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

• Market Cap: C$633.38M
• Dividend Yield: 9.04%
• Average Volume (3M): 373.70K
• 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: 625,255
• 30 Day Avg. Volume: 373,703
• 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: C$7.51
• Price Target Upside: 13.03% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): C$346.28M

• Rating: 52 Neutral
• Price Target: C$6.00 ▼(-9.64% Downside)

Artis Real Estate Investment's overall stock score is primarily influenced by its financial performance, which shows challenges with declining revenues and net losses. Technical analysis indicates a bearish trend, while valuation metrics present a mixed picture with a high dividend yield but negative P/E ratio. The earnings call provided some positive developments, particularly in leasing and deleveraging efforts, but highlighted ongoing challenges.

Positive Factors

Occupancy Improvement

Improved occupancy rates reflect effective property management and tenant retention, enhancing revenue stability and long-term asset utilization.

Deleveraging Efforts

Deleveraging through asset sales strengthens the balance sheet, reducing financial risk and improving flexibility for future investments.

Cash Flow Management

Strong cash flow management ensures liquidity and supports ongoing operations, enabling strategic investments and debt reduction.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market position and could pressure profitability if not addressed.

Elevated Payout Ratios

High payout ratios can strain financial resources, limiting reinvestment capacity and potentially affecting dividend sustainability.

Increased Debt to Gross Book Value

Rising debt levels relative to assets can increase financial risk, impacting long-term financial health and borrowing capacity.

Artis Real Estate Investment Business Overview & Revenue Model

Company Description

Artis is a diversified Canadian real estate investment trust investing in industrial and office properties in Canada and the United States. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in select markets in Canada and the United States. As of September 30, 2020, Artis' commercial property comprises approximately 23.8 million square feet of leasable area.

How the Company Makes Money

Artis Real Estate Investment generates revenue primarily through rental income derived from its diverse portfolio of properties. The company leases its commercial, industrial, and retail spaces to a wide range of tenants, which provides a steady cash flow. Additionally, Artis may realize income through property management fees and service charges related to the maintenance and operation of its properties. The trust also benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. By actively managing its property portfolio and optimizing occupancy rates, Artis maximizes its revenue potential while focusing on long-term value creation for its investors.

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	256.60M	300.37M	335.84M	372.51M	419.50M	458.92M
Gross Profit	133.68M	163.23M	184.02M	209.98M	237.78M	269.27M
EBITDA	66.91M	53.88M	-217.19M	294.89M	232.92M	265.09M
Net Income	-53.12M	-47.41M	-332.07M	-5.29M	389.18M	21.54M
Balance Sheet
Total Assets	2.61B	2.80B	3.74B	4.55B	4.58B	4.86B
Cash, Cash Equivalents and Short-Term Investments	16.64M	32.79M	28.94M	29.17M	221.47M	34.70M
Total Debt	1.08B	1.13B	1.91B	2.21B	1.97B	2.40B
Total Liabilities	1.16B	1.22B	2.02B	2.32B	2.12B	2.53B
Stockholders Equity	1.46B	1.58B	1.72B	2.23B	2.46B	2.33B
Cash Flow
Free Cash Flow	79.68M	79.73M	79.59M	140.72M	202.28M	176.31M
Operating Cash Flow	79.68M	80.14M	79.96M	140.74M	202.29M	176.33M
Investing Cash Flow	548.08M	652.11M	298.39M	-288.99M	607.47M	165.96M
Financing Cash Flow	-636.79M	-730.44M	-378.19M	-46.57M	-622.97M	-350.00M

Artis Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6.64 is above the 20-day moving average (MA) of 6.47, above the 50-day MA of 6.22, and below the 200-day MA of 6.86, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 71.99 is Neutral, 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	81 Outperform	C$399.16M	14.17	7.24%	7.25%	2.81%	9677.19%
BTB.UN	75 Outperform	C$332.77M	7.94	8.60%	7.79%	0.92%	92.93%
CRR.UN	67 Neutral	C$2.75B	-714.49	0.14%	5.89%	6.32%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	52 Neutral	C$633.38M	―	-4.93%	9.04%	-20.06%	19.27%
HR.UN	52 Neutral	C$2.91B	-30.02	-8.74%	7.17%	-0.83%	-56.21%
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.14%	-5.37%	13.86%

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.