Chartwell Retirement Residences (CSH.UN) AI Stock Analysis

• Market Cap: C$6.48B
• Dividend Yield: 2.96%
• Average Volume (3M): 417.05K
• Price to Earnings (P/E): 218.6
• Beta (1Y): 0.44
• Revenue Growth: 28.05%
• EPS Growth: 662.10%
• Country: CA
• Employees: 13,070
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.02
• Shares Outstanding: 310,483,950
• 10 Day Avg. Volume: 334,138
• 30 Day Avg. Volume: 417,052
• PEG Ratio: -2.08
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 4.55
• P/FCF Ratio: 41.92
• 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$22.17
• Price Target Upside: 7.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$21.50 ▲(4.07% Upside)

Chartwell Retirement Residences shows strong financial performance with solid revenue growth and improved profitability. The positive sentiment from the earnings call, highlighting strategic growth and operational improvements, also supports the score. However, high leverage and a very high P/E ratio suggest potential financial risks and overvaluation concerns, which weigh on the overall score.

Positive Factors

Revenue Growth

Consistent growth in NOI and FFO indicates strong operational performance and effective management, supporting long-term revenue stability.

Occupancy Rates

High occupancy rates reflect strong demand for services, enhancing revenue potential and reducing vacancy risks in the long term.

Strategic Acquisitions

Strategic acquisitions expand market presence and service offerings, potentially driving future growth and competitive positioning.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Net Income Decline

A decline in net income suggests challenges in cost management or revenue generation, which could affect profitability and investor confidence.

Higher G&A Expenses

Rising G&A expenses can erode profit margins, necessitating efficiency improvements to sustain long-term profitability.

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 rental income from its retirement living and long-term care facilities. The company charges monthly fees for accommodation and care services provided to residents, which can include meals, housekeeping, and personal care assistance. Additionally, Chartwell may earn revenue through ancillary services, such as pharmacy services, wellness programs, and other health-related offerings. The company benefits from long-term leases and partnerships with healthcare providers, ensuring a steady influx of residents and minimizing vacancy rates. Economic factors, demographic trends, and government funding policies for senior care also play significant roles in influencing its earnings.

Chartwell Retirement Residences Financial Statement Overview

Summary

Chartwell Retirement Residences shows strong revenue growth and improved profitability metrics, but high leverage and significant challenges in free cash flow generation pose financial risks.

Income Statement

Chartwell Retirement Residences shows a positive revenue growth rate of 7.67% TTM, indicating strong top-line growth. The gross profit margin is healthy at 35.76%, though it has slightly decreased from the previous year. The net profit margin has improved to 6.36% TTM, reflecting better profitability. EBIT and EBITDA margins are robust at 24.42% and 38.72% respectively, showcasing operational efficiency. However, the decline in gross profit margin and the historical volatility in revenue growth are areas to monitor.

Balance Sheet

The company has a high debt-to-equity ratio of 2.39 TTM, indicating significant leverage, which is common in the REIT industry but poses financial risk. Return on equity has improved to 5.25% TTM, suggesting better utilization of equity. The equity ratio stands at 28.42%, showing a moderate level of equity financing. While the improvement in ROE is positive, the high leverage remains a concern.

Cash Flow

Free cash flow has significantly declined by 1459.72% TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.30, indicating moderate cash conversion efficiency. The negative free cash flow to net income ratio suggests challenges in generating free cash flow relative to net income. The cash flow situation requires attention due to the substantial decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	861.61M	736.74M	704.68M	669.36M	924.77M
Gross Profit	428.61M	352.43M	273.38M	239.98M	245.47M	302.27M
EBITDA	361.81M	289.98M	198.47M	193.59M	189.99M	256.25M
Net Income	25.71M	22.41M	128.27M	49.53M	10.13M	14.88M
Balance Sheet
Total Assets	4.71B	4.09B	3.23B	3.51B	3.42B	3.49B
Cash, Cash Equivalents and Short-Term Investments	284.40M	20.05M	24.62M	28.47M	95.49M	70.16M
Total Debt	2.87B	2.60B	2.03B	2.34B	2.35B	2.52B
Total Liabilities	3.23B	3.01B	2.44B	2.74B	2.59B	2.76B
Stockholders Equity	1.48B	1.07B	791.46M	769.80M	826.11M	733.98M
Cash Flow
Free Cash Flow	162.31M	93.58M	28.18M	26.35M	40.98M	52.23M
Operating Cash Flow	293.15M	200.85M	157.43M	137.71M	156.32M	184.62M
Investing Cash Flow	-580.70M	-652.99M	78.94M	-165.61M	-36.49M	-62.19M
Financing Cash Flow	545.90M	447.57M	-240.21M	-39.11M	-94.51M	-75.16M

Chartwell Retirement Residences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 20.66 is above the 20-day moving average (MA) of 20.15, above the 50-day MA of 20.16, and above the 200-day MA of 18.32, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 73.45 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
BEI.UN	74 Outperform	$3.39B	10.13	6.23%	2.47%	6.52%	-54.45%
KMP.UN	71 Outperform	C$2.00B	3.69	18.10%	4.37%	6.19%	79.98%
MI.UN	69 Neutral	C$490.15M	6.55	7.26%	3.90%	-1.21%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CSH.UN	65 Neutral	C$6.48B	218.62	1.99%	2.96%	28.05%	662.10%
CAR.UN	54 Neutral	C$5.79B	95.85	0.65%	4.14%	-6.51%	-81.28%
IIP.UN	47 Neutral	C$1.85B	-18.51	-4.40%	3.00%	1.55%	-401.05%

Chartwell Retirement Residences Corporate Events

Chartwell Expands Portfolio with Calgary Acquisition

Chartwell Retirement Residences has announced the acquisition of The Edward, a modern boutique retirement residence in Calgary, as part of its strategic expansion in the Alberta market. This acquisition, valued at $53 million, aligns with Chartwell’s strategy to enhance its portfolio with high-quality residences and is expected to close on December 1, 2025, potentially strengthening its market position in Western Canada.

Chartwell Announces November 2025 Distribution and DRIP Benefits

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on December 15, 2025, to unitholders of record on November 28, 2025. The announcement highlights the opportunity for unitholders to participate in the Distribution Reinvestment Plan (DRIP), allowing them to reinvest distributions into additional Trust Units and receive bonus units, thereby increasing their ownership without incurring extra fees. This initiative reflects Chartwell’s strategic efforts to enhance shareholder value and strengthen its market position.

Chartwell Retirement Residences Unveils Ambitious 2028 Strategy

Chartwell Retirement Residences has unveiled its 2028 Strategy, aiming to drive robust growth in Funds from Operations per unit through service excellence, portfolio optimization, and capital management. The company has successfully met its 2025 strategic targets, achieving high employee engagement and resident satisfaction while growing its property occupancy and operating margin. With a positive operating environment characterized by increasing demand and limited new construction, Chartwell is well-positioned to benefit from strong occupancy and cash flow growth. The 2028 Strategy includes financial objectives such as maintaining high occupancy rates, investing in growth, and managing capital effectively to sustain market-leading performance.

Chartwell Retirement Residences Reports Q3 2025 Results and Strategic Growth Plans

Chartwell Retirement Residences reported a significant increase in resident revenue by 32.3% for the third quarter of 2025, despite a net loss of $5.2 million compared to a net income in the previous year. The company achieved its ninth consecutive quarter of double-digit growth in same property adjusted NOI and FFO per unit, driven by operational efficiencies and strategic acquisitions. Chartwell plans to continue enhancing its portfolio through strategic acquisitions and development partnerships, expecting continued growth in occupancy and cash flows due to robust demand and limited new supply in its markets.

Chartwell Expands Portfolio with Strategic Acquisitions and Developments

Chartwell Retirement Residences announced strategic growth and financing initiatives, including the acquisition of several properties in Quebec and the development of a new retirement residence in Calgary. These initiatives are part of Chartwell’s strategy to expand its portfolio with modern, efficient properties in urban markets, supported by a $250 million equity raise and $87 million in new financings. The company’s investment grade rating was affirmed with a positive outlook, reflecting confidence in its growth trajectory.

Chartwell Announces Cash Distribution and Occupancy Update

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on November 17, 2025, with an option for unitholders to participate in a Distribution Reinvestment Plan (DRIP) to increase their holdings without additional fees. The company also provided an update on its same property occupancy rates, reflecting its ongoing efforts to maintain and improve occupancy levels, which are crucial for its operational stability and growth in the competitive seniors housing market.

Chartwell Retirement Residences Announces Q3 2025 Results and Investor Day

Chartwell Retirement Residences has announced its schedule for the release of its third-quarter 2025 financial results and an upcoming Investor Day. The financial results will be disclosed on November 6, 2025, followed by a conference call and webcast on November 7, 2025. Additionally, the Investor Day on November 13, 2025, will feature presentations on Chartwell’s strategic plans and initiatives, including growth and technology deployment, which could impact its market positioning and operational strategies.

Chartwell Announces September Distribution and Positive Occupancy Outlook

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit for September 2025, payable on October 15, 2025, with an option for unitholders to participate in a Distribution Reinvestment Plan (DRIP) to increase their ownership. The company also provided an occupancy update, indicating optimism for continued growth in occupancy rates driven by strong demand due to demographic trends and a shortage of long-term care beds, which could positively impact Chartwell’s market positioning.