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CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis

TSX:CHP-UN - Toronto Stock Exchange - CA17039A1066 - REIT - Currency: CAD

13.34  -0.18 (-1.33%)

Fundamental Rating

3

CHP-UN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 44 industry peers in the Diversified REITs industry. Both the profitability and financial health of CHP-UN have multiple concerns. CHP-UN does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year CHP-UN has reported negative net income.
CHP-UN had a positive operating cash flow in the past year.
Of the past 5 years CHP-UN 4 years were profitable.
Each year in the past 5 years CHP-UN had a positive operating cash flow.
CHP-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFCHP-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 500M -500M

1.2 Ratios

CHP-UN has a Return On Assets (-2.60%) which is comparable to the rest of the industry.
With a Return On Equity value of -10.87%, CHP-UN perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
Industry RankSector Rank
ROA -2.6%
ROE -10.87%
ROIC N/A
ROA(3y)3.06%
ROA(5y)1.66%
ROE(3y)12.8%
ROE(5y)6.48%
ROIC(3y)N/A
ROIC(5y)N/A
CHP-UN.CA Yearly ROA, ROE, ROICCHP-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

1.3 Margins

In the last couple of years the Profit Margin of CHP-UN has remained more or less at the same level.
In the last couple of years the Operating Margin of CHP-UN has remained more or less at the same level.
CHP-UN has a better Gross Margin (70.36%) than 70.45% 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 70.36%
OM growth 3Y0.61%
OM growth 5Y-0.73%
PM growth 3Y18.94%
PM growth 5Y1.08%
GM growth 3Y0.48%
GM growth 5Y-0.51%
CHP-UN.CA Yearly Profit, Operating, Gross MarginsCHP-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

3

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.
CHP-UN.CA Yearly Shares OutstandingCHP-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
CHP-UN.CA Yearly Total Debt VS Total AssetsCHP-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of 0.22, we must say that CHP-UN is in the distress zone and has some risk of bankruptcy.
CHP-UN has a Altman-Z score of 0.22. This is in the lower half of the industry: CHP-UN underperforms 68.18% of its industry peers.
CHP-UN has a debt to FCF ratio of 9.63. This is a negative value and a sign of low solvency as CHP-UN would need 9.63 years to pay back of all of its debts.
The Debt to FCF ratio of CHP-UN (9.63) is better than 90.91% of its industry peers.
CHP-UN has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.59, CHP-UN is doing worse than 77.27% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.59
Debt/FCF 9.63
Altman-Z 0.22
ROIC/WACCN/A
WACC5.59%
CHP-UN.CA Yearly LT Debt VS Equity VS FCFCHP-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

A Current Ratio of 0.30 indicates that CHP-UN may have some problems paying its short term obligations.
CHP-UN has a Current ratio of 0.30. This is in the better half of the industry: CHP-UN outperforms 68.18% of its industry peers.
A Quick Ratio of 0.30 indicates that CHP-UN may have some problems paying its short term obligations.
CHP-UN has a Quick ratio of 0.30. This is in the better half of the industry: CHP-UN outperforms 68.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.3
Quick Ratio 0.3
CHP-UN.CA Yearly Current Assets VS Current LiabilitesCHP-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2

3. Growth

3.1 Past

The earnings per share for CHP-UN have decreased strongly by -168.34% in the last year.
The Earnings Per Share has been decreasing by -0.16% on average over the past years.
CHP-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.55%.
CHP-UN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.06% yearly.
EPS 1Y (TTM)-168.34%
EPS 3Y19.82%
EPS 5Y-0.16%
EPS Q2Q%-252.1%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y1.66%
Revenue growth 5Y3.06%
Sales Q2Q%4.56%

3.2 Future

The Earnings Per Share is expected to decrease by -21.82% on average over the next years. This is quite bad
CHP-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.56% yearly.
EPS Next Y-75.66%
EPS Next 2Y-32.16%
EPS Next 3Y-21.82%
EPS Next 5YN/A
Revenue Next Year4.53%
Revenue Next 2Y3.39%
Revenue Next 3Y3.56%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CHP-UN.CA Yearly Revenue VS EstimatesCHP-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
CHP-UN.CA Yearly EPS VS EstimatesCHP-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5 2

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for CHP-UN. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 12.70, CHP-UN is valued correctly.
68.18% of the companies in the same industry are more expensive than CHP-UN, based on the Price/Forward Earnings ratio.
CHP-UN is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 12.7
CHP-UN.CA Price Earnings VS Forward Price EarningsCHP-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 Price/Free Cash Flow ratio, CHP-UN is valued a bit cheaper than 79.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.34
EV/EBITDA N/A
CHP-UN.CA Per share dataCHP-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

CHP-UN's earnings are expected to decrease with -21.82% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-32.16%
EPS Next 3Y-21.82%

4

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 8.03, CHP-UN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, CHP-UN pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.2%

5.2 History

The dividend of CHP-UN decreases each year by -21.66%.
CHP-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
CHP-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-21.66%
Div Incr Years1
Div Non Decr Years3
CHP-UN.CA Yearly Dividends per shareCHP-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

5.3 Sustainability

CHP-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
CHP-UN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-54.62%
EPS Next 2Y-32.16%
EPS Next 3Y-21.82%
CHP-UN.CA Yearly Income VS Free CF VS DividendCHP-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 400M -400M 600M

CHOICE PROPERTIES REIT

TSX:CHP-UN (2/11/2025, 7:00:00 PM)

13.34

-0.18 (-1.33%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-06 2024-11-06
Earnings (Next)02-12 2025-02-12/amc
Inst Owners28.42%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap4.37B
Analysts75.38
Price Target15.88 (19.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.2%
Yearly Dividend0.34
Dividend Growth(5Y)-21.66%
DP-54.62%
Div Incr Years1
Div Non Decr Years3
Ex-Date01-31 2025-01-31 (0.063333)
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)-1.13%
PT rev (3m)-1.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-66.05%
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 12.7
P/S 3.17
P/FCF 6.34
P/OCF 6.34
P/B 1.05
P/tB 1.05
EV/EBITDA N/A
EPS(TTM)-0.63
EYN/A
EPS(NY)1.05
Fwd EY7.87%
FCF(TTM)2.1
FCFY15.77%
OCF(TTM)2.1
OCFY15.77%
SpS4.21
BVpS12.72
TBVpS12.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.6%
ROE -10.87%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 70.36%
FCFM 50.02%
ROA(3y)3.06%
ROA(5y)1.66%
ROE(3y)12.8%
ROE(5y)6.48%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.61%
OM growth 5Y-0.73%
PM growth 3Y18.94%
PM growth 5Y1.08%
GM growth 3Y0.48%
GM growth 5Y-0.51%
F-Score5
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 1.59
Debt/FCF 9.63
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 0.3
Quick Ratio 0.3
Altman-Z 0.22
F-Score5
WACC5.59%
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)1026.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-168.34%
EPS 3Y19.82%
EPS 5Y-0.16%
EPS Q2Q%-252.1%
EPS Next Y-75.66%
EPS Next 2Y-32.16%
EPS Next 3Y-21.82%
EPS Next 5YN/A
Revenue 1Y (TTM)6.55%
Revenue growth 3Y1.66%
Revenue growth 5Y3.06%
Sales Q2Q%4.56%
Revenue Next Year4.53%
Revenue Next 2Y3.39%
Revenue Next 3Y3.56%
Revenue Next 5YN/A
EBIT growth 1Y-132.38%
EBIT growth 3Y2.27%
EBIT growth 5Y2.3%
EBIT Next Year12.55%
EBIT Next 3Y6.64%
EBIT Next 5YN/A
FCF growth 1Y0.68%
FCF growth 3Y1.1%
FCF growth 5Y9.64%
OCF growth 1Y0.68%
OCF growth 3Y1.1%
OCF growth 5Y9.64%