True North Commercial REIT Fundamental Analysis (TSX: TNT-UN.TO)
True North Commercial REIT Fundamental Analysis (TSX: TNT-UN.TO)
True North Commercial REIT (TSX: TNT-UN.TO) shows weak financial fundamentals with a PE ratio of -5.24, profit margin of -18.48%, and ROE of -6.30%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -11.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TNT-UN.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTNT-UN.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTNT-UN.TO trades at attractive valuation levels.
Growth Score
WeakTNT-UN.TO faces weak or negative growth trends.
Financial Health Score
WeakTNT-UN.TO carries high financial risk with limited liquidity.
Profitability Score
WeakTNT-UN.TO struggles to sustain strong margins.
Key Financial Metrics
Is TNT-UN.TO Expensive or Cheap?
P/E Ratio
TNT-UN.TO trades at -5.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TNT-UN.TO's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values True North Commercial REIT at 0.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -71.68 times EBITDA. This is generally considered low.
How Well Does TNT-UN.TO Make Money?
Net Profit Margin
For every $100 in sales, True North Commercial REIT keeps $-18.48 as profit after all expenses.
Operating Margin
Core operations generate 47.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.30 in profit for every $100 of shareholder equity.
ROA
True North Commercial REIT generates $-2.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
True North Commercial REIT generates strong operating cash flow of $52.98M, reflecting robust business health.
Free Cash Flow
True North Commercial REIT generates strong free cash flow of $52.98M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.77 in free cash annually.
FCF Yield
TNT-UN.TO converts 44.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.08
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
0.07
vs 25 benchmark
How TNT-UN.TO Stacks Against Its Sector Peers
| Metric | TNT-UN.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.24 | 25.83 | Better (Cheaper) |
| ROE | -6.30% | 801.00% | Weak |
| Net Margin | -18.48% | 2686.00% | Weak |
| Debt/Equity | 2.00 | -37.24 (disorted) | Distorted |
| Current Ratio | 0.08 | 39.42 | Weak Liquidity |
| ROA | -2.03% | 275.00% | Weak |
TNT-UN.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews True North Commercial REIT's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
457.81%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-1945.41%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
148.19%
Industry Style: Income, Inflation Hedge, REIT
High Growth