GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis
TSX:GRT-UN - Toronto Stock Exchange - CA3874372053 - REIT - Currency: CAD
GRT-UN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 38 industry peers in the Diversified REITs industry. While GRT-UN has a great profitability rating, there are some minor concerns on its financial health. GRT-UN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GRT-UN had positive earnings in the past year.
GRT-UN had a positive operating cash flow in the past year.
Each year in the past 5 years GRT-UN has been profitable.
Each year in the past 5 years GRT-UN had a positive operating cash flow.
1.2 Ratios
GRT-UN has a Return On Assets of 3.27%. This is amongst the best in the industry. GRT-UN outperforms 94.74% of its industry peers.
GRT-UN's Return On Equity of 5.57% is fine compared to the rest of the industry. GRT-UN outperforms 73.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.40%, GRT-UN is doing worse than 73.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GRT-UN is below the industry average of 5.66%.
The last Return On Invested Capital (3.40%) for GRT-UN is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 5.57% | ||
| ROIC | 3.4% |
ROA(3y)2.31%
ROA(5y)5.72%
ROE(3y)3.91%
ROE(5y)9.46%
ROIC(3y)3.16%
ROIC(5y)2.98%
1.3 Margins
GRT-UN's Profit Margin of 53.92% is amongst the best of the industry. GRT-UN outperforms 97.37% of its industry peers.
GRT-UN's Profit Margin has declined in the last couple of years.
GRT-UN has a better Operating Margin (76.49%) than 97.37% of its industry peers.
In the last couple of years the Operating Margin of GRT-UN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 82.61%, GRT-UN belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
GRT-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 76.49% | ||
| PM (TTM) | 53.92% | ||
| GM | 82.61% |
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
GRT-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GRT-UN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GRT-UN has more shares outstanding
The debt/assets ratio for GRT-UN has been reduced compared to a year ago.
2.2 Solvency
GRT-UN has an Altman-Z score of 1.11. This is a bad value and indicates that GRT-UN is not financially healthy and even has some risk of bankruptcy.
GRT-UN has a better Altman-Z score (1.11) than 86.84% of its industry peers.
GRT-UN has a debt to FCF ratio of 8.60. This is a slightly negative value and a sign of low solvency as GRT-UN would need 8.60 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 8.60, GRT-UN belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
GRT-UN has a Debt/Equity ratio of 0.55. This is a neutral value indicating GRT-UN is somewhat dependend on debt financing.
GRT-UN's Debt to Equity ratio of 0.55 is amongst the best of the industry. GRT-UN outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 8.6 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.51
WACC6.72%
2.3 Liquidity
A Current Ratio of 0.93 indicates that GRT-UN may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.93, GRT-UN belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that GRT-UN may have some problems paying its short term obligations.
The Quick ratio of GRT-UN (0.93) is better than 92.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.27% over the past year.
Measured over the past years, GRT-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.06% on average per year.
Looking at the last year, GRT-UN shows a quite strong growth in Revenue. The Revenue has grown by 10.23% in the last year.
GRT-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.77% yearly.
EPS 1Y (TTM)10.27%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%2.94%
Revenue 1Y (TTM)10.23%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%5.43%
3.2 Future
The Earnings Per Share is expected to grow by 5.99% on average over the next years.
The Revenue is expected to grow by 7.81% on average over the next years.
EPS Next Y5.04%
EPS Next 2Y5.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.79%
Revenue Next 2Y6.52%
Revenue Next 3Y7.81%
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 12.40, GRT-UN is valued correctly.
Based on the Price/Earnings ratio, GRT-UN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.21, GRT-UN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of GRT-UN can be described as reasonable.
GRT-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GRT-UN is cheaper than 76.32% of the companies in the same industry.
GRT-UN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRT-UN is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
GRT-UN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 16.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of GRT-UN may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)N/A
EPS Next 2Y5.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, GRT-UN has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.94, GRT-UN pays less dividend than the industry average, which is at 7.95. 86.84% of the companies listed in the same industry pay a better dividend than GRT-UN!
GRT-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
The dividend of GRT-UN has a limited annual growth rate of 1.78%.
GRT-UN has paid a dividend for at least 10 years, which is a reliable track record.
GRT-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.78%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
GRT-UN pays out 66.16% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GRT-UN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.16%
EPS Next 2Y5.99%
EPS Next 3YN/A
TSX:GRT-UN (6/30/2025, 7:00:00 PM)
69.18
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.13%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap4.21B
Analysts83.08
Price Target83.64 (20.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend3.3
Dividend Growth(5Y)1.78%
DP66.16%
Div Incr Years14
Div Non Decr Years14
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)0.96%
PT rev (3m)-5.75%
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)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 11.12 | ||
| P/S | 7.2 | ||
| P/FCF | 11.59 | ||
| P/OCF | 11.59 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 16.02 |
EPS(TTM)5.58
EY8.07%
EPS(NY)6.22
Fwd EY8.99%
FCF(TTM)5.97
FCFY8.63%
OCF(TTM)5.97
OCFY8.63%
SpS9.6
BVpS93.04
TBVpS93.04
PEG (NY)2.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 5.57% | ||
| ROCE | 4.72% | ||
| ROIC | 3.4% | ||
| ROICexc | 3.45% | ||
| ROICexgc | 3.45% | ||
| OM | 76.49% | ||
| PM (TTM) | 53.92% | ||
| GM | 82.61% | ||
| FCFM | 62.15% |
ROA(3y)2.31%
ROA(5y)5.72%
ROE(3y)3.91%
ROE(5y)9.46%
ROIC(3y)3.16%
ROIC(5y)2.98%
ROICexc(3y)3.2%
ROICexc(5y)3.12%
ROICexgc(3y)3.2%
ROICexgc(5y)3.12%
ROCE(3y)4.38%
ROCE(5y)4.14%
ROICexcg growth 3Y8.35%
ROICexcg growth 5Y-0.02%
ROICexc growth 3Y8.35%
ROICexc growth 5Y-0.02%
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%
F-Score6
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 8.6 | ||
| Debt/EBITDA | 6.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.99 | ||
| Cash Conversion | 81.03% | ||
| Profit Quality | 115.27% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.11 |
F-Score6
WACC6.72%
ROIC/WACC0.51
Cap/Depr(3y)27.37%
Cap/Depr(5y)53.98%
Cap/Sales(3y)0.08%
Cap/Sales(5y)0.18%
Profit Quality(3y)166.81%
Profit Quality(5y)115.37%
High Growth Momentum
Growth
EPS 1Y (TTM)10.27%
EPS 3Y-34.68%
EPS 5Y-6.06%
EPS Q2Q%2.94%
EPS Next Y5.04%
EPS Next 2Y5.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.23%
Revenue growth 3Y13.09%
Revenue growth 5Y15.77%
Sales Q2Q%5.43%
Revenue Next Year7.79%
Revenue Next 2Y6.52%
Revenue Next 3Y7.81%
Revenue Next 5YN/A
EBIT growth 1Y10.48%
EBIT growth 3Y14.12%
EBIT growth 5Y16.14%
EBIT Next Year7.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.22%
FCF growth 3Y8.95%
FCF growth 5Y13.06%
OCF growth 1Y24.94%
OCF growth 3Y8.88%
OCF growth 5Y13.05%