European Residential Real Estate Investment Trust Fundamental Analysis (TSX: ERE-UN.TO)
European Residential Real Estate Investment Trust Fundamental Analysis (TSX: ERE-UN.TO)
European Residential Real Estate Investment Trust (TSX: 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 N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -208.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ERE-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakERE-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentERE-UN.TO trades at attractive valuation levels.
Growth Score
WeakERE-UN.TO faces weak or negative growth trends.
Financial Health Score
ModerateERE-UN.TO shows balanced financial health with some risks.
Profitability Score
WeakERE-UN.TO struggles to sustain strong margins.
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.
PEG Ratio
When adjusting for growth, ERE-UN.TO's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values European Residential Real Estate Investment Trust at 1.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.17 times EBITDA. This is generally considered low.
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.
Operating Margin
Core operations generate 3.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-42.65 in profit for every $100 of shareholder equity.
ROA
European Residential Real Estate Investment Trust generates $-21.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
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.
Free Cash Flow
European Residential Real Estate Investment Trust generates weak or negative free cash flow of $-46.97M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.50 in free cash annually.
FCF Yield
ERE-UN.TO converts -1.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
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
| Metric | ERE-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.43 | 25.83 | Better (Cheaper) |
| ROE | -42.65% | 801.00% | Weak |
| Net Margin | -184.14% | 2686.00% | Weak |
| Debt/Equity | 0.96 | -37.24 (disorted) | Distorted |
| Current Ratio | 0.88 | 39.42 | Weak Liquidity |
| ROA | -21.41% | 275.00% | 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
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT