Tricon Residential Inc (TCN.CA) Stock Fundamental Analysis
Canada - TSX:TCN - CA89612W1023 - Common Stock
15.34 CAD
-0.12 (-0.78%)
Taking everything into account, TCN scores 4 out of 10 in our fundamental rating. TCN was compared to 33 industry peers in the Real Estate Management & Development industry. TCN has a medium profitability rating, but doesn't score so well on its financial health evaluation. TCN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TCN had positive earnings in the past year.
TCN had a positive operating cash flow in the past year.
TCN had positive earnings in each of the past 5 years.
Of the past 5 years TCN 4 years had a positive operating cash flow.
1.2 Ratios
TCN has a better Return On Assets (0.86%) than 70.59% of its industry peers.
TCN's Return On Equity of 2.96% is fine compared to the rest of the industry. TCN outperforms 73.53% of its industry peers.
With a Return On Invested Capital value of 1.64%, TCN is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.96% | ||
| ROIC | 1.64% |
ROA(3y)4.08%
ROA(5y)3.73%
ROE(3y)12.96%
ROE(5y)10.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TCN has a Profit Margin of 13.44%. This is amongst the best in the industry. TCN outperforms 85.29% of its industry peers.
TCN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 29.82%, TCN is doing good in the industry, outperforming 67.65% of the companies in the same industry.
In the last couple of years the Operating Margin of TCN has declined.
With an excellent Gross Margin value of 69.17%, TCN belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
In the last couple of years the Gross Margin of TCN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.82% | ||
| PM (TTM) | 13.44% | ||
| GM | 69.17% |
OM growth 3Y-5.22%
OM growth 5YN/A
PM growth 3Y-21.94%
PM growth 5Y-54.81%
GM growth 3Y-0.28%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCN is destroying value.
Compared to 1 year ago, TCN has about the same amount of shares outstanding.
Compared to 5 years ago, TCN has more shares outstanding
Compared to 1 year ago, TCN has an improved debt to assets ratio.
2.2 Solvency
TCN has an Altman-Z score of 0.49. This is a bad value and indicates that TCN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.49, TCN is doing worse than 79.41% of the companies in the same industry.
The Debt to FCF ratio of TCN is 65.95, which is on the high side as it means it would take TCN, 65.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TCN (65.95) is better than 64.71% of its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that TCN has dependencies on debt financing.
TCN's Debt to Equity ratio of 1.48 is on the low side compared to the rest of the industry. TCN is outperformed by 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 65.95 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.22
WACC7.57%
2.3 Liquidity
A Current Ratio of 0.49 indicates that TCN may have some problems paying its short term obligations.
The Current ratio of TCN (0.49) is worse than 61.76% of its industry peers.
A Quick Ratio of 0.49 indicates that TCN may have some problems paying its short term obligations.
The Quick ratio of TCN (0.49) is worse than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for TCN have decreased strongly by -66.47% in the last year.
TCN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.03% yearly.
The Revenue has been growing slightly by 5.48% in the past year.
The Revenue has been growing by 94.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-66.47%
EPS 3Y4.46%
EPS 5Y-17.03%
EPS Q2Q%36.36%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y28.44%
Revenue growth 5Y94.79%
Sales Q2Q%15.69%
3.2 Future
TCN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.81% yearly.
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
EPS Next Y-48.61%
EPS Next 2Y-15.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.66%
Revenue Next 2Y8.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.67, the valuation of TCN can be described as rather expensive.
79.41% of the companies in the same industry are more expensive than TCN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TCN to the average of the S&P500 Index (26.06), we can say TCN is valued slightly cheaper.
A Price/Forward Earnings ratio of 38.28 indicates a quite expensive valuation of TCN.
TCN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TCN is cheaper than 70.59% of the companies in the same industry.
TCN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 38.28 |
4.2 Price Multiples
TCN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TCN is valued a bit cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.33 | ||
| EV/EBITDA | 33.91 |
4.3 Compensation for Growth
A cheap valuation may be justified as TCN's earnings are expected to decrease with -15.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, TCN has a reasonable but not impressive dividend return.
TCN's Dividend Yield is a higher than the industry average which is at 3.41.
TCN's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of TCN is nicely growing with an annual growth rate of 19.89%!
TCN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TCN pays out 84.00% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of TCN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP84%
EPS Next 2Y-15.81%
EPS Next 3YN/A
TSX:TCN (5/2/2024, 7:00:00 PM)
15.34
-0.12 (-0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners36.51%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.55B
Revenue(TTM)849.71M
Net Income(TTM)114.24M
Analysts71.11
Price Target12.26 (-20.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.35
Dividend Growth(5Y)19.89%
DP84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)172.28%
Min EPS beat(2)147.53%
Max EPS beat(2)197.03%
EPS beat(4)3
Avg EPS beat(4)110.4%
Min EPS beat(4)-0.99%
Max EPS beat(4)197.03%
EPS beat(8)7
Avg EPS beat(8)235.95%
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)2
Avg Revenue beat(2)85.19%
Min Revenue beat(2)79.44%
Max Revenue beat(2)90.95%
Revenue beat(4)4
Avg Revenue beat(4)80.48%
Min Revenue beat(4)72.02%
Max Revenue beat(4)90.95%
Revenue beat(8)8
Avg Revenue beat(8)71.53%
Revenue beat(12)11
Avg Revenue beat(12)50.84%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.26%
PT rev (3m)4.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
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 | 19.67 | ||
| Fwd PE | 38.28 | ||
| P/S | 3.92 | ||
| P/FCF | 36.33 | ||
| P/OCF | 24.11 | ||
| P/B | 0.86 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 33.91 |
EPS(TTM)0.78
EY5.08%
EPS(NY)0.4
Fwd EY2.61%
FCF(TTM)0.42
FCFY2.75%
OCF(TTM)0.64
OCFY4.15%
SpS3.92
BVpS17.81
TBVpS17.65
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 2.96% | ||
| ROCE | 2% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.67% | ||
| ROICexgc | 1.67% | ||
| OM | 29.82% | ||
| PM (TTM) | 13.44% | ||
| GM | 69.17% | ||
| FCFM | 10.78% |
ROA(3y)4.08%
ROA(5y)3.73%
ROE(3y)12.96%
ROE(5y)10.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-1.7%
ROICexgc growth 5YN/A
ROICexc growth 3Y-1.2%
ROICexc growth 5YN/A
OM growth 3Y-5.22%
OM growth 5YN/A
PM growth 3Y-21.94%
PM growth 5Y-54.81%
GM growth 3Y-0.28%
GM growth 5YN/A
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 65.95 | ||
| Debt/EBITDA | 21.13 | ||
| Cap/Depr | 261.04% | ||
| Cap/Sales | 5.47% | ||
| Interest Coverage | 0.87 | ||
| Cash Conversion | 50.9% | ||
| Profit Quality | 80.17% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.49 |
F-Score5
WACC7.57%
ROIC/WACC0.22
Cap/Depr(3y)254.57%
Cap/Depr(5y)208.56%
Cap/Sales(3y)5.52%
Cap/Sales(5y)8.97%
Profit Quality(3y)42.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.47%
EPS 3Y4.46%
EPS 5Y-17.03%
EPS Q2Q%36.36%
EPS Next Y-48.61%
EPS Next 2Y-15.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.48%
Revenue growth 3Y28.44%
Revenue growth 5Y94.79%
Sales Q2Q%15.69%
Revenue Next Year6.66%
Revenue Next 2Y8.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y152.14%
EBIT growth 3Y21.74%
EBIT growth 5YN/A
EBIT Next Year27.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.91%
FCF growth 3Y-11.02%
FCF growth 5YN/A
OCF growth 1Y-48.93%
OCF growth 3Y-1.17%
OCF growth 5YN/A
Tricon Residential Inc / TCN.CA FAQ
Can you provide the ChartMill fundamental rating for Tricon Residential Inc?
ChartMill assigns a fundamental rating of 4 / 10 to TCN.CA.
What is the valuation status for TCN stock?
ChartMill assigns a valuation rating of 3 / 10 to Tricon Residential Inc (TCN.CA). This can be considered as Overvalued.
Can you provide the profitability details for Tricon Residential Inc?
Tricon Residential Inc (TCN.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of Tricon Residential Inc (TCN.CA) stock?
The Price/Earnings (PE) ratio for Tricon Residential Inc (TCN.CA) is 19.67 and the Price/Book (PB) ratio is 0.86.
Is the dividend of Tricon Residential Inc sustainable?
The dividend rating of Tricon Residential Inc (TCN.CA) is 4 / 10 and the dividend payout ratio is 84%.