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 38 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
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 1.70%. This is in the better half of the industry: REI-UN outperforms 60.53% of its industry peers.
The Return On Equity of REI-UN (3.56%) is better than 60.53% of its industry peers.
REI-UN has a Return On Invested Capital of 3.52%. This is in the lower half of the industry: REI-UN underperforms 68.42% of its industry peers.
REI-UN had an Average Return On Invested Capital over the past 3 years of 3.47%. This is below the industry average of 5.67%.
The last Return On Invested Capital (3.52%) for REI-UN is above the 3 year average (3.47%), which is a sign of increasing profitability.
| 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 65.79% of its industry peers.
REI-UN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 53.97%, REI-UN is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
REI-UN's Operating Margin has been stable in the last couple of years.
The Gross Margin of REI-UN (59.34%) is comparable to the rest of the 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.
The number of shares outstanding for REI-UN has been reduced compared to 5 years ago.
REI-UN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that REI-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, REI-UN belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
The Debt to FCF ratio of REI-UN is 20.56, which is on the high side as it means it would take REI-UN, 20.56 years of fcf income to pay off all of its debts.
REI-UN has a Debt to FCF ratio (20.56) which is in line with its industry peers.
A Debt/Equity ratio of 0.93 indicates that REI-UN is somewhat dependend on debt financing.
The Debt to Equity ratio of REI-UN (0.93) is better than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.64
WACC5.47%
2.3 Liquidity
REI-UN has a Current 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 better Current ratio (0.59) than 86.84% of its industry peers.
A Quick Ratio of 0.24 indicates that REI-UN may have some problems paying 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.
The Revenue has grown by 12.56% in the past year. This is quite good.
The Revenue has been decreasing by -1.34% on average over the past years.
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.
The Revenue is expected to grow by 4.96% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.13, the valuation of REI-UN can be described as rather expensive.
65.79% of the companies in the same industry are more expensive than REI-UN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.19. REI-UN is valued slightly cheaper when compared to this.
REI-UN is valuated reasonably with a Price/Forward Earnings ratio of 9.85.
REI-UN's Price/Forward Earnings ratio is rather cheap when compared to the industry. REI-UN is cheaper than 84.21% 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REI-UN indicates a somewhat cheap valuation: REI-UN is cheaper than 68.42% of the companies listed in the same industry.
REI-UN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. REI-UN is more expensive than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 17.98 |
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
REI-UN has a Yearly Dividend Yield of 5.24%, which is a nice return.
Compared to an average industry Dividend Yield of 7.95, REI-UN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, REI-UN pays a better dividend.
| 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
REI-UN pays out 128.15% of its income as dividend. This is not a sustainable payout ratio.
DP128.15%
EPS Next 2Y5.54%
EPS Next 3YN/A
TSX:REI-UN (5/29/2025, 7:00:00 PM)
17.51
+0.09 (+0.52%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners40.11%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap5.20B
Analysts77.14
Price Target21.27 (21.47%)
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)-3.14%
PT rev (3m)-4.9%
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)0.31%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.13 | ||
| Fwd PE | 9.85 | ||
| P/S | 4.02 | ||
| P/FCF | 14.38 | ||
| P/OCF | 14.38 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 17.98 |
EPS(TTM)0.87
EY4.97%
EPS(NY)1.78
Fwd EY10.15%
FCF(TTM)1.22
FCFY6.96%
OCF(TTM)1.22
OCFY6.96%
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
WACC5.47%
ROIC/WACC0.64
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%