GRANITE REAL ESTATE INVESTME (GRP.U) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRP.U - CA3874372053 - REIT
59.19 USD
-0.45 (-0.75%)
GRP.U gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. While GRP.U belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GRP.U has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- GRP.U had positive earnings in the past year.
- GRP.U had a positive operating cash flow in the past year.
- Each year in the past 5 years GRP.U has been profitable.
- GRP.U had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GRP.U has a better Return On Assets (3.02%) than 70.08% of its industry peers.
- With a decent Return On Equity value of 5.28%, GRP.U is doing good in the industry, outperforming 66.14% of the companies in the same industry.
- With a decent Return On Invested Capital value of 3.86%, GRP.U is doing good in the industry, outperforming 72.44% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for GRP.U is in line with the industry average of 3.05%.
- The last Return On Invested Capital (3.86%) for GRP.U is above the 3 year average (3.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.28% | ||
| ROIC | 3.86% |
ROA(3y)2.31%
ROA(5y)5.72%
ROE(3y)3.91%
ROE(5y)9.46%
ROIC(3y)3.46%
ROIC(5y)3.27%
1.3 Margins
- Looking at the Profit Margin, with a value of 48.08%, GRP.U belongs to the top of the industry, outperforming 97.64% of the companies in the same industry.
- GRP.U's Profit Margin has declined in the last couple of years.
- GRP.U's Operating Margin of 75.49% is amongst the best of the industry. GRP.U outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of GRP.U has remained more or less at the same level.
- GRP.U has a Gross Margin of 82.21%. This is amongst the best in the industry. GRP.U outperforms 82.68% of its industry peers.
- In the last couple of years the Gross Margin of GRP.U has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 75.49% | ||
| PM (TTM) | 48.08% | ||
| GM | 82.21% |
OM growth 3Y0.91%
OM growth 5Y0.32%
PM growth 3Y-42.48%
PM growth 5Y-14.61%
GM growth 3Y-0.64%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRP.U is destroying value.
- The number of shares outstanding for GRP.U has been reduced compared to 1 year ago.
- Compared to 5 years ago, GRP.U has more shares outstanding
- Compared to 1 year ago, GRP.U has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.24, we must say that GRP.U is in the distress zone and has some risk of bankruptcy.
- GRP.U has a Altman-Z score of 1.24. This is amongst the best in the industry. GRP.U outperforms 84.25% of its industry peers.
- The Debt to FCF ratio of GRP.U is 8.52, which is on the high side as it means it would take GRP.U, 8.52 years of fcf income to pay off all of its debts.
- GRP.U has a Debt to FCF ratio of 8.52. This is amongst the best in the industry. GRP.U outperforms 93.70% of its industry peers.
- GRP.U has a Debt/Equity ratio of 0.56. This is a neutral value indicating GRP.U is somewhat dependend on debt financing.
- GRP.U has a Debt to Equity ratio of 0.56. This is amongst the best in the industry. GRP.U outperforms 87.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.73
WACC5.26%
2.3 Liquidity
- GRP.U has a Current Ratio of 1.82. This is a normal value and indicates that GRP.U is financially healthy and should not expect problems in meeting its short term obligations.
- GRP.U's Current ratio of 1.82 is fine compared to the rest of the industry. GRP.U outperforms 78.74% of its industry peers.
- GRP.U has a Quick Ratio of 1.82. This is a normal value and indicates that GRP.U is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.82, GRP.U is doing good in the industry, outperforming 78.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.59% over the past year.
- GRP.U shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.06% yearly.
- The Revenue has grown by 9.81% in the past year. This is quite good.
- Measured over the past years, GRP.U shows a quite strong growth in Revenue. The Revenue has been growing by 15.77% on average per year.
EPS 1Y (TTM)9.59%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%10.34%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%8.04%
3.2 Future
- Based on estimates for the next years, GRP.U will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
- GRP.U is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y-11.01%
EPS Next 2Y7.53%
EPS Next 3Y6.59%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y6.36%
Revenue Next 3Y5.62%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- With a Price/Earnings ratio of 14.19, GRP.U is valued correctly.
- Based on the Price/Earnings ratio, GRP.U is valued cheaper than 88.19% of the companies in the same industry.
- GRP.U's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 12.83, the valuation of GRP.U can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GRP.U indicates a rather cheap valuation: GRP.U is cheaper than 96.85% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. GRP.U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
- 70.87% of the companies in the same industry are cheaper than GRP.U, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, GRP.U is valued cheaper than 85.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.26 | ||
| EV/EBITDA | 17.52 |
4.3 Compensation for Growth
- The decent profitability rating of GRP.U may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.53%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.94%, GRP.U has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 6.82, GRP.U is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, GRP.U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
- The dividend of GRP.U has a limited annual growth rate of 1.78%.
- GRP.U has been paying a dividend for at least 10 years, so it has a reliable track record.
- GRP.U has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.78%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- GRP.U pays out 71.73% of its income as dividend. This is not a sustainable payout ratio.
- GRP.U's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.73%
EPS Next 2Y7.53%
EPS Next 3Y6.59%
GRANITE REAL ESTATE INVESTME / GRP.U FAQ
What is the fundamental rating for GRP.U stock?
ChartMill assigns a fundamental rating of 6 / 10 to GRP.U.
Can you provide the valuation status for GRANITE REAL ESTATE INVESTME?
ChartMill assigns a valuation rating of 5 / 10 to GRANITE REAL ESTATE INVESTME (GRP.U). This can be considered as Fairly Valued.
How profitable is GRANITE REAL ESTATE INVESTME (GRP.U) stock?
GRANITE REAL ESTATE INVESTME (GRP.U) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for GRP.U stock?
The Price/Earnings (PE) ratio for GRANITE REAL ESTATE INVESTME (GRP.U) is 14.19 and the Price/Book (PB) ratio is 0.9.
What is the financial health of GRANITE REAL ESTATE INVESTME (GRP.U) stock?
The financial health rating of GRANITE REAL ESTATE INVESTME (GRP.U) is 6 / 10.