KILLAM APARTMENT REAL ESTATE (KMP-UN.CA) Stock Fundamental Analysis
TSX:KMP-UN - Toronto Stock Exchange - CA49410M1023 - REIT - Currency: CAD
Overall KMP-UN gets a fundamental rating of 4 out of 10. We evaluated KMP-UN against 16 industry peers in the Residential REITs industry. KMP-UN scores excellent on profitability, but there are concerns on its financial health. KMP-UN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KMP-UN was profitable.
In the past year KMP-UN had a positive cash flow from operations.
KMP-UN had positive earnings in each of the past 5 years.
Each year in the past 5 years KMP-UN had a positive operating cash flow.
1.2 Ratios
KMP-UN has a better Return On Assets (12.50%) than 100.00% of its industry peers.
The Return On Equity of KMP-UN (24.78%) is better than 100.00% of its industry peers.
KMP-UN has a Return On Invested Capital (3.24%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KMP-UN is in line with the industry average of 3.40%.
The 3 year average ROIC (3.10%) for KMP-UN is below the current ROIC(3.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.5% | ||
| ROE | 24.78% | ||
| ROIC | 3.24% |
ROA(3y)6.68%
ROA(5y)6.03%
ROE(3y)12.58%
ROE(5y)11.9%
ROIC(3y)3.1%
ROIC(5y)3.02%
1.3 Margins
The Profit Margin of KMP-UN (183.15%) is better than 100.00% of its industry peers.
KMP-UN's Profit Margin has improved in the last couple of years.
KMP-UN has a Operating Margin of 59.93%. This is in the better half of the industry: KMP-UN outperforms 75.00% of its industry peers.
KMP-UN's Operating Margin has been stable in the last couple of years.
The Gross Margin of KMP-UN (65.95%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KMP-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.93% | ||
| PM (TTM) | 183.15% | ||
| GM | 65.95% |
OM growth 3Y1.79%
OM growth 5Y1.41%
PM growth 3Y23.12%
PM growth 5Y9.37%
GM growth 3Y1.54%
GM growth 5Y0.96%
2. Health
2.1 Basic Checks
KMP-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KMP-UN has been increased compared to 1 year ago.
The number of shares outstanding for KMP-UN has been increased compared to 5 years ago.
KMP-UN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that KMP-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.91, KMP-UN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of KMP-UN is 33.39, which is on the high side as it means it would take KMP-UN, 33.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KMP-UN (33.39) is worse than 87.50% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that KMP-UN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, KMP-UN perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 33.39 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.59
WACC5.48%
2.3 Liquidity
A Current Ratio of 0.07 indicates that KMP-UN may have some problems paying its short term obligations.
KMP-UN has a worse Current ratio (0.07) than 93.75% of its industry peers.
KMP-UN has a Quick Ratio of 0.07. This is a bad value and indicates that KMP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
KMP-UN's Quick ratio of 0.06 is on the low side compared to the rest of the industry. KMP-UN is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 147.04% over the past year.
Measured over the past years, KMP-UN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.88% on average per year.
Looking at the last year, KMP-UN shows a small growth in Revenue. The Revenue has grown by 4.74% in the last year.
Measured over the past years, KMP-UN shows a quite strong growth in Revenue. The Revenue has been growing by 8.53% on average per year.
EPS 1Y (TTM)147.04%
EPS 3Y28.07%
EPS 5Y12.88%
EPS Q2Q%2940300%
Revenue 1Y (TTM)4.74%
Revenue growth 3Y7.82%
Revenue growth 5Y8.53%
Sales Q2Q%6.59%
3.2 Future
KMP-UN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.75% yearly.
Based on estimates for the next years, KMP-UN will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y-57.24%
EPS Next 2Y-32.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.36%
Revenue Next 2Y5.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.28, the valuation of KMP-UN can be described as very cheap.
KMP-UN's Price/Earnings ratio is rather cheap when compared to the industry. KMP-UN is cheaper than 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. KMP-UN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.55 indicates a correct valuation of KMP-UN.
62.50% of the companies in the same industry are more expensive than KMP-UN, based on the Price/Forward Earnings ratio.
KMP-UN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.28 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than KMP-UN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMP-UN indicates a rather expensive valuation: KMP-UN more expensive than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 19.33 |
4.3 Compensation for Growth
KMP-UN has a very decent profitability rating, which may justify a higher PE ratio.
KMP-UN's earnings are expected to decrease with -32.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-32.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KMP-UN has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.66, KMP-UN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, KMP-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
The dividend of KMP-UN has a limited annual growth rate of 0.77%.
KMP-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of KMP-UN decreased recently.
Dividend Growth(5Y)0.77%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
KMP-UN pays out 9.06% of its income as dividend. This is a sustainable payout ratio.
DP9.06%
EPS Next 2Y-32.75%
EPS Next 3YN/A
TSX:KMP-UN (5/1/2025, 7:00:00 PM)
17.78
+0.36 (+2.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners38.71%
Inst Owner ChangeN/A
Ins Owners1.4%
Ins Owner ChangeN/A
Market Cap2.13B
Analysts81.25
Price Target21.82 (22.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend0.51
Dividend Growth(5Y)0.77%
DP9.06%
Div Incr Years0
Div Non Decr Years1
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)-2.65%
PT rev (3m)-6.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.28 | ||
| Fwd PE | 14.55 | ||
| P/S | 5.85 | ||
| P/FCF | 32.22 | ||
| P/OCF | 13.32 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 19.33 |
EPS(TTM)5.42
EY30.48%
EPS(NY)1.22
Fwd EY6.87%
FCF(TTM)0.55
FCFY3.1%
OCF(TTM)1.33
OCFY7.51%
SpS3.04
BVpS22.45
TBVpS22.45
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.5% | ||
| ROE | 24.78% | ||
| ROCE | 4.58% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 3.24% | ||
| OM | 59.93% | ||
| PM (TTM) | 183.15% | ||
| GM | 65.95% | ||
| FCFM | 18.16% |
ROA(3y)6.68%
ROA(5y)6.03%
ROE(3y)12.58%
ROE(5y)11.9%
ROIC(3y)3.1%
ROIC(5y)3.02%
ROICexc(3y)3.11%
ROICexc(5y)3.02%
ROICexgc(3y)3.11%
ROICexgc(5y)3.02%
ROCE(3y)4.42%
ROCE(5y)4.3%
ROICexcg growth 3Y4.18%
ROICexcg growth 5Y-0.29%
ROICexc growth 3Y4.18%
ROICexc growth 5Y-0.29%
OM growth 3Y1.79%
OM growth 5Y1.41%
PM growth 3Y23.12%
PM growth 5Y9.37%
GM growth 3Y1.54%
GM growth 5Y0.96%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 33.39 | ||
| Debt/EBITDA | 8.44 | ||
| Cap/Depr | 8817.65% | ||
| Cap/Sales | 25.75% | ||
| Interest Coverage | 2.86 | ||
| Cash Conversion | 72.92% | ||
| Profit Quality | 9.92% | ||
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.91 |
F-Score6
WACC5.48%
ROIC/WACC0.59
Cap/Depr(3y)13305%
Cap/Depr(5y)N/A
Cap/Sales(3y)27.52%
Cap/Sales(5y)N/A
Profit Quality(3y)16.36%
Profit Quality(5y)31.2%
High Growth Momentum
Growth
EPS 1Y (TTM)147.04%
EPS 3Y28.07%
EPS 5Y12.88%
EPS Q2Q%2940300%
EPS Next Y-57.24%
EPS Next 2Y-32.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.74%
Revenue growth 3Y7.82%
Revenue growth 5Y8.53%
Sales Q2Q%6.59%
Revenue Next Year5.36%
Revenue Next 2Y5.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.7%
EBIT growth 3Y9.75%
EBIT growth 5Y10.06%
EBIT Next Year9.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y60.18%
FCF growth 3Y1.29%
FCF growth 5Y-7%
OCF growth 1Y14.6%
OCF growth 3Y4.45%
OCF growth 5Y10.96%