TRICON RESIDENTIAL INC (TCN)

CA89612W1023 - Common Stock

11.15  0 (0%)

After market: 11.12 -0.03 (-0.27%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TCN. TCN was compared to 68 industry peers in the Real Estate Management & Development industry. While TCN is still in line with the averages on profitability rating, there are concerns on its financial health. TCN has a decent growth rate and is not valued too expensively.



6

1. Profitability

1.1 Basic Checks

In the past year TCN was profitable.
In the past year TCN had a positive cash flow from operations.
Each year in the past 5 years TCN has been profitable.
TCN had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

TCN's Return On Assets of 0.86% is fine compared to the rest of the industry. TCN outperforms 68.66% of its industry peers.
Looking at the Return On Equity, with a value of 2.96%, TCN is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.64%, TCN is doing good in the industry, outperforming 73.13% of the companies in the same industry.
Industry RankSector 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 better Profit Margin (13.44%) than 83.58% of its industry peers.
TCN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 29.82%, TCN belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
TCN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 69.17%, TCN belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
TCN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCN is destroying value.
The number of shares outstanding for TCN remains at a similar level compared to 1 year ago.
The number of shares outstanding for TCN has been increased compared to 5 years ago.
The debt/assets ratio for TCN has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.47, we must say that TCN is in the distress zone and has some risk of bankruptcy.
TCN's Altman-Z score of 0.47 is in line compared to the rest of the industry. TCN outperforms 40.30% of its industry peers.
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 comparable to the rest of the industry.
TCN has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
TCN has a worse Debt to Equity ratio (1.48) than 71.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF 65.95
Altman-Z 0.47
ROIC/WACC0.22
WACC7.61%

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 85.07% of its industry peers.
TCN has a Quick Ratio of 0.49. This is a bad value and indicates that TCN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.49, TCN is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.49

4

3. Growth

3.1 Past

TCN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.47%.
TCN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.03% yearly.
Looking at the last year, TCN shows a small growth in Revenue. The Revenue has grown by 5.48% in the last 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 growth Q2Q36.36%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y28.44%
Revenue growth 5Y94.79%
Revenue growth Q2Q15.69%

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 19.56, the valuation of TCN can be described as rather expensive.
Based on the Price/Earnings ratio, TCN is valued cheaply inside the industry as 80.60% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.48, TCN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 38.07, TCN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCN indicates a somewhat cheap valuation: TCN is cheaper than 74.63% of the companies listed in the same industry.
TCN is valuated expensively when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.56
Fwd PE 38.07

4.2 Price Multiples

64.18% of the companies in the same industry are more expensive than TCN, based on the Enterprise Value to EBITDA ratio.
71.64% of the companies in the same industry are more expensive than TCN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 33.3
EV/EBITDA 32.89

4.3 Compensation for Growth

TCN has a very decent profitability rating, which may justify a higher PE ratio.
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

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.03%, TCN has a reasonable but not impressive dividend return.
TCN's Dividend Yield is rather good when compared to the industry average which is at 4.12. TCN pays more dividend than 88.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TCN has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.03%

5.2 History

On average, the dividend of TCN grows each year by 19.89%, which is quite nice.
TCN has been paying a dividend for over 5 years, so it has already some 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

TRICON RESIDENTIAL INC

NYSE:TCN (3/28/2024, 8:04:00 PM)

After market: 11.12 -0.03 (-0.27%)

11.15

0 (0%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.05B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.03%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min 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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 19.56
Fwd PE 38.07
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.86%
ROE 2.96%
ROCE
ROIC
ROICexc
ROICexgc
OM 29.82%
PM (TTM) 13.44%
GM 69.17%
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 Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 1.48
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.49
Quick Ratio 0.49
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)-66.47%
EPS 3Y4.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y-48.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.48%
Revenue growth 3Y28.44%
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