RIOCAN REAL ESTATE INVST TR (REI-UN.CA) Stock Fundamental Analysis
TSX:REI-UN - Toronto Stock Exchange - CA7669101031 - REIT - Currency: CAD
Overall REI-UN gets a fundamental rating of 4 out of 10. We evaluated REI-UN against 36 industry peers in the Diversified REITs industry. REI-UN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
The Return On Assets of REI-UN (1.70%) is better than 63.89% of its industry peers.
The Return On Equity of REI-UN (3.56%) is better than 63.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.52%, REI-UN is doing worse than 66.67% 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 5.74%.
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 better Profit Margin (20.18%) than 69.44% 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 in line with 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 has a Gross Margin of 59.34%. This is comparable to the rest of the industry: REI-UN outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of REI-UN has remained more or less at the same level.
| 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
REI-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, REI-UN has about the same amount of shares outstanding.
REI-UN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for REI-UN is higher compared to a year ago.
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 Altman-Z score of 0.84. This is amongst the best in the industry. REI-UN outperforms 80.56% of its industry peers.
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 comparable to the rest of the industry.
REI-UN has a Debt/Equity ratio of 0.93. This is a neutral value indicating REI-UN is somewhat dependend on debt financing.
REI-UN has a better Debt to Equity ratio (0.93) than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.62
WACC5.67%
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 Current ratio of 0.59. This is amongst the best in the industry. REI-UN outperforms 88.89% 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.
The Quick ratio of REI-UN (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 429.42% over the past year.
REI-UN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.91% yearly.
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.
Measured over the past years, REI-UN shows a decrease in Revenue. The Revenue has been decreasing by -1.34% on average per year.
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
The Earnings Per Share is expected to grow by 5.54% on average over the next years.
Based on estimates for the next years, REI-UN will show a small growth in Revenue. The Revenue will grow by 1.72% on average per year.
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 3Y1.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
REI-UN is valuated rather expensively with a Price/Earnings ratio of 20.46.
Compared to the rest of the industry, the Price/Earnings ratio of REI-UN indicates a somewhat cheap valuation: REI-UN is cheaper than 66.67% of the companies listed in the same industry.
REI-UN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
REI-UN is valuated reasonably with a Price/Forward Earnings ratio of 10.01.
83.33% 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 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
REI-UN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. REI-UN is cheaper than 69.44% of the companies 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 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 18.05 |
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.
REI-UN's Dividend Yield is slightly below the industry average, which is at 7.89.
REI-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| 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 (7/25/2025, 7:00:00 PM)
17.8
-0.1 (-0.56%)
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 Cap5.24B
Analysts72.86
Price Target20.17 (13.31%)
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)0.88%
PT rev (3m)-5.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 10.01 | ||
| P/S | 4.06 | ||
| P/FCF | 14.5 | ||
| P/OCF | 14.5 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 18.05 |
EPS(TTM)0.87
EY4.89%
EPS(NY)1.78
Fwd EY9.99%
FCF(TTM)1.23
FCFY6.9%
OCF(TTM)1.23
OCFY6.9%
SpS4.39
BVpS24.86
TBVpS24.86
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
WACC5.67%
ROIC/WACC0.62
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 3Y1.72%
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%