TRICON RESIDENTIAL INC (TCN) Stock Fundamental Analysis
NYSE:TCN - New York Stock Exchange, Inc. - CA89612W1023 - Common Stock - Currency: USD
Taking everything into account, TCN scores 3 out of 10 in our fundamental rating. TCN was compared to 65 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 not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years TCN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TCN (0.86%) is better than 69.23% 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 72.31% of the companies in the same industry.
TCN has a Return On Invested Capital of 1.64%. This is in the better half of the industry: TCN outperforms 72.31% 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 has a Profit Margin of 13.44%. This is amongst the best in the industry. TCN outperforms 90.77% of its industry peers.
TCN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 29.82%, TCN belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
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 87.69% 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
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.
Looking at the Altman-Z score, with a value of 0.49, TCN is doing worse than 63.08% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 65.95, TCN perfoms like the industry average, outperforming 58.46% 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 has a worse Debt to Equity ratio (1.48) than 69.23% 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 86.15% 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.
The Quick ratio of TCN (0.49) is worse than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
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%.
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
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.74, TCN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TCN indicates a rather cheap valuation: TCN is cheaper than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, TCN is valued a bit cheaper.
A Price/Forward Earnings ratio of 38.41 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 72.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TCN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 38.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCN is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
TCN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TCN is cheaper than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.46 | ||
| EV/EBITDA | 33.96 |
4.3 Compensation for Growth
TCN has a very decent profitability rating, which may justify a higher PE ratio.
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 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.25
+0.02 (+0.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.34B
Analysts71.11
Price Target8.93 (-20.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
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)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.56%
PT rev (3m)2.48%
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 | 19.74 | ||
| Fwd PE | 38.41 | ||
| P/S | 3.93 | ||
| P/FCF | 36.46 | ||
| P/OCF | 24.19 | ||
| P/B | 0.86 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 33.96 |
EPS(TTM)0.57
EY5.07%
EPS(NY)0.29
Fwd EY2.6%
FCF(TTM)0.31
FCFY2.74%
OCF(TTM)0.47
OCFY4.13%
SpS2.86
BVpS13.02
TBVpS12.9
PEG (NY)N/A
PEG (5Y)N/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
ROICexcg growth 3Y-1.7%
ROICexcg 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