SMARTCENTRES REAL ESTATE INV (SRU-UN.CA) Stock Fundamental Analysis
TSX:SRU-UN - Toronto Stock Exchange - CA83179X1087 - REIT - Currency: CAD
We assign a fundamental rating of 4 out of 10 to SRU-UN. SRU-UN was compared to 43 industry peers in the Diversified REITs industry. SRU-UN has a medium profitability rating, but doesn't score so well on its financial health evaluation. SRU-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SRU-UN was profitable.
SRU-UN had a positive operating cash flow in the past year.
SRU-UN had positive earnings in each of the past 5 years.
SRU-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SRU-UN has a better Return On Assets (1.98%) than 86.05% of its industry peers.
SRU-UN has a Return On Equity of 4.52%. This is amongst the best in the industry. SRU-UN outperforms 81.40% of its industry peers.
With a Return On Invested Capital value of 3.39%, SRU-UN is not doing good in the industry: 86.05% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SRU-UN is below the industry average of 5.49%.
The 3 year average ROIC (3.14%) for SRU-UN is below the current ROIC(3.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 4.52% | ||
| ROIC | 3.39% |
ROA(3y)3.29%
ROA(5y)3.58%
ROE(3y)7.48%
ROE(5y)8.23%
ROIC(3y)3.14%
ROIC(5y)3.13%
1.3 Margins
With an excellent Profit Margin value of 25.78%, SRU-UN belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
SRU-UN's Profit Margin has declined in the last couple of years.
SRU-UN has a Operating Margin (53.42%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SRU-UN has remained more or less at the same level.
SRU-UN has a Gross Margin of 59.62%. This is comparable to the rest of the industry: SRU-UN outperforms 53.49% of its industry peers.
In the last couple of years the Gross Margin of SRU-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.42% | ||
| PM (TTM) | 25.78% | ||
| GM | 59.62% |
OM growth 3Y-2.32%
OM growth 5Y-1.33%
PM growth 3Y-37.59%
PM growth 5Y-7.92%
GM growth 3Y-1.41%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRU-UN is destroying value.
The number of shares outstanding for SRU-UN remains at a similar level compared to 1 year ago.
The number of shares outstanding for SRU-UN has been increased compared to 5 years ago.
The debt/assets ratio for SRU-UN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.66, we must say that SRU-UN is in the distress zone and has some risk of bankruptcy.
SRU-UN has a Altman-Z score of 0.66. This is comparable to the rest of the industry: SRU-UN outperforms 53.49% of its industry peers.
The Debt to FCF ratio of SRU-UN is 13.51, which is on the high side as it means it would take SRU-UN, 13.51 years of fcf income to pay off all of its debts.
SRU-UN has a better Debt to FCF ratio (13.51) than 76.74% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that SRU-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, SRU-UN is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 13.51 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.64
WACC5.27%
2.3 Liquidity
A Current Ratio of 0.11 indicates that SRU-UN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.11, SRU-UN is doing worse than 83.72% of the companies in the same industry.
SRU-UN has a Quick Ratio of 0.11. This is a bad value and indicates that SRU-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
SRU-UN has a Quick ratio of 0.09. This is amonst the worse of the industry: SRU-UN underperforms 88.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The earnings per share for SRU-UN have decreased strongly by -43.12% in the last year.
SRU-UN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.47% yearly.
Looking at the last year, SRU-UN shows a quite strong growth in Revenue. The Revenue has grown by 10.04% in the last year.
SRU-UN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.63% yearly.
EPS 1Y (TTM)-43.12%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%-1.76%
Revenue 1Y (TTM)10.04%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%11.87%
3.2 Future
SRU-UN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.29% yearly.
Based on estimates for the next years, SRU-UN will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
EPS Next Y-8.87%
EPS Next 2Y-4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.73%
Revenue Next 2Y3.15%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.77 indicates a reasonable valuation of SRU-UN.
SRU-UN's Price/Earnings ratio is rather cheap when compared to the industry. SRU-UN is cheaper than 93.02% of the companies in the same industry.
SRU-UN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
Based on the Price/Forward Earnings ratio of 12.91, the valuation of SRU-UN can be described as correct.
Based on the Price/Forward Earnings ratio, SRU-UN is valued a bit cheaper than 67.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, SRU-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRU-UN is valued a bit cheaper than 74.42% of the companies in the same industry.
SRU-UN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SRU-UN is cheaper than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.84 | ||
| EV/EBITDA | 17.66 |
4.3 Compensation for Growth
The decent profitability rating of SRU-UN may justify a higher PE ratio.
SRU-UN's earnings are expected to decrease with -4.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SRU-UN has a Yearly Dividend Yield of 7.12%, which is a nice return.
Compared to an average industry Dividend Yield of 8.03, SRU-UN has a dividend in line with its industry peers.
SRU-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
5.2 History
On average, the dividend of SRU-UN grows each year by 6.39%, which is quite nice.
SRU-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
SRU-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.39%
Div Incr Years0
Div Non Decr Years21
5.3 Sustainability
113.04% of the earnings are spent on dividend by SRU-UN. This is not a sustainable payout ratio.
SRU-UN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP113.04%
EPS Next 2Y-4.29%
EPS Next 3YN/A
TSX:SRU-UN (2/21/2025, 7:00:00 PM)
25.42
-0.43 (-1.66%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners16.88%
Inst Owner ChangeN/A
Ins Owners10.95%
Ins Owner ChangeN/A
Market Cap3.68B
Analysts70
Price Target27.48 (8.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Yearly Dividend1.57
Dividend Growth(5Y)6.39%
DP113.04%
Div Incr Years0
Div Non Decr Years21
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)0%
PT rev (3m)0.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.63%
EPS NY rev (3m)2.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 12.91 | ||
| P/S | 4 | ||
| P/FCF | 9.84 | ||
| P/OCF | 9.83 | ||
| P/B | 0.7 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 17.66 |
EPS(TTM)2.16
EY8.5%
EPS(NY)1.97
Fwd EY7.75%
FCF(TTM)2.58
FCFY10.16%
OCF(TTM)2.59
OCFY10.17%
SpS6.35
BVpS36.23
TBVpS35.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 4.52% | ||
| ROCE | 4.71% | ||
| ROIC | 3.39% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.42% | ||
| OM | 53.42% | ||
| PM (TTM) | 25.78% | ||
| GM | 59.62% | ||
| FCFM | 40.69% |
ROA(3y)3.29%
ROA(5y)3.58%
ROE(3y)7.48%
ROE(5y)8.23%
ROIC(3y)3.14%
ROIC(5y)3.13%
ROICexc(3y)3.15%
ROICexc(5y)3.19%
ROICexgc(3y)3.16%
ROICexgc(5y)3.21%
ROCE(3y)4.36%
ROCE(5y)4.34%
ROICexcg growth 3Y2.83%
ROICexcg growth 5Y-0.45%
ROICexc growth 3Y2.84%
ROICexc growth 5Y-0.42%
OM growth 3Y-2.32%
OM growth 5Y-1.33%
PM growth 3Y-37.59%
PM growth 5Y-7.92%
GM growth 3Y-1.41%
GM growth 5Y-0.98%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 13.51 | ||
| Debt/EBITDA | 8.25 | ||
| Cap/Depr | 41.1% | ||
| Cap/Sales | 0.06% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 76.07% | ||
| Profit Quality | 157.83% | ||
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 0.66 |
F-Score5
WACC5.27%
ROIC/WACC0.64
Cap/Depr(3y)101.2%
Cap/Depr(5y)65.96%
Cap/Sales(3y)0.16%
Cap/Sales(5y)0.11%
Profit Quality(3y)102.96%
Profit Quality(5y)149.36%
High Growth Momentum
Growth
EPS 1Y (TTM)-43.12%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%-1.76%
EPS Next Y-8.87%
EPS Next 2Y-4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.04%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%11.87%
Revenue Next Year4.73%
Revenue Next 2Y3.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.85%
EBIT growth 3Y3.11%
EBIT growth 5Y1.27%
EBIT Next Year13.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.59%
FCF growth 3Y0.21%
FCF growth 5Y1.65%
OCF growth 1Y13.1%
OCF growth 3Y0.23%
OCF growth 5Y1.6%