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MELCOR REAL ESTATE INVESTMEN (MR-UN.CA) Stock Fundamental Analysis

TSX:MR-UN - Toronto Stock Exchange - CA58546R1091 - REIT - Currency: CAD

5.35  0 (0%)

Fundamental Rating

3

Taking everything into account, MR-UN scores 3 out of 10 in our fundamental rating. MR-UN was compared to 42 industry peers in the Diversified REITs industry. While MR-UN is still in line with the averages on profitability rating, there are concerns on its financial health. MR-UN has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

MR-UN had negative earnings in the past year.
In the past year MR-UN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MR-UN reported negative net income in multiple years.
Each year in the past 5 years MR-UN had a positive operating cash flow.
MR-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFMR-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 0 10M -10M 20M 30M 40M

1.2 Ratios

The Return On Assets of MR-UN (-3.80%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -14.61%, MR-UN is doing worse than 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.52%, MR-UN belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
MR-UN had an Average Return On Invested Capital over the past 3 years of 4.62%. This is in line with the industry average of 5.51%.
The last Return On Invested Capital (5.52%) for MR-UN is above the 3 year average (4.62%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -3.8%
ROE -14.61%
ROIC 5.52%
ROA(3y)1.39%
ROA(5y)0.98%
ROE(3y)4.67%
ROE(5y)3.36%
ROIC(3y)4.62%
ROIC(5y)4.47%
MR-UN.CA Yearly ROA, ROE, ROICMR-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

1.3 Margins

In the last couple of years the Profit Margin of MR-UN has declined.
MR-UN has a Operating Margin of 51.03%. This is comparable to the rest of the industry: MR-UN outperforms 54.76% of its industry peers.
MR-UN's Operating Margin has been stable in the last couple of years.
MR-UN's Gross Margin of 57.13% is on the low side compared to the rest of the industry. MR-UN is outperformed by 61.90% of its industry peers.
In the last couple of years the Gross Margin of MR-UN has remained more or less at the same level.
Industry RankSector Rank
OM 51.03%
PM (TTM) N/A
GM 57.13%
OM growth 3Y0.18%
OM growth 5Y-0.96%
PM growth 3Y41.91%
PM growth 5Y-2.53%
GM growth 3Y0.32%
GM growth 5Y-0.76%
MR-UN.CA Yearly Profit, Operating, Gross MarginsMR-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

2

2. Health

2.1 Basic Checks

The number of shares outstanding for MR-UN remains at a similar level compared to 1 year ago.
The number of shares outstanding for MR-UN has been reduced compared to 5 years ago.
The debt/assets ratio for MR-UN has remained at the same level compared to a year ago.
MR-UN.CA Yearly Shares OutstandingMR-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
MR-UN.CA Yearly Total Debt VS Total AssetsMR-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

MR-UN has an Altman-Z score of 0.05. This is a bad value and indicates that MR-UN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MR-UN (0.05) is worse than 76.19% of its industry peers.
MR-UN has a debt to FCF ratio of 22.01. This is a negative value and a sign of low solvency as MR-UN would need 22.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.01, MR-UN is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Debt/Equity ratio of 1.75 is on the high side and indicates that MR-UN has dependencies on debt financing.
MR-UN has a Debt to Equity ratio of 1.75. This is amonst the worse of the industry: MR-UN underperforms 90.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.75
Debt/FCF 22.01
Altman-Z 0.05
ROIC/WACCN/A
WACCN/A
MR-UN.CA Yearly LT Debt VS Equity VS FCFMR-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

2.3 Liquidity

MR-UN has a Current Ratio of 0.25. This is a bad value and indicates that MR-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
MR-UN has a Current ratio of 0.25. This is comparable to the rest of the industry: MR-UN outperforms 52.38% of its industry peers.
A Quick Ratio of 0.25 indicates that MR-UN may have some problems paying its short term obligations.
MR-UN has a Quick ratio of 0.25. This is comparable to the rest of the industry: MR-UN outperforms 52.38% of its industry peers.
Industry RankSector Rank
Current Ratio 0.25
Quick Ratio 0.25
MR-UN.CA Yearly Current Assets VS Current LiabilitesMR-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

2

3. Growth

3.1 Past

The earnings per share for MR-UN have decreased strongly by -711.82% in the last year.
Measured over the past years, MR-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.02% on average per year.
The Revenue has decreased by -1.99% in the past year.
The Revenue has been growing slightly by 1.04% on average over the past years.
EPS 1Y (TTM)-711.82%
EPS 3Y43.38%
EPS 5Y-2.02%
EPS Q2Q%-1769.31%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y-0.3%
Revenue growth 5Y1.04%
Sales Q2Q%-4.54%

3.2 Future

Based on estimates for the next years, MR-UN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.64% on average per year.
MR-UN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by 0.00% yearly.
EPS Next Y-26.09%
EPS Next 2Y18.87%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue Next Year-2.67%
Revenue Next 2Y-0.67%
Revenue Next 3Y0%
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.
MR-UN.CA Yearly Revenue VS EstimatesMR-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M
MR-UN.CA Yearly EPS VS EstimatesMR-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 1 -1

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MR-UN. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 7.99 indicates a rather cheap valuation of MR-UN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MR-UN indicates a rather cheap valuation: MR-UN is cheaper than 92.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MR-UN to the average of the S&P500 Index (23.78), we can say MR-UN is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 7.99
MR-UN.CA Price Earnings VS Forward Price EarningsMR-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 200 400 600

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, MR-UN is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.76
EV/EBITDA N/A
MR-UN.CA Per share dataMR-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.87%
EPS Next 3Y11.64%

5

5. Dividend

5.1 Amount

MR-UN has a Yearly Dividend Yield of 10.00%, which is a nice return.
MR-UN's Dividend Yield is rather good when compared to the industry average which is at 7.99. MR-UN pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, MR-UN pays a better dividend.
Industry RankSector Rank
Dividend Yield 10%

5.2 History

The dividend of MR-UN decreases each year by -6.57%.
MR-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
MR-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.57%
Div Incr Years0
Div Non Decr Years3
MR-UN.CA Yearly Dividends per shareMR-UN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

The earnings of MR-UN are negative and hence is the payout ratio. MR-UN will probably not be able to sustain this dividend level.
DP-8.12%
EPS Next 2Y18.87%
EPS Next 3Y11.64%
MR-UN.CA Yearly Income VS Free CF VS DividendMR-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M 20M 30M 40M

MELCOR REAL ESTATE INVESTMEN

TSX:MR-UN (2/18/2025, 7:00:00 PM)

5.35

0 (0%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-31 2024-10-31
Earnings (Next)03-03 2025-03-03/amc
Inst Owners2.37%
Inst Owner ChangeN/A
Ins Owners1.58%
Ins Owner ChangeN/A
Market Cap69.34M
Analysts42.5
Price Target3.32 (-37.94%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 10%
Yearly Dividend0.51
Dividend Growth(5Y)-6.57%
DP-8.12%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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%
PT rev (3m)0%
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%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 7.99
P/S 0.95
P/FCF 3.76
P/OCF 3.76
P/B 0.4
P/tB 0.4
EV/EBITDA N/A
EPS(TTM)-3.1
EYN/A
EPS(NY)0.67
Fwd EY12.51%
FCF(TTM)1.42
FCFY26.57%
OCF(TTM)1.42
OCFY26.57%
SpS5.61
BVpS13.49
TBVpS13.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.8%
ROE -14.61%
ROCE 9.06%
ROIC 5.52%
ROICexc 5.61%
ROICexgc 5.61%
OM 51.03%
PM (TTM) N/A
GM 57.13%
FCFM 25.33%
ROA(3y)1.39%
ROA(5y)0.98%
ROE(3y)4.67%
ROE(5y)3.36%
ROIC(3y)4.62%
ROIC(5y)4.47%
ROICexc(3y)4.66%
ROICexc(5y)4.5%
ROICexgc(3y)4.66%
ROICexgc(5y)4.5%
ROCE(3y)6.69%
ROCE(5y)6.42%
ROICexcg growth 3Y2.52%
ROICexcg growth 5Y1.15%
ROICexc growth 3Y2.52%
ROICexc growth 5Y1.15%
OM growth 3Y0.18%
OM growth 5Y-0.96%
PM growth 3Y41.91%
PM growth 5Y-2.53%
GM growth 3Y0.32%
GM growth 5Y-0.76%
F-Score4
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 1.75
Debt/FCF 22.01
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.25
Quick Ratio 0.25
Altman-Z 0.05
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-711.82%
EPS 3Y43.38%
EPS 5Y-2.02%
EPS Q2Q%-1769.31%
EPS Next Y-26.09%
EPS Next 2Y18.87%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y-0.3%
Revenue growth 5Y1.04%
Sales Q2Q%-4.54%
Revenue Next Year-2.67%
Revenue Next 2Y-0.67%
Revenue Next 3Y0%
Revenue Next 5YN/A
EBIT growth 1Y-6.01%
EBIT growth 3Y-0.12%
EBIT growth 5Y0.07%
EBIT Next Year1.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y82.56%
FCF growth 3Y-4.55%
FCF growth 5Y0.21%
OCF growth 1Y82.56%
OCF growth 3Y-4.55%
OCF growth 5Y0.21%