Chartwell Retirement Residences (CSH.UN) AI Stock Analysis

• Market Cap: C$5.24B
• Dividend Yield: 3.36%
• Average Volume (3M): 316.82K
• Price to Earnings (P/E): 89.0
• Beta (1Y): 0.66
• Revenue Growth: 20.03%
• EPS Growth: -63.03%
• Country: CA
• Employees: 13,070
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.12
• Shares Outstanding: 281,190,160
• 10 Day Avg. Volume: 284,552
• 30 Day Avg. Volume: 316,819
• PEG Ratio: 0.57
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -497.37
• 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$20.63
• Price Target Upside: 13.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: C$20.50 ▲(12.58%Upside)

Chartwell Retirement Residences is well-positioned in the healthcare facilities sector with strong revenue growth and profitability. Positive earnings call guidance and strategic acquisitions support a favorable outlook. However, high leverage and potential overvaluation pose risks. Continued focus on operational efficiency and liquidity management will be crucial for sustaining growth.

Positive Factors

Growth Outlook

Chartwell is expected to achieve an impressive earnings CAGR of 16% from 2024 to 2026.

Operational Performance

SP-NOI margins of 40.8% demonstrate strong performance and sustained margin strength.

Strategic Positioning

As the largest public player, Chartwell is well-positioned to capitalize on attractive fundamentals in the Canadian seniors housing space.

Negative Factors

Market Competition

Chartwell's premium valuation may face challenges if competitors improve their growth outlook and operational efficiency.

Valuation Concerns

The premium valuation of Chartwell might be pressured if the anticipated demographic tailwinds do not materialize as expected.

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 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 demonstrates solid financial performance with strong revenue growth and profitability. High leverage poses a risk, but the company manages equity and operating cash flows effectively. Improvements in operational efficiency and liquidity management are needed for stronger financial standing.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
904.88M	848.54M	736.24M	706.80M	903.61M	924.72M
	Gross Profit
323.58M	339.36M	272.87M	242.10M	273.89M	302.22M
	EBIT
114.27M	122.75M	36.08M	30.28M	51.95M	76.78M
	EBITDA
350.38M	328.20M	184.49M	188.43M	220.04M	256.46M
	Net Income Common Stockholders
57.56M	22.41M	128.27M	27.39M	10.13M	14.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.36M	20.05M	24.62M	28.47M	95.49M	70.16M
	Total Assets
3.00B	4.09B	3.23B	3.51B	3.42B	3.49B
	Total Debt
1.83B	2.60B	2.03B	2.34B	2.35B	2.52B
	Net Debt
1.81B	2.58B	2.00B	2.31B	2.25B	2.45B
	Total Liabilities
2.00B	3.01B	2.44B	2.74B	2.59B	2.76B
	Stockholders Equity
1.00B	1.07B	791.46M	769.80M	826.11M	733.98M
Cash Flow		Free Cash Flow
-10.40M	93.58M	28.18M	26.35M	40.98M	52.23M
	Operating Cash Flow
228.57M	200.85M	157.43M	137.71M	156.32M	184.62M
	Investing Cash Flow
-781.41M	-652.99M	78.94M	-165.61M	-36.49M	-62.19M
	Financing Cash Flow
586.66M	447.57M	-240.21M	-39.11M	-94.51M	-75.16M

Chartwell Retirement Residences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.21
• 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 18.21 is above the 20-day moving average (MA) of 18.09, above the 50-day MA of 17.22, and above the 200-day MA of 15.89, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 57.63 is Neutral, neither overbought nor oversold. The STOCH value of 61.13 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
KMP.UN	81 Outperform	C$2.34B	3.68	22.26%	3.65%	5.77%	108.23%
CAR.UN	76 Outperform	C$7.14B	63.45	1.29%	3.38%	0.93%	―
CSH.UN	74 Outperform	C$5.24B	88.98	5.86%	3.36%	20.03%	-63.03%
PLZ.UN	74 Outperform	C$425.14M	17.22	4.57%	7.27%	6.36%	13.91%
IIP.UN	71 Outperform	C$1.92B	―	-7.00%	2.83%	2.52%	-573.45%
Sector *	61 Neutral	$2.82B	10.89	0.42%	8438.96%	5.74%	-20.95%
BOWFF		$2.73B	8.61	8.71%	2.04%	―	―

Chartwell Retirement Residences Corporate Events

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.

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.

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.