EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) Stock Fundamental Analysis
TSX:ERE-UN - Toronto Stock Exchange - CA29880W1032 - REIT - Currency: CAD
We assign a fundamental rating of 3 out of 10 to ERE-UN. ERE-UN was compared to 17 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ERE-UN had negative earnings in the past year.
In the past year ERE-UN had a positive cash flow from operations.
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
With a Return On Assets value of -16.45%, ERE-UN is not doing good in the industry: 94.12% of the companies in the same industry are doing better.
ERE-UN has a Return On Equity of -55.85%. This is amonst the worse of the industry: ERE-UN underperforms 94.12% of its industry peers.
The Return On Invested Capital of ERE-UN (7.87%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERE-UN is in line with the industry average of 3.17%.
The last Return On Invested Capital (7.87%) for ERE-UN is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.45% | ||
| ROE | -55.85% | ||
| ROIC | 7.87% |
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
ERE-UN's Operating Margin of 67.44% is amongst the best of the industry. ERE-UN outperforms 88.24% of its industry peers.
ERE-UN's Operating Margin has improved in the last couple of years.
ERE-UN has a Gross Margin of 80.85%. 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 | 67.44% | ||
| PM (TTM) | N/A | ||
| GM | 80.85% |
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
Compared to 1 year ago, ERE-UN has more shares outstanding
ERE-UN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ERE-UN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.07, 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 (0.07) than 94.12% of its industry peers.
ERE-UN has a debt to FCF ratio of 6.07. This is a slightly negative value and a sign of low solvency as ERE-UN would need 6.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.07, ERE-UN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that ERE-UN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.16, ERE-UN is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 0.07 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
ERE-UN has a Current Ratio of 0.08. 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.
With a Current ratio value of 0.08, ERE-UN is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
A Quick Ratio of 0.08 indicates that ERE-UN may have some problems paying its short term obligations.
ERE-UN's Quick ratio of 0.08 is on the low side compared to the rest of the industry. ERE-UN is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 |
3. Growth
3.1 Past
The earnings per share for ERE-UN have decreased strongly by -928.24% in the last year.
ERE-UN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.94%.
ERE-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.52% yearly.
EPS 1Y (TTM)-928.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-262.5%
Revenue 1Y (TTM)-16.94%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-51.61%
3.2 Future
Based on estimates for the next years, ERE-UN will show a very negative growth in Earnings Per Share. The EPS will decrease by -50.00% on average per year.
ERE-UN is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -42.49% yearly.
EPS Next Y-75%
EPS Next 2Y-50%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-55.25%
Revenue Next 2Y-42.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ERE-UN. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 22.80, the valuation of ERE-UN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERE-UN indicates a slightly more expensive valuation: ERE-UN is more expensive than 70.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, ERE-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
ERE-UN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERE-UN is cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.4 | ||
| 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 -50.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-50%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.05%, ERE-UN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.47, ERE-UN pays a better dividend. On top of this ERE-UN pays more dividend than 94.12% of the companies listed in the same industry.
ERE-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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
The earnings of ERE-UN are negative and hence is the payout ratio. ERE-UN will probably not be able to sustain this dividend level.
DP-81.61%
EPS Next 2Y-50%
EPS Next 3YN/A
TSX:ERE-UN (7/11/2025, 7:00:00 PM)
2.58
-0.01 (-0.39%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners44.89%
Inst Owner ChangeN/A
Ins Owners1.96%
Ins Owner ChangeN/A
Market Cap238.31M
Analysts73.33
Price Target2.91 (12.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.05% |
Yearly Dividend0.7
Dividend Growth(5Y)102.17%
DP-81.61%
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)0%
PT rev (3m)-0.65%
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%
Revenue NY rev (3m)-10.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.8 | ||
| P/S | 1.85 | ||
| P/FCF | 3.4 | ||
| P/OCF | 3.4 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.85
EYN/A
EPS(NY)0.11
Fwd EY4.39%
FCF(TTM)0.76
FCFY29.41%
OCF(TTM)0.76
OCFY29.41%
SpS1.39
BVpS3.86
TBVpS3.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.45% | ||
| ROE | -55.85% | ||
| ROCE | 10.93% | ||
| ROIC | 7.87% | ||
| ROICexc | 8% | ||
| ROICexgc | 8% | ||
| OM | 67.44% | ||
| PM (TTM) | N/A | ||
| GM | 80.85% | ||
| FCFM | 54.49% |
ROA(3y)-2.69%
ROA(5y)0.99%
ROE(3y)-10.07%
ROE(5y)5.02%
ROIC(3y)4.4%
ROIC(5y)3.47%
ROICexc(3y)4.44%
ROICexc(5y)3.5%
ROICexgc(3y)4.44%
ROICexgc(5y)3.5%
ROCE(3y)6.12%
ROCE(5y)4.83%
ROICexcg growth 3Y58.14%
ROICexcg 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-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.07 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.08 | ||
| Quick Ratio | 0.08 | ||
| Altman-Z | 0.07 |
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)-928.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-262.5%
EPS Next Y-75%
EPS Next 2Y-50%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.94%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-51.61%
Revenue Next Year-55.25%
Revenue Next 2Y-42.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.43%
EBIT growth 3Y8.84%
EBIT growth 5Y20.39%
EBIT Next Year-75.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.06%
FCF growth 3Y0.46%
FCF growth 5Y18.98%
OCF growth 1Y-19.06%
OCF growth 3Y0.46%
OCF growth 5Y18.98%