Chartwell Retirement Residences (CSH.UN) AI Stock Analysis

• Market Cap: C$5.25B
• Dividend Yield: 3.35%
• Average Volume (3M): 310.02K
• Price to Earnings (P/E): 88.1
• Beta (1Y): 0.57
• Revenue Growth: 20.03%
• EPS Growth: -63.03%
• Country: CA
• Employees: 13,070
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.12
• Shares Outstanding: 283,954,000
• 10 Day Avg. Volume: 309,100
• 30 Day Avg. Volume: 310,024
• PEG Ratio: 0.57
• Price to Book (P/B): 4.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -499.84
• 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$20.50
• Price Target Upside: 12.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: C$20.00 ▲(9.71%Upside)

Chartwell Retirement Residences scores a 71, driven by strong earnings call outcomes and solid financial performance. While high leverage and valuation concerns exist, the positive technical indicators and strategic corporate events bolster the stock's outlook.

Positive Factors

Balance Sheet Strength

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

Earnings Outlook

Earnings outlook points to an impressive 2024-26E earnings CAGR of 16%.

Operational Performance

Chartwell's portfolio of private-pay retirement residences is expected to benefit from operational initiatives, demographic tailwinds, and a period of limited supply.

Negative Factors

Market Valuation

Chartwell's premium valuation may be a concern despite its above-average growth outlook and strong fundamental backdrop.

Chartwell Retirement Residences Business Overview & Revenue Model

Company Description

Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent supportive living through assisted living to long term care. It is the largest operator in the Canadian seniors living sector with over 200 quality retirement communities in four provinces including properties under development. Chartwell is committed to its vision of Making People's Lives BETTER and to providing a happier, healthier and more fulfilling life experience for its residents.

How the Company Makes Money

Chartwell Retirement Residences generates revenue primarily through the rental and service fees charged to its residents. The company's revenue model is centered around occupancy rates in its various types of residences, including independent living, assisted living, and long-term care facilities. Key revenue streams include monthly rent payments from residents, fees for additional care services, and government funding for long-term care services. Chartwell may also engage in partnerships with healthcare providers and community organizations to enhance service offerings. Factors contributing to its earnings include demographic trends favoring an aging population, which increases demand for senior living options, and the company's focus on maintaining high occupancy rates and efficient operations.

Chartwell Retirement Residences Financial Statement Overview

Summary

Chartwell Retirement Residences exhibits strong revenue growth and profitability, with a healthy net profit margin and return on equity. Despite high leverage and negative free cash flow, the company effectively manages its equity and operating cash flows.

Income Statement

The income statement shows a solid performance with a notable revenue growth rate of 7% in the TTM, driven by the healthcare facilities' demand. The gross profit margin is stable at 35.75%, and the net profit margin improved to 6.36%, indicating efficient cost management. However, a slight decrease in EBIT margin to 12.63% suggests potential pressure on operational efficiency. Overall, the company exhibits strong growth and profitability, with room for further operational improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.39, reflecting significant leverage that could pose risks if not managed properly. Nevertheless, the return on equity is healthy at 4.92%, showcasing effective utilization of shareholders' funds. The equity ratio stands at 27.32%, indicating a reasonable cushion for creditors. Overall, while the high leverage is a concern, the company maintains a stable equity position.

Cash Flow

Cash flow analysis shows robust operating cash flow, covering net income adequately with an operating cash flow to net income ratio of 3.97x. However, free cash flow has turned negative due to higher capital expenditures, raising concerns about liquidity management. Despite this, the company has managed to finance its investing activities effectively through financing cash flows. Overall, while the operating cash flow is strong, negative free cash flow warrants attention.

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
EBITDA	328.20M	184.49M	188.43M	220.04M	256.46M
Net Income	22.41M	128.27M	27.39M	10.13M	14.88M
Balance Sheet
Total Assets	4.09B	3.23B	3.51B	3.42B	3.49B
Cash, Cash Equivalents and Short-Term Investments	20.05M	24.62M	28.47M	95.49M	70.16M
Total Debt	2.60B	2.03B	2.34B	2.35B	2.52B
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: 18.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.23 is below the 20-day moving average (MA) of 18.28, above the 50-day MA of 18.10, and above the 200-day MA of 16.35, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 is Neutral, 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
PLZ.UN	76 Outperform	C$436.20M	17.64	4.57%	7.09%	6.36%	13.91%
KMP.UN	75 Outperform	C$2.32B	3.62	22.26%	3.74%	5.77%	108.23%
CSH.UN	71 Outperform	C$5.25B	88.11	5.86%	3.35%	20.03%	-63.03%
IIP.UN	70 Outperform	C$1.88B	―	-7.00%	2.98%	2.52%	-573.45%
CAR.UN	68 Neutral	C$7.17B	64.17	1.29%	3.44%	0.93%	―
Sector *	63 Neutral	$6.98B	18.44	-1.93%	6.77%	4.67%	-25.44%
BOWFF	―	$2.80B	8.76	8.71%	2.24%	―	―

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 August 15, 2025, with an option for unitholders to reinvest through the Distribution Reinvestment Plan (DRIP). The company also provided an occupancy update, highlighting positive trends in occupancy rates driven by strong demand, demographic growth, and limited new construction starts, which are expected to continue benefiting the company through 2025.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Chartwell Expands Quebec Footprint with Strategic Acquisitions and Developments

Chartwell Retirement Residences is expanding its presence in Quebec with strategic investments, including the acquisition of Les Tours Angrignon in Montréal and new development projects in Vaudreuil-Dorion and Terrebonne. These initiatives, totaling over $292 million, aim to meet the growing demand for senior living accommodations and enhance Chartwell’s market position in the province. The acquisition and developments are expected to improve resident experiences and support long-term value creation, with the first residents anticipated in fall 2026.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Chartwell to Release Q2 2025 Financial Results and Host Conference Call

Chartwell Retirement Residences announced that it will release its financial results for the second quarter of 2025 on August 7, with a conference call and webcast scheduled for August 8 to discuss the outcomes. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, which are crucial for assessing its market position and future prospects.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$16.50 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Chartwell Announces Cash Distribution and Positive Occupancy Outlook

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on July 15, 2025, with an option for unitholders to participate in a Distribution Reinvestment Plan (DRIP) that offers bonus units. The company also provided an occupancy update, indicating positive momentum in occupancy rates due to strong demand driven by demographic growth and a shortage of long-term care beds, which is expected to continue throughout 2025.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Chartwell Announces Cash Distribution and Investment Incentives

Chartwell Retirement Residences has announced a cash distribution of $0.051 per Trust Unit, payable on June 16, 2025, to unitholders of record as of May 30, 2025. The announcement includes details about the Distribution Reinvestment Plan (DRIP), which allows unitholders to reinvest their distributions into additional Trust Units and receive bonus units, enhancing their investment without additional fees. This move reflects Chartwell’s commitment to providing value to its investors and could potentially strengthen its market position by encouraging increased investment from existing stakeholders.

The most recent analyst rating on ($TSE:CSH.UN) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Chartwell Retirement Residences stock, see the TSE:CSH.UN Stock Forecast page.

Chartwell Retirement Residences Reports Strong Q1 2025 Financial Performance

Chartwell Retirement Residences reported a significant financial turnaround in Q1 2025, with a net income of $33.2 million compared to a net loss in the previous year. The company achieved a 32.4% increase in resident revenue and a 21.3% growth in same-property net operating income, driven by higher occupancy rates and effective management strategies. Chartwell’s strategic focus on increasing occupancy and cash flows positions it to capitalize on growing demand in the senior housing market, with a target occupancy rate of 95% by year-end.

Chartwell Retirement Residences Announces Board Elections and Key Voting Results

Chartwell Retirement Residences announced the election of its board of directors and trustees during its annual meeting held on May 7, 2025. The meeting also resulted in the reappointment of KPMG LLP as auditors and an advisory vote on executive compensation, with strong support for the proposed nominees and compensation approach. These decisions are expected to reinforce Chartwell’s governance structure and operational stability, potentially impacting its market position positively.