MORGUARD REAL ESTATE-TR UTS (MRT-UN.CA) Stock Fundamental Analysis
TSX:MRT-UN - Toronto Stock Exchange - CA6179141065 - REIT - Currency: CAD
We assign a fundamental rating of 3 out of 10 to MRT-UN. MRT-UN was compared to 38 industry peers in the Diversified REITs industry. MRT-UN has a bad profitability rating. Also its financial health evaluation is rather negative. MRT-UN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MRT-UN had negative earnings in the past year.
MRT-UN had a positive operating cash flow in the past year.
In the past 5 years MRT-UN reported 4 times negative net income.
MRT-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRT-UN has a worse Return On Assets (-2.71%) than 60.53% of its industry peers.
Looking at the Return On Equity, with a value of -6.65%, MRT-UN is doing worse than 63.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.69%, MRT-UN belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRT-UN is in line with the industry average of 5.03%.
The 3 year average ROIC (4.53%) for MRT-UN is below the current ROIC(4.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.71% | ||
| ROE | -6.65% | ||
| ROIC | 4.69% |
ROA(3y)-3.2%
ROA(5y)-4.67%
ROE(3y)-7.53%
ROE(5y)-10.61%
ROIC(3y)4.53%
ROIC(5y)4.4%
1.3 Margins
Looking at the Operating Margin, with a value of 48.10%, MRT-UN is in line with its industry, outperforming 47.37% of the companies in the same industry.
In the last couple of years the Operating Margin of MRT-UN has declined.
With a Gross Margin value of 49.57%, MRT-UN is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
MRT-UN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.1% | ||
| PM (TTM) | N/A | ||
| GM | 49.57% |
OM growth 3Y-1.47%
OM growth 5Y-1.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.99%
GM growth 5Y-2.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MRT-UN is destroying value.
The number of shares outstanding for MRT-UN has been reduced compared to 1 year ago.
MRT-UN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRT-UN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that MRT-UN is in the distress zone and has some risk of bankruptcy.
MRT-UN's Altman-Z score of 0.43 is on the low side compared to the rest of the industry. MRT-UN is outperformed by 63.16% of its industry peers.
MRT-UN has a debt to FCF ratio of 22.64. This is a negative value and a sign of low solvency as MRT-UN would need 22.64 years to pay back of all of its debts.
MRT-UN has a Debt to FCF ratio of 22.64. This is in the lower half of the industry: MRT-UN underperforms 60.53% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that MRT-UN has dependencies on debt financing.
MRT-UN's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. MRT-UN outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 22.64 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.77
WACC6.1%
2.3 Liquidity
MRT-UN has a Current Ratio of 0.05. This is a bad value and indicates that MRT-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.05, MRT-UN is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
MRT-UN has a Quick Ratio of 0.05. This is a bad value and indicates that MRT-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.05, MRT-UN is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.09% over the past year.
MRT-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.61%.
MRT-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.04% yearly.
EPS 1Y (TTM)14.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.28%
Revenue 1Y (TTM)1.61%
Revenue growth 3Y2.39%
Revenue growth 5Y-1.04%
Sales Q2Q%2.4%
3.2 Future
MRT-UN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 219.37% yearly.
The Revenue is expected to decrease by -1.61% on average over the next years.
EPS Next Y820%
EPS Next 2Y219.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.98%
Revenue Next 2Y-1.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MRT-UN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 7.54, the valuation of MRT-UN can be described as very cheap.
97.37% of the companies in the same industry are more expensive than MRT-UN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MRT-UN to the average of the S&P500 Index (20.81), we can say MRT-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
89.47% of the companies in the same industry are more expensive than MRT-UN, based on the Enterprise Value to EBITDA ratio.
78.95% of the companies in the same industry are more expensive than MRT-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.5 | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MRT-UN's earnings are expected to grow with 219.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y219.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, MRT-UN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.95, MRT-UN's dividend is way lower than its industry peers. On top of this 84.21% of the companies listed in the same industry pay a better dividend than MRT-UN!
Compared to an average S&P500 Dividend Yield of 2.45, MRT-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
The dividend of MRT-UN decreases each year by -24.29%.
MRT-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
MRT-UN has decreased its dividend recently.
Dividend Growth(5Y)-24.29%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of MRT-UN are negative and hence is the payout ratio. MRT-UN will probably not be able to sustain this dividend level.
DP-26%
EPS Next 2Y219.37%
EPS Next 3YN/A
TSX:MRT-UN (5/2/2025, 7:00:00 PM)
5.48
+0.01 (+0.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners0.62%
Inst Owner ChangeN/A
Ins Owners15.29%
Ins Owner ChangeN/A
Market Cap354.06M
Analysts50
Price Target5.95 (8.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend0.24
Dividend Growth(5Y)-24.29%
DP-26%
Div Incr Years0
Div Non Decr Years1
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)-2.78%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.54 | ||
| P/S | 1.37 | ||
| P/FCF | 6.5 | ||
| P/OCF | 6.5 | ||
| P/B | 0.4 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | 11.83 |
EPS(TTM)-1
EYN/A
EPS(NY)0.73
Fwd EY13.27%
FCF(TTM)0.84
FCFY15.38%
OCF(TTM)0.84
OCFY15.38%
SpS4.01
BVpS13.69
TBVpS13.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.71% | ||
| ROE | -6.65% | ||
| ROCE | 6.89% | ||
| ROIC | 4.69% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 4.71% | ||
| OM | 48.1% | ||
| PM (TTM) | N/A | ||
| GM | 49.57% | ||
| FCFM | 21.01% |
ROA(3y)-3.2%
ROA(5y)-4.67%
ROE(3y)-7.53%
ROE(5y)-10.61%
ROIC(3y)4.53%
ROIC(5y)4.4%
ROICexc(3y)4.55%
ROICexc(5y)4.42%
ROICexgc(3y)4.55%
ROICexgc(5y)4.42%
ROCE(3y)6.57%
ROCE(5y)6.31%
ROICexcg growth 3Y6.46%
ROICexcg growth 5Y4.22%
ROICexc growth 3Y6.46%
ROICexc growth 5Y4.22%
OM growth 3Y-1.47%
OM growth 5Y-1.92%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.99%
GM growth 5Y-2.03%
F-Score6
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 22.64 | ||
| Debt/EBITDA | 8.18 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.95 | ||
| Cash Conversion | 43.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 0.43 |
F-Score6
WACC6.1%
ROIC/WACC0.77
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)14.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-27.28%
EPS Next Y820%
EPS Next 2Y219.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.61%
Revenue growth 3Y2.39%
Revenue growth 5Y-1.04%
Sales Q2Q%2.4%
Revenue Next Year-7.98%
Revenue Next 2Y-1.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.68%
EBIT growth 3Y0.89%
EBIT growth 5Y-2.94%
EBIT Next Year-6.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.89%
FCF growth 3Y-12.1%
FCF growth 5Y-9.44%
OCF growth 1Y-17.89%
OCF growth 3Y-12.1%
OCF growth 5Y-9.44%