True NthCommercial (TNT.UN) AI Stock Analysis

• Market Cap: C$129.73M
• Dividend Yield: 0.62%
• Average Volume (3M): 18.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -4.01%
• EPS Growth: 41.98%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Office
• EPS (TTM): -1.03
• Shares Outstanding: 13,979,205
• 10 Day Avg. Volume: 8,292
• 30 Day Avg. Volume: 18,038
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$11.13
• Price Target Upside: 19.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

True NthCommercial's overall stock score reflects significant financial and valuation challenges. The declining income and high leverage pose risks to financial stability, while the negative P/E ratio questions profitability. The high dividend yield is a positive, but its sustainability is uncertain. Technical indicators show a neutral trend, adding little directional insight.

Positive Factors

Distributions

True North announced the reinstatement of its distribution to an annual rate of $0.69 per unit, which equates to a yield of 6.8%.

Leasing Activity

Successful leasing activity stabilizes occupancy with renewed and new leases at favorable terms.

Occupancy

Improvement in occupancy is encouraging, with same-property NOI rising 3.3% driven by occupancy and rent increases.

Negative Factors

Financial Performance

Funds from operations per diluted unit decreased by 3.2% year-over-year, reflecting some financial pressure.

Interest Expense

Refinancing debt at higher interest rates will likely lead to greater interest expense.

Market Valuation

True North currently trades at a significant premium to the analyst's NAV estimate, indicating potential overvaluation compared to its peers.

True NthCommercial Business Overview & Revenue Model

Company Description

True NthCommercial (TNT.UN) is a Canadian real estate investment trust (REIT) that focuses on investment in commercial properties. The company primarily operates within the commercial real estate sector, targeting assets such as office buildings, industrial properties, and retail spaces. True NthCommercial is dedicated to acquiring, managing, and developing a diverse portfolio of commercial properties to generate stable and growing income for its investors.

How the Company Makes Money

True NthCommercial makes money through the acquisition, leasing, and management of commercial real estate properties. The company's primary revenue stream comes from rental income generated by leasing office spaces, industrial facilities, and retail locations to various tenants. Additionally, True NthCommercial may engage in strategic property sales when market conditions are favorable, which can provide capital gains. The company might also benefit from partnerships or joint ventures with other real estate investors and developers, enhancing its ability to acquire high-quality assets and optimize property management. Furthermore, True NthCommercial may increase its earnings through property development and redevelopment projects, which can lead to higher rental rates and property values.

True NthCommercial Financial Statement Overview

Summary

True NthCommercial is facing challenges with declining revenues and profitability pressures. The high leverage on the balance sheet adds potential risks, but cash flow generation remains a strength. These factors collectively dampen the financial performance.

Income Statement

The company shows decreasing revenue with a negative net income, which indicates struggles in maintaining profitability. The gross profit margin is moderate, but the negative net profit and declining revenue growth rate are concerning.

Balance Sheet

The debt-to-equity ratio is relatively high, suggesting a leveraged position which could pose risks in downturns. However, the company maintains a reasonable equity ratio. The declining stockholders' equity is a negative indicator.

Cash Flow

The operating cash flow remains positive and supports free cash flow generation. However, there is a noticeable decline in free cash flow growth, and the operating cash flow to net income ratio indicates challenges in translating cash flows into profits.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
132.20M	143.57M	138.52M	139.43M	106.46M
	Gross Profit
72.55M	86.48M	82.63M	83.74M	62.06M
	EBIT
66.91M	80.43M	68.92M	78.30M	46.01M
	EBITDA
-7.80M	81.87M	78.35M	78.30M	44.14M
	Net Income Common Stockholders
-40.62M	-18.51M	29.14M	10.55M	13.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.95M	9.50M	5.48M	24.58M	5.67M
	Total Assets
1.32B	1.45B	1.42B	1.40B	1.38B
	Total Debt
820.99M	861.09M	820.40M	812.49M	792.58M
	Net Debt
812.05M	851.59M	814.93M	787.91M	786.91M
	Total Liabilities
870.87M	928.18M	881.11M	879.67M	848.23M
	Stockholders Equity
452.80M	522.14M	540.07M	525.21M	527.33M
Cash Flow		Free Cash Flow
73.94M	103.27M	86.69M	91.38M	64.92M
	Operating Cash Flow
73.94M	103.27M	77.31M	91.38M	58.59M
	Investing Cash Flow
32.45M	-72.80M	-31.74M	-19.39M	-418.07M
	Financing Cash Flow
-106.94M	-26.45M	-64.68M	-53.08M	362.65M

True NthCommercial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TNT.UN, the sentiment is Neutral. The current price of 9.28 is above the 20-day moving average (MA) of 9.28, above the 50-day MA of 9.13, and below the 200-day MA of 10.22, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 17.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TNT.UN.

True NthCommercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$2.81B	11.04	0.20%	8508.34%	6.12%	-16.66%
AP.UN	57 Neutral	$2.04B	―	-7.48%	12.15%	5.28%	-0.79%
TNT.UN	56 Neutral	C$129.73M	―	-4.82%	0.62%	-4.01%	41.98%
MR.UN	56 Neutral	C$71.17M	―	-16.65%	0.73%	-2.12%	-287.56%
D.UN	55 Neutral	$284.86M	―	-13.41%	6.63%	3.69%	-168.76%
RPR.UN	53 Neutral	C$42.07M	―	-158.74%	1.79%	0.66%	-178.71%
INO.UN	52 Neutral	C$30.91M	―	-32.27%	7.55%	-28.22%	-132.04%