CANADIAN NET REAL ESTATE INV (NET-UN.CA) Stock Fundamental Analysis
TSX-V:NET-UN - TSX Venture Exchange - CA13639A1093 - REIT - Currency: CAD
We assign a fundamental rating of 3 out of 10 to NET-UN. NET-UN was compared to 38 industry peers in the Diversified REITs industry. While NET-UN is still in line with the averages on profitability rating, there are concerns on its financial health. NET-UN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
NET-UN had positive earnings in the past year.
NET-UN had a positive operating cash flow in the past year.
Of the past 5 years NET-UN 4 years were profitable.
Each year in the past 5 years NET-UN had a positive operating cash flow.
1.2 Ratios
NET-UN has a better Return On Assets (2.36%) than 78.95% of its industry peers.
With a decent Return On Equity value of 5.49%, NET-UN is doing good in the industry, outperforming 76.32% of the companies in the same industry.
NET-UN has a better Return On Invested Capital (4.43%) than 68.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NET-UN is in line with the industry average of 5.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.49% | ||
| ROIC | 4.43% |
ROA(3y)2.04%
ROA(5y)3.95%
ROE(3y)4.7%
ROE(5y)8.82%
ROIC(3y)4.48%
ROIC(5y)4.08%
1.3 Margins
NET-UN has a Profit Margin of 27.19%. This is in the better half of the industry: NET-UN outperforms 76.32% of its industry peers.
NET-UN's Profit Margin has declined in the last couple of years.
The Operating Margin of NET-UN (64.82%) is better than 89.47% of its industry peers.
NET-UN's Operating Margin has been stable in the last couple of years.
The Gross Margin of NET-UN (72.41%) is better than 78.95% of its industry peers.
In the last couple of years the Gross Margin of NET-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.82% | ||
| PM (TTM) | 27.19% | ||
| GM | 72.41% |
OM growth 3Y-1.65%
OM growth 5Y1.5%
PM growth 3Y-41%
PM growth 5Y-8.95%
GM growth 3Y-1.41%
GM growth 5Y-0.97%
2. Health
2.1 Basic Checks
The number of shares outstanding for NET-UN remains at a similar level compared to 1 year ago.
The number of shares outstanding for NET-UN has been increased compared to 5 years ago.
Compared to 1 year ago, NET-UN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.63, we must say that NET-UN is in the distress zone and has some risk of bankruptcy.
NET-UN has a Altman-Z score of 0.63. This is in the better half of the industry: NET-UN outperforms 60.53% of its industry peers.
The Debt to FCF ratio of NET-UN is 15.73, which is on the high side as it means it would take NET-UN, 15.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NET-UN (15.73) is better than 63.16% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that NET-UN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, NET-UN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 15.73 | ||
| Altman-Z | 0.63 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NET-UN has a Current Ratio of 0.05. This is a bad value and indicates that NET-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
NET-UN has a worse Current ratio (0.05) than 94.74% of its industry peers.
A Quick Ratio of 0.05 indicates that NET-UN may have some problems paying its short term obligations.
NET-UN's Quick ratio of 0.05 is on the low side compared to the rest of the industry. NET-UN is outperformed by 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
NET-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.81%.
Measured over the past years, NET-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.36% on average per year.
Looking at the last year, NET-UN shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last year.
Measured over the past years, NET-UN shows a very strong growth in Revenue. The Revenue has been growing by 22.71% on average per year.
EPS 1Y (TTM)-60.81%
EPS 3Y-35.03%
EPS 5Y-1.36%
EPS Q2Q%-59.31%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y11.3%
Revenue growth 5Y22.71%
Sales Q2Q%-6.38%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.20, NET-UN is valued correctly.
Based on the Price/Earnings ratio, NET-UN is valued a bit cheaper than 78.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 23.99, NET-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NET-UN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NET-UN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NET-UN has a Yearly Dividend Yield of 6.35%, which is a nice return.
NET-UN's Dividend Yield is comparable with the industry average which is at 7.95.
Compared to an average S&P500 Dividend Yield of 2.44, NET-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
5.2 History
The dividend of NET-UN is nicely growing with an annual growth rate of 8.97%!
NET-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
NET-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.97%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
NET-UN pays out 99.83% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of NET-UN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP99.83%
EPS Next 2YN/A
EPS Next 3YN/A
TSX-V:NET-UN (5/7/2025, 7:00:00 PM)
5.32
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners8.84%
Inst Owner ChangeN/A
Ins Owners16.02%
Ins Owner ChangeN/A
Market Cap109.59M
Analysts83.33
Price Target6.36 (19.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.35% |
Yearly Dividend0.35
Dividend Growth(5Y)8.97%
DP99.83%
Div Incr Years3
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)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | N/A | ||
| P/S | 4.2 | ||
| P/FCF | 10.29 | ||
| P/OCF | 10.29 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY6.58%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.52
FCFY9.72%
OCF(TTM)0.52
OCFY9.72%
SpS1.27
BVpS6.28
TBVpS6.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 5.49% | ||
| ROCE | 6.47% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 4.45% | ||
| OM | 64.82% | ||
| PM (TTM) | 27.19% | ||
| GM | 72.41% | ||
| FCFM | 40.77% |
ROA(3y)2.04%
ROA(5y)3.95%
ROE(3y)4.7%
ROE(5y)8.82%
ROIC(3y)4.48%
ROIC(5y)4.08%
ROICexc(3y)4.5%
ROICexc(5y)4.12%
ROICexgc(3y)4.5%
ROICexgc(5y)4.12%
ROCE(3y)6.57%
ROCE(5y)5.88%
ROICexcg growth 3Y7.85%
ROICexcg growth 5Y4.93%
ROICexc growth 3Y7.85%
ROICexc growth 5Y4.93%
OM growth 3Y-1.65%
OM growth 5Y1.5%
PM growth 3Y-41%
PM growth 5Y-8.95%
GM growth 3Y-1.41%
GM growth 5Y-0.97%
F-Score5
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 15.73 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.52 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 149.95% | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 0.63 |
F-Score5
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)-60.81%
EPS 3Y-35.03%
EPS 5Y-1.36%
EPS Q2Q%-59.31%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y11.3%
Revenue growth 5Y22.71%
Sales Q2Q%-6.38%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.41%
EBIT growth 3Y9.46%
EBIT growth 5Y24.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.34%
FCF growth 3Y4.78%
FCF growth 5Y24.09%
OCF growth 1Y-5.34%
OCF growth 3Y4.78%
OCF growth 5Y24.09%