Nexus Industrial REIT
Nexus Industrial REIT Fundamental Analysis
Nexus Industrial REIT (NXR-UN.TO) shows strong financial fundamentals with a PE ratio of 12.12, profit margin of 34.02%, and ROE of 5.54%. The company generates $0.1B in annual revenue with strong year-over-year growth of 11.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NXR-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakNXR-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNXR-UN.TO trades at attractive valuation levels.
Growth Score
ModerateNXR-UN.TO shows steady but slowing expansion.
Financial Health Score
WeakNXR-UN.TO carries high financial risk with limited liquidity.
Profitability Score
ModerateNXR-UN.TO maintains healthy but balanced margins.
Key Financial Metrics
Is NXR-UN.TO Expensive or Cheap?
P/E Ratio
NXR-UN.TO trades at 12.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NXR-UN.TO's PEG of -0.48 indicates potential undervaluation.
Price to Book
The market values Nexus Industrial REIT at 0.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.82 times EBITDA. This is generally considered low.
How Well Does NXR-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, Nexus Industrial REIT keeps $34.02 as profit after all expenses.
Operating Margin
Core operations generate 70.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.54 in profit for every $100 of shareholder equity.
ROA
Nexus Industrial REIT generates $2.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nexus Industrial REIT produces operating cash flow of $31.90M, showing steady but balanced cash generation.
Free Cash Flow
Nexus Industrial REIT generates strong free cash flow of $19.87M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
NXR-UN.TO converts 5.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How NXR-UN.TO Stacks Against Its Sector Peers
| Metric | NXR-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.12 | 22.38 | Better (Cheaper) |
| ROE | 5.54% | 721.00% | Weak |
| Net Margin | 34.02% | -37440.00% (disorted) | Strong |
| Debt/Equity | 1.20 | -20.85 (disorted) | Distorted |
| Current Ratio | 0.13 | 1953.62 | Weak Liquidity |
| ROA | 2.25% | -1450.00% (disorted) | Weak |
NXR-UN.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nexus Industrial REIT's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.81%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-1.89%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-47.46%
Industry Style: Income, Inflation Hedge, REIT
Declining