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ARTIS REAL ESTATE INVESTMENT (AX-UN.CA) Stock Fundamental Analysis

TSX:AX-UN - Toronto Stock Exchange - CA04315L1058 - REIT - Currency: CAD

7.69  +0.02 (+0.26%)

Fundamental Rating

3

AX-UN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 42 industry peers in the Diversified REITs industry. AX-UN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AX-UN has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

AX-UN had negative earnings in the past year.
In the past year AX-UN had a positive cash flow from operations.
In multiple years AX-UN reported negative net income over the last 5 years.
In the past 5 years AX-UN always reported a positive cash flow from operatings.
AX-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFAX-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

AX-UN's Return On Assets of -4.16% is on the low side compared to the rest of the industry. AX-UN is outperformed by 61.90% of its industry peers.
With a Return On Equity value of -7.33%, AX-UN perfoms like the industry average, outperforming 45.24% of the companies in the same industry.
AX-UN's Return On Invested Capital of 5.29% is fine compared to the rest of the industry. AX-UN outperforms 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AX-UN is in line with the industry average of 5.51%.
The last Return On Invested Capital (5.29%) for AX-UN is above the 3 year average (4.52%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -4.16%
ROE -7.33%
ROIC 5.29%
ROA(3y)-0.53%
ROA(5y)0.09%
ROE(3y)-1.97%
ROE(5y)-0.31%
ROIC(3y)4.52%
ROIC(5y)4.55%
AX-UN.CA Yearly ROA, ROE, ROICAX-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

1.3 Margins

The Operating Margin of AX-UN (50.97%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AX-UN has declined.
AX-UN has a Gross Margin of 54.70%. This is in the lower half of the industry: AX-UN underperforms 64.29% of its industry peers.
AX-UN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 50.97%
PM (TTM) N/A
GM 54.7%
OM growth 3Y-1.69%
OM growth 5Y-1.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.26%
GM growth 5Y-1.58%
AX-UN.CA Yearly Profit, Operating, Gross MarginsAX-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AX-UN is destroying value.
Compared to 1 year ago, AX-UN has less shares outstanding
Compared to 5 years ago, AX-UN has less shares outstanding
The debt/assets ratio for AX-UN is higher compared to a year ago.
AX-UN.CA Yearly Shares OutstandingAX-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
AX-UN.CA Yearly Total Debt VS Total AssetsAX-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 0.23, we must say that AX-UN is in the distress zone and has some risk of bankruptcy.
AX-UN's Altman-Z score of 0.23 is on the low side compared to the rest of the industry. AX-UN is outperformed by 66.67% of its industry peers.
AX-UN has a debt to FCF ratio of 18.14. This is a negative value and a sign of low solvency as AX-UN would need 18.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 18.14, AX-UN perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that AX-UN is not too dependend on debt financing.
AX-UN has a Debt to Equity ratio of 0.34. This is amongst the best in the industry. AX-UN outperforms 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 18.14
Altman-Z 0.23
ROIC/WACC0.81
WACC6.49%
AX-UN.CA Yearly LT Debt VS Equity VS FCFAX-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

AX-UN has a Current Ratio of 0.46. This is a bad value and indicates that AX-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
AX-UN's Current ratio of 0.46 is amongst the best of the industry. AX-UN outperforms 90.48% of its industry peers.
A Quick Ratio of 0.46 indicates that AX-UN may have some problems paying its short term obligations.
AX-UN's Quick ratio of 0.46 is amongst the best of the industry. AX-UN outperforms 90.48% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.46
AX-UN.CA Yearly Current Assets VS Current LiabilitesAX-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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1

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 67.88% over the past year.
AX-UN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.50%.
Measured over the past years, AX-UN shows a decrease in Revenue. The Revenue has been decreasing by -8.12% on average per year.
EPS 1Y (TTM)67.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.93%
Revenue 1Y (TTM)-10.5%
Revenue growth 3Y-9.88%
Revenue growth 5Y-8.12%
Sales Q2Q%-17.46%

3.2 Future

AX-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.18% yearly.
The Revenue is expected to decrease by -11.28% on average over the next years. This is quite bad
EPS Next Y89.86%
EPS Next 2Y39.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.75%
Revenue Next 2Y-11.28%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

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.
AX-UN.CA Yearly Revenue VS EstimatesAX-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
AX-UN.CA Yearly EPS VS EstimatesAX-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 -1 2 -2

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AX-UN. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AX-UN. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
AX-UN.CA Price Earnings VS Forward Price EarningsAX-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 200 400 600

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AX-UN is valued cheaper than 92.86% of the companies in the same industry.
AX-UN's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 12.31
EV/EBITDA 11.59
AX-UN.CA Per share dataAX-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

A more expensive valuation may be justified as AX-UN's earnings are expected to grow with 39.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.18%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

AX-UN has a Yearly Dividend Yield of 8.45%, which is a nice return.
AX-UN's Dividend Yield is a higher than the industry average which is at 7.99.
AX-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 8.45%

5.2 History

The dividend of AX-UN decreases each year by -7.06%.
AX-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.06%
Div Incr Years0
Div Non Decr Years0
AX-UN.CA Yearly Dividends per shareAX-UN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

The earnings of AX-UN are negative and hence is the payout ratio. AX-UN will probably not be able to sustain this dividend level.
DP-74.47%
EPS Next 2Y39.18%
EPS Next 3YN/A
AX-UN.CA Yearly Income VS Free CF VS DividendAX-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

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ARTIS REAL ESTATE INVESTMENT

TSX:AX-UN (2/14/2025, 7:00:00 PM)

7.69

+0.02 (+0.26%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-07 2024-11-07
Earnings (Next)03-06 2025-03-06/amc
Inst Owners21.49%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap769.92M
Analysts42.5
Price Target7.65 (-0.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 8.45%
Yearly Dividend0.83
Dividend Growth(5Y)-7.06%
DP-74.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-31 2025-01-31 (0.05)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)0%
PT rev (3m)7.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
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 N/A
Fwd PE N/A
P/S 2.46
P/FCF 12.31
P/OCF 12.23
P/B 0.48
P/tB 0.48
EV/EBITDA 11.59
EPS(TTM)-1.1
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.62
FCFY8.12%
OCF(TTM)0.63
OCFY8.18%
SpS3.12
BVpS16.12
TBVpS16.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.16%
ROE -7.33%
ROCE 7.34%
ROIC 5.29%
ROICexc 5.4%
ROICexgc 5.4%
OM 50.97%
PM (TTM) N/A
GM 54.7%
FCFM 20.02%
ROA(3y)-0.53%
ROA(5y)0.09%
ROE(3y)-1.97%
ROE(5y)-0.31%
ROIC(3y)4.52%
ROIC(5y)4.55%
ROICexc(3y)4.67%
ROICexc(5y)4.66%
ROICexgc(3y)4.67%
ROICexgc(5y)4.66%
ROCE(3y)6.28%
ROCE(5y)6.31%
ROICexcg growth 3Y-0.07%
ROICexcg growth 5Y1.74%
ROICexc growth 3Y-0.07%
ROICexc growth 5Y1.74%
OM growth 3Y-1.69%
OM growth 5Y-1.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.26%
GM growth 5Y-1.58%
F-Score6
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 18.14
Debt/EBITDA 3.44
Cap/Depr 34.91%
Cap/Sales 0.13%
Interest Coverage 1.38
Cash Conversion 39.25%
Profit Quality N/A
Current Ratio 0.46
Quick Ratio 0.46
Altman-Z 0.23
F-Score6
WACC6.49%
ROIC/WACC0.81
Cap/Depr(3y)10.9%
Cap/Depr(5y)39.27%
Cap/Sales(3y)0.04%
Cap/Sales(5y)0.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)67.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%88.93%
EPS Next Y89.86%
EPS Next 2Y39.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.5%
Revenue growth 3Y-9.88%
Revenue growth 5Y-8.12%
Sales Q2Q%-17.46%
Revenue Next Year-11.75%
Revenue Next 2Y-11.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.88%
EBIT growth 3Y-11.4%
EBIT growth 5Y-9.5%
EBIT Next Year27.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-64.88%
FCF growth 3Y-23.29%
FCF growth 5Y-17.88%
OCF growth 1Y-64.65%
OCF growth 3Y-23.17%
OCF growth 5Y-17.85%