OTCPK:CBAO.F

Stock Analysis Report

Executive Summary

Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico.

Rewards

Trading at 37.4% below its fair value

Earnings grew by 145.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -5.6% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

How has Fibra Terrafina's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBAO.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

CBAO.F

2.0%

US REITs

0.9%

US Market


1 Year Return

15.5%

CBAO.F

16.0%

US REITs

20.0%

US Market

Return vs Industry: CBAO.F matched the US REITs industry which returned 16.2% over the past year.

Return vs Market: CBAO.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CBAO.FIndustryMarket
7 Day1.1%2.0%0.9%
30 Dayn/a4.5%1.4%
90 Day3.5%6.1%8.8%
1 Year15.5%15.5%20.8%16.0%22.5%20.0%
3 Year16.7%16.7%39.9%22.4%49.9%40.3%
5 Yearn/a58.3%25.6%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Fibra Terrafina undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBAO.F ($1.65) is trading below our estimate of fair value ($2.63)

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


Price To Earnings Ratio

PE vs Industry: CBAO.F is good value based on its PE Ratio (8.3x) compared to the REITs industry average (37.3x).

PE vs Market: CBAO.F is good value based on its PE Ratio (8.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CBAO.F is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Fibra Terrafina forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBAO.F's earnings are forecast to decline over the next 3 years (-5.6% per year).

Earnings vs Market: CBAO.F's earnings are forecast to decline over the next 3 years (-5.6% per year).

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

Revenue vs Market: CBAO.F's revenue (1.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CBAO.F's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBAO.F's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Fibra Terrafina performed over the past 5 years?

29.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBAO.F has a large one-off gain of MX$1.4B impacting its September 30 2019 financial results.

Growing Profit Margin: CBAO.F's current net profit margins (69.9%) are higher than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: CBAO.F's earnings have grown significantly by 29.9% per year over the past 5 years.

Accelerating Growth: CBAO.F's earnings growth over the past year (145.6%) exceeds its 5-year average (29.9% per year).

Earnings vs Industry: CBAO.F earnings growth over the past year (145.6%) exceeded the REITs industry 6.9%.


Return on Equity

High ROE: CBAO.F's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fibra Terrafina's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CBAO.F has a high level of physical assets or inventory.

Debt Coverage by Assets: CBAO.F's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: CBAO.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CBAO.F has a sufficient allowance for bad loans.

Low Risk Liabilities: CBAO.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CBAO.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CBAO.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CBAO.F has an appropriate level of bad loans.


Next Steps

Dividend

What is Fibra Terrafina's current dividend yield, its reliability and sustainability?

8.84%

Current Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years8.6%

Current dividend yield vs market & industry

Notable Dividend: CBAO.F's dividend (8.84%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CBAO.F's dividend (8.84%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: CBAO.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CBAO.F's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (91%), CBAO.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBAO.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Alberto Castillo Chretin (67yo)

7.1yrs

Tenure

0

Mr. Alberto Castillo Chretin serves as the Chairman and Chief Executive Officer of Terrafina. Mr. Chretin is responsible for the preparation of Terrafina business strategy and the execution of its vision,  ...


Leadership Team

NamePositionTenureCompensationOwnership
Alberto Castillo Chretin
Chairman & CEO7.1yrsno datano data
Carlos Gomez Espinosa
Chief Financial Officer2.8yrsno datano data
Francisco Martinez
Investor Relations Officer7.1yrsno datano data

7.1yrs

Average Tenure

49yo

Average Age

Experienced Management: CBAO.F's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alberto Castillo Chretin
Chairman & CEO7.1yrsno datano data
Victor David Almeida Garcia
Independent Director7.1yrsno datano data
Arturo Gerardo D'Acosta Ruiz
Independent Director7.1yrsno datano data
Alfonso Munk Alba
Director 7.1yrsno datano data
Eduardo J. Solís Sánchez
Independent Director7.1yrsno datano data
Jose Luis Barraza Gonzalez
Independent Director7.1yrsno datano data
Carmina Abad Sánchez
Independent Director3.9yrsno datano data
Julio Cardenas
Independent Director2.8yrsno datano data

7.1yrs

Average Tenure

58yo

Average Age

Experienced Board: CBAO.F's board of directors are considered experienced (7.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fibra Terrafina's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fibra Terrafina
  • Ticker: CBAO.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: Mex$24.153b
  • Listing Market Cap: Mex$1.300b
  • Shares outstanding: 790.60m
  • Website: https://www.terrafina.mx

Location

  • Fibra Terrafina
  • Paseo de la Reforma 412
  • Piso 18, Col. Col. Juárez
  • Mexico City
  • Distrito Federal
  • 6600
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERRA 13BMV (Bolsa Mexicana de Valores)YesCBFI CertificatesMXMXNMar 2013
CBAO.FOTCPK (Pink Sheets LLC)YesCBFI CertificatesUSUSDMar 2013

Biography

Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically located warehouses and other light manufacturing properties throughout the Central, Bajio and Northern regions of Mexico. It is internally managed by highly-qualified industry specialists and externally advised by PGIM Real Estate. Terrafina owns 300 real estate properties, including 289 developed industrial facilities with a collective GLA of approximately 41.8 million square feet and 11 land reserve parcels, designed to preserve the organic growth capability of the portfolio. Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stable distributions and capital appreciations. Terrafina aims to achieve this objective through a successful performance of its industrial real estate and complementary properties, strategic acquisitions, access to a high level of institutional support, and to its management and corporate governance structure. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 01:26
End of Day Share Price2020/02/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.