PRIMARIS REIT (PMZ-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PMZ-UN - CA74167K1093 - REIT
16.9 CAD
+0.07 (+0.42%)
We assign a fundamental rating of 5 out of 10 to PMZ-UN. PMZ-UN was compared to 38 industry peers in the Diversified REITs industry. There are concerns on the financial health of PMZ-UN while its profitability can be described as average. PMZ-UN is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- In the past year PMZ-UN was profitable.
- PMZ-UN had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: PMZ-UN reported negative net income in multiple years.
- PMZ-UN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- PMZ-UN has a better Return On Assets (2.94%) than 73.68% of its industry peers.
- The Return On Equity of PMZ-UN (6.16%) is better than 71.05% of its industry peers.
- With an excellent Return On Invested Capital value of 4.89%, PMZ-UN belongs to the best 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 PMZ-UN is in line with the industry average of 5.49%.
- The 3 year average ROIC (4.04%) for PMZ-UN is below the current ROIC(4.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 6.16% | ||
| ROIC | 4.89% |
ROA(3y)1.37%
ROA(5y)-2.46%
ROE(3y)2.65%
ROE(5y)-6.77%
ROIC(3y)4.04%
ROIC(5y)4.06%
1.3 Margins
- PMZ-UN has a better Profit Margin (23.96%) than 65.79% of its industry peers.
- In the last couple of years the Profit Margin of PMZ-UN has declined.
- PMZ-UN has a Operating Margin of 54.06%. This is comparable to the rest of the industry: PMZ-UN outperforms 55.26% of its industry peers.
- PMZ-UN's Operating Margin has declined in the last couple of years.
- PMZ-UN has a Gross Margin (56.53%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of PMZ-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.06% | ||
| PM (TTM) | 23.96% | ||
| GM | 56.53% |
OM growth 3Y-2.72%
OM growth 5YN/A
PM growth 3Y-51.36%
PM growth 5YN/A
GM growth 3Y0.31%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PMZ-UN is destroying value.
- Compared to 1 year ago, PMZ-UN has more shares outstanding
- PMZ-UN has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of PMZ-UN is 12.06, which is on the high side as it means it would take PMZ-UN, 12.06 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 12.06, PMZ-UN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
- A Debt/Equity ratio of 1.04 is on the high side and indicates that PMZ-UN has dependencies on debt financing.
- PMZ-UN has a better Debt to Equity ratio (1.04) than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 12.06 | ||
| Altman-Z | N/A |
ROIC/WACC0.81
WACC6.04%
2.3 Liquidity
- PMZ-UN has a Current Ratio of 0.06. This is a bad value and indicates that PMZ-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.06, PMZ-UN is doing worse than 84.21% of the companies in the same industry.
- A Quick Ratio of 0.06 indicates that PMZ-UN may have some problems paying its short term obligations.
- The Quick ratio of PMZ-UN (0.06) is worse than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 77.80% over the past year.
- Measured over the past years, PMZ-UN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -39.76% on average per year.
- PMZ-UN shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.67%.
- Measured over the past years, PMZ-UN shows a very strong growth in Revenue. The Revenue has been growing by 26.51% on average per year.
EPS 1Y (TTM)77.8%
EPS 3Y-39.76%
EPS 5YN/A
EPS Q2Q%208.69%
Revenue 1Y (TTM)27.67%
Revenue growth 3Y26.51%
Revenue growth 5YN/A
Sales Q2Q%33.17%
3.2 Future
- The Earnings Per Share is expected to grow by 33.01% on average over the next years. This is a very strong growth
- Based on estimates for the next years, PMZ-UN will show a quite strong growth in Revenue. The Revenue will grow by 15.00% on average per year.
EPS Next Y92.67%
EPS Next 2Y48.39%
EPS Next 3Y33.01%
EPS Next 5YN/A
Revenue Next Year29.03%
Revenue Next 2Y21.08%
Revenue Next 3Y15%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.32, which indicates a correct valuation of PMZ-UN.
- PMZ-UN's Price/Earnings ratio is a bit cheaper when compared to the industry. PMZ-UN is cheaper than 78.95% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PMZ-UN is valued a bit cheaper.
- PMZ-UN is valuated reasonably with a Price/Forward Earnings ratio of 10.46.
- Based on the Price/Forward Earnings ratio, PMZ-UN is valued cheaper than 89.47% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PMZ-UN to the average of the S&P500 Index (25.98), we can say PMZ-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PMZ-UN is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
- PMZ-UN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PMZ-UN is cheaper than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.89 | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
- PMZ-UN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PMZ-UN's earnings are expected to grow with 33.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y48.39%
EPS Next 3Y33.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.34%, PMZ-UN is a good candidate for dividend investing.
- PMZ-UN's Dividend Yield is slightly below the industry average, which is at 7.11.
- PMZ-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
5.2 History
- PMZ-UN has been paying a dividend for over 5 years, so it has already some track record.
- PMZ-UN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 60.42% of the earnings are spent on dividend by PMZ-UN. This is not a sustainable payout ratio.
DP60.42%
EPS Next 2Y48.39%
EPS Next 3Y33.01%
PRIMARIS REIT / PMZ-UN.CA FAQ
What is the ChartMill fundamental rating of PRIMARIS REIT (PMZ-UN.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PMZ-UN.CA.
What is the valuation status of PRIMARIS REIT (PMZ-UN.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to PRIMARIS REIT (PMZ-UN.CA). This can be considered as Undervalued.
What is the profitability of PMZ-UN stock?
PRIMARIS REIT (PMZ-UN.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for PMZ-UN stock?
The Price/Earnings (PE) ratio for PRIMARIS REIT (PMZ-UN.CA) is 14.32 and the Price/Book (PB) ratio is 0.85.
What is the earnings growth outlook for PRIMARIS REIT?
The Earnings per Share (EPS) of PRIMARIS REIT (PMZ-UN.CA) is expected to grow by 92.67% in the next year.