TCN

Tricon ResidentialTSX:TCN Stock Report

Market Cap

CA$3.7b

7D

1.6%

1Y

44.1%

Updated

16 Sep, 2021

Data

Company Financials +
TCN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health0/6
Dividends2/6

TCN Overview

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

Share Price & News

How has Tricon Residential's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

Volatility Over Time: TCN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

TCN

0.3%

CA Real Estate

-0.2%

CA Market


1 Year Return

44.1%

TCN

40.4%

CA Real Estate

29.1%

CA Market

Return vs Industry: TCN exceeded the Canadian Real Estate industry which returned 40.3% over the past year.

Return vs Market: TCN exceeded the Canadian Market which returned 30% over the past year.


Shareholder returns

TCNIndustryMarket
7 Day1.6%0.3%-0.2%
30 Day1.6%1.3%1.8%
90 Day17.5%9.9%2.9%
1 Year47.5%44.1%41.5%40.4%33.0%29.1%
3 Year58.3%45.9%71.6%65.9%33.0%20.5%
5 Year95.8%71.4%141.6%127.2%51.6%29.3%

Long-Term Price Volatility Vs. Market

How volatile is Tricon Residential's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Tricon Residential Fundamentals Summary

How do Tricon Residential's earnings and revenue compare to its market cap?
TCN fundamental statistics
Market CapUS$2.95b
Earnings (TTM)US$317.34m
Revenue (TTM)US$597.31m

9.2x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCN income statement (TTM)
RevenueUS$597.31m
Cost of RevenueUS$198.92m
Gross ProfitUS$398.40m
ExpensesUS$81.06m
EarningsUS$317.34m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.62
Gross Margin66.70%
Net Profit Margin53.13%
Debt/Equity Ratio183.9%

How did TCN perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

14%

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 DateSep 28 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend10 days
Days until Dividend pay date27 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?

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCN (CA$16.37) is trading below our estimate of fair value (CA$24.19)

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 (9.2x) compared to the Canadian Real Estate industry average (11.9x).

PE vs Market: TCN is good value based on its PE Ratio (9.2x) compared to the Canadian market (12.9x).


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 is overvalued based on its PB Ratio (1.5x) compared to the CA Real Estate industry average (1x).


Future Growth

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

-38.4%

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 (-38.4% per year).

Earnings vs Market: TCN's earnings are forecast to decline over the next 3 years (-38.4% per year).

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

Revenue vs Market: TCN's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: TCN's revenue is forecast to decline over the next 3 years (-9.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TCN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Tricon Residential performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCN has a large one-off gain of $385.0M impacting its June 30 2021 financial results.

Growing Profit Margin: TCN's current net profit margins (53.1%) are higher than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: TCN's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: TCN's earnings growth over the past year (442%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: TCN earnings growth over the past year (442%) exceeded the Real Estate industry 38.2%.


Return on Equity

High ROE: TCN's Return on Equity (16%) is considered low.


Financial Health

How is Tricon Residential's financial position?


Financial Position Analysis

Short Term Liabilities: TCN's short term assets ($130.7M) do not cover its short term liabilities ($365.7M).

Long Term Liabilities: TCN's short term assets ($130.7M) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: TCN's debt to equity ratio (183.9%) is considered high.

Reducing Debt: TCN's debt to equity ratio has increased from 23.6% to 183.9% over the past 5 years.

Debt Coverage: TCN's debt is not well covered by operating cash flow (3.1%).

Interest Coverage: TCN's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

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

1.69%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 17 2021Ex Dividend DateSep 28 2021Dividend Pay DateOct 15 202117 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TCN's dividend (1.69%) is higher than the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: TCN's dividend (1.69%) is low compared to the top 25% of dividend payers in the Canadian market (4.45%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.5%), TCN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Gary Berman (47 yo)

6.5yrs

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 ($USD4.47M) is above average for companies of similar size in the Canadian market ($USD2.85M).

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 (6.1 years average tenure).


Board Members

Experienced Board: TCN's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 17.1%.


Top Shareholders

Company Information

Tricon Residential Inc.'s company bio, 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
  • Market Cap: CA$3.738b
  • Shares outstanding: 225.75m
  • Website: https://www.triconresidential.com

Number of Employees


Location

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

Listings


Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:55
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.