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

Taking everything into account, TCN scores 4 out of 10 in our fundamental rating. TCN was compared to 31 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 quite expensive at the moment. 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.
  • In the past year TCN had a positive cash flow from operations.
  • 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.
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.
  • Looking at the Return On Equity, with a value of 2.96%, TCN is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 1.64%, TCN is doing worse than 67.65% of the companies in the same industry.
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.
  • TCN's Profit Margin has declined in the last couple of years.
  • 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.
  • In the last couple of years the Operating Margin of TCN has declined.
  • TCN has a Gross Margin of 69.17%. This is amongst the best in 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 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.
  • TCN has about the same amout of shares outstanding than it did 1 year ago.
  • 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.
  • The Altman-Z score of TCN (0.49) is worse 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

  • 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'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.
  • A Quick Ratio of 0.49 indicates that TCN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.49, TCN is doing worse than 61.76% of the companies in the same industry.
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.
  • 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

  • TCN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.81% yearly.
  • 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.
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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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 79.41% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.09, TCN is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 38.28 indicates a quite expensive valuation of TCN.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TCN indicates a somewhat cheap valuation: TCN is cheaper than 70.59% of the companies listed in the same industry.
  • TCN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
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.
  • 73.53% of the companies in the same industry are more expensive than TCN, based on the Price/Free Cash Flow ratio.
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

  • 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 2.49.
  • Compared to an average S&P500 Dividend Yield of 1.85, TCN has a dividend comparable with the average S&P500 company.
Industry RankSector 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
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.
  • 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

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.