Tricon Residential Inc (TCN.CA) Stock Fundamental Analysis

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

Overall TCN gets a fundamental rating of 4 out of 10. We evaluated TCN 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. TCN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • TCN had positive earnings in the past year.
  • TCN had a positive operating cash flow in the past year.
  • In the past 5 years TCN has always been profitable.
  • 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

  • TCN has a better Return On Assets (0.86%) than 70.59% of its industry peers.
  • 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.
  • TCN has a worse Return On Invested Capital (1.64%) than 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

  • TCN has a better Profit Margin (13.44%) than 85.29% of its industry peers.
  • In the last couple of years the Profit Margin of TCN has declined.
  • Looking at the Operating Margin, with a value of 29.82%, TCN is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
  • TCN's Operating Margin has declined in the last couple of years.
  • TCN has a Gross Margin of 69.17%. This is amongst the best in the industry. TCN outperforms 88.24% of its industry peers.
  • TCN's Gross Margin has been stable in the last couple of years.
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

  • TCN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

  • 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.
  • 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.
  • The Debt to Equity ratio of TCN (1.48) is worse than 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.
  • With a Current 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.
  • 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.
  • The Quick ratio of TCN (0.49) is worse than 61.76% of its industry peers.
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.
  • The earnings per share for TCN have been decreasing by -17.03% on average. This is quite bad
  • The Revenue has been growing slightly by 5.48% in the past year.
  • TCN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 94.79% yearly.
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.
  • The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • TCN is valuated rather expensively with a Price/Earnings ratio of 19.67.
  • Based on the Price/Earnings ratio, TCN is valued a bit cheaper than 79.41% of the companies in the same industry.
  • TCN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
  • TCN is valuated quite expensively with a Price/Forward Earnings ratio of 38.28.
  • 70.59% of the companies in the same industry are more expensive than TCN, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, TCN is valued a bit more expensive.
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCN.
  • 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.
  • TCN's Dividend Yield is a higher than the industry average which is at 2.45.
  • Compared to an average S&P500 Dividend Yield of 1.80, TCN has a dividend comparable with the average S&P500 company.
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

  • TCN pays out 84.00% of its income as dividend. This is not a sustainable payout ratio.
  • The Dividend Rate of TCN has been growing, while earnings will be declining. 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

More info and screens

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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.