RIOCAN REAL ESTATE INVST TR (REI-UN.CA) Stock Fundamental Analysis
TSX:REI-UN - Toronto Stock Exchange - CA7669101031 - REIT - Currency: CAD
Taking everything into account, REI-UN scores 4 out of 10 in our fundamental rating. REI-UN was compared to 36 industry peers in the Diversified REITs industry. There are concerns on the financial health of REI-UN while its profitability can be described as average. 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.
Of the past 5 years REI-UN 4 years were profitable.
Each year in the past 5 years REI-UN had a positive operating cash flow.
1.2 Ratios
REI-UN's Return On Assets of 1.70% is in line compared to the rest of the industry. REI-UN outperforms 58.33% of its industry peers.
With a Return On Equity value of 3.56%, REI-UN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
REI-UN has a Return On Invested Capital of 3.52%. This is in the lower half of the industry: REI-UN underperforms 66.67% 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 5.75%.
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
The Profit Margin of REI-UN (20.18%) is better than 63.89% of its industry peers.
REI-UN's Profit Margin has declined in the last couple of years.
REI-UN has a Operating Margin of 53.97%. This is comparable to the rest of the industry: REI-UN outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of REI-UN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 59.34%, REI-UN is in line with its industry, outperforming 50.00% 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 | 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
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
Based on the Altman-Z score of 0.85, we must say that REI-UN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of REI-UN (0.85) is better than 80.56% 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.
REI-UN has a Debt to FCF ratio of 20.56. This is in the lower half of the industry: REI-UN underperforms 61.11% of its industry peers.
REI-UN has a Debt/Equity ratio of 0.93. This is a neutral value indicating REI-UN is somewhat dependend on debt financing.
The Debt to Equity ratio of REI-UN (0.93) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 20.56 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.62
WACC5.64%
2.3 Liquidity
A Current Ratio of 0.59 indicates that REI-UN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.59, REI-UN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 0.24 indicates that REI-UN may have some problems paying 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
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
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 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
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
With a Price/Earnings ratio of 20.71, REI-UN is valued on the expensive side.
Based on the Price/Earnings ratio, REI-UN is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. REI-UN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.14, the valuation of REI-UN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, REI-UN is valued cheaper than 80.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. REI-UN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI-UN is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, REI-UN is valued a bit more expensive than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 18.2 |
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.
REI-UN's Dividend Yield is slightly below the industry average, which is at 7.85.
REI-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| 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 (7/4/2025, 7:00:00 PM)
18.02
+0.37 (+2.1%)
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 Cap5.35B
Analysts72.86
Price Target19.99 (10.93%)
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)-6%
PT rev (3m)-8.94%
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)4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 10.14 | ||
| P/S | 4.14 | ||
| P/FCF | 14.79 | ||
| P/OCF | 14.79 | ||
| P/B | 0.73 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 18.2 |
EPS(TTM)0.87
EY4.83%
EPS(NY)1.78
Fwd EY9.86%
FCF(TTM)1.22
FCFY6.76%
OCF(TTM)1.22
OCFY6.76%
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 | 0.85 |
F-Score7
WACC5.64%
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%