NEXUS INDUSTRIAL REIT (NXR-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NXR-UN - CA65344U1012 - REIT
7.89 CAD
-0.15 (-1.87%)
NXR-UN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 industry peers in the Diversified REITs industry. While NXR-UN has a great profitability rating, there are quite some concerns on its financial health. NXR-UN has a decent growth rate and is not valued too expensively. NXR-UN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- NXR-UN had positive earnings in the past year.
- In the past year NXR-UN had a positive cash flow from operations.
- NXR-UN had positive earnings in each of the past 5 years.
- Each year in the past 5 years NXR-UN had a positive operating cash flow.
1.2 Ratios
- NXR-UN has a Return On Assets of 3.02%. This is amongst the best in the industry. NXR-UN outperforms 81.58% of its industry peers.
- NXR-UN has a better Return On Equity (7.42%) than 89.47% of its industry peers.
- With a decent Return On Invested Capital value of 4.66%, NXR-UN is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- NXR-UN had an Average Return On Invested Capital over the past 3 years of 4.81%. This is in line with the industry average of 5.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 7.42% | ||
| ROIC | 4.66% |
ROA(3y)5.38%
ROA(5y)5.34%
ROE(3y)12.8%
ROE(5y)12.74%
ROIC(3y)4.81%
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 45.01%, NXR-UN belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of NXR-UN has declined.
- The Operating Margin of NXR-UN (83.96%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of NXR-UN has grown nicely.
- Looking at the Gross Margin, with a value of 73.59%, NXR-UN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- NXR-UN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 83.96% | ||
| PM (TTM) | 45.01% | ||
| GM | 73.59% |
OM growth 3YN/A
OM growth 5Y5.37%
PM growth 3Y-22.67%
PM growth 5Y-6.05%
GM growth 3Y2.26%
GM growth 5Y2.55%
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.
- The number of shares outstanding for NXR-UN has been increased compared to 5 years ago.
- The debt/assets ratio for NXR-UN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.56, we must say that NXR-UN is in the distress zone and has some risk of bankruptcy.
- NXR-UN has a Altman-Z score (0.56) which is comparable to the rest of the industry.
- NXR-UN has a debt to FCF ratio of 367.85. This is a negative value and a sign of low solvency as NXR-UN would need 367.85 years to pay back of all of its debts.
- NXR-UN has a Debt to FCF ratio of 367.85. This is amonst the worse of the industry: NXR-UN underperforms 86.84% of its industry peers.
- NXR-UN has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.11, NXR-UN is in line with its industry, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 367.85 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.79
WACC5.92%
2.3 Liquidity
- A Current Ratio of 0.25 indicates that NXR-UN may have some problems paying its short term obligations.
- NXR-UN has a Current ratio (0.25) which is in line with its industry peers.
- A Quick Ratio of 0.25 indicates that NXR-UN may have some problems paying its short term obligations.
- NXR-UN has a Quick ratio of 0.25. This is in the better half of the industry: NXR-UN outperforms 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
- NXR-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.97%, which is quite impressive.
- NXR-UN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.52% yearly.
- NXR-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.98%.
- The Revenue has been growing by 23.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)75.97%
EPS 3Y-18.7%
EPS 5Y-7.52%
EPS Q2Q%107.27%
Revenue 1Y (TTM)0.98%
Revenue growth 3Y28.09%
Revenue growth 5Y23.97%
Sales Q2Q%-4.91%
3.2 Future
- NXR-UN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.87% yearly.
- The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y-24.14%
EPS Next 2Y3.39%
EPS Next 3Y3.87%
EPS Next 5YN/A
Revenue Next Year-0.13%
Revenue Next 2Y4.32%
Revenue Next 3Y4.26%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- NXR-UN is valuated reasonably with a Price/Earnings ratio of 9.51.
- NXR-UN's Price/Earnings ratio is rather cheap when compared to the industry. NXR-UN is cheaper than 94.74% of the companies in the same industry.
- NXR-UN is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.60, the valuation of NXR-UN can be described as correct.
- Based on the Price/Forward Earnings ratio, NXR-UN is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, NXR-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
- NXR-UN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NXR-UN is cheaper than 86.84% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NXR-UN is valued more expensive than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 139.56 | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
- The excellent profitability rating of NXR-UN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.39%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.69%, NXR-UN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 7.11, NXR-UN has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, NXR-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
- The dividend of NXR-UN has a limited annual growth rate of 0.74%.
- 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)0.74%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 58.13% of the earnings are spent on dividend by NXR-UN. This is a bit on the high side, but may be sustainable.
- The dividend of NXR-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.13%
EPS Next 2Y3.39%
EPS Next 3Y3.87%
NEXUS INDUSTRIAL REIT / NXR-UN.CA FAQ
Can you provide the ChartMill fundamental rating for NEXUS INDUSTRIAL REIT?
ChartMill assigns a fundamental rating of 5 / 10 to NXR-UN.CA.
What is the valuation status of NEXUS INDUSTRIAL REIT (NXR-UN.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to NEXUS INDUSTRIAL REIT (NXR-UN.CA). This can be considered as Fairly Valued.
What is the profitability of NXR-UN stock?
NEXUS INDUSTRIAL REIT (NXR-UN.CA) has a profitability rating of 8 / 10.
What is the valuation of NEXUS INDUSTRIAL REIT based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEXUS INDUSTRIAL REIT (NXR-UN.CA) is 9.51 and the Price/Book (PB) ratio is 0.53.
What is the expected EPS growth for NEXUS INDUSTRIAL REIT (NXR-UN.CA) stock?
The Earnings per Share (EPS) of NEXUS INDUSTRIAL REIT (NXR-UN.CA) is expected to decline by -24.14% in the next year.