DREAM OFFICE REAL ESTATE INV (D-UN.CA) Stock Fundamental Analysis
TSX:D-UN - Toronto Stock Exchange - CA26153P2035 - REIT - Currency: CAD
D-UN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 38 industry peers in the Diversified REITs industry. Both the profitability and financial health of D-UN have multiple concerns. D-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
D-UN had negative earnings in the past year.
In the past year D-UN had a positive cash flow from operations.
In multiple years D-UN reported negative net income over the last 5 years.
Each year in the past 5 years D-UN had a positive operating cash flow.
1.2 Ratios
D-UN's Return On Assets of -4.06% is on the low side compared to the rest of the industry. D-UN is outperformed by 68.42% of its industry peers.
The Return On Equity of D-UN (-9.71%) is worse than 68.42% of its industry peers.
D-UN has a Return On Invested Capital of 2.24%. This is amonst the worse of the industry: D-UN underperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for D-UN is below the industry average of 4.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.06% | ||
| ROE | -9.71% | ||
| ROIC | 2.24% |
ROA(3y)-1.63%
ROA(5y)1.26%
ROE(3y)-4%
ROE(5y)1.96%
ROIC(3y)2.5%
ROIC(5y)2.51%
1.3 Margins
The Operating Margin of D-UN (33.79%) is worse than 86.84% of its industry peers.
D-UN's Operating Margin has declined in the last couple of years.
D-UN has a worse Gross Margin (54.12%) than 71.05% of its industry peers.
D-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.79% | ||
| PM (TTM) | N/A | ||
| GM | 54.12% |
OM growth 3Y-11.8%
OM growth 5Y-7.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.34%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so D-UN is destroying value.
D-UN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for D-UN has been reduced compared to 5 years ago.
The debt/assets ratio for D-UN is higher compared to a year ago.
2.2 Solvency
D-UN has an Altman-Z score of -0.34. This is a bad value and indicates that D-UN is not financially healthy and even has some risk of bankruptcy.
D-UN's Altman-Z score of -0.34 is on the low side compared to the rest of the industry. D-UN is outperformed by 84.21% of its industry peers.
D-UN has a debt to FCF ratio of 18.12. This is a negative value and a sign of low solvency as D-UN would need 18.12 years to pay back of all of its debts.
D-UN has a Debt to FCF ratio (18.12) which is in line with its industry peers.
A Debt/Equity ratio of 0.89 indicates that D-UN is somewhat dependend on debt financing.
D-UN has a better Debt to Equity ratio (0.89) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 18.12 | ||
| Altman-Z | -0.34 |
ROIC/WACC0.43
WACC5.21%
2.3 Liquidity
A Current Ratio of 0.11 indicates that D-UN may have some problems paying its short term obligations.
D-UN has a Current ratio of 0.11. This is in the lower half of the industry: D-UN underperforms 76.32% of its industry peers.
A Quick Ratio of 0.11 indicates that D-UN may have some problems paying its short term obligations.
D-UN's Quick ratio of 0.11 is on the low side compared to the rest of the industry. D-UN is outperformed by 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 |
3. Growth
3.1 Past
D-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.97%.
D-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.98%.
Measured over the past years, D-UN shows a decrease in Revenue. The Revenue has been decreasing by -3.05% on average per year.
EPS 1Y (TTM)-55.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%55.38%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y0.03%
Revenue growth 5Y-3.05%
Sales Q2Q%5.18%
3.2 Future
Based on estimates for the next years, D-UN will show a very strong growth in Earnings Per Share. The EPS will grow by 52.38% on average per year.
The Revenue is expected to decrease by -0.95% on average over the next years.
EPS Next Y126.71%
EPS Next 2Y52.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.59%
Revenue Next 2Y-0.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
D-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 12.83, the valuation of D-UN can be described as correct.
Based on the Price/Forward Earnings ratio, D-UN is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
D-UN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as D-UN.
Based on the Price/Free Cash Flow ratio, D-UN is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.46 | ||
| EV/EBITDA | 23.25 |
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.
A more expensive valuation may be justified as D-UN's earnings are expected to grow with 52.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
D-UN has a Yearly Dividend Yield of 6.98%, which is a nice return.
D-UN's Dividend Yield is comparable with the industry average which is at 8.01.
Compared to an average S&P500 Dividend Yield of 2.45, D-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
5.2 History
The dividend of D-UN decreases each year by -4.93%.
D-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
D-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.93%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
The earnings of D-UN are negative and hence is the payout ratio. D-UN will probably not be able to sustain this dividend level.
DP-18.15%
EPS Next 2Y52.38%
EPS Next 3YN/A
TSX:D-UN (4/30/2025, 7:00:00 PM)
15.31
-0.66 (-4.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners2.06%
Inst Owner ChangeN/A
Ins Owners22.98%
Ins Owner ChangeN/A
Market Cap250.47M
Analysts49.41
Price Target19.18 (25.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend0.78
Dividend Growth(5Y)-4.93%
DP-18.15%
Div Incr Years0
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)-1.88%
PT rev (3m)-3.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.83 | ||
| P/S | 1.28 | ||
| P/FCF | 3.46 | ||
| P/OCF | 3.46 | ||
| P/B | 0.23 | ||
| P/tB | 0.23 | ||
| EV/EBITDA | 23.25 |
EPS(TTM)-5.44
EYN/A
EPS(NY)1.19
Fwd EY7.79%
FCF(TTM)4.43
FCFY28.9%
OCF(TTM)4.43
OCFY28.9%
SpS11.99
BVpS66.05
TBVpS66.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.06% | ||
| ROE | -9.71% | ||
| ROCE | 3.11% | ||
| ROIC | 2.24% | ||
| ROICexc | 2.26% | ||
| ROICexgc | 2.26% | ||
| OM | 33.79% | ||
| PM (TTM) | N/A | ||
| GM | 54.12% | ||
| FCFM | 36.91% |
ROA(3y)-1.63%
ROA(5y)1.26%
ROE(3y)-4%
ROE(5y)1.96%
ROIC(3y)2.5%
ROIC(5y)2.51%
ROICexc(3y)2.51%
ROICexc(5y)2.53%
ROICexgc(3y)2.51%
ROICexgc(5y)2.53%
ROCE(3y)3.47%
ROCE(5y)3.49%
ROICexcg growth 3Y-1.86%
ROICexcg growth 5Y-7.02%
ROICexc growth 3Y-1.86%
ROICexc growth 5Y-7.01%
OM growth 3Y-11.8%
OM growth 5Y-7.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.34%
GM growth 5Y-0.58%
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 18.12 | ||
| Debt/EBITDA | 14.46 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 109.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.11 | ||
| Altman-Z | -0.34 |
F-Score6
WACC5.21%
ROIC/WACC0.43
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%55.38%
EPS Next Y126.71%
EPS Next 2Y52.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.98%
Revenue growth 3Y0.03%
Revenue growth 5Y-3.05%
Sales Q2Q%5.18%
Revenue Next Year-3.59%
Revenue Next 2Y-0.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-27.56%
EBIT growth 3Y-11.78%
EBIT growth 5Y-10.47%
EBIT Next Year51.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.36%
FCF growth 3Y-8.92%
FCF growth 5Y-9.94%
OCF growth 1Y2.36%
OCF growth 3Y-8.92%
OCF growth 5Y-9.94%