RIOCAN REAL ESTATE INVST TR (REI-UN.CA) Stock Fundamental Analysis
TSX:REI-UN - CA7669101031 - REIT
18.6 CAD
-0.06 (-0.32%)
We assign a fundamental rating of 4 out of 10 to REI-UN. REI-UN was compared to 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 valued correctly, but it does not seem to be growing.
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.
Of the past 5 years REI-UN 4 years were profitable.
REI-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.85%, REI-UN is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
The Return On Equity of REI-UN (3.87%) is better than 63.16% of its industry peers.
With a Return On Invested Capital value of 3.72%, REI-UN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REI-UN is below the industry average of 5.49%.
The 3 year average ROIC (3.47%) for REI-UN is below the current ROIC(3.72%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (20.86%) than 68.42% of its industry peers.
REI-UN's Profit Margin has declined in the last couple of years.
The Operating Margin of REI-UN (52.52%) 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 57.38%, REI-UN perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
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 | 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.
The number of shares outstanding for REI-UN remains at a similar level compared to 1 year ago.
REI-UN has less shares outstanding than it did 5 years ago.
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 0.83. This is a bad value and indicates that REI-UN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, REI-UN is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
REI-UN has a debt to FCF ratio of 15.30. This is a negative value and a sign of low solvency as REI-UN would need 15.30 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 15.30, REI-UN is doing good in the industry, outperforming 63.16% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that 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 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 15.3 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.64
WACC5.79%
2.3 Liquidity
A Current Ratio of 0.36 indicates that REI-UN may have some problems paying 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 63.16% of its industry peers.
REI-UN has a Quick 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.
Looking at the Quick ratio, with a value of 0.15, REI-UN is in line with its industry, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 377.38% over the past year.
Measured over the past years, REI-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.96% on average per year.
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
The Earnings Per Share is expected to grow by 2.67% on average over the next years.
The Revenue is expected to decrease by -7.65% on average over the next years.
EPS Next Y-32.28%
EPS Next 2Y2.04%
EPS Next 3Y2.67%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y3.89%
Revenue Next 3Y-7.65%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.58 indicates a rather expensive valuation of REI-UN.
Based on the Price/Earnings ratio, REI-UN is valued a bit cheaper than 68.42% of the companies in the same industry.
REI-UN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.20, which indicates a very decent valuation of REI-UN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REI-UN indicates a rather cheap valuation: REI-UN is cheaper than 81.58% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, REI-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 11.2 |
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 71.05% of the companies listed in the same industry.
REI-UN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 17.96 |
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
REI-UN has a Yearly Dividend Yield of 5.24%, which is a nice return.
REI-UN's Dividend Yield is slightly below the industry average, which is at 7.95.
REI-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| 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
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 (9/8/2025, 7:00:00 PM)
18.6
-0.06 (-0.32%)
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 Cap5.48B
Analysts74.67
Price Target20.26 (8.92%)
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)0.46%
PT rev (3m)-0.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)12.63%
EPS NY rev (3m)12.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)-5.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 11.2 | ||
| P/S | 4.02 | ||
| P/FCF | 11.23 | ||
| P/OCF | 11.23 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 17.96 |
EPS(TTM)0.95
EY5.11%
EPS(NY)1.66
Fwd EY8.93%
FCF(TTM)1.66
FCFY8.91%
OCF(TTM)1.66
OCFY8.91%
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 | 0.83 |
F-Score7
WACC5.79%
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)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 Year4.05%
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 Year5.75%
EBIT Next 3YN/A
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%