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DREAM RESIDENTIAL REAL ESTAT (DRR-UN.CA) Stock Fundamental Analysis

TSX:DRR-UN - Toronto Stock Exchange - CA26154C1023 - REIT - Currency: CAD

12.7  +0.39 (+3.17%)

Fundamental Rating

3

Overall DRR-UN gets a fundamental rating of 3 out of 10. We evaluated DRR-UN against 16 industry peers in the Residential REITs industry. DRR-UN may be in some trouble as it scores bad on both profitability and health. DRR-UN is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year DRR-UN has reported negative net income.
DRR-UN had a positive operating cash flow in the past year.
DRR-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFDRR-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2022 2023 2024 0 20M 40M 60M 80M 100M

1.2 Ratios

DRR-UN has a Return On Assets of -0.61%. This is in the lower half of the industry: DRR-UN underperforms 62.50% of its industry peers.
With a Return On Equity value of -1.09%, DRR-UN is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
DRR-UN has a better Return On Invested Capital (3.74%) than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRR-UN is in line with the industry average of 3.31%.
The 3 year average ROIC (3.11%) for DRR-UN is below the current ROIC(3.74%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -0.61%
ROE -1.09%
ROIC 3.74%
ROA(3y)8.01%
ROA(5y)N/A
ROE(3y)14.33%
ROE(5y)N/A
ROIC(3y)3.11%
ROIC(5y)N/A
DRR-UN.CA Yearly ROA, ROE, ROICDRR-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2022 2023 2024 0 10 20 30 40

1.3 Margins

Looking at the Operating Margin, with a value of 84.44%, DRR-UN belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
DRR-UN does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 84.44%
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
DRR-UN.CA Yearly Profit, Operating, Gross MarginsDRR-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2022 2023 2024 0 200 400 600 800

3

2. Health

2.1 Basic Checks

Compared to 1 year ago, DRR-UN has more shares outstanding
DRR-UN has a better debt/assets ratio than last year.
DRR-UN.CA Yearly Shares OutstandingDRR-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2022 2023 2024 5M 10M 15M
DRR-UN.CA Yearly Total Debt VS Total AssetsDRR-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

Based on the Altman-Z score of 0.92, we must say that DRR-UN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DRR-UN (0.92) is better than 68.75% of its industry peers.
DRR-UN has a debt to FCF ratio of 8.25. This is a slightly negative value and a sign of low solvency as DRR-UN would need 8.25 years to pay back of all of its debts.
DRR-UN's Debt to FCF ratio of 8.25 is fine compared to the rest of the industry. DRR-UN outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that DRR-UN is somewhat dependend on debt financing.
DRR-UN has a Debt to Equity ratio (0.74) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 8.25
Altman-Z 0.92
ROIC/WACCN/A
WACCN/A
DRR-UN.CA Yearly LT Debt VS Equity VS FCFDRR-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2022 2023 2024 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 0.23 indicates that DRR-UN may have some problems paying its short term obligations.
DRR-UN has a better Current ratio (0.23) than 62.50% of its industry peers.
A Quick Ratio of 0.23 indicates that DRR-UN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, DRR-UN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.23
Quick Ratio 0.23
DRR-UN.CA Yearly Current Assets VS Current LiabilitesDRR-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2022 2023 2024 10M 20M 30M 40M 50M

3

3. Growth

3.1 Past

DRR-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.59%, which is quite impressive.
DRR-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.71%.
EPS 1Y (TTM)41.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1082.62%
Revenue 1Y (TTM)1.71%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.99%

3.2 Future

The Earnings Per Share is expected to grow by 195.80% on average over the next years. This is a very strong growth
Based on estimates for the next years, DRR-UN will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y737.5%
EPS Next 2Y195.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.56%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

DRR-UN.CA Yearly Revenue VS EstimatesDRR-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2022 2023 2024 2025 2026 10M 20M 30M 40M 50M
DRR-UN.CA Yearly EPS VS EstimatesDRR-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2 4 6

4

4. Valuation

4.1 Price/Earnings Ratio

DRR-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 12.82, which indicates a correct valuation of DRR-UN.
DRR-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DRR-UN is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, DRR-UN is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 12.82
DRR-UN.CA Price Earnings VS Forward Price EarningsDRR-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40 -60

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRR-UN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 7.11
EV/EBITDA N/A
DRR-UN.CA Per share dataDRR-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

DRR-UN's 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 DRR-UN's earnings are expected to grow with 195.80% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y195.8%
EPS Next 3YN/A

1

5. Dividend

5.1 Amount

DRR-UN has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.37, DRR-UN's dividend is way lower than its industry peers. On top of this 87.50% of the companies listed in the same industry pay a better dividend than DRR-UN!
Compared to the average S&P500 Dividend Yield of 2.40, DRR-UN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.65%

5.2 History

DRR-UN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
DRR-UN.CA Yearly Dividends per shareDRR-UN.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

The earnings of DRR-UN are negative and hence is the payout ratio. DRR-UN will probably not be able to sustain this dividend level.
DP-267.09%
EPS Next 2Y195.8%
EPS Next 3YN/A
DRR-UN.CA Yearly Income VS Free CF VS DividendDRR-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2022 2023 2024 0 20M 40M 60M 80M 100M

DREAM RESIDENTIAL REAL ESTAT

TSX:DRR-UN (8/7/2025, 7:00:00 PM)

12.7

+0.39 (+3.17%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)02-19 2025-02-19/amc
Earnings (Next)N/A N/A
Inst Owners7.11%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap203.20M
Analysts78.75
Price Target14.37 (13.15%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.65%
Yearly Dividend0.33
Dividend Growth(5Y)N/A
DP-267.09%
Div Incr Years2
Div Non Decr Years2
Ex-Date07-31 2025-07-31 (0.035)
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)9.67%
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)-1.42%
Revenue NY rev (3m)-1.42%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.82
P/S 5.96
P/FCF 7.11
P/OCF 7.11
P/B 0.64
P/tB 0.64
EV/EBITDA N/A
EPS(TTM)-0.21
EYN/A
EPS(NY)0.99
Fwd EY7.8%
FCF(TTM)1.79
FCFY14.06%
OCF(TTM)1.79
OCFY14.06%
SpS2.13
BVpS19.83
TBVpS19.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.61%
ROE -1.09%
ROCE 5.65%
ROIC 3.74%
ROICexc 3.8%
ROICexgc 3.8%
OM 84.44%
PM (TTM) N/A
GM N/A
FCFM 83.85%
ROA(3y)8.01%
ROA(5y)N/A
ROE(3y)14.33%
ROE(5y)N/A
ROIC(3y)3.11%
ROIC(5y)N/A
ROICexc(3y)3.18%
ROICexc(5y)N/A
ROICexgc(3y)3.18%
ROICexgc(5y)N/A
ROCE(3y)4.76%
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 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 8.25
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 2.78
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.23
Quick Ratio 0.23
Altman-Z 0.92
F-Score5
WACCN/A
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)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1082.62%
EPS Next Y737.5%
EPS Next 2Y195.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.71%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.99%
Revenue Next Year1.56%
Revenue Next 2Y2.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-23.05%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.66%
OCF growth 3YN/A
OCF growth 5YN/A