CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CHP-UN - CA17039A1066 - REIT
14.81 CAD
-0.05 (-0.34%)
We assign a fundamental rating of 5 out of 10 to CHP-UN. CHP-UN was compared to 37 industry peers in the Diversified REITs industry. While CHP-UN belongs to the best of the industry regarding profitability, there are concerns on its financial health. CHP-UN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CHP-UN was profitable.
In the past year CHP-UN had a positive cash flow from operations.
In the past 5 years CHP-UN has always been profitable.
CHP-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CHP-UN (4.36%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 16.68%, CHP-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CHP-UN has a worse Return On Invested Capital (3.38%) than 70.27% of its industry peers.
CHP-UN had an Average Return On Invested Capital over the past 3 years of 3.76%. This is in line with the industry average of 5.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 16.68% | ||
| ROIC | 3.38% |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
ROIC(3y)3.76%
ROIC(5y)N/A
1.3 Margins
CHP-UN has a better Profit Margin (55.81%) than 100.00% of its industry peers.
CHP-UN's Profit Margin has improved in the last couple of years.
CHP-UN has a better Operating Margin (57.83%) than 67.57% of its industry peers.
CHP-UN's Operating Margin has declined in the last couple of years.
The Gross Margin of CHP-UN (71.81%) is better than 72.97% of its industry peers.
In the last couple of years the Gross Margin of CHP-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.83% | ||
| PM (TTM) | 55.81% | ||
| GM | 71.81% |
OM growth 3YN/A
OM growth 5Y-2.05%
PM growth 3Y218.06%
PM growth 5YN/A
GM growth 3Y0.42%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CHP-UN is destroying value.
CHP-UN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHP-UN has more shares outstanding
The debt/assets ratio for CHP-UN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that CHP-UN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CHP-UN (0.49) is comparable to the rest of the industry.
CHP-UN has a debt to FCF ratio of 9.70. This is a negative value and a sign of low solvency as CHP-UN would need 9.70 years to pay back of all of its debts.
CHP-UN has a better Debt to FCF ratio (9.70) than 89.19% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that CHP-UN has dependencies on debt financing.
The Debt to Equity ratio of CHP-UN (1.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 9.7 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.61
WACC5.55%
2.3 Liquidity
A Current Ratio of 0.22 indicates that CHP-UN may have some problems paying its short term obligations.
CHP-UN has a Current ratio of 0.22. This is comparable to the rest of the industry: CHP-UN outperforms 54.05% of its industry peers.
CHP-UN has a Quick Ratio of 0.22. This is a bad value and indicates that CHP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
CHP-UN has a Quick ratio of 0.22. This is comparable to the rest of the industry: CHP-UN outperforms 56.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 272.94% over the past year.
CHP-UN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 224.24% yearly.
The Revenue has been growing slightly by 1.87% in the past year.
CHP-UN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.22% yearly.
EPS 1Y (TTM)272.94%
EPS 3Y224.24%
EPS 5YN/A
EPS Q2Q%136.59%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%6.65%
3.2 Future
Based on estimates for the next years, CHP-UN will show a very strong growth in Earnings Per Share. The EPS will grow by 26.37% on average per year.
CHP-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.24% yearly.
EPS Next Y1.82%
EPS Next 2Y39.48%
EPS Next 3Y26.37%
EPS Next 5YN/A
Revenue Next Year5.15%
Revenue Next 2Y4.27%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.71, CHP-UN is valued correctly.
Based on the Price/Earnings ratio, CHP-UN is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHP-UN to the average of the S&P500 Index (26.51), we can say CHP-UN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.70, CHP-UN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHP-UN indicates a somewhat cheap valuation: CHP-UN is cheaper than 64.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. CHP-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
81.08% of the companies in the same industry are more expensive than CHP-UN, based on the Enterprise Value to EBITDA ratio.
83.78% of the companies in the same industry are more expensive than CHP-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.86 | ||
| EV/EBITDA | 14.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHP-UN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CHP-UN may justify a higher PE ratio.
A more expensive valuation may be justified as CHP-UN's earnings are expected to grow with 26.37% in the coming years.
PEG (NY)7.54
PEG (5Y)N/A
EPS Next 2Y39.48%
EPS Next 3Y26.37%
5. Dividend
5.1 Amount
CHP-UN has a Yearly Dividend Yield of 5.20%, which is a nice return.
Compared to an average industry Dividend Yield of 7.06, CHP-UN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, CHP-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
5.2 History
The dividend of CHP-UN decreases each year by -9.71%.
CHP-UN has paid a dividend for at least 10 years, which is a reliable track record.
CHP-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.71%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
31.96% of the earnings are spent on dividend by CHP-UN. This is a low number and sustainable payout ratio.
DP31.96%
EPS Next 2Y39.48%
EPS Next 3Y26.37%
TSX:CHP-UN (12/31/2025, 7:00:00 PM)
14.81
-0.05 (-0.34%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners28.1%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap4.86B
Revenue(TTM)1.41B
Net Income(TTM)784.09M
Analysts72.31
Price Target16.49 (11.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend0.34
Dividend Growth(5Y)-9.71%
DP31.96%
Div Incr Years2
Div Non Decr Years4
Ex-DateN/A
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)2.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-45.63%
EPS NY rev (3m)-45.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 13.7 | ||
| P/S | 3.46 | ||
| P/FCF | 6.86 | ||
| P/OCF | 6.86 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 14.37 |
EPS(TTM)1.08
EY7.29%
EPS(NY)1.08
Fwd EY7.3%
FCF(TTM)2.16
FCFY14.57%
OCF(TTM)2.16
OCFY14.57%
SpS4.28
BVpS14.33
TBVpS14.29
PEG (NY)7.54
PEG (5Y)N/A
Graham Number18.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 16.68% | ||
| ROCE | 4.7% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.39% | ||
| OM | 57.83% | ||
| PM (TTM) | 55.81% | ||
| GM | 71.81% | ||
| FCFM | 50.37% |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
ROIC(3y)3.76%
ROIC(5y)N/A
ROICexc(3y)3.77%
ROICexc(5y)N/A
ROICexgc(3y)3.78%
ROICexgc(5y)N/A
ROCE(3y)5.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-2.29%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.3%
OM growth 3YN/A
OM growth 5Y-2.05%
PM growth 3Y218.06%
PM growth 5YN/A
GM growth 3Y0.42%
GM growth 5Y0.01%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 9.7 | ||
| Debt/EBITDA | 8.32 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.82 | ||
| Cash Conversion | 86.98% | ||
| Profit Quality | 90.25% | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.49 |
F-Score6
WACC5.55%
ROIC/WACC0.61
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)87.59%
Profit Quality(5y)662.03%
High Growth Momentum
Growth
EPS 1Y (TTM)272.94%
EPS 3Y224.24%
EPS 5YN/A
EPS Q2Q%136.59%
EPS Next Y1.82%
EPS Next 2Y39.48%
EPS Next 3Y26.37%
EPS Next 5YN/A
Revenue 1Y (TTM)1.87%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%6.65%
Revenue Next Year5.15%
Revenue Next 2Y4.27%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y317.32%
EBIT growth 3YN/A
EBIT growth 5Y-0.85%
EBIT Next Year26.61%
EBIT Next 3Y10.75%
EBIT Next 5YN/A
FCF growth 1Y12.98%
FCF growth 3Y2.68%
FCF growth 5Y4.53%
OCF growth 1Y12.98%
OCF growth 3Y2.68%
OCF growth 5Y4.53%
CHOICE PROPERTIES REIT / CHP-UN.CA FAQ
What is the ChartMill fundamental rating of CHOICE PROPERTIES REIT (CHP-UN.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHP-UN.CA.
Can you provide the valuation status for CHOICE PROPERTIES REIT?
ChartMill assigns a valuation rating of 6 / 10 to CHOICE PROPERTIES REIT (CHP-UN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CHOICE PROPERTIES REIT?
CHOICE PROPERTIES REIT (CHP-UN.CA) has a profitability rating of 7 / 10.
How financially healthy is CHOICE PROPERTIES REIT?
The financial health rating of CHOICE PROPERTIES REIT (CHP-UN.CA) is 3 / 10.
What is the expected EPS growth for CHOICE PROPERTIES REIT (CHP-UN.CA) stock?
The Earnings per Share (EPS) of CHOICE PROPERTIES REIT (CHP-UN.CA) is expected to grow by 1.82% in the next year.