H&R Real Estate Investment Trust Fundamental Analysis (TSX: HR-UN.TO)
H&R Real Estate Investment Trust Fundamental Analysis (TSX: HR-UN.TO)
H&R Real Estate Investment Trust (TSX: HR-UN.TO) shows weak financial fundamentals with a PE ratio of -4.68, profit margin of -75.17%, and ROE of -13.51%. The company generates $0.8B in annual revenue with weak year-over-year growth of -0.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -45.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HR-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakHR-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHR-UN.TO trades at attractive valuation levels.
Growth Score
WeakHR-UN.TO faces weak or negative growth trends.
Financial Health Score
ExcellentHR-UN.TO maintains a strong and stable balance sheet.
Profitability Score
WeakHR-UN.TO struggles to sustain strong margins.
Key Financial Metrics
Is HR-UN.TO Expensive or Cheap?
P/E Ratio
HR-UN.TO trades at -4.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HR-UN.TO's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values H&R Real Estate Investment Trust at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.45 times EBITDA. This is generally considered low.
How Well Does HR-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, H&R Real Estate Investment Trust keeps $-75.17 as profit after all expenses.
Operating Margin
Core operations generate 59.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-13.51 in profit for every $100 of shareholder equity.
ROA
H&R Real Estate Investment Trust generates $-7.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H&R Real Estate Investment Trust generates strong operating cash flow of $206.85M, reflecting robust business health.
Free Cash Flow
H&R Real Estate Investment Trust generates strong free cash flow of $179.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.68 in free cash annually.
FCF Yield
HR-UN.TO converts 6.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-4.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HR-UN.TO Stacks Against Its Sector Peers
| Metric | HR-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -4.68 | 25.83 | Better (Cheaper) |
| ROE | -13.51% | 801.00% | Weak |
| Net Margin | -75.17% | 2686.00% | Weak |
| Debt/Equity | 0.60 | -37.24 (disorted) | Distorted |
| Current Ratio | 2.29 | 39.42 | Strong Liquidity |
| ROA | -7.03% | 275.00% | Weak |
HR-UN.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H&R 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
-18.96%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-38.44%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-51.79%
Industry Style: Income, Inflation Hedge, REIT
Declining