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TCN

Tricon Residential TSX:TCN Stock Report

Last Price

CA$16.02

Market Cap

CA$4.4b

7D

-1.9%

1Y

23.9%

Updated

23 May, 2022

Data

Company Financials +
TCN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health0/6
Dividends3/6

TCN Stock Overview

Founded in 1988, Tricon is a rental housing company focused on serving the middle-market demographic.

Tricon Residential Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Tricon Residential
Historical stock prices
Current Share PriceCA$16.02
52 Week HighCA$21.58
52 Week LowCA$12.82
Beta1.28
1 Month Change-17.89%
3 Month Change-15.64%
1 Year Change23.90%
3 Year Change53.30%
5 Year Change43.29%
Change since IPO162.62%

Recent News & Updates

May 18
Is Tricon Residential (TSE:TCN) Using Too Much Debt?

Is Tricon Residential (TSE:TCN) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

TCNCA Real EstateCA Market
7D-1.9%-0.7%0.2%
1Y23.9%-1.8%4.8%

Return vs Industry: TCN exceeded the Canadian Real Estate industry which returned -1.8% over the past year.

Return vs Market: TCN exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is TCN's price volatile compared to industry and market?
TCN volatility
TCN Average Weekly Movement4.5%
Real Estate Industry Average Movement5.2%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.0%
10% least volatile stocks in CA Market4.3%

Stable Share Price: TCN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TCN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1988968Gary Bermanhttps://www.triconresidential.com

Founded in 1988, Tricon is a rental housing company focused on serving the middle-market demographic. Tricon owns and operates approximately 31,000 single-family rental homes and multi-family rental units in 21 markets across the United States and Canada, managed with an integrated technology-enabled operating platform. More information about Tricon is available at www.triconresidential.com.

Tricon Residential Fundamentals Summary

How do Tricon Residential's earnings and revenue compare to its market cap?
TCN fundamental statistics
Market CapUS$3.42b
Earnings (TTM)US$633.83m
Revenue (TTM)US$673.33m

5.4x

P/E Ratio

5.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCN income statement (TTM)
RevenueUS$673.33m
Cost of RevenueUS$158.06m
Gross ProfitUS$515.27m
Other Expenses-US$118.56m
EarningsUS$633.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.32
Gross Margin76.53%
Net Profit Margin94.13%
Debt/Equity Ratio144.3%

How did TCN perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

9%

Payout Ratio

Does TCN pay a reliable dividends?

See TCN dividend history and benchmarks
When do you need to buy TCN by to receive an upcoming dividend?
Tricon Residential dividend dates
Ex Dividend DateJun 29 2022
Dividend Pay DateJul 15 2022
Days until Ex dividend35 days
Days until Dividend pay date51 days

Does TCN pay a reliable dividends?

See TCN dividend history and benchmarks

Valuation

Is Tricon Residential undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


21.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TCN (CA$16.02) is trading below our estimate of fair value (CA$20.5)

Significantly Below Fair Value: TCN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCN is good value based on its PE Ratio (5.4x) compared to the Canadian Real Estate industry average (6.8x).

PE vs Market: TCN is good value based on its PE Ratio (5.4x) compared to the Canadian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: TCN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TCN's PB Ratio (1.1x) is in line with the CA Real Estate industry average.


Future Growth

How is Tricon Residential forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-27.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCN's earnings are forecast to decline over the next 3 years (-27.1% per year).

Earnings vs Market: TCN's earnings are forecast to decline over the next 3 years (-27.1% per year).

High Growth Earnings: TCN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TCN's revenue (7% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: TCN's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCN's Return on Equity is forecast to be low in 3 years time (6.7%).


Past Performance

How has Tricon Residential performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


41.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TCN has a large one-off gain of $918.2M impacting its March 31 2022 financial results.

Growing Profit Margin: TCN's current net profit margins (94.1%) are higher than last year (44%).


Past Earnings Growth Analysis

Earnings Trend: TCN's earnings have grown significantly by 41.4% per year over the past 5 years.

Accelerating Growth: TCN's earnings growth over the past year (220.2%) exceeds its 5-year average (41.4% per year).

Earnings vs Industry: TCN earnings growth over the past year (220.2%) exceeded the Real Estate industry 42.2%.


Return on Equity

High ROE: TCN's Return on Equity (19.8%) is considered low.


Financial Health

How is Tricon Residential's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TCN's short term assets ($229.7M) do not cover its short term liabilities ($439.4M).

Long Term Liabilities: TCN's short term assets ($229.7M) do not cover its long term liabilities ($6.5B).


Debt to Equity History and Analysis

Debt Level: TCN's net debt to equity ratio (139.9%) is considered high.

Reducing Debt: TCN's debt to equity ratio has increased from 29.7% to 144.3% over the past 5 years.

Debt Coverage: TCN's debt is not well covered by operating cash flow (3%).

Interest Coverage: TCN's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is Tricon Residential current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.85%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 24 2022Ex Dividend DateJun 29 2022Dividend Pay DateJul 15 202216 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TCN's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: TCN's dividend (1.85%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: TCN's dividend payments have been volatile in the past 10 years.

Growing Dividend: TCN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.6%), TCN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.6%), TCN's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Gary Berman (46 yo)

7.17yrs

Tenure

US$4,474,000

Compensation

Mr. Gary Berman has been the Chief Executive Officer and President of Tricon Residential Inc. (Formerly, Tricon Capital Group Inc.) since March 10, 2015. He is involved in overseeing all aspects of Tricon'...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD4.47M) is above average for companies of similar size in the Canadian market ($USD3.43M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TCN's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: TCN's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TCN insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41%.


Top Shareholders

Company Information

Tricon Residential Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Tricon Residential Inc.
  • Ticker: TCN
  • Exchange: TSX
  • Founded: 1988
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: CA$4.374b
  • Shares outstanding: 273.05m
  • Website: https://www.triconresidential.com

Number of Employees


Location

  • Tricon Residential Inc.
  • 7 St. Thomas Street
  • Suite 801
  • Toronto
  • Ontario
  • M5S 2B7
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/23 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.