OTCPK:TCNG.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Tricon Capital Group Inc. is a principal investor and asset manager primarily focused on rental housing in North America.

Rewards


Snowflake Analysis

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TCNG.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

TCNG.F

2.9%

US Real Estate

2.4%

US Market


1 Year Return

-21.7%

TCNG.F

-15.7%

US Real Estate

9.2%

US Market

Return vs Industry: TCNG.F underperformed the US Real Estate industry which returned -18.1% over the past year.

Return vs Market: TCNG.F underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

TCNG.FIndustryMarket
7 Day-0.2%2.9%2.4%
30 Day5.2%14.2%10.2%
90 Day-28.8%-23.0%3.4%
1 Year-19.3%-21.7%-15.2%-15.7%11.6%9.2%
3 Year-25.4%-31.2%-15.8%-17.7%33.7%24.9%
5 Year-19.7%-29.7%-23.1%-25.4%59.7%41.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

40.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCNG.F ($6.04) is trading below our estimate of fair value ($10.1)

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


Price To Earnings Ratio

PE vs Industry: TCNG.F is poor value based on its PE Ratio (24.8x) compared to the Real Estate industry average (15.5x).

PE vs Market: TCNG.F is poor value based on its PE Ratio (24.8x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: TCNG.F is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: TCNG.F is good value based on its PB Ratio (0.8x) compared to the US Real Estate industry average (1x).

Future Growth

How is Tricon Capital Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

62.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCNG.F's forecast earnings growth (62.7% per year) is above the savings rate (2.2%).

Earnings vs Market: TCNG.F's earnings (62.7% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCNG.F's revenue is expected to decline over the next 3 years (-105.5% per year).

High Growth Revenue: TCNG.F's revenue is forecast to decline over the next 3 years (-105.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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

Past Performance

How has Tricon Capital Group performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCNG.F has a large one-off loss of $17.4M impacting its March 31 2020 financial results.

Growing Profit Margin: TCNG.F's current net profit margins (16.3%) are lower than last year (70.3%).


Past Earnings Growth Analysis

Earnings Trend: TCNG.F's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: TCNG.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCNG.F had negative earnings growth (-61.3%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: TCNG.F's Return on Equity (3.1%) is considered low.

Financial Health

How is Tricon Capital Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCNG.F's short term assets ($87.1M) do not cover its short term liabilities ($262.8M).

Long Term Liabilities: TCNG.F's short term assets ($87.1M) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: TCNG.F's debt to equity ratio (264.5%) is considered high.

Reducing Debt: TCNG.F's debt to equity ratio has increased from 32.5% to 264.5% over the past 5 years.

Debt Coverage: TCNG.F's debt is not well covered by operating cash flow (0.9%).

Interest Coverage: TCNG.F's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Dividend

What is Tricon Capital Group's current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TCNG.F's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: TCNG.F's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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

Growing Dividend: TCNG.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.1%), TCNG.F's payments are 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.

Management

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

4.8yrs

Average management tenure


CEO

Gary Berman (44yo)

5.25yrs

Tenure

US$4,272,000

Compensation

Mr. Gary Berman has been the Chief Executive Officer and President of Tricon Capital Group Inc. since March 10, 2015. He is involved in overseeing all aspects of Tricon's operations including investment ma ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD4.27M) is about average for companies of similar size in the US market ($USD4.77M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Berman
President5.25yrsUS$4.27m0.63% $7.6m
Geoff Matus
Co-Founder & Non Independent Director10.42yrsUS$906.00k0.57% $6.9m
Wissam Francis
Executive VP & CFO4.83yrsUS$1.54m0.037% $450.0k
Jonathan Ellenzweig
Chief Investment Officer0.083yrUS$1.70m0.052% $627.2k
Andrew Carmody
Managing Director3.42yrsUS$1.11mno data
Kevin Baldridge
Chief Operating Officer0.083yrno data0.040% $482.7k
Douglas Quesnel
Chief Accounting Officerno datano datano data
David Veneziano
Chief Legal Officer5.58yrsUS$795.00k0.00024% $2.9k
Sherrie Suski
Chief People Officer0.083yrno data0.0022% $26.7k
Sandra Pereira
Senior VP & Head of Tax Services5.58yrsno datano data

4.8yrs

Average Tenure

Experienced Management: TCNG.F's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Berman
President5.25yrsUS$4.27m0.63% $7.6m
Geoff Matus
Co-Founder & Non Independent Director10.42yrsUS$906.00k0.57% $6.9m
Larry Johnson
Founderno datano datano data
Peter Sacks
Lead Independent Directorno dataUS$122.00k0.015% $175.4k
J. Knowlton
Independent Director9.08yrsUS$124.00k0.013% $162.2k
Tracy Sherren
Independent Director1yrno data0.010% $120.4k
Ira Gluskin
Independent Director3.58yrsUS$104.00k0.24% $2.9m
Siân Matthews
Independent Director5.08yrsUS$112.00k0.0039% $46.8k
Camille Douglas
Independent Director1.83yrsUS$54.00kno data
David Berman
Co-Founder & Executive Chairman5.25yrsUS$1.87m2.04% $24.5m

5.2yrs

Average Tenure

68yo

Average Age

Experienced Board: TCNG.F's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TCNG.F 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 34.3%.


Top Shareholders

Company Information

Tricon Capital Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tricon Capital Group Inc.
  • Ticker: TCNG.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: CA$1.624b
  • Listing Market Cap: CA$1.202b
  • Shares outstanding: 192.84m
  • Website: https://www.triconcapital.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCNTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2010
TCNG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2010
331DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2010

Biography

Tricon Capital Group Inc. is a principal investor and asset manager primarily focused on rental housing in North America. The firm invests in a portfolio of single-family rental homes, multi-family rental apartments and for-sale housing assets, and manages third-party capital in connection with its investments. The firm owns and manages on behalf of third-party investors a portfolio of investments in land and homebuilding assets, single-family rental homes, manufactured housing communities, and multi-family development projects. The business objective of the firm is to invest for investment income and capital appreciation through its principal investment business and to earn fee income through private funds and advisory business. Tricon Capital Group Inc. was founded in 1988 and is based in Toronto, Canada with an additional office in San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 04:21
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.