Automotive Properties (APR.UN) AI Stock Analysis

• Market Cap: C$586.54M
• Dividend Yield: 8.24%
• Average Volume (3M): 41.22K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.70
• Revenue Growth: 1.98%
• EPS Growth: -51.66%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.27
• Shares Outstanding: 54,259,205
• 10 Day Avg. Volume: 92,408
• 30 Day Avg. Volume: 41,215
• PEG Ratio: 0.18
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 5.69
• P/FCF Ratio: 7.04
• 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$12.75
• Price Target Upside: 18.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$12.00 ▲(11.21% Upside)

Automotive Properties' overall stock score reflects its strong financial performance and attractive dividend yield, which are offset by current bearish technical indicators. The absence of EBIT data and lack of recent earnings call insights slightly dampen the outlook. However, the company's robust cash flow and stable balance sheet provide a solid foundation for future growth.

Positive Factors

Stable Revenue Model

The triple-net lease agreements ensure stable and predictable cash flows, as tenants cover property expenses, reducing operational risks.

Strong Cash Flow Generation

Robust cash flow generation supports financial flexibility and potential for reinvestment or distribution to shareholders, enhancing long-term stability.

Healthy Balance Sheet

A manageable debt level and strong ROE indicate prudent financial management, allowing for sustainable growth and resilience against economic fluctuations.

Negative Factors

Absence of EBIT Data

Lack of EBIT data raises transparency issues regarding operational profitability, potentially obscuring true business performance and hindering investor confidence.

Moderate Risk Exposure

A moderate equity ratio suggests potential vulnerability to market fluctuations, which could impact financial stability and limit growth opportunities.

Declining EPS Growth

Significant decline in EPS growth indicates challenges in profitability, which could affect future earnings potential and shareholder returns.

Automotive Properties Business Overview & Revenue Model

Company Description

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT's portfolio currently consists of 64 income-producing commercial properties and one development property, representing approximately 2.5 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties.

How the Company Makes Money

Automotive Properties generates revenue primarily through long-term lease agreements with automotive dealerships. The company earns rental income from these leases, which are typically structured as net leases where tenants are responsible for property-related expenses. This model provides predictable and stable cash flow. Key revenue streams include base rent and additional income from property management services. Significant partnerships with leading automotive brands enhance the company's portfolio quality and tenant stability, contributing to its earnings. Additionally, the REIT may benefit from property appreciation and strategic acquisitions that expand its asset base and revenue potential.

Automotive Properties Financial Statement Overview

Summary

Automotive Properties demonstrates strong financial health with significant revenue growth and high profitability margins. The balance sheet is stable with manageable debt levels, and cash flow generation is robust, supporting future growth. However, the absence of EBIT data raises some concerns about operating profit transparency.

Income Statement

Automotive Properties has shown remarkable revenue growth, with a year-over-year increase to $93.88M in 2024 from $92.48M in 2023. The gross profit margin remains strong at 84.5%. Despite a lack of EBIT figures for 2024, the EBITDA margin is impressive at 103.1%, indicating robust operational efficiency. However, the absence of EBIT data raises concerns about operating profit transparency. Net profit margin is high at 76.7%, signifying excellent profitability.

Balance Sheet

The balance sheet of Automotive Properties reflects a healthy equity base with stockholders' equity at $663.40M, an increase from $539.99M in the previous year. The debt-to-equity ratio is manageable at 0.76, showcasing prudent leverage use. However, the equity ratio is 55.7%, indicating moderate risk exposure. ROE is notably strong at 10.9%, suggesting effective utilization of equity to generate profits.

Cash Flow

Cash flow performance is robust, with a free cash flow of $75.91M and a significant operating cash flow to net income ratio of 1.05. This indicates strong cash generation capabilities relative to earnings. Moreover, the free cash flow to net income ratio remains equally strong at 1.05, reflecting efficient cash conversion from profits. The stability of cash flows is supported by consistent free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.45M	93.88M	92.48M	82.86M	78.22M	75.12M
Gross Profit	80.73M	79.33M	78.41M	70.58M	67.08M	64.02M
EBITDA	53.91M	96.78M	75.47M	77.61M	101.00M	66.21M
Net Income	34.51M	72.00M	50.99M	119.67M	122.38M	4.82M
Balance Sheet
Total Assets	1.23B	1.19B	1.19B	1.09B	1.05B	936.35M
Cash, Cash Equivalents and Short-Term Investments	621.00K	336.00K	298.00K	396.00K	474.00K	308.00K
Total Debt	544.52M	502.24M	535.08M	434.89M	420.58M	403.02M
Total Liabilities	569.03M	527.33M	653.91M	572.87M	591.28M	545.10M
Stockholders Equity	662.82M	663.40M	539.99M	520.94M	460.37M	391.25M
Cash Flow
Free Cash Flow	76.00M	75.91M	74.27M	64.55M	62.21M	57.17M
Operating Cash Flow	76.00M	75.91M	74.27M	64.55M	62.21M	57.17M
Investing Cash Flow	-22.95M	21.38M	-110.42M	-24.74M	-24.87M	-45.78M
Financing Cash Flow	-52.67M	-97.26M	36.06M	-39.88M	-37.18M	-56.35M

Automotive Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:APR.UN, the sentiment is Negative. The current price of 10.79 is below the 20-day moving average (MA) of 10.91, below the 50-day MA of 11.16, and above the 200-day MA of 10.58, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 19.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:APR.UN.

Automotive Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLZ.UN	72 Outperform	C$447.26M	12.85	6.45%	6.98%	5.14%	209.83%
MI.UN	70 Outperform	C$486.85M	7.04	7.26%	3.95%	-1.21%	―
NXR.UN	69 Neutral	$755.77M	25.13	2.47%	8.22%	4.66%	-82.85%
MRG.UN	68 Neutral	C$898.29M	7.40	6.37%	4.34%	3.83%	63.32%
APR.UN	66 Neutral	C$586.54M	15.38	5.17%	8.24%	1.98%	-51.66%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	55 Neutral	C$656.03M	―	-3.37%	8.84%	-21.40%	71.00%