RIOCAN REAL ESTATE INVST TR (REI-UN.CA) Stock Fundamental Analysis
TSX:REI-UN - Toronto Stock Exchange - CA7669101031 - REIT - Currency: CAD
We assign a fundamental rating of 4 out of 10 to REI-UN. REI-UN was compared to 37 industry peers in the Diversified REITs industry. There are concerns on the financial health of REI-UN while its profitability can be described as average. REI-UN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year REI-UN was profitable.
In the past year REI-UN had a positive cash flow from operations.
REI-UN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years REI-UN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.06%, REI-UN belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
REI-UN has a better Return On Equity (6.26%) than 83.78% of its industry peers.
With a Return On Invested Capital value of 3.45%, REI-UN is not doing good in the industry: 81.08% of the companies in the same industry are doing better.
REI-UN had an Average Return On Invested Capital over the past 3 years of 3.47%. This is in line with the industry average of 4.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 6.26% | ||
| ROIC | 3.45% |
ROA(3y)1.63%
ROA(5y)1.68%
ROE(3y)3.28%
ROE(5y)3.32%
ROIC(3y)3.47%
ROIC(5y)3.36%
1.3 Margins
REI-UN has a Profit Margin of 38.20%. This is amongst the best in the industry. REI-UN outperforms 86.49% of its industry peers.
REI-UN's Profit Margin has declined in the last couple of years.
REI-UN has a Operating Margin (53.88%) which is in line with its industry peers.
In the last couple of years the Operating Margin of REI-UN has remained more or less at the same level.
With a Gross Margin value of 59.78%, REI-UN perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
REI-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.88% | ||
| PM (TTM) | 38.2% | ||
| GM | 59.78% |
OM growth 3Y0.29%
OM growth 5Y0.69%
PM growth 3Y-9.14%
PM growth 5Y-8.17%
GM growth 3Y0.04%
GM growth 5Y1.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REI-UN is destroying value.
Compared to 1 year ago, REI-UN has about the same amount of shares outstanding.
REI-UN has less shares outstanding than it did 5 years ago.
REI-UN has a worse debt/assets ratio than last year.
2.2 Solvency
REI-UN has an Altman-Z score of 0.80. This is a bad value and indicates that REI-UN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.80, REI-UN belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
The Debt to FCF ratio of REI-UN is 19.43, which is on the high side as it means it would take REI-UN, 19.43 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.43, REI-UN is in line with its industry, outperforming 40.54% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that REI-UN is somewhat dependend on debt financing.
REI-UN has a Debt to Equity ratio of 0.83. This is in the better half of the industry: REI-UN outperforms 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 19.43 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.62
WACC5.56%
2.3 Liquidity
A Current Ratio of 0.40 indicates that REI-UN may have some problems paying its short term obligations.
REI-UN has a Current ratio of 0.40. This is in the better half of the industry: REI-UN outperforms 70.27% of its industry peers.
A Quick Ratio of 0.21 indicates that REI-UN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.21, REI-UN is in line with its industry, outperforming 48.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
REI-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1126.71%, which is quite impressive.
The Earnings Per Share has been decreasing by -8.91% on average over the past years.
Looking at the last year, REI-UN shows a quite strong growth in Revenue. The Revenue has grown by 10.29% in the last year.
Measured over the past years, REI-UN shows a decrease in Revenue. The Revenue has been decreasing by -1.34% on average per year.
EPS 1Y (TTM)1126.71%
EPS 3Y-5.73%
EPS 5Y-8.91%
EPS Q2Q%207.84%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%20.44%
3.2 Future
REI-UN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.54% yearly.
The Revenue is expected to grow by 4.51% on average over the next years.
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.09%
Revenue Next 2Y4.51%
Revenue Next 3YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.88, the valuation of REI-UN can be described as very reasonable.
REI-UN's Price/Earnings ratio is rather cheap when compared to the industry. REI-UN is cheaper than 91.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, REI-UN is valued rather cheaply.
The Price/Forward Earnings ratio is 17.92, which indicates a rather expensive current valuation of REI-UN.
The rest of the industry has a similar Price/Forward Earnings ratio as REI-UN.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, REI-UN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 17.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI-UN is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
REI-UN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.48 | ||
| EV/EBITDA | 18.25 |
4.3 Compensation for Growth
REI-UN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.24%, REI-UN is a good candidate for dividend investing.
REI-UN's Dividend Yield is slightly below the industry average, which is at 8.01.
Compared to an average S&P500 Dividend Yield of 2.51, REI-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
5.2 History
The dividend of REI-UN decreases each year by -4.92%.
REI-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
REI-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.92%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
70.12% of the earnings are spent on dividend by REI-UN. This is not a sustainable payout ratio.
DP70.12%
EPS Next 2Y5.54%
EPS Next 3YN/A
TSX:REI-UN (4/25/2025, 7:00:00 PM)
17.19
+0.17 (+1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners40.11%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap5.10B
Analysts78.57
Price Target21.96 (27.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend1.11
Dividend Growth(5Y)-4.92%
DP70.12%
Div Incr Years3
Div Non Decr Years3
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)-2.27%
PT rev (3m)-2.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-48.09%
EPS NY rev (3m)-48.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 17.92 | ||
| P/S | 4.12 | ||
| P/FCF | 13.48 | ||
| P/OCF | 13.48 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 18.25 |
EPS(TTM)1.58
EY9.19%
EPS(NY)0.96
Fwd EY5.58%
FCF(TTM)1.27
FCFY7.42%
OCF(TTM)1.27
OCFY7.42%
SpS4.18
BVpS25.47
TBVpS25.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 6.26% | ||
| ROCE | 4.79% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.5% | ||
| OM | 53.88% | ||
| PM (TTM) | 38.2% | ||
| GM | 59.78% | ||
| FCFM | 30.52% |
ROA(3y)1.63%
ROA(5y)1.68%
ROE(3y)3.28%
ROE(5y)3.32%
ROIC(3y)3.47%
ROIC(5y)3.36%
ROICexc(3y)3.5%
ROICexc(5y)3.4%
ROICexgc(3y)3.5%
ROICexgc(5y)3.4%
ROCE(3y)4.81%
ROCE(5y)4.67%
ROICexcg growth 3Y3.31%
ROICexcg growth 5Y-0.6%
ROICexc growth 3Y3.31%
ROICexc growth 5Y-0.6%
OM growth 3Y0.29%
OM growth 5Y0.69%
PM growth 3Y-9.14%
PM growth 5Y-8.17%
GM growth 3Y0.04%
GM growth 5Y1.15%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 19.43 | ||
| Debt/EBITDA | 9.36 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 56.52% | ||
| Profit Quality | 79.9% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 0.8 |
F-Score6
WACC5.56%
ROIC/WACC0.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)429.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1126.71%
EPS 3Y-5.73%
EPS 5Y-8.91%
EPS Q2Q%207.84%
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.29%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%20.44%
Revenue Next Year5.09%
Revenue Next 2Y4.51%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4%
EBIT growth 3Y2.09%
EBIT growth 5Y-0.67%
EBIT Next Year21.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.88%
FCF growth 3Y-8.29%
FCF growth 5Y-7.83%
OCF growth 1Y-1.88%
OCF growth 3Y-8.29%
OCF growth 5Y-7.83%