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 5 out of 10. We evaluated REI-UN 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year REI-UN was profitable.
In the past year REI-UN had a positive cash flow from operations.
REI-UN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years REI-UN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of REI-UN (3.06%) is better than 84.21% of its industry peers.
REI-UN has a Return On Equity of 6.26%. This is amongst the best in the industry. REI-UN outperforms 84.21% of its industry peers.
REI-UN has a worse Return On Invested Capital (3.45%) than 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REI-UN is in line with the industry average of 5.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 6.26% | ||
| ROIC | 3.45% |
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 (38.20%) than 86.84% of its industry peers.
REI-UN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 53.88%, REI-UN is doing good in the industry, outperforming 60.53% of the companies in the same industry.
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 (59.78%) which is in line with 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 | 53.88% | ||
| PM (TTM) | 38.2% | ||
| GM | 59.78% |
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.
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 0.80. This is a bad value and indicates that REI-UN is not financially healthy and even has some risk of bankruptcy.
REI-UN's Altman-Z score of 0.80 is amongst the best of the industry. REI-UN outperforms 81.58% of its industry peers.
The Debt to FCF ratio of REI-UN is 19.43, which is on the high side as it means it would take REI-UN, 19.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of REI-UN (19.43) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.83 indicates that REI-UN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.83, REI-UN is doing good in the industry, outperforming 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 19.43 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.62
WACC5.6%
2.3 Liquidity
A Current Ratio of 0.40 indicates that REI-UN may have some problems paying its short term obligations.
REI-UN's Current ratio of 0.40 is fine compared to the rest of the industry. REI-UN outperforms 71.05% of its industry peers.
REI-UN has a Quick Ratio of 0.40. 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 (0.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1126.71% over the past year.
Measured over the past years, REI-UN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.91% on average per year.
The Revenue has grown by 10.29% in the past year. This is quite good.
REI-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.34% yearly.
EPS 1Y (TTM)1126.71%
EPS 3Y-5.73%
EPS 5Y-8.91%
EPS Q2Q%207.84%
Revenue 1Y (TTM)10.29%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%20.44%
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 5.54% yearly.
Based on estimates for the next years, REI-UN will show a small growth in Revenue. The Revenue will grow by 5.45% on average per year.
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.83%
Revenue Next 2Y5.45%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 10.77 indicates a reasonable valuation of REI-UN.
92.11% of the companies in the same industry are more expensive than REI-UN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of REI-UN to the average of the S&P500 Index (28.10), we can say REI-UN is valued rather cheaply.
With a Price/Forward Earnings ratio of 17.74, REI-UN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REI-UN indicates a somewhat cheap valuation: REI-UN is cheaper than 60.53% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of REI-UN to the average of the S&P500 Index (20.74), we can say REI-UN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 17.74 |
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 68.42% of the companies 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 | 13.35 | ||
| EV/EBITDA | 18.37 |
4.3 Compensation for Growth
REI-UN has a very decent profitability rating, which may justify a higher PE ratio.
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 2.43.
| 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
70.12% of the earnings are spent on dividend by REI-UN. This is not a sustainable payout ratio.
DP70.12%
EPS Next 2Y5.54%
EPS Next 3YN/A
TSX:REI-UN (5/5/2025, 7:00:00 PM)
17.02
-0.27 (-1.56%)
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 Cap5.05B
Analysts77.14
Price Target21.27 (24.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend1.11
Dividend Growth(5Y)-4.92%
DP70.12%
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)-4.69%
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)4.51%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 17.74 | ||
| P/S | 4.07 | ||
| P/FCF | 13.35 | ||
| P/OCF | 13.35 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 18.37 |
EPS(TTM)1.58
EY9.28%
EPS(NY)0.96
Fwd EY5.64%
FCF(TTM)1.27
FCFY7.49%
OCF(TTM)1.27
OCFY7.49%
SpS4.18
BVpS25.47
TBVpS25.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 6.26% | ||
| ROCE | 4.79% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.5% | ||
| OM | 53.88% | ||
| PM (TTM) | 38.2% | ||
| GM | 59.78% | ||
| FCFM | 30.52% |
ROA(3y)1.63%
ROA(5y)1.68%
ROE(3y)3.28%
ROE(5y)3.32%
ROIC(3y)3.47%
ROIC(5y)3.36%
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-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 19.43 | ||
| Debt/EBITDA | 9.36 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 56.52% | ||
| Profit Quality | 79.9% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 0.8 |
F-Score6
WACC5.6%
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)1126.71%
EPS 3Y-5.73%
EPS 5Y-8.91%
EPS Q2Q%207.84%
EPS Next Y-39.87%
EPS Next 2Y5.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.29%
Revenue growth 3Y1.8%
Revenue growth 5Y-1.34%
Sales Q2Q%20.44%
Revenue Next Year9.83%
Revenue Next 2Y5.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4%
EBIT growth 3Y2.09%
EBIT growth 5Y-0.67%
EBIT Next Year21.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.88%
FCF growth 3Y-8.29%
FCF growth 5Y-7.83%
OCF growth 1Y-1.88%
OCF growth 3Y-8.29%
OCF growth 5Y-7.83%