Tricon Residential Inc.
Tricon Residential Inc. Fundamental Analysis
Tricon Residential Inc. (TCN.TO) shows weak financial fundamentals with a PE ratio of 24.73, profit margin of 14.34%, and ROE of 3.18%. The company generates $0.8B 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 27.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TCN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTCN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTCN.TO trades at attractive valuation levels.
Growth Score
ModerateTCN.TO shows steady but slowing expansion.
Financial Health Score
WeakTCN.TO carries high financial risk with limited liquidity.
Profitability Score
WeakTCN.TO struggles to sustain strong margins.
Key Financial Metrics
Is TCN.TO Expensive or Cheap?
P/E Ratio
TCN.TO trades at 24.73 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TCN.TO's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Tricon Residential Inc. at 0.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.59 times EBITDA. This is generally considered low.
How Well Does TCN.TO Make Money?
Net Profit Margin
For every $100 in sales, Tricon Residential Inc. keeps $14.34 as profit after all expenses.
Operating Margin
Core operations generate 44.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.18 in profit for every $100 of shareholder equity.
ROA
Tricon Residential Inc. generates $0.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tricon Residential Inc. produces operating cash flow of $137.52M, showing steady but balanced cash generation.
Free Cash Flow
Tricon Residential Inc. generates strong free cash flow of $91.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
TCN.TO converts 3.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How TCN.TO Stacks Against Its Sector Peers
| Metric | TCN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.73 | 22.30 | Worse (Expensive) |
| ROE | 3.18% | 718.00% | Weak |
| Net Margin | 14.34% | -37395.00% (disorted) | Strong |
| Debt/Equity | 1.50 | -20.81 (disorted) | Distorted |
| Current Ratio | 0.49 | 1949.84 | Weak Liquidity |
| ROA | 0.92% | -1450.00% (disorted) | Weak |
TCN.TO outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tricon Residential Inc.'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