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 38 industry peers in the Diversified REITs industry. CHP-UN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
CHP-UN had positive earnings in each of the past 5 years.
In the past 5 years CHP-UN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHP-UN (3.16%) is better than 89.47% of its industry peers.
Looking at the Return On Equity, with a value of 11.52%, CHP-UN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of CHP-UN (2.37%) is worse than 89.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHP-UN is in line with the industry average of 5.03%.
| 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
Looking at the Profit Margin, with a value of 39.93%, CHP-UN belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Profit Margin of CHP-UN has grown nicely.
CHP-UN has a Operating Margin of 39.87%. This is in the lower half of the industry: CHP-UN underperforms 73.68% of its industry peers.
CHP-UN's Operating Margin has declined in the last couple of years.
CHP-UN has a better Gross Margin (71.87%) than 76.32% 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.
Compared to 1 year ago, CHP-UN has about the same amount of shares outstanding.
The number of shares outstanding for CHP-UN has been increased compared to 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.
The Altman-Z score of CHP-UN (0.46) is worse than 60.53% of its industry peers.
CHP-UN has a debt to FCF ratio of 9.43. This is a negative value and a sign of low solvency as CHP-UN would need 9.43 years to pay back of all of its debts.
The Debt to FCF ratio of CHP-UN (9.43) is better than 92.11% of its industry peers.
A Debt/Equity ratio of 1.33 is on the high side and indicates that CHP-UN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.33, CHP-UN is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 9.43 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.41
WACC5.77%
2.3 Liquidity
A Current Ratio of 0.17 indicates that CHP-UN may have some problems paying its short term obligations.
CHP-UN has a Current ratio of 0.17. This is comparable to the rest of the industry: CHP-UN outperforms 47.37% of its industry peers.
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.
CHP-UN has a Quick ratio (0.17) which is comparable to the rest of the industry.
| 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%.
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)-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
The Earnings Per Share is expected to grow by 40.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.91% on average over the next years.
EPS Next Y87.27%
EPS Next 2Y40.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y3.91%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 19.59 indicates a rather expensive valuation of CHP-UN.
CHP-UN's Price/Earnings ratio is a bit cheaper when compared to the industry. CHP-UN is cheaper than 68.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.29. CHP-UN is around the same levels.
The Price/Forward Earnings ratio is 13.47, which indicates a correct valuation of CHP-UN.
CHP-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CHP-UN is cheaper than 65.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. CHP-UN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHP-UN is valued a bit cheaper than 63.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHP-UN is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | 20.91 |
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.
CHP-UN's earnings are expected to grow with 40.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
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.
Compared to an average industry Dividend Yield of 7.95, CHP-UN is paying slightly less dividend.
CHP-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| 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 Years1
Div Non Decr Years3
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 (5/6/2025, 7:00:00 PM)
14.69
+0.21 (+1.45%)
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 Cap4.82B
Analysts75.38
Price Target15.87 (8.03%)
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 Years1
Div Non Decr Years3
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)0.36%
PT rev (3m)-0.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 13.47 | ||
| P/S | 3.52 | ||
| P/FCF | 6.85 | ||
| P/OCF | 6.85 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 20.91 |
EPS(TTM)0.75
EY5.11%
EPS(NY)1.09
Fwd EY7.43%
FCF(TTM)2.14
FCFY14.59%
OCF(TTM)2.14
OCFY14.59%
SpS4.17
BVpS14.44
TBVpS14.41
PEG (NY)0.22
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
WACC5.77%
ROIC/WACC0.41
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 Year3.78%
Revenue Next 2Y3.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.96%
EBIT growth 3YN/A
EBIT growth 5Y-0.85%
EBIT Next Year24.72%
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%