CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis
TSX:CHP-UN - Toronto Stock Exchange - CA17039A1066 - REIT - Currency: CAD
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. There are concerns on the financial health of CHP-UN while its profitability can be described as average. CHP-UN has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years CHP-UN has been profitable.
In the past 5 years CHP-UN always reported a positive cash flow from operatings.
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.
CHP-UN has a Return On Equity (-2.69%) which is in line with its industry peers.
| 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.
CHP-UN has a better Gross Margin (71.75%) 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.
CHP-UN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
CHP-UN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CHP-UN has an improved debt to assets ratio.
2.2 Solvency
CHP-UN has an Altman-Z score of 0.27. 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 worse Altman-Z score (0.27) than 70.27% 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's Debt to FCF ratio of 9.14 is amongst the best of the industry. CHP-UN outperforms 94.59% of its industry peers.
CHP-UN has a Debt/Equity ratio of 1.42. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.42, CHP-UN is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.42 | ||
| Debt/FCF | 9.14 | ||
| Altman-Z | 0.27 |
ROIC/WACCN/A
WACC5.8%
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.
Looking at the Current ratio, with a value of 0.16, CHP-UN is doing worse than 62.16% of the companies in the same industry.
A Quick Ratio of 0.15 indicates that CHP-UN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.15, CHP-UN is doing worse than 62.16% of the companies in the same 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%.
The Earnings Per Share has been growing by 224.24% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.32% in the past year.
The Revenue has been growing slightly by 1.22% on average over the past years.
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 40.13% yearly.
CHP-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.54% yearly.
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.6%
Revenue Next 2Y4.54%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CHP-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 13.01, the valuation of CHP-UN can be described as correct.
Based on the Price/Forward Earnings ratio, CHP-UN is valued a bit cheaper than the industry average as 62.16% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CHP-UN to the average of the S&P500 Index (36.42), we can say CHP-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.01 |
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 | 6.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CHP-UN's earnings are expected to grow with 40.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CHP-UN has a Yearly Dividend Yield of 5.20%, which is a nice return.
CHP-UN's Dividend Yield is slightly below the industry average, which is at 7.90.
Compared to an average S&P500 Dividend Yield of 2.40, 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
The earnings of CHP-UN are negative and hence is the payout ratio. CHP-UN will probably not be able to sustain this dividend level.
DP-205.64%
EPS Next 2Y40.13%
EPS Next 3YN/A
TSX:CHP-UN (8/1/2025, 7:00:00 PM)
14.19
0 (0%)
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 Cap4.65B
Analysts75.38
Price Target16.04 (13.04%)
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%
PT rev (3m)1.07%
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)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.01 | ||
| P/S | 3.37 | ||
| P/FCF | 6.24 | ||
| P/OCF | 6.24 | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.17
EYN/A
EPS(NY)1.09
Fwd EY7.69%
FCF(TTM)2.28
FCFY16.03%
OCF(TTM)2.28
OCFY16.03%
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 | 0.27 |
F-Score5
WACC5.8%
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 3YN/A
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 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-120.66%
EBIT growth 3YN/A
EBIT growth 5Y-0.85%
EBIT Next Year25.31%
EBIT Next 3YN/A
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%