RIOCAN REAL ESTATE INVST TR (REI-UN.CA)
CA7669101031 - REIT
Overall REI-UN gets a fundamental rating of 4 out of 10. We evaluated REI-UN against 41 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
REI-UN had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 0.26%, REI-UN is in line with its industry, outperforming 53.66% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.52%, REI-UN is in line with its industry, outperforming 53.66% of the companies in the same industry.
REI-UN's Return On Invested Capital of 3.50% is on the low side compared to the rest of the industry. REI-UN is outperformed by 70.73% of its industry peers.
REI-UN had an Average Return On Invested Capital over the past 3 years of 3.37%. This is in line with the industry average of 4.02%.
The last Return On Invested Capital (3.50%) for REI-UN is above the 3 year average (3.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 0.52% | ||
| ROIC | 3.5% |
ROA(3y)1.92%
ROA(5y)2.09%
ROE(3y)3.72%
ROE(5y)3.93%
ROIC(3y)3.37%
ROIC(5y)3.39%
1.3 Margins
REI-UN has a Profit Margin (3.45%) which is in line with its industry peers.
REI-UN's Profit Margin has declined in the last couple of years.
REI-UN's Operating Margin of 57.13% is in line compared to the rest of the industry. REI-UN outperforms 56.10% 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.
The Gross Margin of REI-UN (63.57%) 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 | 57.13% | ||
| PM (TTM) | 3.45% | ||
| GM | 63.57% |
OM growth 3Y1.25%
OM growth 5Y0.09%
PM growth 3YN/A
PM growth 5Y-40.43%
GM growth 3Y2.24%
GM growth 5Y0.26%
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.
The number of shares outstanding for REI-UN has been reduced compared to 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 0.81, we must say that REI-UN is in the distress zone and has some risk of bankruptcy.
REI-UN has a better Altman-Z score (0.81) than 70.73% of its industry peers.
REI-UN has a debt to FCF ratio of 17.89. This is a negative value and a sign of low solvency as REI-UN would need 17.89 years to pay back of all of its debts.
REI-UN's Debt to FCF ratio of 17.89 is in line compared to the rest of the industry. REI-UN outperforms 53.66% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that REI-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, REI-UN belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.61
WACC5.79%
2.3 Liquidity
REI-UN has a Current Ratio of 0.28. 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 (0.28) which is comparable to the rest of the industry.
REI-UN has a Quick Ratio of 0.28. 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 doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
The earnings per share for REI-UN have decreased strongly by -83.14% in the last year.
Measured over the past years, REI-UN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.14% on average per year.
The Revenue has decreased by -7.41% in the past year.
REI-UN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.42% yearly.
EPS 1Y (TTM)-83.14%
EPS 3YN/A
EPS 5Y-40.14%
EPS growth Q2Q-2286.65%
Revenue 1Y (TTM)-7.41%
Revenue growth 3Y-0.58%
Revenue growth 5Y-0.42%
Revenue growth Q2Q-3.03%
3.2 Future
The Earnings Per Share is expected to grow by 45.82% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
EPS Next Y85.26%
EPS Next 2Y45.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.2%
Revenue Next 2Y9.34%
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
REI-UN is valuated quite expensively with a Price/Earnings ratio of 134.15.
Based on the Price/Earnings ratio, REI-UN is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
REI-UN is valuated expensively when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.81, the valuation of REI-UN can be described as reasonable.
78.05% of the companies in the same industry are more expensive than REI-UN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.92. REI-UN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.15 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI-UN is valued a bit cheaper than 65.85% 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 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.57 | ||
| EV/EBITDA | 18.62 |
4.3 Compensation for Growth
REI-UN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as REI-UN's earnings are expected to grow with 45.82% in the coming years.
PEG (NY)1.57
PEG (5Y)N/A
EPS Next 2Y45.82%
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 7.99, REI-UN's dividend is way lower than its industry peers. On top of this 85.37% of the companies listed in the same industry pay a better dividend than REI-UN!
Compared to an average S&P500 Dividend Yield of 2.39, 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 -5.74%.
REI-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of REI-UN decreased in the last 3 years.
Dividend Growth(5Y)-5.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
REI-UN pays out 828.34% of its income as dividend. This is not a sustainable payout ratio.
DP828.34%
EPS Next 2Y45.82%
EPS Next 3YN/A
RIOCAN REAL ESTATE INVST TR
TSX:REI-UN (4/30/2024, 6:00:00 PM)
17.44
-0.04 (-0.23%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.15 | ||
| Fwd PE | 9.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 0.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 57.13% | ||
| PM (TTM) | 3.45% | ||
| GM | 63.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-83.14%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y85.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.41%
Revenue growth 3Y-0.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y