RIOCAN REAL ESTATE INVST TR (REI-UN.CA) Stock Fundamental Analysis
TSX:REI-UN - Toronto Stock Exchange - CA7669101031 - REIT - Currency: CAD
REI-UN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Diversified REITs industry. While REI-UN is still in line with the averages on profitability rating, there are concerns on its financial health. REI-UN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
REI-UN had positive earnings in the past year.
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 (1.70%) which is in line with its industry peers.
REI-UN has a Return On Equity (3.56%) which is comparable to the rest of the industry.
REI-UN's Return On Invested Capital of 3.52% is on the low side compared to the rest of the industry. REI-UN is outperformed by 67.57% of its industry peers.
REI-UN had an Average Return On Invested Capital over the past 3 years of 3.47%. This is in line with the industry average of 5.23%.
The 3 year average ROIC (3.47%) for REI-UN is below the current ROIC(3.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 3.56% | ||
| ROIC | 3.52% |
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 has a Profit Margin of 20.18%. This is in the better half of the industry: REI-UN outperforms 64.86% of its industry peers.
In the last couple of years the Profit Margin of REI-UN has declined.
REI-UN has a Operating Margin (53.97%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of REI-UN has remained more or less at the same level.
With a Gross Margin value of 59.34%, REI-UN perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
REI-UN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.97% | ||
| PM (TTM) | 20.18% | ||
| GM | 59.34% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so REI-UN is destroying value.
REI-UN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, REI-UN has less shares outstanding
REI-UN has a worse debt/assets ratio than last year.
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.
The Altman-Z score of REI-UN (0.84) is better than 75.68% of its industry peers.
REI-UN has a debt to FCF ratio of 20.56. This is a negative value and a sign of low solvency as REI-UN would need 20.56 years to pay back of all of its debts.
The Debt to FCF ratio of REI-UN (20.56) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.93 indicates that REI-UN is somewhat dependend on debt financing.
REI-UN has a better Debt to Equity ratio (0.93) than 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.53
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.59 indicates that REI-UN may have some problems paying its short term obligations.
REI-UN has a better Current ratio (0.59) than 86.49% of its industry peers.
REI-UN has a Quick Ratio of 0.59. 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 Quick ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.24 |
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 429.42%, which is quite impressive.
Measured over the past years, REI-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.91% on average per year.
Looking at the last year, REI-UN shows a quite strong growth in Revenue. The Revenue has grown by 12.56% in the last year.
REI-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.34% yearly.
EPS 1Y (TTM)429.42%
EPS 3Y-5.73%
EPS 5Y-8.91%
EPS Q2Q%-166.05%
Revenue 1Y (TTM)12.56%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%17.29%
3.2 Future
Based on estimates for the next years, REI-UN will show a small growth in Earnings Per Share. The EPS will grow by 5.54% on average per year.
REI-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.96% yearly.
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.17%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.22 indicates a rather expensive valuation of REI-UN.
Compared to the rest of the industry, the Price/Earnings ratio of REI-UN indicates a somewhat cheap valuation: REI-UN is cheaper than 64.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. REI-UN is valued slightly cheaper when compared to this.
REI-UN is valuated reasonably with a Price/Forward Earnings ratio of 9.90.
81.08% of the companies in the same industry are more expensive than REI-UN, based on the Price/Forward Earnings ratio.
REI-UN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI-UN is valued a bit cheaper than 67.57% of the companies in the same industry.
62.16% of the companies in the same industry are cheaper than REI-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.24%, REI-UN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.95, REI-UN is paying slightly less dividend.
REI-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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 paid a dividend for at least 10 years, which is 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
128.15% of the earnings are spent on dividend by REI-UN. This is not a sustainable payout ratio.
DP128.15%
EPS Next 2Y5.54%
EPS Next 3YN/A
TSX:REI-UN (6/19/2025, 7:00:00 PM)
17.59
-0.07 (-0.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners41.01%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap5.22B
Analysts77.14
Price Target20.4 (15.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend1.11
Dividend Growth(5Y)-4.92%
DP128.15%
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)-4.08%
PT rev (3m)-9.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-48.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 9.9 | ||
| P/S | 4.04 | ||
| P/FCF | 14.44 | ||
| P/OCF | 14.44 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)0.87
EY4.95%
EPS(NY)1.78
Fwd EY10.11%
FCF(TTM)1.22
FCFY6.92%
OCF(TTM)1.22
OCFY6.92%
SpS4.35
BVpS24.66
TBVpS24.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 3.56% | ||
| ROCE | 4.89% | ||
| ROIC | 3.52% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 3.53% | ||
| OM | 53.97% | ||
| PM (TTM) | 20.18% | ||
| GM | 59.34% | ||
| FCFM | 27.98% |
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 Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 20.56 | ||
| Debt/EBITDA | 9.78 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 51.72% | ||
| Profit Quality | 138.64% | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.84 |
F-Score7
WACC6.7%
ROIC/WACC0.53
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)429.42%
EPS 3Y-5.73%
EPS 5Y-8.91%
EPS Q2Q%-166.05%
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.56%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%17.29%
Revenue Next Year10.17%
Revenue Next 2Y4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.92%
EBIT growth 3Y2.09%
EBIT growth 5Y-0.67%
EBIT Next Year5.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.4%
FCF growth 3Y-8.29%
FCF growth 5Y-7.83%
OCF growth 1Y-26.4%
OCF growth 3Y-8.29%
OCF growth 5Y-7.83%