Firm Capital Property (FCD.UN) AI Stock Analysis

• Market Cap: C$220.45M
• Dividend Yield: 8.68%
• Average Volume (3M): 16.27K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.28
• Revenue Growth: 2.69%
• EPS Growth: -45.80%
• Country: CA
• Employees: 1
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.12
• Shares Outstanding: 36,926,000
• 10 Day Avg. Volume: 17,552
• 30 Day Avg. Volume: 16,271
• PEG Ratio: 0.05
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 3.38
• P/FCF Ratio: 6.89
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$7.00 ▲(17.25% Upside)

Firm Capital Property's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust profitability and cash flow generation, combined with a high dividend yield and low P/E ratio, make it an appealing investment. Technical indicators suggest stable momentum, though the moderate leverage requires monitoring. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation supports operational stability and financial obligations, enhancing the company's ability to invest in growth opportunities and manage debt effectively.

Profitability

High profitability margins indicate efficient operations and strong market positioning, allowing the company to sustain growth and provide returns to shareholders.

Balanced Capital Structure

A balanced capital structure with moderate leverage provides financial flexibility and reduces risk, supporting long-term growth and stability.

Negative Factors

Leverage Risk

Moderate leverage increases vulnerability to interest rate hikes, potentially impacting financial stability and increasing debt servicing costs.

Margin Compression

Margin compression may indicate rising costs or competitive pressures, which could affect profitability and limit the company's ability to invest in growth.

Interest Rate Sensitivity

Sensitivity to interest rate changes can impact borrowing costs and financial performance, posing a risk to cash flow and profitability in a rising rate environment.

Firm Capital Property Business Overview & Revenue Model

Company Description

Firm Capital Property (FCD.UN) is a Canadian real estate investment trust (REIT) that focuses on acquiring, managing, and developing a diversified portfolio of income-generating properties. The company primarily operates in the commercial and residential sectors, targeting assets that provide stable cash flow and long-term appreciation. With a strategic emphasis on value-added opportunities, Firm Capital aims to deliver attractive returns to its unitholders through careful property selection and active management.

How the Company Makes Money

Firm Capital Property generates revenue primarily through rental income from its portfolio of properties. The company leases space to a variety of tenants, which provides a steady stream of cash flow. Additionally, Firm Capital may engage in property development and redevelopment projects, which can lead to increased property value and additional income through selling or leasing enhanced properties. Key revenue streams include long-term lease agreements with tenants in commercial and residential sectors, as well as potential profit from asset sales and capital appreciation. The company may also benefit from strategic partnerships, joint ventures, or collaborations that enhance its investment opportunities and operational efficiencies, contributing to its overall earnings.

Firm Capital Property Financial Statement Overview

Summary

Firm Capital Property demonstrates robust financial health with strong profitability, efficient operations, and solid cash flow generation. The company maintains a balanced capital structure, though its moderate leverage requires careful monitoring. Overall, the financial metrics suggest a well-managed company with growth potential, but vigilance over external economic factors such as interest rate changes is advised.

Income Statement

Firm Capital Property exhibited strong profitability with a gross profit margin of 58.1% and an impressive net profit margin of 55.9% in the latest annual report. The revenue growth rate was 4.3%, indicating steady growth in total revenue. The EBIT and EBITDA margins were high at 53.8% and 78.7% respectively, showcasing operational efficiency. However, the previous year's gross profit was higher, suggesting some margin compression.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 1.09, indicating moderate leverage. The return on equity (ROE) stands at 11.1%, suggesting a reasonable return for shareholders. The equity ratio is 47.0%, demonstrating a balanced approach between debt and equity financing. Despite these strengths, the company’s leverage could pose risks if interest rates rise.

Cash Flow

Firm Capital Property has shown strong cash flow generation with a free cash flow growth rate of 31.0%. The operating cash flow to net income ratio is 1.02, indicating excellent cash conversion. The free cash flow to net income ratio is 0.88, reflecting sound cash management. The company’s ability to generate cash flow is a key strength, supporting its operations and financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.77M	60.58M	58.09M	54.02M	46.43M	44.54M
Gross Profit	35.21M	35.19M	37.30M	35.46M	30.22M	28.54M
EBITDA	33.28M	47.67M	29.28M	30.66M	66.76M	24.73M
Net Income	18.94M	33.89M	15.37M	-22.00M	58.39M	7.50M
Balance Sheet
Total Assets	637.04M	651.95M	637.38M	633.90M	576.36M	480.52M
Cash, Cash Equivalents and Short-Term Investments	5.88M	9.18M	8.33M	4.99M	5.90M	5.69M
Total Debt	318.71M	332.67M	335.29M	325.73M	264.97M	248.35M
Total Liabilities	331.88M	345.57M	345.69M	337.38M	280.44M	257.07M
Stockholders Equity	305.16M	306.38M	291.69M	296.51M	295.92M	223.45M
Cash Flow
Free Cash Flow	27.68M	29.70M	22.66M	-55.31M	-47.05M	11.73M
Operating Cash Flow	32.74M	34.42M	28.92M	29.97M	26.60M	22.32M
Investing Cash Flow	15.01M	1.96M	-561.66K	-80.71M	-47.83M	-10.55M
Financing Cash Flow	-49.18M	-35.53M	-25.01M	49.83M	21.44M	-18.84M

Firm Capital Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.97
• 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:FCD.UN, the sentiment is Positive. The current price of 5.97 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 5.94, and above the 200-day MA of 5.79, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FCD.UN.

Firm Capital Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRV.UN	78 Outperform	C$429.35M	11.48	7.24%	7.09%	2.81%	9677.19%
FCD.UN	75 Outperform	C$220.45M	11.64	6.20%	8.68%	2.69%	-45.80%
BTB.UN	75 Outperform	C$355.72M	8.49	8.60%	7.41%	0.92%	92.93%
NET.UN	75 Outperform	C$115.76M	8.58	10.16%	6.18%	3.20%	39.37%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MRT.UN	55 Neutral	C$421.54M	-9.22	-4.91%	3.90%	-5.37%	13.86%

Firm Capital Property Corporate Events

Firm Capital Property Trust Reports Q3/2025 Results with Strategic Refinancing

Firm Capital Property Trust reported its Q3/2025 financial results, highlighting a $38 million mortgage refinancing and a declining AFFO payout ratio. The Trust’s portfolio remains robust with high occupancy rates and a conservative leverage profile. Despite a slight decrease in net income and AFFO compared to the previous year, the Trust continues to maintain stable rental revenue and net operating income, reflecting its strong market positioning.