Chartwell Retirement Residences (CSH.UN) AI Stock Analysis

• Market Cap: C$4.87B
• Dividend Yield: 3.57%
• Average Volume (3M): 397.17K
• Price to Earnings (P/E): 199.2
• Beta (1Y): 0.64
• Revenue Growth: 15.38%
• EPS Growth: -84.98%
• Country: CA
• Employees: 13,070
• Sector: Real Estate
• Sector Strength: 77
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.08
• Shares Outstanding: 280,859,900
• 10 Day Avg. Volume: 286,615
• 30 Day Avg. Volume: 397,169
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.30
• Price to Cash Flow (P/CF): 20.70
• P/FCF Ratio: 0.00
• 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$19.63
• Price Target Upside: 14.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Chartwell Retirement Residences scores moderately due to mixed financial performance and high P/E ratio. While cash flow and strategic acquisitions are strengths, high leverage and thin margins are concerns. Positive earnings call guidance and corporate events enhance future prospects.

Positive Factors

Balance Sheet Improvements

Chartwell's balance sheet continues to move in the right direction, with a reduced net debt/EBITDA ratio and improved cost of capital.

Occupancy and Demographic Trends

Chartwell Retirement Residences is expected to be the primary beneficiary of improving occupancy, limited new supply, and increasing demographic tailwinds.

Strategic Initiatives

Strategic initiatives have driven a stronger portfolio, including the disposition of the LTC platform and capital recycling, improving property quality.

Negative Factors

Premium Valuation

Chartwell's premium valuation might raise concerns despite the above-average growth outlook, balance sheet improvements, and strong fundamental backdrop.

Chartwell Retirement Residences Business Overview & Revenue Model

Company Description

Chartwell Retirement Residences (CSH.UN) is a leading provider of seniors housing in Canada, primarily focused on offering a range of retirement living options including independent living, assisted living, and memory care. The company operates a portfolio of high-quality retirement communities across the country, designed to cater to the varying needs of seniors. Chartwell is committed to providing residents with a fulfilling and engaging lifestyle, supported by a team of dedicated staff and comprehensive services aimed at enhancing the quality of life for its residents.

How the Company Makes Money

Chartwell Retirement Residences generates revenue primarily through rental income from its portfolio of retirement communities. The company's revenue model is based on offering a range of living arrangements that cater to different levels of care needs, from independent living to more intensive assisted living and memory care services. Each of these services is priced according to the level of care and amenities provided, contributing to the company's income. Additionally, Chartwell may engage in partnerships with healthcare providers to offer enhanced care services, further augmenting its revenue streams. The company also focuses on maintaining high occupancy rates and operational efficiencies to maximize profitability. Rent and service fees collected from residents form the core of Chartwell's revenue, with supplementary income derived from ancillary services offered within its communities.

Chartwell Retirement Residences Financial Statement Overview

Summary

Chartwell Retirement Residences shows moderate financial health. Revenue and free cash flow are growing, but profitability is thin and leverage is high, indicating potential risks if not managed properly. Strong cash flow generation is a positive, but operational efficiencies need improvement to enhance EBIT margins.

Income Statement

Chartwell Retirement Residences shows a mixed financial performance. The gross profit margin for 2024 is approximately 40.0%, which is decent but has decreased slightly from previous years. The net profit margin for 2024 stands at 2.6%, indicating thin profitability. Revenue growth from 2023 to 2024 is 15.3%, which is positive, but EBIT margin is zero, reflecting operational challenges. EBITDA margin is strong at 38.7%, suggesting that non-operational expenses are significant.

Balance Sheet

The company's balance sheet indicates stability with a debt-to-equity ratio of 2.42 in 2024, showing high leverage. Return on equity is low at 2.1%, indicating limited returns for shareholders. The equity ratio is 26.2%, suggesting a moderate level of equity financing. This high leverage could pose risks if not managed properly.

Cash Flow

Chartwell Retirement Residences exhibits a healthy cash flow with an operating cash flow to net income ratio of 8.96, indicating strong cash generation relative to income. Free cash flow grew significantly from 2023 to 2024, with a free cash flow to net income ratio of 4.18, reflecting efficient cash management. Despite some volatility in investing activities, the cash flow position remains robust.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
848.54M	736.24M	706.80M	903.61M	924.72M
	Gross Profit
339.36M	272.87M	242.10M	273.89M	302.22M
	EBIT
0.00	36.08M	30.28M	51.95M	76.78M
	EBITDA
328.20M	184.49M	188.43M	220.04M	256.46M
	Net Income Common Stockholders
22.41M	128.27M	27.39M	10.13M	14.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.05M	24.62M	28.47M	95.49M	70.16M
	Total Assets
4.09B	3.23B	3.51B	3.42B	3.49B
	Total Debt
2.60B	2.03B	2.34B	2.35B	2.52B
	Net Debt
2.58B	2.00B	2.31B	2.25B	2.45B
	Total Liabilities
3.01B	2.44B	2.74B	2.59B	2.76B
	Stockholders Equity
1.07B	791.46M	769.80M	826.11M	733.98M
Cash Flow		Free Cash Flow
93.58M	28.18M	26.35M	40.98M	52.23M
	Operating Cash Flow
200.85M	157.43M	137.71M	156.32M	184.62M
	Investing Cash Flow
-652.99M	78.94M	-165.61M	-36.49M	-62.19M
	Financing Cash Flow
447.57M	-240.21M	-39.11M	-94.51M	-75.16M

Chartwell Retirement Residences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CSH.UN, the sentiment is Positive. The current price of 17.13 is above the 20-day moving average (MA) of 16.45, above the 50-day MA of 16.57, and above the 200-day MA of 15.32, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CSH.UN.

Chartwell Retirement Residences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	74 Outperform	C$1.11B	14.88	70.86%	3.61%	12.36%	123.26%
DR	69 Neutral	$343.86M	2.45	23.77%	2.38%	-24.96%	549.36%
SIA	63 Neutral	C$1.53B	33.02	8.99%	5.62%	13.72%	429.22%
Sector *	59 Neutral	$2.72B	11.59	0.11%	8770.69%	5.44%	-16.52%
NWH.UN	58 Neutral	$1.22B	―	-16.93%	7.35%	-8.75%	14.49%
CSH.UN	51 Neutral	C$4.87B	199.19	2.36%	3.57%	15.38%	-84.98%
MPCT.UN	37 Underperform	C$51.30M	―	-6.27%	1.90%	-2.06%	43.41%

Chartwell Retirement Residences Corporate Events

Chartwell Announces Cash Distribution and Positive Occupancy Trends

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on May 15, 2025, with eligible unitholders able to participate in the Distribution Reinvestment Plan to increase their ownership without fees. The company also reported positive momentum in occupancy rates, driven by strong demand and demographic growth, which is expected to continue through 2025, potentially enhancing its market position and benefiting stakeholders.

Spark’s Take on TSE:CSH.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:CSH.UN is a Neutral.

Chartwell Retirement Residences has a moderate overall stock score. Strengths include strong cash flow generation and positive corporate events like strategic acquisitions. However, high leverage, thin profitability margins, and a potentially overvalued P/E ratio are key risks. The company is making strides in operational growth and efficiency, but further improvements are needed to enhance financial stability and shareholder returns.

To see Spark’s full report on TSE:CSH.UN stock, click here.

Chartwell Expands Quebec Portfolio with Strategic Acquisitions

Chartwell Retirement Residences has expanded its portfolio by acquiring two retirement residences, Résidence Le Florilège and Chartwell L’Envol, along with the remaining interest in Chartwell Trait-Carré, all located in Quebec City. These acquisitions, valued at over $247 million, are part of Chartwell’s strategy to enhance its presence in high-growth markets with high-quality, recently developed properties that boast strong occupancy rates. The integration of these properties is expected to be seamless, as they are already managed by Chartwell, and will contribute positively to the company’s portfolio quality and competitive positioning in the seniors housing industry.

Chartwell Retirement Residences Announces Q1 2025 Results Release and AGM Details

Chartwell Retirement Residences announced it will release its first quarter 2025 financial results on May 8, 2025, followed by a conference call and webcast on May 9, 2025, to discuss the results. Additionally, Chartwell will hold its annual general meeting on May 7, 2025, both in person and virtually. These events are significant for stakeholders as they provide insights into the company’s financial health and strategic direction.

Chartwell Announces Cash Distribution and Positive Occupancy Trends

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on April 15, 2025, with a Distribution Reinvestment Plan (DRIP) that allows unitholders to increase their ownership without fees. The company reported robust winter sales activity, leading to higher occupancy rates and expects continued positive momentum due to strong demand driven by demographic growth and a shortage of long-term care beds.

Chartwell Retirement Residences Announces $400 Million Debenture Offering

Chartwell Retirement Residences announced a $400 million offering of senior unsecured debentures, divided equally between Series E and Series F, with interest rates of 3.650% and 4.500%, maturing in 2028 and 2032, respectively. The proceeds are intended to repay existing debts and finance future acquisitions, potentially enhancing Chartwell’s financial flexibility and growth prospects in the senior housing market.

Chartwell Retirement Residences Reports Strong Q4 2024 Results

Chartwell Retirement Residences reported a significant financial turnaround in the fourth quarter of 2024, with a notable increase in resident revenue and a shift from a net loss to a net income. The company attributes its success to improvements in employee engagement, resident satisfaction, and operational efficiency, alongside strategic growth and optimization efforts. Chartwell’s CEO expressed confidence in sustaining strong performance through continued focus on operational excellence and capital management, positioning the company well for future growth.

Chartwell Announces Cash Distribution and Reports Strong Occupancy Trends

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on March 17, 2025, with the option for unitholders to participate in a Distribution Reinvestment Plan (DRIP) that includes a 3% bonus in units. Additionally, Chartwell reported higher than usual January occupancy rates due to strong winter sales activity, with expectations of continued positive momentum into the spring, indicating robust demand and potential growth in occupancy rates.

Chartwell Completes Strategic Transaction with Welltower

Chartwell Retirement Residences has completed a strategic transaction with Welltower Inc., transferring its interests in 23 co-owned residences to Welltower and management of 25 properties to Cogir. This move, in exchange for cash and Welltower’s interests in 16 residences, aims to ensure a smooth transition for residents and employees while potentially strengthening Chartwell’s market position.

Chartwell Expands Quebec Portfolio with $136M Acquisition

Chartwell Retirement Residences announced the acquisition of Rosemont Les Quartiers, a retirement residence in Montreal, for $136 million. This strategic acquisition, expected to close in Q1 2025, enhances Chartwell’s Quebec platform and expands its presence in a prime urban location, offering significant value below replacement costs.