Canadian Apartment Properties Real Estate Investment Trust Fundamental Analysis (TSX: CAR-UN.TO)
Canadian Apartment Properties Real Estate Investment Trust Fundamental Analysis (TSX: CAR-UN.TO)
Canadian Apartment Properties Real Estate Investment Trust (TSX: CAR-UN.TO) shows weak financial fundamentals with a PE ratio of -40.24, profit margin of -13.32%, and ROE of -1.53%. The company generates $1.0B in annual revenue with weak year-over-year growth of -9.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -5.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CAR-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCAR-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCAR-UN.TO trades at attractive valuation levels.
Growth Score
WeakCAR-UN.TO faces weak or negative growth trends.
Financial Health Score
ModerateCAR-UN.TO shows balanced financial health with some risks.
Profitability Score
WeakCAR-UN.TO struggles to sustain strong margins.
Key Financial Metrics
Is CAR-UN.TO Expensive or Cheap?
P/E Ratio
CAR-UN.TO trades at -40.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CAR-UN.TO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Canadian Apartment Properties Real Estate Investment Trust at 0.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.35 times EBITDA. This is generally considered low.
How Well Does CAR-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, Canadian Apartment Properties Real Estate Investment Trust keeps $-13.32 as profit after all expenses.
Operating Margin
Core operations generate 60.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.53 in profit for every $100 of shareholder equity.
ROA
Canadian Apartment Properties Real Estate Investment Trust generates $-0.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canadian Apartment Properties Real Estate Investment Trust generates strong operating cash flow of $419.39M, reflecting robust business health.
Free Cash Flow
Canadian Apartment Properties Real Estate Investment Trust generates strong free cash flow of $179.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.17 in free cash annually.
FCF Yield
CAR-UN.TO converts 3.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-40.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How CAR-UN.TO Stacks Against Its Sector Peers
| Metric | CAR-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -40.24 | 25.83 | Better (Cheaper) |
| ROE | -1.53% | 801.00% | Weak |
| Net Margin | -13.32% | 2686.00% | Weak |
| Debt/Equity | 0.73 | -37.24 (disorted) | Distorted |
| Current Ratio | 0.20 | 39.42 | Weak Liquidity |
| ROA | -0.89% | 275.00% | Weak |
CAR-UN.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canadian Apartment Properties Real Estate Investment Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.15%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-77.13%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
26.98%
Industry Style: Income, Inflation Hedge, REIT
High Growth