Tricon Residential Inc (TCN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:TCN - CA89612W1023 - Common Stock
15.34 CAD
-0.12 (-0.78%)
Overall TCN gets a fundamental rating of 4 out of 10. We evaluated TCN 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. TCN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TCN was profitable.
TCN had a positive operating cash flow in the past year.
Each year in the past 5 years TCN has been profitable.
Of the past 5 years TCN 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.86%, TCN is doing good in the industry, outperforming 70.59% of the companies in the same industry.
TCN's Return On Equity of 2.96% is fine compared to the rest of the industry. TCN outperforms 73.53% of its industry peers.
The Return On Invested Capital of TCN (1.64%) is worse than 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
TCN's Profit Margin of 13.44% is amongst the best of the industry. TCN outperforms 85.29% of its industry peers.
TCN's Profit Margin has declined in the last couple of years.
TCN's Operating Margin of 29.82% is fine compared to the rest of the industry. TCN outperforms 67.65% of its industry peers.
In the last couple of years the Operating Margin of TCN has declined.
TCN's Gross Margin of 69.17% is amongst the best of the industry. TCN outperforms 88.24% of its industry peers.
In the last couple of years the Gross Margin of TCN has remained more or less at the same level.
| 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
TCN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TCN has about the same amout of shares outstanding than it did 1 year ago.
TCN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TCN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that TCN is in the distress zone and has some risk of bankruptcy.
TCN has a Altman-Z score of 0.49. This is in the lower half of the industry: TCN underperforms 79.41% of its industry peers.
TCN has a debt to FCF ratio of 65.95. This is a negative value and a sign of low solvency as TCN would need 65.95 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 65.95, TCN is doing good in the industry, outperforming 64.71% of the companies in the same industry.
TCN has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
TCN has a Debt to Equity ratio of 1.48. This is in the lower half of the industry: TCN underperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 65.95 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.22
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.49 indicates that TCN may have some problems paying its short term obligations.
TCN's Current ratio of 0.49 is on the low side compared to the rest of the industry. TCN is outperformed by 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 Quick ratio of 0.49. This is in the lower half of the industry: TCN underperforms 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%.
The earnings per share for TCN have been decreasing by -17.03% on average. This is quite bad
Looking at the last year, TCN shows a small growth in Revenue. The Revenue has grown by 5.48% in the last year.
Measured over the past years, TCN shows a very strong growth in Revenue. The Revenue has been growing by 94.79% on average per year.
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
The Earnings Per Share is expected to decrease by -15.81% on average over the next years. This is quite bad
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 19.67, TCN is valued on the expensive side.
79.41% of the companies in the same industry are more expensive than TCN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.59. TCN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 38.28, which means the current valuation is very expensive for TCN.
TCN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCN is cheaper than 70.59% of the companies in the same industry.
TCN is valuated expensively when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 38.28 |
4.2 Price Multiples
TCN's Enterprise Value to EBITDA is on the same level as the industry average.
TCN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCN is 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
A cheap valuation may be justified as TCN's earnings are expected to decrease with -15.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TCN has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
TCN's Dividend Yield is a higher than the industry average which is at 3.42.
TCN's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
On average, the dividend of TCN grows each year by 19.89%, which is quite nice.
TCN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)19.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TCN pays out 84.00% of its income as dividend. 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%.