RIOCAN REAL ESTATE INVST TR (REI-UN.CA) Stock Fundamental Analysis
Canada - TSX:REI-UN - CA7669101031 - REIT
19.01 CAD
+0.03 (+0.16%)
Taking everything into account, REI-UN scores 4 out of 10 in our fundamental rating. REI-UN was compared to 37 industry peers in the Diversified REITs industry. REI-UN has an average financial health and profitability rating. REI-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year REI-UN was profitable.
REI-UN had a positive operating cash flow in the past year.
REI-UN had positive earnings in 4 of the past 5 years.
REI-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REI-UN has a Return On Assets of 1.85%. This is in the better half of the industry: REI-UN outperforms 70.27% of its industry peers.
With a decent Return On Equity value of 3.87%, REI-UN is doing good in the industry, outperforming 64.86% of the companies in the same industry.
With a Return On Invested Capital value of 3.72%, REI-UN perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for REI-UN is below the industry average of 5.52%.
The last Return On Invested Capital (3.72%) for REI-UN is above the 3 year average (3.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.87% | ||
| ROIC | 3.72% |
ROA(3y)1.63%
ROA(5y)1.68%
ROE(3y)3.28%
ROE(5y)3.32%
ROIC(3y)3.47%
ROIC(5y)3.36%
1.3 Margins
REI-UN's Profit Margin of 20.86% is fine compared to the rest of the industry. REI-UN outperforms 70.27% of its industry peers.
In the last couple of years the Profit Margin of REI-UN has declined.
REI-UN's Operating Margin of 52.52% is in line compared to the rest of the industry. REI-UN outperforms 56.76% of its industry peers.
In the last couple of years the Operating Margin of REI-UN has remained more or less at the same level.
REI-UN's Gross Margin of 57.38% is in line compared to the rest of the industry. REI-UN outperforms 48.65% of its industry peers.
REI-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.52% | ||
| PM (TTM) | 20.86% | ||
| GM | 57.38% |
OM growth 3Y0.29%
OM growth 5Y0.69%
PM growth 3Y-9.14%
PM growth 5Y-8.17%
GM growth 3Y0.04%
GM growth 5Y1.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REI-UN is destroying value.
Compared to 1 year ago, REI-UN has about the same amount of shares outstanding.
Compared to 5 years ago, REI-UN has less shares outstanding
Compared to 1 year ago, REI-UN has a worse debt to assets ratio.
2.2 Solvency
REI-UN has an Altman-Z score of 0.84. This is a bad value and indicates that REI-UN is not financially healthy and even has some risk of bankruptcy.
REI-UN has a better Altman-Z score (0.84) than 83.78% of its industry peers.
The Debt to FCF ratio of REI-UN is 15.30, which is on the high side as it means it would take REI-UN, 15.30 years of fcf income to pay off all of its debts.
REI-UN has a Debt to FCF ratio of 15.30. This is in the better half of the industry: REI-UN outperforms 62.16% of its industry peers.
REI-UN has a Debt/Equity ratio of 0.87. This is a neutral value indicating REI-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, REI-UN is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 15.3 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.65
WACC5.75%
2.3 Liquidity
REI-UN has a Current Ratio of 0.36. This is a bad value and indicates that REI-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
REI-UN has a Current ratio of 0.36. This is in the better half of the industry: REI-UN outperforms 62.16% of its industry peers.
A Quick Ratio of 0.15 indicates that REI-UN may have some problems paying its short term obligations.
REI-UN has a Quick ratio (0.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
REI-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 377.38%, which is quite impressive.
The Earnings Per Share has been decreasing by -8.96% on average over the past years.
Looking at the last year, REI-UN shows a quite strong growth in Revenue. The Revenue has grown by 16.97% in the last year.
The Revenue has been decreasing by -1.34% on average over the past years.
EPS 1Y (TTM)377.38%
EPS 3Y-5.82%
EPS 5Y-8.96%
EPS Q2Q%20.75%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%23.77%
3.2 Future
REI-UN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.67% yearly.
Based on estimates for the next years, REI-UN will show a decrease in Revenue. The Revenue will decrease by -7.65% on average per year.
EPS Next Y-32.28%
EPS Next 2Y2.04%
EPS Next 3Y2.67%
EPS Next 5YN/A
Revenue Next Year4.14%
Revenue Next 2Y3.89%
Revenue Next 3Y-7.65%
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.
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 20.01, the valuation of REI-UN can be described as rather expensive.
Based on the Price/Earnings ratio, REI-UN is valued a bit cheaper than the industry average as 67.57% of the companies are valued more expensively.
REI-UN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
Based on the Price/Forward Earnings ratio of 11.44, the valuation of REI-UN can be described as reasonable.
Based on the Price/Forward Earnings ratio, REI-UN is valued cheaper than 81.08% of the companies in the same industry.
REI-UN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI-UN is valued a bit cheaper than 70.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REI-UN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 18.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.04%
EPS Next 3Y2.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.24%, REI-UN is a good candidate for dividend investing.
REI-UN's Dividend Yield is slightly below the industry average, which is at 7.94.
REI-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
5.2 History
The dividend of REI-UN decreases each year by -4.92%.
REI-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
REI-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-4.92%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
118.52% of the earnings are spent on dividend by REI-UN. This is not a sustainable payout ratio.
DP118.52%
EPS Next 2Y2.04%
EPS Next 3Y2.67%
TSX:REI-UN (10/2/2025, 7:00:00 PM)
19.01
+0.03 (+0.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners37.25%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap5.60B
Analysts74.67
Price Target20.28 (6.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend1.11
Dividend Growth(5Y)-4.92%
DP118.52%
Div Incr Years3
Div Non Decr Years3
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)0.11%
PT rev (3m)1.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)12.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 11.44 | ||
| P/S | 4.11 | ||
| P/FCF | 11.48 | ||
| P/OCF | 11.48 | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 18.13 |
EPS(TTM)0.95
EY5%
EPS(NY)1.66
Fwd EY8.74%
FCF(TTM)1.66
FCFY8.71%
OCF(TTM)1.66
OCFY8.71%
SpS4.62
BVpS24.93
TBVpS24.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.87% | ||
| ROCE | 5.17% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.74% | ||
| ROICexgc | 3.74% | ||
| OM | 52.52% | ||
| PM (TTM) | 20.86% | ||
| GM | 57.38% | ||
| FCFM | 35.83% |
ROA(3y)1.63%
ROA(5y)1.68%
ROE(3y)3.28%
ROE(5y)3.32%
ROIC(3y)3.47%
ROIC(5y)3.36%
ROICexc(3y)3.5%
ROICexc(5y)3.4%
ROICexgc(3y)3.5%
ROICexgc(5y)3.4%
ROCE(3y)4.81%
ROCE(5y)4.67%
ROICexcg growth 3Y3.31%
ROICexcg growth 5Y-0.6%
ROICexc growth 3Y3.31%
ROICexc growth 5Y-0.6%
OM growth 3Y0.29%
OM growth 5Y0.69%
PM growth 3Y-9.14%
PM growth 5Y-8.17%
GM growth 3Y0.04%
GM growth 5Y1.15%
F-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 15.3 | ||
| Debt/EBITDA | 8.89 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 68.1% | ||
| Profit Quality | 171.78% | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 0.84 |
F-Score7
WACC5.75%
ROIC/WACC0.65
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)429.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)377.38%
EPS 3Y-5.82%
EPS 5Y-8.96%
EPS Q2Q%20.75%
EPS Next Y-32.28%
EPS Next 2Y2.04%
EPS Next 3Y2.67%
EPS Next 5YN/A
Revenue 1Y (TTM)16.97%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%23.77%
Revenue Next Year4.14%
Revenue Next 2Y3.89%
Revenue Next 3Y-7.65%
Revenue Next 5YN/A
EBIT growth 1Y9.46%
EBIT growth 3Y2.09%
EBIT growth 5Y-0.67%
EBIT Next Year7.43%
EBIT Next 3Y5.23%
EBIT Next 5YN/A
FCF growth 1Y9%
FCF growth 3Y-8.29%
FCF growth 5Y-7.83%
OCF growth 1Y9%
OCF growth 3Y-8.29%
OCF growth 5Y-7.83%