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MORGUARD NORTH AMERICAN RESI (MRG-UN.CA) Stock Fundamental Analysis

TSX:MRG-UN - Toronto Stock Exchange - CA61761E1007 - REIT - Currency: CAD

17.12  -0.03 (-0.17%)

Fundamental Rating

4

Overall MRG-UN gets a fundamental rating of 4 out of 10. We evaluated MRG-UN against 17 industry peers in the Residential REITs industry. There are concerns on the financial health of MRG-UN while its profitability can be described as average. MRG-UN has a valuation in line with the averages, but it does not seem to be growing. MRG-UN also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

MRG-UN had positive earnings in the past year.
MRG-UN had a positive operating cash flow in the past year.
In the past 5 years MRG-UN has always been profitable.
In the past 5 years MRG-UN always reported a positive cash flow from operatings.
MRG-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFMRG-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 50M 100M 150M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of 1.79%, MRG-UN is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
MRG-UN has a better Return On Equity (4.14%) than 70.59% of its industry peers.
The Return On Invested Capital of MRG-UN (3.90%) is better than 94.12% 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 2.78%.
The 3 year average ROIC (3.66%) for MRG-UN is below the current ROIC(3.90%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.79%
ROE 4.14%
ROIC 3.9%
ROA(3y)5.62%
ROA(5y)5.01%
ROE(3y)12.78%
ROE(5y)11.78%
ROIC(3y)3.66%
ROIC(5y)3.77%
MRG-UN.CA Yearly ROA, ROE, ROICMRG-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

MRG-UN has a better Profit Margin (22.96%) than 64.71% of its industry peers.
In the last couple of years the Profit Margin of MRG-UN has declined.
MRG-UN's Operating Margin of 53.41% is in line compared to the rest of the industry. MRG-UN outperforms 58.82% 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.
The Gross Margin of MRG-UN (59.68%) is worse than 64.71% of its industry peers.
MRG-UN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 53.41%
PM (TTM) 22.96%
GM 59.68%
OM growth 3Y-0.08%
OM growth 5Y-0.08%
PM growth 3Y-8.95%
PM growth 5Y-5.71%
GM growth 3Y-0.54%
GM growth 5Y-0.51%
MRG-UN.CA Yearly Profit, Operating, Gross MarginsMRG-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

3

2. Health

2.1 Basic Checks

The number of shares outstanding for MRG-UN has been reduced compared to 1 year ago.
Compared to 5 years ago, MRG-UN has more shares outstanding
MRG-UN has a worse debt/assets ratio than last year.
MRG-UN.CA Yearly Shares OutstandingMRG-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
MRG-UN.CA Yearly Total Debt VS Total AssetsMRG-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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.
With a Altman-Z score value of 0.72, MRG-UN perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
The Debt to FCF ratio of MRG-UN is 18.89, which is on the high side as it means it would take MRG-UN, 18.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.89, MRG-UN is in line with its industry, outperforming 41.18% of the companies in the same industry.
MRG-UN has a Debt/Equity ratio of 0.75. This is a neutral value indicating MRG-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, MRG-UN is in line with its industry, outperforming 41.18% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 18.89
Altman-Z 0.72
ROIC/WACCN/A
WACCN/A
MRG-UN.CA Yearly LT Debt VS Equity VS FCFMRG-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 0.40 indicates that MRG-UN may have some problems paying its short term obligations.
MRG-UN has a better Current ratio (0.40) than 70.59% of its industry peers.
MRG-UN has a Quick Ratio of 0.40. 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 a decent Quick ratio value of 0.40, MRG-UN is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.4
Quick Ratio 0.4
MRG-UN.CA Yearly Current Assets VS Current LiabilitesMRG-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 200M 250M

3

3. Growth

3.1 Past

MRG-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 349.62%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.69% on average over the past years.
The Revenue has been growing slightly by 6.09% in the past year.
MRG-UN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.56% yearly.
EPS 1Y (TTM)349.62%
EPS 3Y1.3%
EPS 5Y-0.69%
EPS Q2Q%-154.72%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y10.07%
Revenue growth 5Y6.56%
Sales Q2Q%2.56%

3.2 Future

MRG-UN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.51% yearly.
MRG-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y16.19%
EPS Next 2Y-25.25%
EPS Next 3Y-15.51%
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y3.37%
Revenue Next 3Y3.53%
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.
MRG-UN.CA Yearly Revenue VS EstimatesMRG-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
MRG-UN.CA Yearly EPS VS EstimatesMRG-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.68, the valuation of MRG-UN can be described as correct.
76.47% of the companies in the same industry are more expensive than MRG-UN, based on the Price/Earnings ratio.
MRG-UN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
The Price/Forward Earnings ratio is 12.28, which indicates a correct valuation of MRG-UN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRG-UN indicates a somewhat cheap valuation: MRG-UN is cheaper than 70.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.77. MRG-UN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.68
Fwd PE 12.28
MRG-UN.CA Price Earnings VS Forward Price EarningsMRG-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

MRG-UN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 7.02
EV/EBITDA N/A
MRG-UN.CA Per share dataMRG-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

MRG-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MRG-UN has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MRG-UN's earnings are expected to decrease with -15.51% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y-25.25%
EPS Next 3Y-15.51%

7

5. Dividend

5.1 Amount

MRG-UN has a Yearly Dividend Yield of 4.17%, which is a nice return.
MRG-UN's Dividend Yield is comparable with the industry average which is at 5.12.
Compared to an average S&P500 Dividend Yield of 2.29, MRG-UN pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.17%

5.2 History

The dividend of MRG-UN has a limited annual growth rate of 2.47%.
MRG-UN has paid a dividend for at least 10 years, which is a reliable track record.
MRG-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.47%
Div Incr Years3
Div Non Decr Years12
MRG-UN.CA Yearly Dividends per shareMRG-UN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

34.21% of the earnings are spent on dividend by MRG-UN. This is a low number and sustainable payout ratio.
DP34.21%
EPS Next 2Y-25.25%
EPS Next 3Y-15.51%
MRG-UN.CA Yearly Income VS Free CF VS DividendMRG-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
MRG-UN.CA Dividend Payout.MRG-UN.CA Dividend Payout, showing the Payout Ratio.MRG-UN.CA Dividend Payout.PayoutRetained Earnings

MORGUARD NORTH AMERICAN RESI

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

17.12

-0.03 (-0.17%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-29 2024-10-29
Earnings (Next)02-11 2025-02-11/amc
Inst Owners5.07%
Inst Owner ChangeN/A
Ins Owners4.25%
Ins Owner ChangeN/A
Market Cap624.20M
Analysts80
Price Target22.44 (31.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.17%
Yearly Dividend0.48
Dividend Growth(5Y)2.47%
DP34.21%
Div Incr Years3
Div Non Decr Years12
Ex-Date01-31 2025-01-31 (0.06333)
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)-1.49%
PT rev (3m)3.13%
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)-0.37%
Valuation
Industry RankSector Rank
PE 12.68
Fwd PE 12.28
P/S 1.83
P/FCF 7.02
P/OCF 7.02
P/B 0.33
P/tB 0.33
EV/EBITDA N/A
EPS(TTM)1.35
EY7.89%
EPS(NY)1.39
Fwd EY8.14%
FCF(TTM)2.44
FCFY14.25%
OCF(TTM)2.44
OCFY14.25%
SpS9.36
BVpS51.89
TBVpS51.89
PEG (NY)0.78
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.79%
ROE 4.14%
ROCE 4.51%
ROIC 3.9%
ROICexc 4.01%
ROICexgc 4.01%
OM 53.41%
PM (TTM) 22.96%
GM 59.68%
FCFM 26.06%
ROA(3y)5.62%
ROA(5y)5.01%
ROE(3y)12.78%
ROE(5y)11.78%
ROIC(3y)3.66%
ROIC(5y)3.77%
ROICexc(3y)3.68%
ROICexc(5y)3.8%
ROICexgc(3y)3.68%
ROICexgc(5y)3.8%
ROCE(3y)4.22%
ROCE(5y)4.36%
ROICexcg growth 3Y0.11%
ROICexcg growth 5Y0.05%
ROICexc growth 3Y0.11%
ROICexc growth 5Y0.05%
OM growth 3Y-0.08%
OM growth 5Y-0.08%
PM growth 3Y-8.95%
PM growth 5Y-5.71%
GM growth 3Y-0.54%
GM growth 5Y-0.51%
F-Score8
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 18.89
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 2.9
Cash Conversion N/A
Profit Quality 113.47%
Current Ratio 0.4
Quick Ratio 0.4
Altman-Z 0.72
F-Score8
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)37.02%
Profit Quality(5y)41.7%
High Growth Momentum
Growth
EPS 1Y (TTM)349.62%
EPS 3Y1.3%
EPS 5Y-0.69%
EPS Q2Q%-154.72%
EPS Next Y16.19%
EPS Next 2Y-25.25%
EPS Next 3Y-15.51%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y10.07%
Revenue growth 5Y6.56%
Sales Q2Q%2.56%
Revenue Next Year3.4%
Revenue Next 2Y3.37%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
EBIT growth 1Y6.18%
EBIT growth 3Y9.98%
EBIT growth 5Y6.48%
EBIT Next Year-10.31%
EBIT Next 3Y-0.94%
EBIT Next 5YN/A
FCF growth 1Y14.27%
FCF growth 3Y26.28%
FCF growth 5Y15.16%
OCF growth 1Y14.27%
OCF growth 3Y21.07%
OCF growth 5Y8.21%