CHOICE PROPERTIES REIT (CHP-UN.CA) Stock Fundamental Analysis
TSX:CHP-UN - Toronto Stock Exchange - CA17039A1066 - REIT - Currency: CAD
Taking everything into account, CHP-UN scores 5 out of 10 in our fundamental rating. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CHP-UN had positive earnings in the past year.
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 (3.16%) is better than 91.89% of its industry peers.
CHP-UN has a better Return On Equity (11.52%) than 97.30% of its industry peers.
CHP-UN has a worse Return On Invested Capital (2.37%) than 91.89% 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 5.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 11.52% | ||
| ROIC | 2.37% |
ROA(3y)4.5%
ROA(5y)3.3%
ROE(3y)17.9%
ROE(5y)13.45%
ROIC(3y)3.76%
ROIC(5y)N/A
1.3 Margins
CHP-UN has a better Profit Margin (39.93%) than 86.49% of its industry peers.
CHP-UN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 39.87%, CHP-UN is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CHP-UN has declined.
The Gross Margin of CHP-UN (71.87%) is better than 75.68% 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 | 39.87% | ||
| PM (TTM) | 39.93% | ||
| GM | 71.87% |
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.
The number of shares outstanding for CHP-UN remains at a similar level compared to 1 year ago.
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 0.46. This is a bad value and indicates that CHP-UN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.46, CHP-UN perfoms like the industry average, outperforming 48.65% of the companies in the same industry.
The Debt to FCF ratio of CHP-UN is 9.43, which is on the high side as it means it would take CHP-UN, 9.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CHP-UN (9.43) is better than 91.89% of its industry peers.
CHP-UN has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
CHP-UN has a Debt to Equity ratio (1.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 9.43 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.42
WACC5.62%
2.3 Liquidity
A Current Ratio of 0.17 indicates that CHP-UN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.17, CHP-UN is doing worse than 64.86% of the companies in the same industry.
CHP-UN has a Quick Ratio of 0.17. 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 (0.17) is worse than 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for CHP-UN have decreased strongly by -18.34% in the last 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.
CHP-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
The Revenue has been growing slightly by 1.22% on average over the past years.
EPS 1Y (TTM)-18.34%
EPS 3Y224.24%
EPS 5YN/A
EPS Q2Q%-167.65%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%-0.66%
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
A Price/Earnings ratio of 19.68 indicates a rather expensive valuation of CHP-UN.
67.57% of the companies in the same industry are more expensive than CHP-UN, based on the Price/Earnings ratio.
CHP-UN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
CHP-UN is valuated correctly with a Price/Forward Earnings ratio of 13.53.
CHP-UN's Price/Forward Earnings is on the same level as the industry average.
CHP-UN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 13.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHP-UN is valued a bit cheaper than 62.16% of the companies in the same industry.
CHP-UN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHP-UN is cheaper than 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 21.05 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHP-UN's earnings are expected to grow with 40.13% in the coming years.
PEG (NY)0.23
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 7.94.
Compared to an average S&P500 Dividend Yield of 2.38, 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 pays out 45.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.65%
EPS Next 2Y40.13%
EPS Next 3YN/A
TSX:CHP-UN (6/3/2025, 7:00:00 PM)
14.76
-0.16 (-1.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners28.77%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap4.84B
Analysts75.38
Price Target16.04 (8.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend0.34
Dividend Growth(5Y)-9.71%
DP45.65%
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)1.07%
PT rev (3m)1.43%
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)0.79%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 13.53 | ||
| P/S | 3.54 | ||
| P/FCF | 6.88 | ||
| P/OCF | 6.88 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 21.05 |
EPS(TTM)0.75
EY5.08%
EPS(NY)1.09
Fwd EY7.39%
FCF(TTM)2.14
FCFY14.53%
OCF(TTM)2.14
OCFY14.53%
SpS4.17
BVpS14.44
TBVpS14.41
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 11.52% | ||
| ROCE | 3.29% | ||
| ROIC | 2.37% | ||
| ROICexc | 2.37% | ||
| ROICexgc | 2.38% | ||
| OM | 39.87% | ||
| PM (TTM) | 39.93% | ||
| GM | 71.87% | ||
| FCFM | 51.44% |
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
ROICexcg growth 3YN/A
ROICexcg 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 | 1.33 | ||
| Debt/FCF | 9.43 | ||
| Debt/EBITDA | 11.51 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.92 | ||
| Cash Conversion | 128.79% | ||
| Profit Quality | 128.82% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.46 |
F-Score6
WACC5.62%
ROIC/WACC0.42
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)-18.34%
EPS 3Y224.24%
EPS 5YN/A
EPS Q2Q%-167.65%
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.57%
Revenue growth 3Y1.95%
Revenue growth 5Y1.22%
Sales Q2Q%-0.66%
Revenue Next Year4.6%
Revenue Next 2Y4.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.96%
EBIT growth 3YN/A
EBIT growth 5Y-0.85%
EBIT Next Year25.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.68%
FCF growth 3Y2.68%
FCF growth 5Y4.53%
OCF growth 1Y7.68%
OCF growth 3Y2.68%
OCF growth 5Y4.53%