr(3y)13075.9%
Cap/Depr(5y)10001.1%
Cap/Sales(3y)8.87%
Cap/Sales(5y)8.51%
Profit Quality(3y)22.04%
Profit Quality(5y)32.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-69.85%
EPS 3Y18.53%
EPS 5Y3.78%
EPS Q2Q%-157.49%
EPS Next Y-68.82%
EPS Next 2Y-42.73%
EPS Next 3Y-29.56%
EPS Next 5YN/A
Revenue 1Y (TTM)13.46%
Revenue growth 3Y36.93%
Revenue growth 5Y23.85%
Sales Q2Q%14.53%
Revenue Next Year11.97%
Revenue Next 2Y9.8%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
EBIT growth 1Y-40.89%
EBIT growth 3Y44.32%
EBIT growth 5Y32.44%
EBIT Next Year-10.47%
EBIT Next 3Y-0.23%
EBIT Next 5YN/A
FCF growth 1Y6.74%
FCF growth 3Y19.73%
FCF growth 5Y14.7%
OCF growth 1Y16.39%
OCF growth 3Y27.96%
OCF growth 5Y21.17%