Choice Properties Real Estate Investment Trust Fundamental Analysis (TSX: CHP-UN.TO)
Choice Properties Real Estate Investment Trust Fundamental Analysis (TSX: CHP-UN.TO)
Choice Properties Real Estate Investment Trust (TSX: CHP-UN.TO) shows moderate financial fundamentals with a PE ratio of -165.64, profit margin of -5.15%, and ROE of -1.24%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 3.68%.
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 CHP-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakCHP-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCHP-UN.TO trades at attractive valuation levels.
Growth Score
WeakCHP-UN.TO faces weak or negative growth trends.
Financial Health Score
WeakCHP-UN.TO carries high financial risk with limited liquidity.
Profitability Score
WeakCHP-UN.TO struggles to sustain strong margins.
Key Financial Metrics
Is CHP-UN.TO Expensive or Cheap?
P/E Ratio
CHP-UN.TO trades at -165.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CHP-UN.TO's PEG of 1.23 indicates fair valuation.
Price to Book
The market values Choice Properties Real Estate Investment Trust at 2.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.83 times EBITDA. This is generally considered low.
How Well Does CHP-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, Choice Properties Real Estate Investment Trust keeps $-5.15 as profit after all expenses.
Operating Margin
Core operations generate 38.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.24 in profit for every $100 of shareholder equity.
ROA
Choice Properties Real Estate Investment Trust generates $-0.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Choice Properties Real Estate Investment Trust generates strong operating cash flow of $309.66M, reflecting robust business health.
Free Cash Flow
Choice Properties Real Estate Investment Trust generates strong free cash flow of $270.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
CHP-UN.TO converts 11.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-165.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CHP-UN.TO Stacks Against Its Sector Peers
| Metric | CHP-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -165.64 | 26.30 | Better (Cheaper) |
| ROE | -1.24% | 808.00% | Weak |
| Net Margin | -5.15% | 2704.00% | Weak |
| Debt/Equity | 1.62 | -37.38 (disorted) | Distorted |
| Current Ratio | 0.46 | 39.56 | Weak Liquidity |
| ROA | -0.41% | 277.00% | Weak |
CHP-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 Choice 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
9.23%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
-113.27%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
9.80%
Industry Style: Income, Inflation Hedge, REIT
Growing