FIRST CAPITAL REAL ESTATE IN (FCR-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FCR-UN - CA31890B1031 - REIT
19.54 CAD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FCR-UN. FCR-UN was compared to 38 industry peers in the Diversified REITs industry. FCR-UN has a medium profitability rating, but doesn't score so well on its financial health evaluation. FCR-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- FCR-UN had positive earnings in the past year.
- FCR-UN had a positive operating cash flow in the past year.
- In multiple years FCR-UN reported negative net income over the last 5 years.
- In the past 5 years FCR-UN always reported a positive cash flow from operatings.
1.2 Ratios
- FCR-UN has a better Return On Assets (2.69%) than 68.42% of its industry peers.
- FCR-UN has a Return On Equity of 6.13%. This is in the better half of the industry: FCR-UN outperforms 68.42% of its industry peers.
- FCR-UN has a worse Return On Invested Capital (3.45%) than 60.53% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FCR-UN is below the industry average of 5.49%.
- The last Return On Invested Capital (3.45%) for FCR-UN is above the 3 year average (3.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 6.13% | ||
| ROIC | 3.45% |
ROA(3y)-0.3%
ROA(5y)0.74%
ROE(3y)-0.65%
ROE(5y)1.61%
ROIC(3y)3.29%
ROIC(5y)3.06%
1.3 Margins
- Looking at the Profit Margin, with a value of 33.94%, FCR-UN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- FCR-UN's Profit Margin has declined in the last couple of years.
- The Operating Margin of FCR-UN (55.03%) is better than 60.53% of its industry peers.
- FCR-UN's Operating Margin has been stable in the last couple of years.
- FCR-UN's Gross Margin of 62.30% is in line compared to the rest of the industry. FCR-UN outperforms 57.89% of its industry peers.
- FCR-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.03% | ||
| PM (TTM) | 33.94% | ||
| GM | 62.3% |
OM growth 3Y2.04%
OM growth 5Y0.78%
PM growth 3Y-25.03%
PM growth 5Y-11.78%
GM growth 3Y1.22%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FCR-UN is destroying value.
- FCR-UN has about the same amout of shares outstanding than it did 1 year ago.
- FCR-UN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for FCR-UN is higher compared to a year ago.
2.2 Solvency
- FCR-UN has an Altman-Z score of 0.86. This is a bad value and indicates that FCR-UN is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.86, FCR-UN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- The Debt to FCF ratio of FCR-UN is 18.56, which is on the high side as it means it would take FCR-UN, 18.56 years of fcf income to pay off all of its debts.
- FCR-UN's Debt to FCF ratio of 18.56 is in line compared to the rest of the industry. FCR-UN outperforms 42.11% of its industry peers.
- FCR-UN has a Debt/Equity ratio of 0.86. This is a neutral value indicating FCR-UN is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.86, FCR-UN is doing good in the industry, outperforming 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 18.56 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.62
WACC5.59%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that FCR-UN may have some problems paying its short term obligations.
- FCR-UN has a better Current ratio (0.66) than 76.32% of its industry peers.
- FCR-UN has a Quick Ratio of 0.66. This is a bad value and indicates that FCR-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- FCR-UN has a Quick ratio of 0.34. This is in the better half of the industry: FCR-UN outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
- The earnings per share for FCR-UN have decreased strongly by -29.16% in the last year.
- Measured over the past years, FCR-UN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.28% on average per year.
- FCR-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.11%.
- FCR-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.91% yearly.
EPS 1Y (TTM)-29.16%
EPS 3Y-22.81%
EPS 5Y-11.28%
EPS Q2Q%-18.42%
Revenue 1Y (TTM)3.11%
Revenue growth 3Y1.87%
Revenue growth 5Y-0.91%
Sales Q2Q%4.18%
3.2 Future
- Based on estimates for the next years, FCR-UN will show a small growth in Earnings Per Share. The EPS will grow by 7.01% on average per year.
- FCR-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
EPS Next Y17.12%
EPS Next 2Y8.22%
EPS Next 3Y7.01%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y1.88%
Revenue Next 3Y1.68%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.99, which indicates a correct valuation of FCR-UN.
- Based on the Price/Earnings ratio, FCR-UN is valued a bit cheaper than the industry average as 65.79% of the companies are valued more expensively.
- FCR-UN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 14.88, FCR-UN is valued correctly.
- FCR-UN's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of FCR-UN to the average of the S&P500 Index (25.83), we can say FCR-UN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FCR-UN indicates a somewhat cheap valuation: FCR-UN is cheaper than 63.16% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, FCR-UN is valued a bit more expensive than the industry average as 60.53% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 20.3 |
4.3 Compensation for Growth
- FCR-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y8.22%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.67%, FCR-UN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 7.11, FCR-UN is paying slightly less dividend.
- FCR-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
- The dividend of FCR-UN has a limited annual growth rate of 0.08%.
- FCR-UN has paid a dividend for at least 10 years, which is a reliable track record.
- FCR-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.08%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 75.58% of the earnings are spent on dividend by FCR-UN. This is not a sustainable payout ratio.
- FCR-UN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.58%
EPS Next 2Y8.22%
EPS Next 3Y7.01%
FIRST CAPITAL REAL ESTATE IN / FCR-UN.CA FAQ
Can you provide the ChartMill fundamental rating for FIRST CAPITAL REAL ESTATE IN?
ChartMill assigns a fundamental rating of 4 / 10 to FCR-UN.CA.
Can you provide the valuation status for FIRST CAPITAL REAL ESTATE IN?
ChartMill assigns a valuation rating of 4 / 10 to FIRST CAPITAL REAL ESTATE IN (FCR-UN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for FIRST CAPITAL REAL ESTATE IN?
FIRST CAPITAL REAL ESTATE IN (FCR-UN.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of FIRST CAPITAL REAL ESTATE IN (FCR-UN.CA) stock?
The Price/Earnings (PE) ratio for FIRST CAPITAL REAL ESTATE IN (FCR-UN.CA) is 16.99 and the Price/Book (PB) ratio is 1.03.
Can you provide the dividend sustainability for FCR-UN stock?
The dividend rating of FIRST CAPITAL REAL ESTATE IN (FCR-UN.CA) is 6 / 10 and the dividend payout ratio is 75.58%.