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European Residential Real Estate Investment Trust

ERE-UN.TO•TSX
Real Estate
REIT - Residential
$1.17
$-0.01(-0.85%)
Canadian Market is Open • 15:28

European Residential Real Estate Investment Trust Fundamental Analysis

European Residential Real Estate Investment Trust (ERE-UN.TO) shows weak financial fundamentals with a PE ratio of -2.43, profit margin of -1.84%, and ROE of -42.65%. The company generates $0.0B in annual revenue with weak year-over-year growth of -2.84%.

Key Strengths

PEG Ratio-0.11

Areas of Concern

ROE-42.65%
Operating Margin3.89%
Current Ratio0.88
We analyze ERE-UN.TO's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of -169.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

F
-169.6/100

We analyze ERE-UN.TO's fundamental strength across five key dimensions:

Efficiency Score

Weak

ERE-UN.TO struggles to generate sufficient returns from assets.

ROA > 10%
-21.41%

Valuation Score

Excellent

ERE-UN.TO trades at attractive valuation levels.

PE < 25
-2.43
PEG Ratio < 2
-0.11

Growth Score

Moderate

ERE-UN.TO shows steady but slowing expansion.

Revenue Growth > 5%
-2.84%
EPS Growth > 10%
44.90%

Financial Health Score

Moderate

ERE-UN.TO shows balanced financial health with some risks.

Debt/Equity < 1
0.96
Current Ratio > 1
0.88

Profitability Score

Weak

ERE-UN.TO struggles to sustain strong margins.

ROE > 15%
-4265.29%
Net Margin ≥ 15%
-1.84%
Positive Free Cash Flow
No

Key Financial Metrics

Is ERE-UN.TO Expensive or Cheap?

P/E Ratio

ERE-UN.TO trades at -2.43 times earnings. This suggests potential undervaluation.

-2.43

PEG Ratio

When adjusting for growth, ERE-UN.TO's PEG of -0.11 indicates potential undervaluation.

-0.11

Price to Book

The market values European Residential Real Estate Investment Trust at 1.65 times its book value. This may indicate undervaluation.

1.65

EV/EBITDA

Enterprise value stands at -0.18 times EBITDA. This is generally considered low.

-0.18

How Well Does ERE-UN.TO Make Money?

Net Profit Margin

For every $100 in sales, European Residential Real Estate Investment Trust keeps $-1.84 as profit after all expenses.

-1.84%

Operating Margin

Core operations generate 3.89 in profit for every $100 in revenue, before interest and taxes.

3.89%

ROE

Management delivers $-42.65 in profit for every $100 of shareholder equity.

-42.65%

ROA

European Residential Real Estate Investment Trust generates $-21.41 in profit for every $100 in assets, demonstrating efficient asset deployment.

-21.41%

Following the Money - Real Cash Generation

Operating Cash Flow

European Residential Real Estate Investment Trust generates limited operating cash flow of $-45.36M, signaling weaker underlying cash strength.

$-45.36M

Free Cash Flow

European Residential Real Estate Investment Trust generates weak or negative free cash flow of $-46.97M, restricting financial flexibility.

$-46.97M

FCF Per Share

Each share generates $-0.50 in free cash annually.

$-0.50

FCF Yield

ERE-UN.TO converts -1.75% of its market value into free cash.

-1.75%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

-2.43

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

-0.11

vs 25 benchmark

P/B Ratio

Price to book value ratio

1.65

vs 25 benchmark

P/S Ratio

Price to sales ratio

1.77

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.96

vs 25 benchmark

Current Ratio

Current assets to current liabilities

0.88

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

-0.43

vs 25 benchmark

ROA

Return on assets percentage

-0.21

vs 25 benchmark

ROCE

Return on capital employed

0.72

vs 25 benchmark

How ERE-UN.TO Stacks Against Its Sector Peers

MetricERE-UN.TO ValueSector AveragePerformance
P/E Ratio-2.4323.52 Better (Cheaper)
ROE-42.65%713.00% Weak
Net Margin-184.14%-37607.00% (disorted) Weak
Debt/Equity0.96-20.98 (disorted) Distorted
Current Ratio0.8816.81 Weak Liquidity
ROA-21.41%-938.00% (disorted) Weak

ERE-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 European Residential 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

35.04%

Industry Style: Income, Inflation Hedge, REIT

High Growth

EPS CAGR

-130.49%

Industry Style: Income, Inflation Hedge, REIT

Declining

FCF CAGR

43.69%

Industry Style: Income, Inflation Hedge, REIT

High Growth

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