SMARTCENTRES REAL ESTATE INV (SRU-UN.CA) Stock Fundamental Analysis
TSX:SRU-UN - Toronto Stock Exchange - CA83179X1087 - REIT - Currency: CAD
SRU-UN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past year SRU-UN had a positive cash flow from operations.
Each year in the past 5 years SRU-UN has been profitable.
In the past 5 years SRU-UN always reported a positive cash flow from operatings.
1.2 Ratios
SRU-UN's Return On Assets of 2.06% is fine compared to the rest of the industry. SRU-UN outperforms 75.68% of its industry peers.
Looking at the Return On Equity, with a value of 4.76%, SRU-UN is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
SRU-UN has a Return On Invested Capital of 3.38%. This is in the lower half of the industry: SRU-UN underperforms 75.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SRU-UN is below the industry average of 5.78%.
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
SRU-UN's Profit Margin of 26.46% is fine compared to the rest of the industry. SRU-UN outperforms 75.68% of its industry peers.
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 54.05% of the companies in the same industry.
In the last couple of years the Operating Margin of SRU-UN has remained more or less at the same level.
SRU-UN has a Gross Margin (59.49%) which is comparable to the rest of the industry.
SRU-UN's Gross Margin has been stable in the last couple of years.
| 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
SRU-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
SRU-UN has an Altman-Z score of 0.68. This is a bad value and indicates that SRU-UN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.68, SRU-UN is doing good in the industry, outperforming 64.86% of the companies in the same industry.
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.
The Debt to FCF ratio of SRU-UN (13.19) is better than 75.68% 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.
SRU-UN has a better Debt to Equity ratio (0.82) than 75.68% 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.
Looking at the Current ratio, with a value of 0.23, SRU-UN is in line with its industry, outperforming 48.65% of the companies in the same industry.
A Quick Ratio of 0.21 indicates that SRU-UN may have some problems paying its short term obligations.
SRU-UN has a Quick ratio of 0.21. This is comparable to the rest of the industry: SRU-UN outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
The earnings per share for SRU-UN have decreased by -2.41% in the last year.
SRU-UN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.47% yearly.
SRU-UN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.61%.
The Revenue has been growing slightly by 2.63% on average over the past years.
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
The Earnings Per Share is expected to decrease by -4.29% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.65, the valuation of SRU-UN can be described as very reasonable.
86.49% of the companies in the same industry are more expensive than SRU-UN, based on the Price/Earnings ratio.
SRU-UN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.93.
Based on the Price/Forward Earnings ratio of 12.83, the valuation of SRU-UN can be described as correct.
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.
The average S&P500 Price/Forward Earnings ratio is at 37.78. SRU-UN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SRU-UN is valued a bit cheaper than the industry average as 70.27% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SRU-UN is valued a bit cheaper than the industry average as 62.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 17.62 |
4.3 Compensation for Growth
SRU-UN's earnings are expected to decrease with -4.29% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SRU-UN has a Yearly Dividend Yield of 7.12%, which is a nice return.
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 2.32, SRU-UN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
5.2 History
The dividend of SRU-UN is nicely growing with an annual growth rate of 6.39%!
SRU-UN has paid a dividend for at least 10 years, which is a reliable track record.
SRU-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
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 (7/28/2025, 7:00:00 PM)
25.4
-0.33 (-1.28%)
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 Cap3.68B
Analysts70
Price Target27.7 (9.06%)
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%
PT rev (3m)1.52%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 12.83 | ||
| P/S | 3.95 | ||
| P/FCF | 9.53 | ||
| P/OCF | 9.52 | ||
| P/B | 0.71 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 17.62 |
EPS(TTM)2.18
EY8.58%
EPS(NY)1.98
Fwd EY7.79%
FCF(TTM)2.67
FCFY10.49%
OCF(TTM)2.67
OCFY10.51%
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%