FLAGSHIP COMMUNITIES REIT UT (MHC-UN.CA) Stock Fundamental Analysis
TSX:MHC-UN - CA33843T1084 - REIT
25.75 CAD
+0.49 (+1.94%)
We assign a fundamental rating of 5 out of 10 to MHC-UN. MHC-UN was compared to 17 industry peers in the Residential REITs industry. While MHC-UN is still in line with the averages on profitability rating, there are concerns on its financial health. MHC-UN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MHC-UN was profitable.
In the past year MHC-UN had a positive cash flow from operations.
MHC-UN had positive earnings in each of the past 5 years.
In the past 5 years MHC-UN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.06%, MHC-UN belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
MHC-UN has a Return On Equity of 15.12%. This is amongst the best in the industry. MHC-UN outperforms 88.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.88%, MHC-UN is doing worse than 64.71% of the companies in the same industry.
MHC-UN had an Average Return On Invested Capital over the past 3 years of 3.82%. This 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
MHC-UN's Profit Margin of 97.59% is amongst the best of the industry. MHC-UN outperforms 88.24% of its industry peers.
MHC-UN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 28.37%, MHC-UN is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
MHC-UN has a Gross Margin of 66.23%. This is in the better half of the industry: MHC-UN outperforms 64.71% of its industry peers.
In the last couple of years the Gross Margin of MHC-UN 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
MHC-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 MHC-UN has been increased compared to 1 year ago.
Compared to 1 year ago, MHC-UN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that MHC-UN is in the distress zone and has some risk of bankruptcy.
MHC-UN's Altman-Z score of 0.83 is fine compared to the rest of the industry. MHC-UN outperforms 64.71% of its industry peers.
The Debt to FCF ratio of MHC-UN is 7.61, which is on the high side as it means it would take MHC-UN, 7.61 years of fcf income to pay off all of its debts.
MHC-UN has a Debt to FCF ratio of 7.61. This is amongst the best in the industry. MHC-UN outperforms 88.24% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that MHC-UN is somewhat dependend on debt financing.
MHC-UN has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.61 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.29
WACC6.39%
2.3 Liquidity
MHC-UN has a Current Ratio of 0.14. This is a bad value and indicates that MHC-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MHC-UN (0.14) is worse than 76.47% of its industry peers.
A Quick Ratio of 0.14 indicates that MHC-UN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.14, MHC-UN is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
MHC-UN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.27%.
MHC-UN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.54% yearly.
MHC-UN shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.04%.
The Revenue has been growing by 26.95% on average over the past years. This is a very strong growth!
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-UN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.77% yearly.
The Revenue is expected to grow by 2.16% on average over the next years.
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
The Price/Earnings ratio is 4.95, which indicates a rather cheap valuation of MHC-UN.
88.24% of the companies in the same industry are more expensive than MHC-UN, based on the Price/Earnings ratio.
MHC-UN is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
MHC-UN is valuated correctly with a Price/Forward Earnings ratio of 13.50.
MHC-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MHC-UN is cheaper than 76.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MHC-UN to the average of the S&P500 Index (22.69), we can say MHC-UN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MHC-UN indicates a somewhat cheap valuation: MHC-UN is cheaper than 64.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MHC-UN is valued a bit cheaper than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 27.51 |
4.3 Compensation for Growth
The decent profitability rating of MHC-UN may justify a higher PE ratio.
MHC-UN's earnings are expected to decrease with -25.77% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.73%
EPS Next 3Y-25.77%
5. Dividend
5.1 Amount
MHC-UN has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 4.64, MHC-UN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MHC-UN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
MHC-UN has been paying a dividend for over 5 years, so it has already some track record.
MHC-UN 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
16.14% of the earnings are spent on dividend by MHC-UN. This is a low number and sustainable payout ratio.
DP16.14%
EPS Next 2Y-38.73%
EPS Next 3Y-25.77%
TSX:MHC-UN (9/5/2025, 7:00:00 PM)
25.75
+0.49 (+1.94%)
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 Cap499.55M
Analysts83.53
Price Target31.51 (22.37%)
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)4.79%
PT rev (3m)8.48%
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 | 4.95 | ||
| Fwd PE | 13.5 | ||
| P/S | 3.73 | ||
| P/FCF | 6.42 | ||
| P/OCF | 6.32 | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 27.51 |
EPS(TTM)5.2
EY20.19%
EPS(NY)1.91
Fwd EY7.41%
FCF(TTM)4.01
FCFY15.57%
OCF(TTM)4.07
OCFY15.82%
SpS6.9
BVpS44.5
TBVpS44.5
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 | 0.83 |
F-Score6
WACC6.39%
ROIC/WACC0.29
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