Granite Real Estate Investment Trust Fundamental Analysis (NYSE: GRP-UN)
Granite Real Estate Investment Trust Fundamental Analysis (NYSE: GRP-UN)
Granite Real Estate Investment Trust (NYSE: GRP-UN) shows weak financial fundamentals with a PE ratio of 31.62, profit margin of 53.93%, and ROE of 2.99%. The company generates $0.3B 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 57.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GRP-UN's fundamental strength across five key dimensions:
Efficiency Score
WeakGRP-UN struggles to generate sufficient returns from assets.
Valuation Score
ModerateGRP-UN shows balanced valuation metrics.
Growth Score
ModerateGRP-UN shows steady but slowing expansion.
Financial Health Score
ExcellentGRP-UN maintains a strong and stable balance sheet.
Profitability Score
ExcellentGRP-UN achieves industry-leading margins.
Key Financial Metrics
Is GRP-UN Expensive or Cheap?
P/E Ratio
GRP-UN trades at 31.62 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GRP-UN's PEG of -6.02 indicates potential undervaluation.
Price to Book
The market values Granite Real Estate Investment Trust at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.20 times EBITDA. This is generally considered low.
How Well Does GRP-UN Make Money?
Net Profit Margin
For every $100 in sales, Granite Real Estate Investment Trust keeps $53.93 as profit after all expenses.
Operating Margin
Core operations generate 74.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.99 in profit for every $100 of shareholder equity.
ROA
Granite Real Estate Investment Trust generates $1.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Granite Real Estate Investment Trust generates strong operating cash flow of $193.49M, reflecting robust business health.
Free Cash Flow
Granite Real Estate Investment Trust generates strong free cash flow of $193.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.19 in free cash annually.
FCF Yield
GRP-UN converts 3.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How GRP-UN Stacks Against Its Sector Peers
| Metric | GRP-UN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.62 | 25.20 | Worse (Expensive) |
| ROE | 2.99% | 792.00% | Weak |
| Net Margin | 53.93% | 2757.00% | Weak |
| Debt/Equity | 0.61 | -37.87 (disorted) | Distorted |
| Current Ratio | 1.82 | 51.33 | Neutral |
| ROA | 1.69% | 284.00% | Weak |
GRP-UN outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Granite 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