CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis
TSX:CHP-UN - CA17039A1066 - REIT
15.25 CAD
+0.29 (+1.94%)
We assign a fundamental rating of 4 out of 10 to CHP-UN. CHP-UN was compared to 37 industry peers in the Diversified REITs industry. While CHP-UN is still in line with the averages on profitability rating, there are concerns on its financial health. CHP-UN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CHP-UN had negative earnings in the past year.
CHP-UN had a positive operating cash flow in the past year.
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
CHP-UN has a Return On Assets of -0.69%. This is comparable to the rest of the industry: CHP-UN outperforms 54.05% of its industry peers.
The Return On Equity of CHP-UN (-2.69%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.69% | ||
| ROE | -2.69% | ||
| ROIC | N/A |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of CHP-UN has grown nicely.
CHP-UN's Operating Margin has declined in the last couple of years.
The Gross Margin of CHP-UN (71.75%) 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.
The Profit Margin and Operating Margin are not available for CHP-UN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 71.75% |
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
CHP-UN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CHP-UN has about the same amount of shares outstanding.
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
CHP-UN has an Altman-Z score of 0.28. This is a bad value and indicates that CHP-UN is not financially healthy and even has some risk of bankruptcy.
CHP-UN has a Altman-Z score of 0.28. This is in the lower half of the industry: CHP-UN underperforms 67.57% of its industry peers.
The Debt to FCF ratio of CHP-UN is 9.14, which is on the high side as it means it would take CHP-UN, 9.14 years of fcf income to pay off all of its debts.
CHP-UN has a better Debt to FCF ratio (9.14) than 91.89% of its industry peers.
A Debt/Equity ratio of 1.42 is on the high side and indicates that CHP-UN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.42, CHP-UN is doing worse than 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 9.14 | ||
| Altman-Z | 0.28 |
ROIC/WACCN/A
WACC5.94%
2.3 Liquidity
CHP-UN has a Current Ratio of 0.16. 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 Current ratio of 0.16. This is comparable to the rest of the industry: CHP-UN outperforms 43.24% of its industry peers.
CHP-UN has a Quick Ratio of 0.16. 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.
The Quick ratio of CHP-UN (0.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
CHP-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -118.86%.
CHP-UN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 224.24% yearly.
Looking at the last year, CHP-UN shows a small growth in Revenue. The Revenue has grown by 1.32% in the last 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)-118.86%
EPS 3Y224.24%
EPS 5YN/A
EPS Q2Q%-130.05%
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%4.59%
3.2 Future
CHP-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.98% yearly.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3Y26.98%
EPS Next 5YN/A
Revenue Next Year4.6%
Revenue Next 2Y4.54%
Revenue Next 3Y4.81%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings Ratio is negative for CHP-UN. In the last year negative earnings were reported.
CHP-UN is valuated correctly with a Price/Forward Earnings ratio of 13.98.
CHP-UN's Price/Forward Earnings ratio is in line with the industry average.
CHP-UN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CHP-UN is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.7 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CHP-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CHP-UN's earnings are expected to grow with 26.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.13%
EPS Next 3Y26.98%
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 7.95, CHP-UN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, 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
CHP-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-205.64%
EPS Next 2Y40.13%
EPS Next 3Y26.98%
TSX:CHP-UN (9/5/2025, 7:00:00 PM)
15.25
+0.29 (+1.94%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners28.93%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap5.00B
Analysts73.85
Price Target16.18 (6.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend0.34
Dividend Growth(5Y)-9.71%
DP-205.64%
Div Incr Years2
Div Non Decr Years4
Ex-Date
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)0.88%
PT rev (3m)0.88%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.98 | ||
| P/S | 3.62 | ||
| P/FCF | 6.7 | ||
| P/OCF | 6.7 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.17
EYN/A
EPS(NY)1.09
Fwd EY7.15%
FCF(TTM)2.28
FCFY14.92%
OCF(TTM)2.28
OCFY14.92%
SpS4.21
BVpS13.78
TBVpS13.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.69% | ||
| ROE | -2.69% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 71.75% | ||
| FCFM | 53.98% |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
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)5.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 9.14 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.16 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.28 |
F-Score5
WACC5.94%
ROIC/WACCN/A
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)-118.86%
EPS 3Y224.24%
EPS 5YN/A
EPS Q2Q%-130.05%
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3Y26.98%
EPS Next 5YN/A
Revenue 1Y (TTM)1.32%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%4.59%
Revenue Next Year4.6%
Revenue Next 2Y4.54%
Revenue Next 3Y4.81%
Revenue Next 5YN/A
EBIT growth 1Y-120.66%
EBIT growth 3YN/A
EBIT growth 5Y-0.85%
EBIT Next Year25.31%
EBIT Next 3Y11.26%
EBIT Next 5YN/A
FCF growth 1Y10.39%
FCF growth 3Y2.68%
FCF growth 5Y4.53%
OCF growth 1Y10.39%
OCF growth 3Y2.68%
OCF growth 5Y4.53%