Artis Real Estate Investment (AX.UN) AI Stock Analysis

• Market Cap: C$768.69M
• Dividend Yield: 7.31%
• Average Volume (3M): 405.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -20.06%
• EPS Growth: 19.27%
• Country: CA
• Employees: 143
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.38
• Shares Outstanding: 95,966,480
• 10 Day Avg. Volume: 290,415
• 30 Day Avg. Volume: 405,433
• PEG Ratio: 0.20
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 2.57
• P/FCF Ratio: 9.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): C$341.20M

• Rating: 63 Neutral
• Price Target: C$8.50 ▲(14.40% Upside)

The overall stock score of 63 reflects a mixed outlook. The most significant factor is the strong technical analysis, indicating bullish momentum. However, financial performance is challenged by declining revenue and profitability, partially offset by strong cash flow generation. The valuation is moderate, with a negative P/E ratio but a high dividend yield.

Positive Factors

Cash Flow Generation

Strong free cash flow growth indicates robust cash generation, which supports financial stability and potential reinvestment in core assets.

Balance Sheet Health

A moderate debt-to-equity ratio suggests a balanced financial structure, providing flexibility for future investments and strategic initiatives.

Diversified Portfolio

A diversified portfolio across key sectors reduces risk exposure and enhances revenue stability through varied income streams.

Negative Factors

Declining Revenue

Declining revenue growth can hinder long-term expansion and affect the company's ability to invest in new opportunities or maintain competitive positioning.

Profitability Challenges

Negative profitability margins reflect operational inefficiencies, which may impact the company's ability to sustain growth and return value to shareholders.

Negative Return on Equity

Negative return on equity suggests the company is not effectively using its equity base to generate profits, which could deter potential investors.

Artis Real Estate Investment Business Overview & Revenue Model

Company Description

Artis Real Estate Investment Trust (AX.UN) is a Canadian real estate investment trust that focuses on the acquisition, management, and development of high-quality commercial properties across key markets in Canada and the United States. The company primarily operates in the retail, office, and industrial sectors, offering a diverse portfolio of income-generating properties. Artis aims to create long-term value for its unitholders through its strategic investment approach and active asset management.

How the Company Makes Money

Artis Real Estate Investment generates revenue primarily through the leasing of its commercial properties, which provides a steady stream of rental income. The company earns money from long-term leases with tenants in its retail, office, and industrial properties, typically structured to include base rent and additional recoverable expenses. Additionally, Artis may engage in property development and redevelopment projects, creating value through the enhancement of its property portfolio. The company also benefits from potential capital appreciation of its real estate holdings. Strategic partnerships with various stakeholders in the real estate sector, including property management firms and financial institutions, further support its revenue generation efforts. Overall, Artis Real Estate Investment Trust's revenue model is centered around a diversified portfolio of income-producing assets and strategic property management.

Artis Real Estate Investment Financial Statement Overview

Summary

Artis Real Estate Investment faces challenges with declining revenues and persistent net losses, impacting profitability. The balance sheet shows a manageable debt level, but negative returns on equity highlight profitability issues. Cash flow management is a strength, with positive free cash flow growth and efficient cash conversion, providing some financial stability.

Income Statement

The income statement shows declining revenue with a negative growth rate of -9.09% TTM. Gross profit margins are relatively stable at around 53-56%, but net profit margins are negative, indicating ongoing losses. The EBIT margin is positive but has decreased over time, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.68 TTM, which is an improvement from previous years. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 45.1% TTM. The operating cash flow to net income ratio is low, reflecting challenges in converting income into cash. However, the free cash flow to net income ratio is nearly 1, indicating efficient cash management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	249.75M	300.37M	335.84M	372.51M	419.50M	458.92M
Gross Profit	129.30M	163.23M	184.02M	209.98M	237.78M	269.27M
EBITDA	4.36M	53.88M	-217.19M	294.89M	232.92M	265.09M
Net Income	-75.08M	-47.41M	-332.07M	-5.29M	389.18M	21.54M
Balance Sheet
Total Assets	2.60B	2.80B	3.74B	4.55B	4.58B	4.86B
Cash, Cash Equivalents and Short-Term Investments	64.16M	32.79M	28.94M	29.17M	221.47M	34.70M
Total Debt	1.11B	1.13B	1.91B	2.21B	1.97B	2.40B
Total Liabilities	1.19B	1.22B	2.02B	2.32B	2.12B	2.53B
Stockholders Equity	1.41B	1.58B	1.72B	2.23B	2.46B	2.33B
Cash Flow
Free Cash Flow	109.96M	79.73M	79.59M	140.72M	202.28M	176.31M
Operating Cash Flow	109.96M	80.14M	79.96M	140.74M	202.29M	176.33M
Investing Cash Flow	58.51M	652.11M	298.39M	-288.99M	607.47M	165.96M
Financing Cash Flow	-158.09M	-730.44M	-378.19M	-46.57M	-622.97M	-350.00M

Artis Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AX.UN, the sentiment is Positive. The current price of 7.43 is above the 20-day moving average (MA) of 7.13, above the 50-day MA of 6.57, and above the 200-day MA of 6.87, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 82.23 is Negative, neither overbought nor oversold. The STOCH value of 93.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AX.UN.

Artis Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRV.UN	78 Outperform	C$432.71M	11.57	7.24%	6.89%	2.81%	9677.19%
BTB.UN	78 Outperform	C$356.61M	8.51	8.60%	7.37%	0.92%	92.93%
CRR.UN	67 Neutral	C$2.90B	1,035.33	0.14%	5.79%	6.32%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	63 Neutral	C$768.69M	-9.24	-4.93%	7.31%	-20.06%	19.27%
MRT.UN	55 Neutral	C$419.55M	-9.39	-4.91%	3.89%	-5.37%	13.86%
HR.UN	52 Neutral	C$2.75B	-6.66	-8.74%	6.86%	-0.83%	-56.21%

Artis Real Estate Investment Corporate Events

Artis REIT Reports Q3 Results and Strategic Merger

Artis Real Estate Investment Trust (Artis REIT) is a diversified Canadian real estate investment trust with a portfolio of industrial, office, and retail properties in Canada and the United States, focusing on value investing and asset management.