Real Estate & E-Commerce Split Corp. Class A (RS) AI Stock Analysis

• Market Cap: C$113.30M
• Dividend Yield: 17.81%
• Average Volume (3M): 26.48K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.01
• Shares Outstanding: 11,455,919
• 10 Day Avg. Volume: 27,541
• 30 Day Avg. Volume: 26,476
• PEG Ratio: 0.10
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 21.11
• P/FCF Ratio: -1.62
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$10.50 ▲(5.00% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held back primarily by persistent, worsening negative operating/free cash flow and volatile profitability, despite a very strong low-debt balance sheet. Valuation is a key positive (low P/E and very high yield), while technicals are mixed and corporate updates modestly supportive due to continued/increased distributions and the maturity extension.

Positive Factors

Conservative balance sheet / low leverage

Essentially no debt and rising equity provide durable financial flexibility, allowing the company to hold volatile underlying positions through market cycles, fund distributions from capital if needed, and avoid refinancing pressure that can impair long-term income capacity.

Extended maturity and income-focused corporate actions

Extending maturity to 2030 and increasing preferred distributions signals management focus on preserving income continuity and lowering near-term refinancing risk, which supports the split-share structure's long-term ability to deliver predictable payout profiles to income-oriented investors.

Revenue growth with solid gross margins

Sustained revenue growth and high gross margins reflect favorable underlying portfolio returns and a low-cost holding model. Over months, this supports the company’s capacity to generate distributable income and absorb operating expenses without relying on high operating leverage.

Negative Factors

Deepening operating and free cash flow deficits

Material and worsening cash burn weakens the company's ability to fund distributions and cover costs from operating activity alone, increasing reliance on asset sales, portfolio rebalancing, or external funding, which can impair long-term distribution sustainability and financial resilience.

Sharp profitability volatility

A dramatic swing from strong profit to a sizable loss indicates volatile portfolio returns or one-off write-downs, undermining earnings predictability. Persistent volatility makes it difficult to plan distributions and erodes investor confidence in recurring income over multiple quarters.

Negative ROE despite equity growth

Although equity has increased, negative return on equity shows the portfolio or capital-allocation decisions failed to generate returns on new capital. Over the medium term this limits value creation for shareholders and raises questions about the sustainability of income paid from capital sources.

Real Estate & E-Commerce Split Corp. Class A Business Overview & Revenue Model

Company Description

Real Estate & E-Commerce Split Corp. is a balanced mutual fund launched by Middlefield Limited. The fund is managed by Middlefield Capital Corporation. Real Estate & E-Commerce Split Corp. Real Estate & E-Commerce Split Corp. was formed on October 7, 2020 and is domiciled in Canada.

How the Company Makes Money

Real Estate & E-Commerce Split Corp. Class A makes money primarily through the management and trading of its structured investment vehicles, specifically split shares. These shares are designed to generate revenue through dividends, interest, and capital gains from the underlying assets, which include real estate investments and e-commerce related securities. The company earns management fees from the administration of these investment products. Additionally, it may benefit from strategic partnerships and financial instruments that enhance returns for shareholders.

Real Estate & E-Commerce Split Corp. Class A Financial Statement Overview

Summary

Mixed fundamentals: a strong, low-debt balance sheet (debt essentially zero; equity growth) is outweighed by very weak and worsening cash flow (deeply negative operating/free cash flow, deteriorating in 2024) and a sharp profitability swing from strong profit in 2023 to a sizable loss in 2024.

Income Statement

Revenue has grown over time, including +19.9% in 2024, but earnings quality is volatile. The company swung from a strong profit in 2023 (net margin ~74%) to a sizeable loss in 2024 (net margin ~-114%). Gross profit margins are solid (~72% in 2023–2024), but the sharp reversal in profitability and inconsistent operating results drive a below-average income statement score.

Balance Sheet

The balance sheet is conservatively positioned with essentially no leverage (debt-to-equity ~0 in 2023–2024; total debt reported at 0). Equity has also grown (from ~80.1M in 2023 to ~113.3M in 2024), supporting financial flexibility. The main weakness is inconsistent returns for shareholders, with return on equity turning negative in 2024 after being positive in 2023.

Cash Flow

Cash generation is a major concern: operating cash flow and free cash flow are deeply negative across all years provided, worsening to about -80.2M in 2024 from about -26.7M in 2023. This persistent cash burn increases reliance on portfolio/liquidity actions or external funding, and the deterioration in 2024 materially weakens the cash flow profile.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.17M	5.14M	3.12M	1.37M	242.82K
Gross Profit	4.43M	3.71M	2.07M	669.97K	178.09K
EBITDA	-6.52M	3.92M	-17.30M	12.37M	-253.14K
Net Income	-7.02M	3.81M	-17.34M	12.30M	-260.22K
Balance Sheet
Total Assets	231.44M	150.25M	121.09M	78.56M	38.43M
Cash, Cash Equivalents and Short-Term Investments	230.51M	149.30M	120.61M	78.26M	38.25M
Total Debt	0.00	0.00	500.00K	500.00K	0.00
Total Liabilities	118.11M	70.19M	54.64M	27.69M	16.67M
Stockholders Equity	113.33M	80.06M	66.46M	50.87M	21.76M
Cash Flow
Free Cash Flow	-80.19M	-26.66M	-57.83M	-26.41M	-35.87M
Operating Cash Flow	-80.19M	-26.66M	-57.83M	-26.41M	-35.87M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	87.80M	24.74M	59.47M	27.75M	38.32M

Real Estate & E-Commerce Split Corp. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.00
• 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:RS, the sentiment is Neutral. The current price of 10 is above the 20-day moving average (MA) of 9.93, above the 50-day MA of 9.65, and above the 200-day MA of 9.13, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RS.

Real Estate & E-Commerce Split Corp. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URB	81 Outperform	C$367.71M	4.03	20.24%	1.43%	-73.34%	40.59%
STCK	71 Outperform	C$250.49M	5.28	26.60%	―	550.81%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QRC	67 Neutral	C$714.13M	4.20	36.24%	2.20%	-1.35%	496.34%
TINY	62 Neutral	C$198.93M	-7.27	-14.47%	―	0.93%	31.56%
RS	56 Neutral	C$113.30M	7.67	15.77%	17.81%	―	―
FSZ	56 Neutral	C$617.35M	15.92	11.26%	8.78%	-0.88%	-52.30%

Real Estate & E-Commerce Split Corp. Class A Corporate Events

Real Estate Split Corp. Declares January Cash Distribution for Class A Shares

Real Estate Split Corp. announced that it will pay a cash distribution of $0.13 per Class A equity share for January 2026, with shareholders of record on January 31, 2026 set to receive payment on February 13, 2026. The announcement underscores the fund’s ongoing income distribution strategy for Class A holders, while also reminding investors that future distribution levels may vary due to changes in portfolio composition, issuer dividends, market conditions, and other risk factors affecting the sustainability of payouts.

The most recent analyst rating on (TSE:RS) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Real Estate & E-Commerce Split Corp. Class A stock, see the TSE:RS Stock Forecast page.

Real Estate Split Corp. Announces December and Q4 2025 Distributions for Class A and Preferred Shares

Real Estate Split Corp. has declared a cash distribution of $0.13 per Class A share for December 2025, with a record date of December 31, 2025 and payment scheduled for January 15, 2026. The fund also announced a fourth-quarter 2025 cash distribution of $0.13125 per preferred share, with the same record and payment dates, underscoring its continued income stream to both equity and preferred shareholders even as it cautions that future distributions may vary due to portfolio composition, issuer dividend policies, market conditions and other risk factors.

Real Estate Split Corp. Announces November 2025 Distribution

Real Estate Split Corp. has announced a distribution of $0.13 per Class A equity share for November 2025, payable on December 15, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders, although actual future distributions may vary due to changes in portfolio composition and market conditions.