EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) Stock Fundamental Analysis
Canada - TSX:ERE-UN - CA29880W1032 - REIT
1.02 CAD
-0.04 (-3.77%)
We assign a fundamental rating of 4 out of 10 to ERE-UN. ERE-UN was compared to 16 industry peers in the Residential REITs industry. Both the profitability and the financial health of ERE-UN get a neutral evaluation. Nothing too spectacular is happening here. ERE-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ERE-UN has reported negative net income.
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
With a Return On Assets value of -20.50%, ERE-UN is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
The Return On Equity of ERE-UN (-69.78%) is worse than 93.75% of its industry peers.
ERE-UN's Return On Invested Capital of 6.72% is amongst the best of the industry. ERE-UN outperforms 100.00% of its industry peers.
ERE-UN had an Average Return On Invested Capital over the past 3 years of 4.40%. This is in line with the industry average of 2.99%.
The last Return On Invested Capital (6.72%) for ERE-UN is above the 3 year average (4.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.5% | ||
| ROE | -69.78% | ||
| ROIC | 6.72% |
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
With an excellent Operating Margin value of 64.79%, ERE-UN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of ERE-UN has grown nicely.
With an excellent Gross Margin value of 79.97%, ERE-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ERE-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.79% | ||
| PM (TTM) | N/A | ||
| GM | 79.97% |
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
Compared to 5 years ago, ERE-UN has more shares outstanding
The debt/assets ratio for ERE-UN has been reduced compared to a year ago.
2.2 Solvency
ERE-UN has an Altman-Z score of 0.47. This is a bad value and indicates that ERE-UN is not financially healthy and even has some risk of bankruptcy.
ERE-UN has a Altman-Z score of 0.47. This is amonst the worse of the industry: ERE-UN underperforms 81.25% of its industry peers.
The Debt to FCF ratio of ERE-UN is 7.09, which is on the high side as it means it would take ERE-UN, 7.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.09, ERE-UN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that ERE-UN has dependencies on debt financing.
ERE-UN's Debt to Equity ratio of 1.19 is on the low side compared to the rest of the industry. ERE-UN is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 0.47 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.47 indicates that ERE-UN should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.47, ERE-UN belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
ERE-UN has a Quick Ratio of 1.47. This is a normal value and indicates that ERE-UN is financially healthy and should not expect problems in meeting its short term obligations.
ERE-UN's Quick ratio of 1.47 is amongst the best of the industry. ERE-UN outperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for ERE-UN have decreased strongly by -613.59% in the last year.
Looking at the last year, ERE-UN shows a very negative growth in Revenue. The Revenue has decreased by -30.71% in the last year.
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)-613.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-145.36%
Revenue 1Y (TTM)-30.71%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-51.38%
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 -20.64% 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-54.73%
Revenue Next 2Y-40.88%
Revenue Next 3Y-20.64%
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.
Based on the Price/Forward Earnings ratio of 10.27, the valuation of ERE-UN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERE-UN indicates a rather cheap valuation: ERE-UN is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, ERE-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than ERE-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ERE-UN's earnings are expected to decrease with -40.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
5. Dividend
5.1 Amount
ERE-UN has a Yearly Dividend Yield of 10.05%, which is a nice return.
The stock price of ERE-UN dropped by -60.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ERE-UN's Dividend Yield is rather good when compared to the industry average which is at 4.32. ERE-UN pays more dividend than 93.75% of the companies in the same industry.
ERE-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.05% |
5.2 History
The dividend of ERE-UN is nicely growing with an annual growth rate of 102.17%!
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-67.12%
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
TSX:ERE-UN (10/2/2025, 7:00:00 PM)
1.02
-0.04 (-3.77%)
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 Cap94.21M
Analysts70.91
Price Target2.8 (174.51%)
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-67.12%
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)-3.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-285.71%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.27 | ||
| P/S | 0.85 | ||
| P/FCF | 1.56 | ||
| P/OCF | 1.56 | ||
| P/B | 0.27 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.05
EYN/A
EPS(NY)0.1
Fwd EY9.74%
FCF(TTM)0.65
FCFY64.09%
OCF(TTM)0.65
OCFY64.09%
SpS1.2
BVpS3.8
TBVpS3.8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.5% | ||
| ROE | -69.78% | ||
| ROCE | 9.33% | ||
| ROIC | 6.72% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 6.87% | ||
| OM | 64.79% | ||
| PM (TTM) | N/A | ||
| GM | 79.97% | ||
| FCFM | 54.35% |
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 Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 7.09 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 0.47 |
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)-613.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-145.36%
EPS Next Y-146.43%
EPS Next 2Y-53.71%
EPS Next 3Y-40.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.71%
Revenue growth 3Y6.54%
Revenue growth 5Y17.52%
Sales Q2Q%-51.38%
Revenue Next Year-54.73%
Revenue Next 2Y-40.88%
Revenue Next 3Y-20.64%
Revenue Next 5YN/A
EBIT growth 1Y-36.82%
EBIT growth 3Y8.84%
EBIT growth 5Y20.39%
EBIT Next Year-74.39%
EBIT Next 3Y-34.71%
EBIT Next 5YN/A
FCF growth 1Y-35.75%
FCF growth 3Y0.46%
FCF growth 5Y18.98%
OCF growth 1Y-35.75%
OCF growth 3Y0.46%
OCF growth 5Y18.98%