Tricon Residential Inc (TCN.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:TCN • CA89612W1023

15.34 CAD
-0.12 (-0.78%)
Last: May 2, 2024, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

TCN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Real Estate Management & Development industry. While TCN is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, TCN is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year TCN was profitable.
  • In the past year TCN had a positive cash flow from operations.
  • TCN had positive earnings in each of the past 5 years.
  • TCN had a positive operating cash flow in 4 of the past 5 years.
TCN.CA Yearly Net Income VS EBIT VS OCF VS FCFTCN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of TCN (0.86%) is better than 70.59% of its industry peers.
  • 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 RankSector 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
TCN.CA Yearly ROA, ROE, ROICTCN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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.
  • TCN has a Operating Margin of 29.82%. This is in the better half of the industry: TCN outperforms 67.65% of its industry peers.
  • TCN's Operating Margin has declined in the last couple of years.
  • The Gross Margin of TCN (69.17%) is better than 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 RankSector 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
TCN.CA Yearly Profit, Operating, Gross MarginsTCN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 200 400 600

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCN is destroying value.
  • Compared to 1 year ago, TCN has about the same amount of shares outstanding.
  • TCN has a better debt/assets ratio than last year.
TCN.CA Yearly Shares OutstandingTCN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
TCN.CA Yearly Total Debt VS Total AssetsTCN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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 worse Altman-Z score (0.49) than 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.
  • A Debt/Equity ratio of 1.48 is on the high side and indicates that TCN has dependencies on debt financing.
  • TCN's Debt to Equity ratio of 1.48 is on the low side compared to the rest of the industry. TCN is outperformed by 61.76% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF 65.95
Altman-Z 0.49
ROIC/WACC0.22
WACC7.57%
TCN.CA Yearly LT Debt VS Equity VS FCFTCN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

2.3 Liquidity

  • A Current Ratio of 0.49 indicates that TCN may have some problems paying its short term obligations.
  • TCN has a worse Current ratio (0.49) than 61.76% of its industry peers.
  • A Quick Ratio of 0.49 indicates that TCN may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.49, TCN is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.49
TCN.CA Yearly Current Assets VS Current LiabilitesTCN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The earnings per share for TCN have decreased strongly by -66.47% in the last year.
  • TCN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.03% yearly.
  • TCN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.48%.
  • 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.
  • TCN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.50% yearly.
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.
TCN.CA Yearly Revenue VS EstimatesTCN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
TCN.CA Yearly EPS VS EstimatesTCN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 19.67, TCN is valued on the expensive side.
  • Based on the Price/Earnings ratio, TCN is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of TCN to the average of the S&P500 Index (27.93), we can say TCN is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 38.28, TCN can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, TCN is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of TCN to the average of the S&P500 Index (27.77), we can say TCN is valued slightly more expensively.
Industry RankSector Rank
PE 19.67
Fwd PE 38.28
TCN.CA Price Earnings VS Forward Price EarningsTCN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • TCN's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, TCN is valued a bit cheaper than the industry average as 73.53% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 36.33
EV/EBITDA 33.91
TCN.CA Per share dataTCN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

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 2.56, TCN pays a bit more dividend than its industry peers.
  • TCN's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector 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
TCN.CA Yearly Dividends per shareTCN.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4

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
TCN.CA Yearly Income VS Free CF VS DividendTCN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M
TCN.CA Dividend Payout.TCN.CA Dividend Payout, showing the Payout Ratio.TCN.CA Dividend Payout.PayoutRetained Earnings

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Tricon Residential Inc

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)05-07
Earnings (Next)08-06
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.


Can you provide the valuation status for Tricon Residential Inc?

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 is the financial health of Tricon Residential Inc (TCN.CA) stock?

The financial health rating of Tricon Residential Inc (TCN.CA) is 2 / 10.


What is the earnings growth outlook for Tricon Residential Inc?

The Earnings per Share (EPS) of Tricon Residential Inc (TCN.CA) is expected to decline by -48.61% in the next year.