SMARTCENTRES REAL ESTATE INV (SRU-UN.CA) Stock Fundamental Analysis
Canada - TSX:SRU-UN - CA83179X1087 - REIT
26.81 CAD
+0.02 (+0.07%)
We assign a fundamental rating of 4 out of 10 to SRU-UN. SRU-UN was compared to 37 industry peers in the Diversified REITs industry. There are concerns on the financial health of SRU-UN while its profitability can be described as average. SRU-UN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SRU-UN was profitable.
SRU-UN had a positive operating cash flow in the past year.
In the past 5 years SRU-UN has always been profitable.
Each year in the past 5 years SRU-UN had a positive operating cash flow.
1.2 Ratios
SRU-UN's Return On Assets of 1.91% is fine compared to the rest of the industry. SRU-UN outperforms 72.97% of its industry peers.
Looking at the Return On Equity, with a value of 4.43%, SRU-UN is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
With a Return On Invested Capital value of 3.45%, SRU-UN is not doing good in the industry: 67.57% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SRU-UN is below the industry average of 5.52%.
The last Return On Invested Capital (3.45%) for SRU-UN is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 4.43% | ||
| ROIC | 3.45% |
ROA(3y)3.29%
ROA(5y)3.58%
ROE(3y)7.48%
ROE(5y)8.23%
ROIC(3y)3.14%
ROIC(5y)3.13%
1.3 Margins
SRU-UN has a Profit Margin of 24.85%. This is in the better half of the industry: SRU-UN outperforms 72.97% of its industry peers.
SRU-UN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 54.21%, SRU-UN is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
SRU-UN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 60.65%, SRU-UN perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
In the last couple of years the Gross Margin of SRU-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.21% | ||
| PM (TTM) | 24.85% | ||
| GM | 60.65% |
OM growth 3Y-2.32%
OM growth 5Y-1.33%
PM growth 3Y-37.59%
PM growth 5Y-7.92%
GM growth 3Y-1.41%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRU-UN is destroying value.
SRU-UN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for SRU-UN has been increased compared to 5 years ago.
Compared to 1 year ago, SRU-UN has a worse debt to assets ratio.
2.2 Solvency
SRU-UN has an Altman-Z score of 0.69. This is a bad value and indicates that SRU-UN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SRU-UN (0.69) is better than 64.86% of its industry peers.
SRU-UN has a debt to FCF ratio of 13.31. This is a negative value and a sign of low solvency as SRU-UN would need 13.31 years to pay back of all of its debts.
The Debt to FCF ratio of SRU-UN (13.31) is better than 75.68% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that SRU-UN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, SRU-UN is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.31 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.64
WACC5.42%
2.3 Liquidity
A Current Ratio of 0.29 indicates that SRU-UN may have some problems paying its short term obligations.
SRU-UN's Current ratio of 0.29 is in line compared to the rest of the industry. SRU-UN outperforms 56.76% of its industry peers.
SRU-UN has a Quick Ratio of 0.29. This is a bad value and indicates that SRU-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 0.27, SRU-UN is in line with its industry, outperforming 59.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
SRU-UN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.30%.
The Earnings Per Share has been decreasing by -6.47% on average over the past years.
SRU-UN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
The Revenue has been growing slightly by 2.63% on average over the past years.
EPS 1Y (TTM)-16.3%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%-15.98%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-2.27%
3.2 Future
SRU-UN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.94% yearly.
Based on estimates for the next years, SRU-UN will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
EPS Next Y-28.03%
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
EPS Next 5YN/A
Revenue Next Year4.25%
Revenue Next 2Y3.31%
Revenue Next 3Y3.89%
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
Based on the Price/Earnings ratio of 12.41, the valuation of SRU-UN can be described as correct.
SRU-UN's Price/Earnings ratio is rather cheap when compared to the industry. SRU-UN is cheaper than 86.49% of the companies in the same industry.
SRU-UN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
The Price/Forward Earnings ratio is 13.27, which indicates a correct valuation of SRU-UN.
Based on the Price/Forward Earnings ratio, SRU-UN is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, SRU-UN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SRU-UN indicates a somewhat cheap valuation: SRU-UN is cheaper than 72.97% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SRU-UN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 17.85 |
4.3 Compensation for Growth
SRU-UN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.12%, SRU-UN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.94, SRU-UN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, SRU-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
5.2 History
On average, the dividend of SRU-UN grows each year by 6.39%, which is quite nice.
SRU-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
SRU-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.39%
Div Incr Years1
Div Non Decr Years22
5.3 Sustainability
116.32% of the earnings are spent on dividend by SRU-UN. This is not a sustainable payout ratio.
The Dividend Rate of SRU-UN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP116.32%
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
TSX:SRU-UN (10/2/2025, 7:00:00 PM)
26.81
+0.02 (+0.07%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners15.73%
Inst Owner ChangeN/A
Ins Owners11.11%
Ins Owner ChangeN/A
Market Cap3.88B
Analysts70
Price Target28.08 (4.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Yearly Dividend1.57
Dividend Growth(5Y)6.39%
DP116.32%
Div Incr Years1
Div Non Decr Years22
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)1.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-21.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 13.27 | ||
| P/S | 4.19 | ||
| P/FCF | 10.05 | ||
| P/OCF | 10.03 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 17.85 |
EPS(TTM)2.16
EY8.06%
EPS(NY)2.02
Fwd EY7.53%
FCF(TTM)2.67
FCFY9.95%
OCF(TTM)2.67
OCFY9.97%
SpS6.4
BVpS35.87
TBVpS35.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 4.43% | ||
| ROCE | 4.8% | ||
| ROIC | 3.45% | ||
| ROICexc | 3.46% | ||
| ROICexgc | 3.48% | ||
| OM | 54.21% | ||
| PM (TTM) | 24.85% | ||
| GM | 60.65% | ||
| FCFM | 41.69% |
ROA(3y)3.29%
ROA(5y)3.58%
ROE(3y)7.48%
ROE(5y)8.23%
ROIC(3y)3.14%
ROIC(5y)3.13%
ROICexc(3y)3.15%
ROICexc(5y)3.19%
ROICexgc(3y)3.16%
ROICexgc(5y)3.21%
ROCE(3y)4.36%
ROCE(5y)4.34%
ROICexcg growth 3Y2.83%
ROICexcg growth 5Y-0.45%
ROICexc growth 3Y2.84%
ROICexc growth 5Y-0.42%
OM growth 3Y-2.32%
OM growth 5Y-1.33%
PM growth 3Y-37.59%
PM growth 5Y-7.92%
GM growth 3Y-1.41%
GM growth 5Y-0.98%
F-Score7
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 13.31 | ||
| Debt/EBITDA | 8.24 | ||
| Cap/Depr | 45.08% | ||
| Cap/Sales | 0.06% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 76.82% | ||
| Profit Quality | 167.77% | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.69 |
F-Score7
WACC5.42%
ROIC/WACC0.64
Cap/Depr(3y)101.2%
Cap/Depr(5y)65.96%
Cap/Sales(3y)0.16%
Cap/Sales(5y)0.11%
Profit Quality(3y)102.96%
Profit Quality(5y)149.36%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.3%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%-15.98%
EPS Next Y-28.03%
EPS Next 2Y-3.32%
EPS Next 3Y-0.94%
EPS Next 5YN/A
Revenue 1Y (TTM)7.4%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-2.27%
Revenue Next Year4.25%
Revenue Next 2Y3.31%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y7.22%
EBIT growth 3Y3.11%
EBIT growth 5Y1.27%
EBIT Next Year15%
EBIT Next 3Y7.31%
EBIT Next 5YN/A
FCF growth 1Y5.69%
FCF growth 3Y0.21%
FCF growth 5Y1.65%
OCF growth 1Y5.3%
OCF growth 3Y0.23%
OCF growth 5Y1.6%