Tricon Residential Inc (TCN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCN - CA89612W1023 - Common Stock
15.34 CAD
-0.12 (-0.78%)
TCN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Real Estate Management & Development industry. TCN has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, TCN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TCN was profitable.
TCN had a positive operating cash flow in the past year.
TCN had positive earnings in each of the past 5 years.
Of the past 5 years TCN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.86%, TCN is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
TCN has a Return On Equity of 2.96%. This is in the better half of the industry: TCN outperforms 73.53% of its industry peers.
TCN has a Return On Invested Capital of 1.64%. This is in the lower half of the industry: TCN underperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.96% | ||
| ROIC | 1.64% |
ROA(3y)4.08%
ROA(5y)3.73%
ROE(3y)12.96%
ROE(5y)10.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.44%, TCN belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
In the last couple of years the Profit Margin of TCN has declined.
With a decent Operating Margin value of 29.82%, TCN is doing good in the industry, outperforming 67.65% of the companies in the same industry.
TCN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 69.17%, TCN belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
TCN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.82% | ||
| PM (TTM) | 13.44% | ||
| GM | 69.17% |
OM growth 3Y-5.22%
OM growth 5YN/A
PM growth 3Y-21.94%
PM growth 5Y-54.81%
GM growth 3Y-0.28%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCN is destroying value.
Compared to 1 year ago, TCN has about the same amount of shares outstanding.
The number of shares outstanding for TCN has been increased compared to 5 years ago.
TCN has a better debt/assets ratio than last year.
2.2 Solvency
TCN has an Altman-Z score of 0.49. This is a bad value and indicates that TCN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.49, TCN is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
The Debt to FCF ratio of TCN is 65.95, which is on the high side as it means it would take TCN, 65.95 years of fcf income to pay off all of its debts.
TCN's Debt to FCF ratio of 65.95 is fine compared to the rest of the industry. TCN outperforms 64.71% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that TCN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.48, TCN is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 65.95 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.22
WACC7.57%
2.3 Liquidity
TCN has a Current Ratio of 0.49. This is a bad value and indicates that TCN is not financially healthy enough and could expect problems in meeting its short term obligations.
TCN has a worse Current ratio (0.49) than 61.76% of its industry peers.
TCN has a Quick Ratio of 0.49. This is a bad value and indicates that TCN is not financially healthy enough and could expect problems in meeting its short term obligations.
TCN has a worse Quick ratio (0.49) than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
TCN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.47%.
Measured over the past years, TCN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.03% on average per year.
Looking at the last year, TCN shows a small growth in Revenue. The Revenue has grown by 5.48% in the last year.
The Revenue has been growing by 94.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-66.47%
EPS 3Y4.46%
EPS 5Y-17.03%
EPS Q2Q%36.36%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y28.44%
Revenue growth 5Y94.79%
Sales Q2Q%15.69%
3.2 Future
Based on estimates for the next years, TCN will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.81% on average per year.
Based on estimates for the next years, TCN will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
EPS Next Y-48.61%
EPS Next 2Y-15.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.66%
Revenue Next 2Y8.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
TCN is valuated rather expensively with a Price/Earnings ratio of 19.67.
79.41% of the companies in the same industry are more expensive than TCN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TCN to the average of the S&P500 Index (26.49), we can say TCN is valued slightly cheaper.
A Price/Forward Earnings ratio of 38.28 indicates a quite expensive valuation of TCN.
Based on the Price/Forward Earnings ratio, TCN is valued a bit cheaper than 70.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. TCN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 38.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TCN is valued a bit cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.33 | ||
| EV/EBITDA | 33.91 |
4.3 Compensation for Growth
TCN's earnings are expected to decrease with -15.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, TCN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.42, TCN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TCN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of TCN is nicely growing with an annual growth rate of 19.89%!
TCN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
84.00% of the earnings are spent on dividend by TCN. This is not a sustainable payout ratio.
TCN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP84%
EPS Next 2Y-15.81%
EPS Next 3YN/A
TSX:TCN (5/2/2024, 7:00:00 PM)
15.34
-0.12 (-0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.55B
Revenue(TTM)849.71M
Net Income(TTM)114.24M
Analysts71.11
Price Target12.26 (-20.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.35
Dividend Growth(5Y)19.89%
DP84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)172.28%
Min EPS beat(2)147.53%
Max EPS beat(2)197.03%
EPS beat(4)3
Avg EPS beat(4)110.4%
Min EPS beat(4)-0.99%
Max EPS beat(4)197.03%
EPS beat(8)7
Avg EPS beat(8)235.95%
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)2
Avg Revenue beat(2)85.19%
Min Revenue beat(2)79.44%
Max Revenue beat(2)90.95%
Revenue beat(4)4
Avg Revenue beat(4)80.48%
Min Revenue beat(4)72.02%
Max Revenue beat(4)90.95%
Revenue beat(8)8
Avg Revenue beat(8)71.53%
Revenue beat(12)11
Avg Revenue beat(12)50.84%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.26%
PT rev (3m)4.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 38.28 | ||
| P/S | 3.92 | ||
| P/FCF | 36.33 | ||
| P/OCF | 24.11 | ||
| P/B | 0.86 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 33.91 |
EPS(TTM)0.78
EY5.08%
EPS(NY)0.4
Fwd EY2.61%
FCF(TTM)0.42
FCFY2.75%
OCF(TTM)0.64
OCFY4.15%
SpS3.92
BVpS17.81
TBVpS17.65
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.96% | ||
| ROCE | 2% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.67% | ||
| ROICexgc | 1.67% | ||
| OM | 29.82% | ||
| PM (TTM) | 13.44% | ||
| GM | 69.17% | ||
| FCFM | 10.78% |
ROA(3y)4.08%
ROA(5y)3.73%
ROE(3y)12.96%
ROE(5y)10.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-1.7%
ROICexgc growth 5YN/A
ROICexc growth 3Y-1.2%
ROICexc growth 5YN/A
OM growth 3Y-5.22%
OM growth 5YN/A
PM growth 3Y-21.94%
PM growth 5Y-54.81%
GM growth 3Y-0.28%
GM growth 5YN/A
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 65.95 | ||
| Debt/EBITDA | 21.13 | ||
| Cap/Depr | 261.04% | ||
| Cap/Sales | 5.47% | ||
| Interest Coverage | 0.87 | ||
| Cash Conversion | 50.9% | ||
| Profit Quality | 80.17% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.49 |
F-Score5
WACC7.57%
ROIC/WACC0.22
Cap/Depr(3y)254.57%
Cap/Depr(5y)208.56%
Cap/Sales(3y)5.52%
Cap/Sales(5y)8.97%
Profit Quality(3y)42.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.47%
EPS 3Y4.46%
EPS 5Y-17.03%
EPS Q2Q%36.36%
EPS Next Y-48.61%
EPS Next 2Y-15.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.48%
Revenue growth 3Y28.44%
Revenue growth 5Y94.79%
Sales Q2Q%15.69%
Revenue Next Year6.66%
Revenue Next 2Y8.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y152.14%
EBIT growth 3Y21.74%
EBIT growth 5YN/A
EBIT Next Year27.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.91%
FCF growth 3Y-11.02%
FCF growth 5YN/A
OCF growth 1Y-48.93%
OCF growth 3Y-1.17%
OCF growth 5YN/A
Tricon Residential Inc / TCN.CA FAQ
Can you provide the ChartMill fundamental rating for Tricon Residential Inc?
ChartMill assigns a fundamental rating of 4 / 10 to TCN.CA.
What is the valuation status for TCN stock?
ChartMill assigns a valuation rating of 3 / 10 to Tricon Residential Inc (TCN.CA). This can be considered as Overvalued.
Can you provide the profitability details for Tricon Residential Inc?
Tricon Residential Inc (TCN.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of Tricon Residential Inc (TCN.CA) stock?
The Price/Earnings (PE) ratio for Tricon Residential Inc (TCN.CA) is 19.67 and the Price/Book (PB) ratio is 0.86.
Is the dividend of Tricon Residential Inc sustainable?
The dividend rating of Tricon Residential Inc (TCN.CA) is 4 / 10 and the dividend payout ratio is 84%.