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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
REI-UN had positive earnings in the past year.
REI-UN had a positive operating cash flow in the past year.
Of the past 5 years REI-UN 4 years were profitable.
Each year in the past 5 years REI-UN had a positive operating cash flow.
1.2 Ratios
REI-UN's Return On Assets of 3.06% is amongst the best of the industry. REI-UN outperforms 83.78% of its industry peers.
REI-UN has a Return On Equity of 6.26%. This is amongst the best in the industry. REI-UN outperforms 83.78% of its industry peers.
REI-UN has a worse Return On Invested Capital (3.45%) than 81.08% of its industry peers.
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's Profit Margin of 38.20% is amongst the best of the industry. REI-UN outperforms 86.49% of its industry peers.
In the last couple of years the Profit Margin of REI-UN has declined.
REI-UN's Operating Margin of 53.88% is in line compared to the rest of the industry. REI-UN outperforms 56.76% of its industry peers.
REI-UN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.78%, REI-UN is in line with its industry, outperforming 54.05% of the companies in the same industry.
In the last couple of years the Gross Margin of REI-UN has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so REI-UN is destroying value.
The number of shares outstanding for REI-UN remains at a similar level compared to 1 year ago.
The number of shares outstanding for REI-UN has been reduced compared to 5 years ago.
The debt/assets ratio for REI-UN is higher compared to a year ago.
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.
REI-UN has a better Altman-Z score (0.80) than 83.78% of its industry peers.
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.
With a Debt to FCF ratio value of 19.43, REI-UN perfoms like the industry average, outperforming 40.54% of the companies in the same industry.
REI-UN has a Debt/Equity ratio of 0.83. This is a neutral value indicating REI-UN is somewhat dependend on debt financing.
REI-UN's Debt to Equity ratio of 0.83 is fine compared to the rest 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.
Looking at the Current ratio, with a value of 0.40, REI-UN is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
A Quick Ratio of 0.21 indicates that REI-UN may have some problems paying its short term obligations.
REI-UN's Quick ratio of 0.21 is in line compared to the rest of the industry. REI-UN outperforms 48.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1126.71% over the past year.
REI-UN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.91% yearly.
The Revenue has grown by 10.29% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 5.54% on average over the next years.
Based on estimates for the next years, REI-UN will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.83%
Revenue Next 2Y5.45%
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
The Price/Earnings ratio is 10.88, which indicates a very decent valuation of REI-UN.
Based on the Price/Earnings ratio, REI-UN is valued cheaper than 91.89% of the companies in the same industry.
REI-UN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
REI-UN is valuated rather expensively with a Price/Forward Earnings ratio of 17.92.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REI-UN is on the same level as its industry peers.
REI-UN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| 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 62.16% 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 | 18.32 |
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
REI-UN has a Yearly Dividend Yield of 5.24%, which is a nice return.
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 2.47, 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 paid a dividend for at least 10 years, which is 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 Target21.27 (23.73%)
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)-5.33%
PT rev (3m)-5.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-48.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.51%
Revenue NY rev (3m)0.08%
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 | 18.32 |
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 Year9.83%
Revenue Next 2Y5.45%
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%