SMARTCENTRES REAL ESTATE INV (SRU-UN.CA) Stock Fundamental Analysis
TSX:SRU-UN - Toronto Stock Exchange - CA83179X1087 - REIT - Currency: CAD
Taking everything into account, SRU-UN scores 4 out of 10 in our fundamental rating. SRU-UN was compared to 38 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
SRU-UN had positive earnings in the past year.
In the past year SRU-UN had a positive cash flow from operations.
In the past 5 years SRU-UN has always been profitable.
Each year in the past 5 years SRU-UN had a positive operating cash flow.
1.2 Ratios
SRU-UN has a better Return On Assets (2.06%) than 71.05% of its industry peers.
Looking at the Return On Equity, with a value of 4.76%, SRU-UN is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.38%, SRU-UN is doing worse than 76.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SRU-UN is below the industry average of 5.66%.
The 3 year average ROIC (3.14%) for SRU-UN is below the current ROIC(3.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.76% | ||
| ROIC | 3.38% |
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
Looking at the Profit Margin, with a value of 26.46%, SRU-UN is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
SRU-UN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 53.12%, SRU-UN is in line with its industry, outperforming 55.26% of the companies in the same industry.
SRU-UN's Operating Margin has been stable in the last couple of years.
SRU-UN's Gross Margin of 59.49% is in line compared to the rest of the industry. SRU-UN outperforms 55.26% 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 | 53.12% | ||
| PM (TTM) | 26.46% | ||
| GM | 59.49% |
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.
SRU-UN has about the same amout of shares outstanding than it did 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
SRU-UN has an Altman-Z score of 0.68. This is a bad value and indicates that SRU-UN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.68, SRU-UN is doing good in the industry, outperforming 65.79% of the companies in the same industry.
SRU-UN has a debt to FCF ratio of 13.19. This is a negative value and a sign of low solvency as SRU-UN would need 13.19 years to pay back of all of its debts.
SRU-UN's Debt to FCF ratio of 13.19 is fine compared to the rest of the industry. SRU-UN outperforms 76.32% of its industry peers.
SRU-UN has a Debt/Equity ratio of 0.82. This is a neutral value indicating SRU-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, SRU-UN is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 13.19 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.52
WACC6.51%
2.3 Liquidity
SRU-UN has a Current Ratio of 0.23. 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.
The Current ratio of SRU-UN (0.23) is comparable to the rest of the industry.
A Quick Ratio of 0.21 indicates that SRU-UN may have some problems paying its short term obligations.
The Quick ratio of SRU-UN (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for SRU-UN have decreased by -2.41% in the last year.
Measured over the past years, SRU-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.47% on average per year.
Looking at the last year, SRU-UN shows a quite strong growth in Revenue. The Revenue has grown by 10.61% in the last year.
Measured over the past years, SRU-UN shows a small growth in Revenue. The Revenue has been growing by 2.63% on average per year.
EPS 1Y (TTM)-2.41%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%3.42%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-40.38%
3.2 Future
Based on estimates for the next years, SRU-UN will show a decrease in Earnings Per Share. The EPS will decrease by -4.29% on average per year.
Based on estimates for the next years, SRU-UN will show a small growth in Revenue. The Revenue will grow by 1.89% on average per year.
EPS Next Y-8.87%
EPS Next 2Y-4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.46%
Revenue Next 2Y3.34%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
SRU-UN is valuated reasonably with a Price/Earnings ratio of 11.74.
Compared to the rest of the industry, the Price/Earnings ratio of SRU-UN indicates a rather cheap valuation: SRU-UN is cheaper than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, SRU-UN is valued rather cheaply.
The Price/Forward Earnings ratio is 12.93, which indicates a correct valuation of SRU-UN.
65.79% of the companies in the same industry are more expensive than SRU-UN, based on the Price/Forward Earnings ratio.
SRU-UN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 12.93 |
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 71.05% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SRU-UN indicates a somewhat cheap valuation: SRU-UN is cheaper than 63.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 17.62 |
4.3 Compensation for Growth
A cheap valuation may be justified as SRU-UN's earnings are expected to decrease with -4.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.12%, SRU-UN is a good candidate for dividend investing.
SRU-UN's Dividend Yield is comparable with the industry average which is at 7.95.
SRU-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
SRU-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.39%
Div Incr Years1
Div Non Decr Years22
5.3 Sustainability
108.73% 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.
DP108.73%
EPS Next 2Y-4.29%
EPS Next 3YN/A
TSX:SRU-UN (6/30/2025, 7:00:00 PM)
25.59
+0.2 (+0.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners16.95%
Inst Owner ChangeN/A
Ins Owners11.14%
Ins Owner ChangeN/A
Market Cap3.70B
Analysts70
Price Target27.7 (8.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Yearly Dividend1.57
Dividend Growth(5Y)6.39%
DP108.73%
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)1.52%
PT rev (3m)0.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 12.93 | ||
| P/S | 3.98 | ||
| P/FCF | 9.6 | ||
| P/OCF | 9.59 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 17.62 |
EPS(TTM)2.18
EY8.52%
EPS(NY)1.98
Fwd EY7.74%
FCF(TTM)2.67
FCFY10.42%
OCF(TTM)2.67
OCFY10.43%
SpS6.43
BVpS35.72
TBVpS35.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.76% | ||
| ROCE | 4.69% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.4% | ||
| OM | 53.12% | ||
| PM (TTM) | 26.46% | ||
| GM | 59.49% | ||
| FCFM | 41.45% |
ROA(3y)3.29%
ROA(5y)3.58%
ROE(3y)7.48%
ROE(5y)8.23%
ROIC(3y)3.14%
ROIC(5y)3.13%
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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 13.19 | ||
| Debt/EBITDA | 8.6 | ||
| Cap/Depr | 42.07% | ||
| Cap/Sales | 0.06% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 77.93% | ||
| Profit Quality | 156.67% | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 0.68 |
F-Score4
WACC6.51%
ROIC/WACC0.52
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)-2.41%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%3.42%
EPS Next Y-8.87%
EPS Next 2Y-4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.61%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-40.38%
Revenue Next Year4.46%
Revenue Next 2Y3.34%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
EBIT growth 1Y6.28%
EBIT growth 3Y3.11%
EBIT growth 5Y1.27%
EBIT Next Year15.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y10.74%
FCF growth 3Y0.21%
FCF growth 5Y1.65%
OCF growth 1Y10.39%
OCF growth 3Y0.23%
OCF growth 5Y1.6%