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EUROPEAN RESIDENTIAL REAL ES (ERE-UN.CA) Stock Fundamental Analysis

TSX:ERE-UN - Toronto Stock Exchange - CA29880W1032 - REIT - Currency: CAD

2.49  -0.01 (-0.4%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ERE-UN. ERE-UN was compared to 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 is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

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.
In the past 5 years ERE-UN always reported a positive cash flow from operatings.
ERE-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFERE-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M

1.2 Ratios

ERE-UN has a Return On Assets of -16.45%. This is amonst the worse of the industry: ERE-UN underperforms 93.75% of its industry peers.
The Return On Equity of ERE-UN (-55.85%) is worse than 93.75% of its industry peers.
With an excellent Return On Invested Capital value of 7.87%, ERE-UN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERE-UN is in line with the industry average of 3.31%.
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 RankSector 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%
ERE-UN.CA Yearly ROA, ROE, ROICERE-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

1.3 Margins

ERE-UN's Operating Margin of 67.44% is amongst the best of the industry. ERE-UN outperforms 87.50% of its industry peers.
ERE-UN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.85%, ERE-UN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ERE-UN has remained more or less at the same level.
Industry RankSector 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%
ERE-UN.CA Yearly Profit, Operating, Gross MarginsERE-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200

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2

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
ERE-UN has a better debt/assets ratio than last year.
ERE-UN.CA Yearly Shares OutstandingERE-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
ERE-UN.CA Yearly Total Debt VS Total AssetsERE-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.06, we must say that ERE-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.06, ERE-UN is doing worse than 93.75% of the companies in the same industry.
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.
ERE-UN has a better Debt to FCF ratio (6.07) than 100.00% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that ERE-UN has dependencies on debt financing.
The Debt to Equity ratio of ERE-UN (1.16) is worse than 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF 6.07
Altman-Z 0.06
ROIC/WACCN/A
WACCN/A
ERE-UN.CA Yearly LT Debt VS Equity VS FCFERE-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 0.08 indicates that ERE-UN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.08, ERE-UN is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 0.08 indicates that ERE-UN may have some problems paying its short term obligations.
The Quick ratio of ERE-UN (0.08) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.08
Quick Ratio 0.08
ERE-UN.CA Yearly Current Assets VS Current LiabilitesERE-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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1

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

ERE-UN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -50.00% yearly.
The Revenue is expected to decrease by -42.49% on average over the next years. This is quite bad
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.
ERE-UN.CA Yearly Revenue VS EstimatesERE-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M
ERE-UN.CA Yearly EPS VS EstimatesERE-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 0 0.2 -0.2 0.4 -0.4

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2

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 22.57, ERE-UN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ERE-UN is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
ERE-UN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 22.57
ERE-UN.CA Price Earnings VS Forward Price EarningsERE-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20 25

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 RankSector Rank
P/FCF 3.37
EV/EBITDA N/A
ERE-UN.CA Per share dataERE-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

ERE-UN's earnings are expected to decrease with -50.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-50%
EPS Next 3YN/A

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.05%, ERE-UN is a good candidate for dividend investing.
ERE-UN's Dividend Yield is rather good when compared to the industry average which is at 4.57. ERE-UN pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ERE-UN pays a better dividend.
Industry RankSector 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.
As ERE-UN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)102.17%
Div Incr Years5
Div Non Decr Years5
ERE-UN.CA Yearly Dividends per shareERE-UN.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

ERE-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-81.61%
EPS Next 2Y-50%
EPS Next 3YN/A
ERE-UN.CA Yearly Income VS Free CF VS DividendERE-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M

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EUROPEAN RESIDENTIAL REAL ES

TSX:ERE-UN (6/5/2025, 7:00:00 PM)

2.49

-0.01 (-0.4%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)05-07 2025-05-07
Earnings (Next)08-04 2025-08-04
Inst Owners42.81%
Inst Owner ChangeN/A
Ins Owners1.55%
Ins Owner ChangeN/A
Market Cap230.00M
Analysts75
Price Target2.93 (17.67%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 10.05%
Yearly Dividend0.68
Dividend Growth(5Y)102.17%
DP-81.61%
Div Incr Years5
Div Non Decr Years5
Ex-Date05-30 2025-05-30 (0.00774)
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%
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)-23.29%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 22.57
P/S 1.83
P/FCF 3.37
P/OCF 3.37
P/B 0.66
P/tB 0.66
EV/EBITDA N/A
EPS(TTM)-0.83
EYN/A
EPS(NY)0.11
Fwd EY4.43%
FCF(TTM)0.74
FCFY29.7%
OCF(TTM)0.74
OCFY29.7%
SpS1.36
BVpS3.76
TBVpS3.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.06
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-74.91%
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%