RioCan Real Estate Investment Trust Fundamental Analysis
RioCan Real Estate Investment Trust (RIOCF) shows moderate financial fundamentals with a PE ratio of 19.18, profit margin of 17.34%, and ROE of 3.43%. The company generates $2.0B in annual revenue with strong year-over-year growth of 14.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RIOCF's fundamental strength across five key dimensions:
Efficiency Score
WeakRIOCF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRIOCF trades at attractive valuation levels.
Growth Score
ModerateRIOCF shows steady but slowing expansion.
Financial Health Score
WeakRIOCF carries high financial risk with limited liquidity.
Profitability Score
ModerateRIOCF maintains healthy but balanced margins.
Key Financial Metrics
Is RIOCF Expensive or Cheap?
P/E Ratio
RIOCF trades at 19.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RIOCF's PEG of -3.99 indicates potential undervaluation.
Price to Book
The market values RioCan Real Estate Investment Trust at 0.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.52 times EBITDA. This is generally considered low.
How Well Does RIOCF Make Money?
Net Profit Margin
For every $100 in sales, RioCan Real Estate Investment Trust keeps $17.34 as profit after all expenses.
Operating Margin
Core operations generate 49.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.43 in profit for every $100 of shareholder equity.
ROA
RioCan Real Estate Investment Trust generates $1.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RioCan Real Estate Investment Trust generates strong operating cash flow of $627.71M, reflecting robust business health.
Free Cash Flow
RioCan Real Estate Investment Trust generates strong free cash flow of $356.14M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.23 in free cash annually.
FCF Yield
RIOCF converts 3.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.36
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
0.05
vs 25 benchmark
How RIOCF Stacks Against Its Sector Peers
| Metric | RIOCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.18 | 23.27 | Better (Cheaper) |
| ROE | 3.43% | 680.00% | Weak |
| Net Margin | 17.34% | 1953.00% | Weak |
| Debt/Equity | 1.04 | -17.04 (disorted) | Distorted |
| Current Ratio | 0.36 | 23.29 | Weak Liquidity |
| ROA | 1.65% | -758.00% (disorted) | Weak |
RIOCF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RioCan 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
39.16%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
214.86%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-15.65%
Industry Style: Income, Inflation Hedge, REIT
Declining