True NthCommercial (TNT.UN) AI Stock Analysis

• Market Cap: C$129.17M
• Dividend Yield: 4.36%
• Average Volume (3M): 16.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -6.99%
• EPS Growth: 34.15%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.82
• Shares Outstanding: 13,979,205
• 10 Day Avg. Volume: 15,560
• 30 Day Avg. Volume: 16,526
• PEG Ratio: 0.18
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 1.98
• 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$9.75
• Price Target Upside: 5.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: C$9.50 ▲(2.81% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability, and high leverage. Technical analysis provides a neutral outlook, while valuation concerns due to negative earnings impact the score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Stable Cash Flow

Stable cash flow provides True Nth Commercial with financial flexibility and resilience, allowing it to manage operations effectively despite profitability challenges.

Diversified Portfolio

A diversified portfolio across commercial, industrial, and retail sectors reduces risk and enhances potential for stable returns, supporting long-term growth.

Strategic Partnerships

Strategic partnerships can lead to improved market positioning and operational efficiencies, contributing to sustainable revenue streams and competitive advantage.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or competitive position, potentially impacting long-term growth and profitability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and impacting financial stability.

Negative Profitability

Consistent net losses indicate underlying operational inefficiencies or market challenges, which may hinder long-term financial health and investor confidence.

True NthCommercial Business Overview & Revenue Model

Company Description

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 48 commercial properties consisting of approximately 4.8 million square feet in urban and select strategic secondary markets across Canada focusing on long term leases with government and credit rated tenants. The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.

How the Company Makes Money

True Nth Commercial generates revenue primarily through leasing income derived from its portfolio of properties. The company enters into long-term leases with tenants, which provide a consistent cash flow. Additionally, TNT.UN may earn revenue through property management fees, maintenance services, and potential profit-sharing agreements with tenants. Strategic partnerships with local and national firms enhance its market reach and operational efficiency, contributing to its overall earnings. The company also benefits from capital appreciation of its properties, which can lead to increased asset value and, consequently, higher returns for its investors.

True NthCommercial Financial Statement Overview

Summary

True NthCommercial faces challenges with declining revenue and profitability, as evidenced by negative net income and decreasing margins. The high leverage and decreasing equity ratio raise financial stability concerns, although stable cash flow provides some operational resilience.

Income Statement

The income statement shows declining revenue over recent years, with a decrease from $143.6M in 2022 to $126.9M in 2024. The gross profit margin has decreased from 60.3% in 2020 to 51.9% in 2024, indicating reduced profitability. Net income has been negative for the past three years, reflecting ongoing challenges in achieving profitability. The EBIT margin remains relatively stable, but the EBITDA margin has been inconsistent, showing volatility in operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, with total debt consistently exceeding stockholders' equity, indicating potential leverage risks. The equity ratio has decreased from 37.4% in 2020 to 33.5% in 2024, suggesting increased financial risk. However, the return on equity has been negative due to net losses, further highlighting profitability challenges.

Cash Flow

The cash flow statement shows stable operating cash flow, with a slight increase from $73.9M in 2023 to $75.7M in 2024. Free cash flow has remained positive, indicating some level of financial flexibility. However, the free cash flow growth rate is minimal, and the operating cash flow to net income ratio is high due to negative net income, suggesting reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.32M	126.91M	132.20M	143.57M	138.52M	139.43M
Gross Profit	60.18M	65.82M	72.55M	86.48M	82.63M	83.74M
EBITDA	2.21M	10.86M	-7.80M	81.87M	78.35M	78.30M
Net Income	-29.91M	-20.95M	-40.62M	-18.51M	29.14M	10.55M
Balance Sheet
Total Assets	1.22B	1.24B	1.32B	1.45B	1.42B	1.40B
Cash, Cash Equivalents and Short-Term Investments	10.46M	12.33M	8.95M	9.50M	5.48M	24.58M
Total Debt	752.77M	767.74M	820.99M	861.09M	820.40M	812.49M
Total Liabilities	815.93M	824.23M	870.87M	928.18M	881.11M	879.67M
Stockholders Equity	400.44M	416.00M	452.80M	522.14M	540.07M	525.21M
Cash Flow
Free Cash Flow	80.76M	75.67M	73.94M	103.27M	86.69M	91.38M
Operating Cash Flow	80.76M	75.67M	73.94M	103.27M	77.31M	91.38M
Investing Cash Flow	-19.58M	29.57M	32.45M	-72.80M	-31.74M	-19.39M
Financing Cash Flow	-60.29M	-101.85M	-106.94M	-26.45M	-64.68M	-53.08M

True NthCommercial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TNT.UN, the sentiment is Positive. The current price of 9.24 is above the 20-day moving average (MA) of 9.21, above the 50-day MA of 9.23, and above the 200-day MA of 9.11, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 30.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TNT.UN.

True NthCommercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AP.UN	61 Neutral	C$2.98B	-5.38	-10.57%	8.44%	3.06%	-5.77%
TNT.UN	54 Neutral	C$129.17M	―	-7.12%	4.36%	-6.99%	34.15%
D.UN	54 Neutral	C$378.33M	-2.27	-17.10%	5.17%	1.42%	-334.18%
RPR.UN	53 Neutral	C$34.77M	-0.11	―	―	-5.30%	-16.47%
INO.UN	50 Neutral	C$26.88M	-0.59	-37.98%	―	-10.79%	34.71%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%