SMARTCENTRES REAL ESTATE INV (SRU-UN.CA) Stock Fundamental Analysis
Canada - TSX:SRU-UN - CA83179X1087 - REIT
26.51 CAD
+0.19 (+0.72%)
We assign a fundamental rating of 4 out of 10 to SRU-UN. SRU-UN was compared to 35 industry peers in the Diversified REITs industry. While SRU-UN is still in line with the averages on profitability rating, there are concerns on its financial health. SRU-UN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years SRU-UN has been profitable.
In the past 5 years SRU-UN always reported a positive cash flow from operatings.
1.2 Ratios
SRU-UN has a better Return On Assets (1.91%) than 74.29% of its industry peers.
The Return On Equity of SRU-UN (4.43%) is better than 68.57% of its industry peers.
With a Return On Invested Capital value of 3.45%, SRU-UN is not doing good in the industry: 65.71% 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 in line with the industry average of 5.08%.
The last Return On Invested Capital (3.45%) for SRU-UN is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 4.43% | ||
| ROIC | 3.45% |
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 a decent Profit Margin value of 24.85%, SRU-UN is doing good in the industry, outperforming 74.29% of the companies in the same industry.
In the last couple of years the Profit Margin of SRU-UN has declined.
Looking at the Operating Margin, with a value of 54.21%, SRU-UN is in line with its industry, outperforming 60.00% of the companies in the same industry.
SRU-UN's Operating Margin has been stable in the last couple of years.
SRU-UN has a Gross Margin (60.65%) which is in line with 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 | 54.21% | ||
| PM (TTM) | 24.85% | ||
| GM | 60.65% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRU-UN is destroying value.
Compared to 1 year ago, SRU-UN has about the same amount of shares outstanding.
The number of shares outstanding for SRU-UN has been increased compared to 5 years ago.
Compared to 1 year ago, SRU-UN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that SRU-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.69, SRU-UN is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
The Debt to FCF ratio of SRU-UN is 13.31, which is on the high side as it means it would take SRU-UN, 13.31 years of fcf income to pay off all of its debts.
SRU-UN has a Debt to FCF ratio of 13.31. This is in the better half of the industry: SRU-UN outperforms 74.29% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that SRU-UN is somewhat dependend on debt financing.
SRU-UN has a Debt to Equity ratio of 0.80. This is in the better half of the industry: SRU-UN outperforms 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.31 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.68
WACC5.09%
2.3 Liquidity
A Current Ratio of 0.29 indicates that SRU-UN may have some problems paying its short term obligations.
The Current ratio of SRU-UN (0.29) is comparable to the rest of the industry.
A Quick Ratio of 0.27 indicates that SRU-UN may have some problems paying its short term obligations.
SRU-UN has a Quick ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
SRU-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.30%.
The Earnings Per Share has been decreasing by -6.47% on average over the past years.
SRU-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
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)-16.3%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%-15.98%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-2.27%
3.2 Future
The Earnings Per Share is expected to decrease by -0.94% on average over the next years.
SRU-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.89% yearly.
EPS Next Y-28.03%
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
EPS Next 5YN/A
Revenue Next Year4.25%
Revenue Next 2Y3.31%
Revenue Next 3Y3.89%
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
Based on the Price/Earnings ratio of 12.27, the valuation of SRU-UN can be described as correct.
Based on the Price/Earnings ratio, SRU-UN is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.42. SRU-UN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.12, which indicates a correct valuation of SRU-UN.
SRU-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SRU-UN is cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. SRU-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SRU-UN indicates a somewhat cheap valuation: SRU-UN is cheaper than 74.29% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SRU-UN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.93 | ||
| EV/EBITDA | 17.76 |
4.3 Compensation for Growth
The decent profitability rating of SRU-UN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
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 7.89, 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 2.36.
| 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 Years1
Div Non Decr Years22
5.3 Sustainability
116.32% 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.
DP116.32%
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
TSX:SRU-UN (10/17/2025, 7:00:00 PM)
26.51
+0.19 (+0.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners15.73%
Inst Owner ChangeN/A
Ins Owners11.11%
Ins Owner ChangeN/A
Market Cap3.84B
Analysts70
Price Target28.08 (5.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Yearly Dividend1.57
Dividend Growth(5Y)6.39%
DP116.32%
Div Incr Years1
Div Non Decr Years22
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)1.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-21.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 13.12 | ||
| P/S | 4.14 | ||
| P/FCF | 9.93 | ||
| P/OCF | 9.92 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 17.76 |
EPS(TTM)2.16
EY8.15%
EPS(NY)2.02
Fwd EY7.62%
FCF(TTM)2.67
FCFY10.07%
OCF(TTM)2.67
OCFY10.08%
SpS6.4
BVpS35.87
TBVpS35.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 4.43% | ||
| ROCE | 4.8% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.46% | ||
| ROICexgc | 3.48% | ||
| OM | 54.21% | ||
| PM (TTM) | 24.85% | ||
| GM | 60.65% | ||
| FCFM | 41.69% |
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-Score7
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.31 | ||
| Debt/EBITDA | 8.24 | ||
| Cap/Depr | 45.08% | ||
| Cap/Sales | 0.06% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 76.82% | ||
| Profit Quality | 167.77% | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.69 |
F-Score7
WACC5.09%
ROIC/WACC0.68
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)-16.3%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%-15.98%
EPS Next Y-28.03%
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
EPS Next 5YN/A
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-2.27%
Revenue Next Year4.25%
Revenue Next 2Y3.31%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y7.22%
EBIT growth 3Y3.11%
EBIT growth 5Y1.27%
EBIT Next Year15%
EBIT Next 3Y7.31%
EBIT Next 5YN/A
FCF growth 1Y5.69%
FCF growth 3Y0.21%
FCF growth 5Y1.65%
OCF growth 1Y5.3%
OCF growth 3Y0.23%
OCF growth 5Y1.6%