EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ERE-UN - CA29880W1032 - REIT
1.1 CAD
-0.01 (-0.9%)
ERE-UN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 industry peers in the Residential REITs industry. There are concerns on the financial health of ERE-UN while its profitability can be described as average. ERE-UN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ERE-UN had negative earnings in the past year.
ERE-UN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ERE-UN reported negative net income in multiple years.
Each year in the past 5 years ERE-UN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ERE-UN (-31.60%) is worse than 93.75% of its industry peers.
ERE-UN has a Return On Equity of -89.92%. This is amonst the worse of the industry: ERE-UN underperforms 93.75% of its industry peers.
With an excellent Return On Invested Capital value of 10.49%, ERE-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ERE-UN is in line with the industry average of 3.14%.
The last Return On Invested Capital (10.49%) for ERE-UN is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -31.6% | ||
| ROE | -89.92% | ||
| ROIC | 10.49% |
ROA(3y)-2.69%
ROA(5y)0.99%
ROE(3y)-10.07%
ROE(5y)5.02%
ROIC(3y)4.4%
ROIC(5y)3.47%
1.3 Margins
The Operating Margin of ERE-UN (61.31%) is better than 93.75% of its industry peers.
ERE-UN's Operating Margin has improved in the last couple of years.
ERE-UN has a Gross Margin of 77.25%. This is amongst the best in the industry. ERE-UN outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of ERE-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.31% | ||
| PM (TTM) | N/A | ||
| GM | 77.25% |
OM growth 3Y2.16%
OM growth 5Y2.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.41%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
ERE-UN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ERE-UN has been increased compared to 5 years ago.
Compared to 1 year ago, ERE-UN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.21, we must say that ERE-UN is in the distress zone and has some risk of bankruptcy.
ERE-UN has a worse Altman-Z score (-0.21) than 93.75% of its industry peers.
The Debt to FCF ratio of ERE-UN is 3.88, which is a good value as it means it would take ERE-UN, 3.88 years of fcf income to pay off all of its debts.
ERE-UN has a better Debt to FCF ratio (3.88) than 100.00% of its industry peers.
ERE-UN has a Debt/Equity ratio of 0.90. This is a neutral value indicating ERE-UN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, ERE-UN is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | -0.21 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.26 indicates that ERE-UN may have some problems paying its short term obligations.
With a decent Current ratio value of 0.26, ERE-UN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ERE-UN has a Quick Ratio of 0.26. This is a bad value and indicates that ERE-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.26, ERE-UN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
ERE-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -124.87%.
ERE-UN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -43.94%.
Measured over the past years, ERE-UN shows a quite strong growth in Revenue. The Revenue has been growing by 17.52% on average per year.
EPS 1Y (TTM)-124.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80.75%
Revenue 1Y (TTM)-43.94%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-57.12%
3.2 Future
The Earnings Per Share is expected to decrease by -40.16% on average over the next years. This is quite bad
Based on estimates for the next years, ERE-UN will show a very negative growth in Revenue. The Revenue will decrease by -20.55% on average per year.
EPS Next Y-146.43%
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
EPS Next 5YN/A
Revenue Next Year-53.44%
Revenue Next 2Y-39.14%
Revenue Next 3Y-20.55%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ERE-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 11.16, the valuation of ERE-UN can be described as very reasonable.
81.25% of the companies in the same industry are more expensive than ERE-UN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ERE-UN to the average of the S&P500 Index (36.22), we can say ERE-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ERE-UN is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.26 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as ERE-UN's earnings are expected to decrease with -40.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.05%, ERE-UN is a good candidate for dividend investing.
In the last 3 months the price of ERE-UN has falen by -55.10%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.38, ERE-UN pays a better dividend. On top of this ERE-UN pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ERE-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.05% |
5.2 History
On average, the dividend of ERE-UN grows each year by 102.17%, which is quite nice.
ERE-UN has been paying a dividend for over 5 years, so it has already some track record.
ERE-UN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)102.17%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ERE-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-170.37%
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
TSX:ERE-UN (12/1/2025, 7:00:00 PM)
1.1
-0.01 (-0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners45.26%
Inst Owner ChangeN/A
Ins Owners1.96%
Ins Owner ChangeN/A
Market Cap101.60M
Revenue(TTM)54.40M
Net Income(TTM)-107.53M
Analysts70.91
Price Target1.25 (13.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.05% |
Yearly Dividend0.71
Dividend Growth(5Y)102.17%
DP-170.37%
Div Incr Years5
Div Non Decr Years5
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)-50.72%
PT rev (3m)-55.21%
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)-6.37%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.16 | ||
| P/S | 1.15 | ||
| P/FCF | 2.26 | ||
| P/OCF | 2.26 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.75
EYN/A
EPS(NY)0.1
Fwd EY8.96%
FCF(TTM)0.49
FCFY44.19%
OCF(TTM)0.49
OCFY44.19%
SpS0.96
BVpS2.11
TBVpS2.11
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -31.6% | ||
| ROE | -89.92% | ||
| ROCE | 14.56% | ||
| ROIC | 10.49% | ||
| ROICexc | 11.03% | ||
| ROICexgc | 11.03% | ||
| OM | 61.31% | ||
| PM (TTM) | N/A | ||
| GM | 77.25% | ||
| FCFM | 50.76% |
ROA(3y)-2.69%
ROA(5y)0.99%
ROE(3y)-10.07%
ROE(5y)5.02%
ROIC(3y)4.4%
ROIC(5y)3.47%
ROICexc(3y)4.44%
ROICexc(5y)3.5%
ROICexgc(3y)4.44%
ROICexgc(5y)3.5%
ROCE(3y)6.12%
ROCE(5y)4.83%
ROICexgc growth 3Y58.14%
ROICexgc growth 5Y41.76%
ROICexc growth 3Y58.45%
ROICexc growth 5Y41.98%
OM growth 3Y2.16%
OM growth 5Y2.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.41%
GM growth 5Y0.55%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 3.88 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.11 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | -0.21 |
F-Score4
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)-124.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%80.75%
EPS Next Y-146.43%
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-43.94%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-57.12%
Revenue Next Year-53.44%
Revenue Next 2Y-39.14%
Revenue Next 3Y-20.55%
Revenue Next 5YN/A
EBIT growth 1Y-50.95%
EBIT growth 3Y8.84%
EBIT growth 5Y20.39%
EBIT Next Year-74.18%
EBIT Next 3Y-34.54%
EBIT Next 5YN/A
FCF growth 1Y-48.39%
FCF growth 3Y0.46%
FCF growth 5Y18.98%
OCF growth 1Y-48.39%
OCF growth 3Y0.46%
OCF growth 5Y18.98%
EUROPEAN RESIDENTIAL REAL ES / ERE-UN.CA FAQ
What is the fundamental rating for ERE-UN stock?
ChartMill assigns a fundamental rating of 4 / 10 to ERE-UN.CA.
What is the valuation status for ERE-UN stock?
ChartMill assigns a valuation rating of 4 / 10 to EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA). This can be considered as Fairly Valued.
What is the profitability of ERE-UN stock?
EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) has a profitability rating of 5 / 10.
Can you provide the financial health for ERE-UN stock?
The financial health rating of EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) is 3 / 10.