FLAGSHIP COMMUNITIES REIT UT (MHC-U.CA) Stock Fundamental Analysis
TSX:MHC-U - CA33843T1084 - REIT
18.01 USD
-0.09 (-0.5%)
Taking everything into account, MHC-U scores 5 out of 10 in our fundamental rating. MHC-U was compared to 17 industry peers in the Residential REITs industry. While MHC-U is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MHC-U.
1. Profitability
1.1 Basic Checks
MHC-U had positive earnings in the past year.
MHC-U had a positive operating cash flow in the past year.
In the past 5 years MHC-U has always been profitable.
In the past 5 years MHC-U always reported a positive cash flow from operatings.
1.2 Ratios
MHC-U has a better Return On Assets (8.06%) than 94.12% of its industry peers.
MHC-U has a better Return On Equity (15.12%) than 94.12% of its industry peers.
The Return On Invested Capital of MHC-U (1.88%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MHC-U is in line with the industry average of 2.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.06% | ||
| ROE | 15.12% | ||
| ROIC | 1.88% |
ROA(3y)7.29%
ROA(5y)8.23%
ROE(3y)14.85%
ROE(5y)19.09%
ROIC(3y)3.82%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 97.59%, MHC-U belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
In the last couple of years the Profit Margin of MHC-U has declined.
MHC-U has a Operating Margin (28.37%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 66.23%, MHC-U is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
In the last couple of years the Gross Margin of MHC-U has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.37% | ||
| PM (TTM) | 97.59% | ||
| GM | 66.23% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.53%
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MHC-U is destroying value.
The number of shares outstanding for MHC-U has been increased compared to 1 year ago.
The debt/assets ratio for MHC-U has been reduced compared to a year ago.
2.2 Solvency
MHC-U has an Altman-Z score of 0.72. This is a bad value and indicates that MHC-U is not financially healthy and even has some risk of bankruptcy.
MHC-U's Altman-Z score of 0.72 is in line compared to the rest of the industry. MHC-U outperforms 41.18% of its industry peers.
MHC-U has a debt to FCF ratio of 7.61. This is a slightly negative value and a sign of low solvency as MHC-U would need 7.61 years to pay back of all of its debts.
MHC-U has a better Debt to FCF ratio (7.61) than 94.12% of its industry peers.
MHC-U has a Debt/Equity ratio of 0.68. This is a neutral value indicating MHC-U is somewhat dependend on debt financing.
MHC-U has a better Debt to Equity ratio (0.68) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.61 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.3
WACC6.25%
2.3 Liquidity
A Current Ratio of 0.14 indicates that MHC-U may have some problems paying its short term obligations.
With a Current ratio value of 0.14, MHC-U is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
MHC-U has a Quick Ratio of 0.14. This is a bad value and indicates that MHC-U is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.14, MHC-U is doing worse than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.27% over the past year.
The Earnings Per Share has been growing slightly by 3.54% on average over the past years.
The Revenue has grown by 24.04% in the past year. This is a very strong growth!
MHC-U shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.95% yearly.
EPS 1Y (TTM)4.27%
EPS 3Y3.54%
EPS 5YN/A
EPS Q2Q%-22.78%
Revenue 1Y (TTM)24.04%
Revenue growth 3Y26.95%
Revenue growth 5YN/A
Sales Q2Q%18.06%
3.2 Future
MHC-U is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.77% yearly.
MHC-U is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.16% yearly.
EPS Next Y-31.93%
EPS Next 2Y-38.73%
EPS Next 3Y-25.77%
EPS Next 5YN/A
Revenue Next Year15.07%
Revenue Next 2Y10.42%
Revenue Next 3Y2.16%
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 decreasing.
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
A Price/Earnings ratio of 3.48 indicates a rather cheap valuation of MHC-U.
Based on the Price/Earnings ratio, MHC-U is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. MHC-U is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.49 indicates a reasonable valuation of MHC-U.
Based on the Price/Forward Earnings ratio, MHC-U is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. MHC-U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.48 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHC-U is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
MHC-U's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MHC-U is cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 23.91 |
4.3 Compensation for Growth
The decent profitability rating of MHC-U may justify a higher PE ratio.
A cheap valuation may be justified as MHC-U's earnings are expected to decrease with -25.77% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.73%
EPS Next 3Y-25.77%
5. Dividend
5.1 Amount
MHC-U has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.64, MHC-U has a dividend in line with its industry peers.
MHC-U's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
MHC-U has been paying a dividend for over 5 years, so it has already some track record.
MHC-U has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
MHC-U pays out 16.14% of its income as dividend. This is a sustainable payout ratio.
DP16.14%
EPS Next 2Y-38.73%
EPS Next 3Y-25.77%
TSX:MHC-U (8/29/2025, 7:00:00 PM)
18.01
-0.09 (-0.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners43.37%
Inst Owner ChangeN/A
Ins Owners0.52%
Ins Owner ChangeN/A
Market Cap349.39M
Analysts83.53
Price Target22.67 (25.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend1.11
Dividend Growth(5Y)N/A
DP16.14%
Div Incr Years4
Div Non Decr Years4
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)3.96%
PT rev (3m)9.6%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)97.56%
EPS NY rev (3m)97.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.48 | ||
| Fwd PE | 9.49 | ||
| P/S | 2.62 | ||
| P/FCF | 4.52 | ||
| P/OCF | 4.44 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 23.91 |
EPS(TTM)5.17
EY28.71%
EPS(NY)1.9
Fwd EY10.54%
FCF(TTM)3.99
FCFY22.15%
OCF(TTM)4.05
OCFY22.51%
SpS6.86
BVpS44.27
TBVpS44.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.06% | ||
| ROE | 15.12% | ||
| ROCE | 2.62% | ||
| ROIC | 1.88% | ||
| ROICexc | 1.89% | ||
| ROICexgc | 1.89% | ||
| OM | 28.37% | ||
| PM (TTM) | 97.59% | ||
| GM | 66.23% | ||
| FCFM | 58.13% |
ROA(3y)7.29%
ROA(5y)8.23%
ROE(3y)14.85%
ROE(5y)19.09%
ROIC(3y)3.82%
ROIC(5y)N/A
ROICexc(3y)3.88%
ROICexc(5y)N/A
ROICexgc(3y)3.88%
ROICexgc(5y)N/A
ROCE(3y)5.36%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-5.53%
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5YN/A
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.61 | ||
| Debt/EBITDA | 15.3 | ||
| Cap/Depr | 180.39% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 1.39 | ||
| Cash Conversion | 204.46% | ||
| Profit Quality | 59.57% | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.72 |
F-Score6
WACC6.25%
ROIC/WACC0.3
Cap/Depr(3y)345.48%
Cap/Depr(5y)313.17%
Cap/Sales(3y)1.81%
Cap/Sales(5y)1.51%
Profit Quality(3y)59.32%
Profit Quality(5y)45.19%
High Growth Momentum
Growth
EPS 1Y (TTM)4.27%
EPS 3Y3.54%
EPS 5YN/A
EPS Q2Q%-22.78%
EPS Next Y-31.93%
EPS Next 2Y-38.73%
EPS Next 3Y-25.77%
EPS Next 5YN/A
Revenue 1Y (TTM)24.04%
Revenue growth 3Y26.95%
Revenue growth 5YN/A
Sales Q2Q%18.06%
Revenue Next Year15.07%
Revenue Next 2Y10.42%
Revenue Next 3Y2.16%
Revenue Next 5YN/A
EBIT growth 1Y-49.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year10.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y65.39%
FCF growth 3Y29.2%
FCF growth 5YN/A
OCF growth 1Y62.69%
OCF growth 3Y28.5%
OCF growth 5YN/A