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GRANITE REAL ESTATE INVESTME (GRT-UN.CA) Stock Fundamental Analysis

TSX:GRT-UN - Toronto Stock Exchange - CA3874372053 - REIT - Currency: CAD

69.47  -1.42 (-2%)

Fundamental Rating

6

Overall GRT-UN gets a fundamental rating of 6 out of 10. We evaluated GRT-UN against 43 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 may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year GRT-UN was profitable.
GRT-UN had a positive operating cash flow in the past year.
In the past 5 years GRT-UN has always been profitable.
In the past 5 years GRT-UN always reported a positive cash flow from operatings.
GRT-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFGRT-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

1.2 Ratios

The Return On Assets of GRT-UN (3.31%) is better than 95.35% of its industry peers.
GRT-UN has a better Return On Equity (5.66%) than 90.70% of its industry peers.
GRT-UN's Return On Invested Capital of 3.62% is on the low side compared to the rest of the industry. GRT-UN is outperformed by 76.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GRT-UN is below the industry average of 5.64%.
The last Return On Invested Capital (3.62%) for GRT-UN is above the 3 year average (2.89%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.31%
ROE 5.66%
ROIC 3.62%
ROA(3y)6.16%
ROA(5y)6.56%
ROE(3y)10.02%
ROE(5y)10.63%
ROIC(3y)2.89%
ROIC(5y)2.95%
GRT-UN.CA Yearly ROA, ROE, ROICGRT-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

GRT-UN has a better Profit Margin (55.93%) than 97.67% of its industry peers.
In the last couple of years the Profit Margin of GRT-UN has declined.
GRT-UN's Operating Margin of 76.47% is amongst the best of the industry. GRT-UN outperforms 100.00% of its industry peers.
GRT-UN's Operating Margin has been stable in the last couple of years.
GRT-UN has a better Gross Margin (83.66%) than 95.35% of its industry peers.
GRT-UN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 76.47%
PM (TTM) 55.93%
GM 83.66%
OM growth 3Y-0.45%
OM growth 5Y-0.06%
PM growth 3Y-40.8%
PM growth 5Y-32.56%
GM growth 3Y-1.03%
GM growth 5Y-0.93%
GRT-UN.CA Yearly Profit, Operating, Gross MarginsGRT-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 100 200 300

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GRT-UN is destroying value.
The number of shares outstanding for GRT-UN has been reduced compared to 1 year ago.
Compared to 5 years ago, GRT-UN has more shares outstanding
The debt/assets ratio for GRT-UN is higher compared to a year ago.
GRT-UN.CA Yearly Shares OutstandingGRT-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
GRT-UN.CA Yearly Total Debt VS Total AssetsGRT-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.2 Solvency

GRT-UN has an Altman-Z score of 1.06. This is a bad value and indicates that GRT-UN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, GRT-UN is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
The Debt to FCF ratio of GRT-UN is 9.10, which is on the high side as it means it would take GRT-UN, 9.10 years of fcf income to pay off all of its debts.
GRT-UN's Debt to FCF ratio of 9.10 is amongst the best of the industry. GRT-UN outperforms 95.35% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that GRT-UN is not too dependend on debt financing.
GRT-UN's Debt to Equity ratio of 0.43 is amongst the best of the industry. GRT-UN outperforms 93.02% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 9.1
Altman-Z 1.06
ROIC/WACC0.69
WACC5.28%
GRT-UN.CA Yearly LT Debt VS Equity VS FCFGRT-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 0.17 indicates that GRT-UN may have some problems paying its short term obligations.
GRT-UN has a worse Current ratio (0.17) than 60.47% of its industry peers.
A Quick Ratio of 0.17 indicates that GRT-UN may have some problems paying its short term obligations.
GRT-UN has a Quick ratio (0.17) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.17
Quick Ratio 0.17
GRT-UN.CA Yearly Current Assets VS Current LiabilitesGRT-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

5

3. Growth

3.1 Past

GRT-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1621.06%, which is quite impressive.
Measured over the past years, GRT-UN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.73% on average per year.
The Revenue has been growing slightly by 6.57% in the past year.
GRT-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.06% yearly.
EPS 1Y (TTM)1621.06%
EPS 3Y-33.34%
EPS 5Y-26.73%
EPS Q2Q%8.79%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y15.28%
Revenue growth 5Y16.06%
Sales Q2Q%7.3%

3.2 Future

Based on estimates for the next years, GRT-UN will show a very strong growth in Earnings Per Share. The EPS will grow by 28.98% on average per year.
GRT-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.43% yearly.
EPS Next Y99.65%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
EPS Next 5YN/A
Revenue Next Year7.52%
Revenue Next 2Y6.71%
Revenue Next 3Y6.43%
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 decreasing.
GRT-UN.CA Yearly Revenue VS EstimatesGRT-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
GRT-UN.CA Yearly EPS VS EstimatesGRT-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.16, the valuation of GRT-UN can be described as correct.
Based on the Price/Earnings ratio, GRT-UN is valued cheaper than 88.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRT-UN to the average of the S&P500 Index (28.12), we can say GRT-UN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.96, 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 69.77% of the companies in the same industry.
GRT-UN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE 13.16
Fwd PE 11.96
GRT-UN.CA Price Earnings VS Forward Price EarningsGRT-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 200 400 600

4.2 Price Multiples

GRT-UN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GRT-UN is cheaper than 79.07% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GRT-UN.
Industry RankSector Rank
P/FCF 12.7
EV/EBITDA 17.58
GRT-UN.CA Per share dataGRT-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

GRT-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GRT-UN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GRT-UN's earnings are expected to grow with 28.98% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y41.3%
EPS Next 3Y28.98%

6

5. Dividend

5.1 Amount

GRT-UN has a Yearly Dividend Yield of 3.94%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.94, GRT-UN pays less dividend than the industry average, which is at 8.03. 86.05% 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 2.29.
Industry RankSector Rank
Dividend Yield 3.94%

5.2 History

The dividend of GRT-UN has a limited annual growth rate of 3.51%.
GRT-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
GRT-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.51%
Div Incr Years13
Div Non Decr Years13
GRT-UN.CA Yearly Dividends per shareGRT-UN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

GRT-UN pays out 67.17% of its income as dividend. This is not a sustainable payout ratio.
GRT-UN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.17%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
GRT-UN.CA Yearly Income VS Free CF VS DividendGRT-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
GRT-UN.CA Dividend Payout.GRT-UN.CA Dividend Payout, showing the Payout Ratio.GRT-UN.CA Dividend Payout.PayoutRetained Earnings

GRANITE REAL ESTATE INVESTME

TSX:GRT-UN (2/7/2025, 7:00:00 PM)

69.47

-1.42 (-2%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners72.51%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap4.36B
Analysts83.08
Price Target90.55 (30.34%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.94%
Yearly Dividend3.21
Dividend Growth(5Y)3.51%
DP67.17%
Div Incr Years13
Div Non Decr Years13
Ex-Date01-31 2025-01-31 (0.2833)
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)-0.75%
PT rev (3m)0.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)8.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
Industry RankSector Rank
PE 13.16
Fwd PE 11.96
P/S 7.91
P/FCF 12.7
P/OCF 12.69
P/B 0.8
P/tB 0.8
EV/EBITDA 17.58
EPS(TTM)5.28
EY7.6%
EPS(NY)5.81
Fwd EY8.36%
FCF(TTM)5.47
FCFY7.88%
OCF(TTM)5.47
OCFY7.88%
SpS8.78
BVpS86.8
TBVpS86.8
PEG (NY)0.13
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.31%
ROE 5.66%
ROCE 5.03%
ROIC 3.62%
ROICexc 3.68%
ROICexgc 3.68%
OM 76.47%
PM (TTM) 55.93%
GM 83.66%
FCFM 62.31%
ROA(3y)6.16%
ROA(5y)6.56%
ROE(3y)10.02%
ROE(5y)10.63%
ROIC(3y)2.89%
ROIC(5y)2.95%
ROICexc(3y)2.96%
ROICexc(5y)3.12%
ROICexgc(3y)2.96%
ROICexgc(5y)3.12%
ROCE(3y)4.01%
ROCE(5y)4.1%
ROICexcg growth 3Y-0.74%
ROICexcg growth 5Y-3.31%
ROICexc growth 3Y-0.74%
ROICexc growth 5Y-3.31%
OM growth 3Y-0.45%
OM growth 5Y-0.06%
PM growth 3Y-40.8%
PM growth 5Y-32.56%
GM growth 3Y-1.03%
GM growth 5Y-0.93%
F-Score8
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 9.1
Debt/EBITDA 5.52
Cap/Depr 13.61%
Cap/Sales 0.03%
Interest Coverage 5.33
Cash Conversion 81.27%
Profit Quality 111.39%
Current Ratio 0.17
Quick Ratio 0.17
Altman-Z 1.06
F-Score8
WACC5.28%
ROIC/WACC0.69
Cap/Depr(3y)39.52%
Cap/Depr(5y)56.49%
Cap/Sales(3y)0.13%
Cap/Sales(5y)0.19%
Profit Quality(3y)142.18%
Profit Quality(5y)106.19%
High Growth Momentum
Growth
EPS 1Y (TTM)1621.06%
EPS 3Y-33.34%
EPS 5Y-26.73%
EPS Q2Q%8.79%
EPS Next Y99.65%
EPS Next 2Y41.3%
EPS Next 3Y28.98%
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y15.28%
Revenue growth 5Y16.06%
Sales Q2Q%7.3%
Revenue Next Year7.52%
Revenue Next 2Y6.71%
Revenue Next 3Y6.43%
Revenue Next 5YN/A
EBIT growth 1Y9.2%
EBIT growth 3Y14.76%
EBIT growth 5Y16%
EBIT Next Year11.09%
EBIT Next 3Y8.41%
EBIT Next 5YN/A
FCF growth 1Y29.59%
FCF growth 3Y8.85%
FCF growth 5Y14.85%
OCF growth 1Y29.22%
OCF growth 3Y8.63%
OCF growth 5Y14.68%