SMARTCENTRES REAL ESTATE INV (SRU-UN.CA) Stock Fundamental Analysis
TSX:SRU-UN - Toronto Stock Exchange - CA83179X1087 - REIT - Currency: CAD
Overall SRU-UN gets a fundamental rating of 4 out of 10. We evaluated SRU-UN against 38 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 has a valuation in line with the averages, 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.
In the past 5 years SRU-UN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.06%, SRU-UN is doing good in the industry, outperforming 71.05% of the companies in the same industry.
With a decent Return On Equity value of 4.76%, SRU-UN is doing good in the industry, outperforming 65.79% of the companies in the same industry.
SRU-UN's Return On Invested Capital of 3.38% is on the low side compared to the rest of the industry. SRU-UN is outperformed by 76.32% of its industry peers.
SRU-UN had an Average Return On Invested Capital over the past 3 years of 3.14%. This is below the industry average of 5.66%.
The 3 year average ROIC (3.14%) for SRU-UN is below the current ROIC(3.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.76% | ||
| ROIC | 3.38% |
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
Looking at the Profit Margin, with a value of 26.46%, SRU-UN is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
In the last couple of years the Profit Margin of SRU-UN has declined.
Looking at the Operating Margin, with a value of 53.12%, SRU-UN is in line with its industry, outperforming 55.26% of the companies in the same industry.
SRU-UN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.49%, SRU-UN is in line with its industry, outperforming 55.26% 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 | 53.12% | ||
| PM (TTM) | 26.46% | ||
| GM | 59.49% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRU-UN is destroying value.
Compared to 1 year ago, SRU-UN has about the same amount of shares outstanding.
SRU-UN has more shares outstanding than it did 5 years ago.
SRU-UN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that SRU-UN is in the distress zone and has some risk of bankruptcy.
SRU-UN has a better Altman-Z score (0.68) than 65.79% of its industry peers.
The Debt to FCF ratio of SRU-UN is 13.19, which is on the high side as it means it would take SRU-UN, 13.19 years of fcf income to pay off all of its debts.
SRU-UN's Debt to FCF ratio of 13.19 is fine compared to the rest of the industry. SRU-UN outperforms 76.32% of its industry peers.
SRU-UN has a Debt/Equity ratio of 0.82. This is a neutral value indicating SRU-UN is somewhat dependend on debt financing.
The Debt to Equity ratio of SRU-UN (0.82) is better than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 13.19 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.63
WACC5.32%
2.3 Liquidity
A Current Ratio of 0.23 indicates that SRU-UN may have some problems paying its short term obligations.
SRU-UN has a Current ratio (0.23) which is comparable to the rest of the industry.
SRU-UN has a Quick Ratio of 0.23. 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.
The Quick ratio of SRU-UN (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
SRU-UN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.41%.
SRU-UN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.47% yearly.
The Revenue has grown by 10.61% in the past year. This is quite good.
SRU-UN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.63% yearly.
EPS 1Y (TTM)-2.41%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%3.42%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-40.38%
3.2 Future
SRU-UN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.29% yearly.
The Revenue is expected to grow by 1.89% on average over the next years.
EPS Next Y-8.87%
EPS Next 2Y-4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.46%
Revenue Next 2Y3.34%
Revenue Next 3Y1.89%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.78, which indicates a very decent valuation of SRU-UN.
Compared to the rest of the industry, the Price/Earnings ratio of SRU-UN indicates a rather cheap valuation: SRU-UN is cheaper than 86.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SRU-UN is valued rather cheaply.
SRU-UN is valuated correctly with a Price/Forward Earnings ratio of 12.98.
SRU-UN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SRU-UN is cheaper than 65.79% of the companies in the same industry.
SRU-UN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
SRU-UN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SRU-UN is cheaper than 71.05% of the companies in the same industry.
60.53% of the companies in the same industry are more expensive than SRU-UN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 17.71 |
4.3 Compensation for Growth
A cheap valuation may be justified as SRU-UN's earnings are expected to decrease with -4.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.12%, SRU-UN is a good candidate for dividend investing.
SRU-UN's Dividend Yield is comparable with the industry average which is at 7.95.
SRU-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| 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
SRU-UN pays out 108.73% of its income as dividend. This is not a sustainable payout ratio.
SRU-UN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP108.73%
EPS Next 2Y-4.29%
EPS Next 3YN/A
TSX:SRU-UN (7/11/2025, 7:00:00 PM)
25.69
+0.07 (+0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners16.95%
Inst Owner ChangeN/A
Ins Owners11.14%
Ins Owner ChangeN/A
Market Cap3.72B
Analysts70
Price Target27.7 (7.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Yearly Dividend1.57
Dividend Growth(5Y)6.39%
DP108.73%
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)0.23%
PT rev (3m)0.58%
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)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 12.98 | ||
| P/S | 3.99 | ||
| P/FCF | 9.64 | ||
| P/OCF | 9.62 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 17.71 |
EPS(TTM)2.18
EY8.49%
EPS(NY)1.98
Fwd EY7.71%
FCF(TTM)2.67
FCFY10.38%
OCF(TTM)2.67
OCFY10.39%
SpS6.43
BVpS35.72
TBVpS35.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 4.76% | ||
| ROCE | 4.69% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 3.4% | ||
| OM | 53.12% | ||
| PM (TTM) | 26.46% | ||
| GM | 59.49% | ||
| FCFM | 41.45% |
ROA(3y)3.29%
ROA(5y)3.58%
ROE(3y)7.48%
ROE(5y)8.23%
ROIC(3y)3.14%
ROIC(5y)3.13%
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-Score4
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 13.19 | ||
| Debt/EBITDA | 8.6 | ||
| Cap/Depr | 42.07% | ||
| Cap/Sales | 0.06% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 77.93% | ||
| Profit Quality | 156.67% | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 | ||
| Altman-Z | 0.68 |
F-Score4
WACC5.32%
ROIC/WACC0.63
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)-2.41%
EPS 3Y-34.98%
EPS 5Y-6.47%
EPS Q2Q%3.42%
EPS Next Y-8.87%
EPS Next 2Y-4.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.61%
Revenue growth 3Y5.56%
Revenue growth 5Y2.63%
Sales Q2Q%-40.38%
Revenue Next Year4.46%
Revenue Next 2Y3.34%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
EBIT growth 1Y6.28%
EBIT growth 3Y3.11%
EBIT growth 5Y1.27%
EBIT Next Year15.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y10.74%
FCF growth 3Y0.21%
FCF growth 5Y1.65%
OCF growth 1Y10.39%
OCF growth 3Y0.23%
OCF growth 5Y1.6%