MORGUARD NORTH AMERICAN RESI (MRG-UN.CA) Stock Fundamental Analysis
TSX:MRG-UN - Toronto Stock Exchange - CA61761E1007 - REIT - Currency: CAD
Taking everything into account, MRG-UN scores 4 out of 10 in our fundamental rating. MRG-UN was compared to 16 industry peers in the Residential REITs industry. While MRG-UN is still in line with the averages on profitability rating, there are concerns on its financial health. MRG-UN has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally MRG-UN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MRG-UN had positive earnings in the past year.
In the past year MRG-UN had a positive cash flow from operations.
MRG-UN had positive earnings in each of the past 5 years.
In the past 5 years MRG-UN always reported a positive cash flow from operatings.
1.2 Ratios
MRG-UN has a better Return On Assets (2.45%) than 68.75% of its industry peers.
With a decent Return On Equity value of 5.65%, MRG-UN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
MRG-UN's Return On Invested Capital of 3.03% is in line compared to the rest of the industry. MRG-UN outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRG-UN is in line with the industry average of 3.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.65% | ||
| ROIC | 3.03% |
ROA(3y)4.04%
ROA(5y)4.95%
ROE(3y)9.04%
ROE(5y)11.44%
ROIC(3y)3.13%
ROIC(5y)3.1%
1.3 Margins
MRG-UN's Profit Margin of 32.65% is fine compared to the rest of the industry. MRG-UN outperforms 68.75% of its industry peers.
MRG-UN's Profit Margin has been stable in the last couple of years.
MRG-UN has a Operating Margin of 51.95%. This is in the lower half of the industry: MRG-UN underperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of MRG-UN has remained more or less at the same level.
MRG-UN has a worse Gross Margin (58.28%) than 68.75% of its industry peers.
In the last couple of years the Gross Margin of MRG-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.95% | ||
| PM (TTM) | 32.65% | ||
| GM | 58.28% |
OM growth 3Y-0.01%
OM growth 5Y-0.52%
PM growth 3Y-33.04%
PM growth 5Y-1.1%
GM growth 3Y-0.62%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MRG-UN has less shares outstanding
The number of shares outstanding for MRG-UN has been reduced compared to 5 years ago.
MRG-UN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that MRG-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.72, MRG-UN is doing worse than 62.50% of the companies in the same industry.
MRG-UN has a debt to FCF ratio of 19.40. This is a negative value and a sign of low solvency as MRG-UN would need 19.40 years to pay back of all of its debts.
MRG-UN has a worse Debt to FCF ratio (19.40) than 62.50% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that MRG-UN is somewhat dependend on debt financing.
MRG-UN's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. MRG-UN is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 19.4 | ||
| Altman-Z | 0.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MRG-UN has a Current Ratio of 0.58. This is a bad value and indicates that MRG-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Current ratio value of 0.58, MRG-UN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that MRG-UN may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.58, MRG-UN belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
MRG-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.41%.
The Earnings Per Share has been growing slightly by 5.88% on average over the past years.
The Revenue has been growing slightly by 3.85% in the past year.
MRG-UN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.98% yearly.
EPS 1Y (TTM)-32.41%
EPS 3Y-23.43%
EPS 5Y5.88%
EPS Q2Q%52.32%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y11.91%
Revenue growth 5Y6.98%
Sales Q2Q%6.51%
3.2 Future
The Earnings Per Share is expected to decrease by -28.92% on average over the next years. This is quite bad
The Revenue is expected to grow by 4.96% on average over the next years.
EPS Next Y-51.22%
EPS Next 2Y-28.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.04%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 9.04, the valuation of MRG-UN can be described as reasonable.
Based on the Price/Earnings ratio, MRG-UN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MRG-UN to the average of the S&P500 Index (27.45), we can say MRG-UN is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.47, MRG-UN is valued correctly.
Based on the Price/Forward Earnings ratio, MRG-UN is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, MRG-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
MRG-UN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as MRG-UN's earnings are expected to decrease with -28.92% in the coming years.
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y-28.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, MRG-UN is a good candidate for dividend investing.
MRG-UN's Dividend Yield is a higher than the industry average which is at 4.58.
Compared to an average S&P500 Dividend Yield of 2.42, MRG-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of MRG-UN has a limited annual growth rate of 2.33%.
MRG-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
MRG-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.33%
Div Incr Years3
Div Non Decr Years12
5.3 Sustainability
23.44% of the earnings are spent on dividend by MRG-UN. This is a low number and sustainable payout ratio.
DP23.44%
EPS Next 2Y-28.92%
EPS Next 3YN/A
TSX:MRG-UN (7/3/2025, 7:00:00 PM)
18.26
-0.05 (-0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners4.31%
Inst Owner ChangeN/A
Ins Owners4.48%
Ins Owner ChangeN/A
Market Cap646.22M
Analysts80
Price Target21.93 (20.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend0.49
Dividend Growth(5Y)2.33%
DP23.44%
Div Incr Years3
Div Non Decr Years12
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)0%
PT rev (3m)-1.15%
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)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 12.47 | ||
| P/S | 1.85 | ||
| P/FCF | 6.85 | ||
| P/OCF | 6.85 | ||
| P/B | 0.32 | ||
| P/tB | 0.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.02
EY11.06%
EPS(NY)1.46
Fwd EY8.02%
FCF(TTM)2.67
FCFY14.6%
OCF(TTM)2.67
OCFY14.6%
SpS9.88
BVpS57.12
TBVpS57.12
PEG (NY)N/A
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.65% | ||
| ROCE | 4.21% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.06% | ||
| ROICexgc | 3.06% | ||
| OM | 51.95% | ||
| PM (TTM) | 32.65% | ||
| GM | 58.28% | ||
| FCFM | 26.98% |
ROA(3y)4.04%
ROA(5y)4.95%
ROE(3y)9.04%
ROE(5y)11.44%
ROIC(3y)3.13%
ROIC(5y)3.1%
ROICexc(3y)3.15%
ROICexc(5y)3.12%
ROICexgc(3y)3.15%
ROICexgc(5y)3.12%
ROCE(3y)4.34%
ROCE(5y)4.31%
ROICexcg growth 3Y3.05%
ROICexcg growth 5Y-1.05%
ROICexc growth 3Y3.05%
ROICexc growth 5Y-1.05%
OM growth 3Y-0.01%
OM growth 5Y-0.52%
PM growth 3Y-33.04%
PM growth 5Y-1.1%
GM growth 3Y-0.62%
GM growth 5Y-0.82%
F-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 19.4 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 82.61% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.72 |
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)60.15%
Profit Quality(5y)46.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-32.41%
EPS 3Y-23.43%
EPS 5Y5.88%
EPS Q2Q%52.32%
EPS Next Y-51.22%
EPS Next 2Y-28.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.85%
Revenue growth 3Y11.91%
Revenue growth 5Y6.98%
Sales Q2Q%6.51%
Revenue Next Year6.04%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.08%
EBIT growth 3Y11.9%
EBIT growth 5Y6.42%
EBIT Next Year-6.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.13%
FCF growth 3Y15.25%
FCF growth 5Y11.94%
OCF growth 1Y17.13%
OCF growth 3Y15.25%
OCF growth 5Y9.31%