Canadian Apartment (CAR.UN) AI Stock Analysis

• Market Cap: C$6.38B
• Dividend Yield: 3.78%
• Average Volume (3M): 449.82K
• Price to Earnings (P/E): 80.0
• Beta (1Y): 0.96
• Revenue Growth: -2.56%
• EPS Growth: N/A
• Country: CA
• Employees: 1,076
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.47
• Shares Outstanding: 156,276,920
• 10 Day Avg. Volume: 539,925
• 30 Day Avg. Volume: 449,819
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$49.30
• Price Target Upside: 21.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: C$45.00 ▲(11.25% Upside)

The overall stock score is primarily influenced by stable financial performance, despite concerns over revenue growth and return on equity. Technical analysis indicates a lack of strong momentum, with potential overbought conditions. The high P/E ratio suggests overvaluation, but the dividend yield offers some compensation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance Sheet Stability

A stable balance sheet with reasonable leverage ensures financial stability, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Profit Margins

Sustained profit margins indicate efficient cost management and pricing power, contributing to stable earnings and operational resilience.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in properties and potential acquisitions, supporting long-term growth.

Negative Factors

Net Income Decline

A significant decline in net income can strain financial resources, limiting the company's ability to reinvest in its portfolio and impacting shareholder value.

Low Return on Equity

Low return on equity suggests inefficient use of capital, which may deter investors seeking higher returns and affect the company's ability to raise funds.

Revenue Decline

Declining revenue growth can limit the company's ability to expand its market presence and invest in new projects, potentially impacting long-term competitiveness.

Canadian Apartment Business Overview & Revenue Model

Company Description

CAPREIT is one of Canada's largest real estate investment trusts. CAPREIT owns approximately 57,000 suites, including townhomes and manufactured housing sites, in Canada and, indirectly through its investment in ERES, approximately 5,800 suites in the Netherlands. CAPREIT manages approximately 61,200 of its owned suites in Canada and Netherlands, and additionally approximately 3,800 suites in Ireland as at September 30, 2020.

How the Company Makes Money

Canadian Apartment Properties Real Estate Investment Trust (CAR.UN) generates revenue primarily through rental income from its extensive portfolio of residential properties. The company collects monthly rent from tenants residing in its apartment buildings, townhomes, and manufactured home communities. Additionally, CAR.UN benefits from property appreciation and value-added services that may include laundry facilities, parking, and other amenities that enhance tenant satisfaction and retention. The trust's earnings are also influenced by strategic acquisitions and property development initiatives that expand its portfolio and increase rental capacity. Furthermore, CAR.UN may engage in partnerships or joint ventures to optimize property management and development, contributing to its overall financial performance.

Canadian Apartment Financial Statement Overview

Summary

Canadian Apartment shows a stable financial position with strong cash flow generation and reasonable leverage. However, the decline in revenue growth and low return on equity are areas of concern. The company maintains healthy profit margins, which is a positive sign for operational efficiency.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by -2.17%, which is concerning. However, the company maintains a healthy gross profit margin of 59.63% and a net profit margin of 10.88% in the TTM period. The EBIT margin is strong at 34.21%, indicating efficient operational management. Despite the decline in revenue, the company has managed to maintain profitability, although the net income has decreased significantly from the previous year.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.65, which is reasonable for the industry. The return on equity is low at 1.29% in the TTM period, indicating limited returns on shareholders' investments. The equity ratio stands at 57.79%, suggesting a solid equity base relative to total assets. Overall, the balance sheet shows financial stability but highlights a need for improved returns on equity.

Cash Flow

Cash flow analysis reveals a positive trend with a 7.55% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.59, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.57, reflecting efficient cash management. The company demonstrates strong cash flow generation, which is a positive indicator for future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.11B	1.07B	1.01B	933.14M	882.64M
Gross Profit	633.51M	672.03M	630.41M	592.44M	609.99M	578.17M
EBITDA	323.48M	552.38M	587.78M	697.07M	541.37M	587.55M
Net Income	81.02M	292.74M	-411.57M	13.64M	1.39B	925.93M
Balance Sheet
Total Assets	15.36B	15.58B	16.97B	17.74B	17.71B	15.50B
Cash, Cash Equivalents and Short-Term Investments	39.54M	146.76M	35.22M	51.68M	73.41M	121.72M
Total Debt	5.98B	6.04B	7.11B	7.01B	6.46B	5.56B
Total Liabilities	6.48B	6.55B	7.69B	7.74B	7.31B	6.23B
Stockholders Equity	8.88B	9.03B	9.28B	10.00B	10.40B	9.27B
Cash Flow
Free Cash Flow	356.58M	399.04M	308.09M	261.56M	252.01M	236.50M
Operating Cash Flow	605.59M	648.85M	615.92M	598.03M	551.43M	481.36M
Investing Cash Flow	1.81B	1.74B	-138.47M	-502.97M	-1.11B	-1.02B
Financing Cash Flow	-2.46B	-2.29B	-495.23M	-132.32M	512.50M	185.45M

Canadian Apartment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAR.UN, the sentiment is Negative. The current price of 40.45 is below the 20-day moving average (MA) of 41.59, below the 50-day MA of 42.45, and below the 200-day MA of 41.77, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CAR.UN.

Canadian Apartment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEI.UN	76 Outperform	3.65B	10.31	6.64%	2.24%	8.12%	-50.95%
KMP.UN	76 Outperform	2.15B	3.83	17.52%	4.04%	5.82%	83.08%
MRG.UN	68 Neutral	953.07M	10.19	5.09%	4.15%	3.93%	-29.40%
MI.UN	68 Neutral	494.18M	7.14	5.67%	3.84%	-0.69%	―
CAR.UN	61 Neutral	C$6.38B	79.98	0.88%	3.78%	-2.56%	―
IIP.UN	58 Neutral	1.86B	-10.75	-8.02%	2.95%	1.56%	-9446.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Canadian Apartment Corporate Events

CAPREIT Expands Canadian Portfolio with $297 Million Strategic Repositioning

CAPREIT has announced a strategic repositioning involving the acquisition of five rental apartment properties in Canada for $214 million and the sale of two non-core properties for $82.5 million. This move enhances CAPREIT’s presence in affluent areas like West Vancouver and strengthens its portfolio with high-quality assets in Montréal and Vancouver, potentially boosting future earnings and market positioning.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Announces August 2025 Distribution

CAPREIT announced its August 2025 monthly distribution of $0.12916 per Unit, payable on September 15, 2025, to Unitholders of record as of August 29, 2025. This announcement reflects CAPREIT’s ongoing commitment to providing value to its investors, highlighting its strong position in the rental housing market and its consistent growth in cash distributions.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$55.75 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Reports Q2 2025 Financial Results Amid Strategic Enhancements

CAPREIT reported its second-quarter 2025 financial results, highlighting a decrease in operating revenues and net income compared to the previous year. Despite these declines, the company maintained strong occupancy rates and continued its strategic focus on enhancing the quality of its Canadian portfolio and operational performance, as well as investing in value-enhancing initiatives.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.

CAPREIT Announces June 2025 Distribution to Unitholders

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced its June 2025 monthly distribution of $0.12917 per Unit, payable on July 15, 2025. This announcement reflects CAPREIT’s ongoing commitment to providing value to its unitholders, with a significant growth in cash distributions since its IPO in 1997.

The most recent analyst rating on ($TSE:CAR.UN) stock is a Buy with a C$54.25 price target. To see the full list of analyst forecasts on Canadian Apartment stock, see the TSE:CAR.UN Stock Forecast page.