Urbanfund (UFC) AI Stock Analysis

• Market Cap: C$48.43M
• Dividend Yield: 5.88%
• Average Volume (3M): 2.27K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.45
• Revenue Growth: -42.83%
• EPS Growth: 15.30%
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Real Estate - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 53,811,424
• 10 Day Avg. Volume: 4,711
• 30 Day Avg. Volume: 2,271
• PEG Ratio: 0.09
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 3.97
• 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: 71 Outperform
• Price Target: C$1.00 ▲(8.70% Upside)

Urbanfund's stock score is driven by its strong valuation metrics, indicating it is undervalued with a high dividend yield. The company's profitability is robust, but challenges in revenue and cash flow growth present risks. Technical indicators suggest a neutral to positive trend, supporting the overall score.

Positive Factors

High Profitability Margins

Sustained net and EBIT margins near 50–60% indicate strong cost control and pricing power across development and leasing activities. Durable margin headroom supports reinvestment in projects, cushions cyclical revenue swings, and underpins long‑term shareholder returns.

Stable Balance Sheet

Moderate leverage and a strong equity base provide financial resilience for capital‑intensive development work. With a balanced debt load and positive ROE, the firm can access project financing, absorb shocks, and pursue pipeline opportunities without excessive refinancing risk.

Diversified Urban Real Estate Model

Multiple revenue streams—project sales, recurring rental income and third‑party management fees—reduce reliance on any single market cycle. Strategic partnerships with governments and institutions help secure favorable development terms and capital access, strengthening long‑term cashability.

Negative Factors

Sharp Revenue Contraction

A severe decline in reported revenue reduces economies of scale in development and leasing, straining the capacity to cover fixed costs. Persistent top‑line weakness can erode project pipelines, limit reinvestment, and eventually compress margins if not reversed by new contracted projects.

Weak Operating Cash Conversion

Operating cash generation materially lags reported earnings and FCF growth is negative, signaling limited internal funding for development. Over time this raises dependence on external financing for projects or distributions, increasing financing costs and execution risk on new developments.

Margin Sustainability Risk Amid Falling Revenue

Exceptionally high margins alongside falling revenue can indicate concentration or one‑off gains. In a development‑heavy model, sustaining those margins requires consistent project pricing and volume; prolonged revenue weakness could force price concessions or higher SG&A per unit, eroding long‑term profitability.

Urbanfund Business Overview & Revenue Model

Company Description

Urbanfund Corp. owns, develops, and operates a real estate portfolio for residential and commercial properties in Canada. The company focuses on identifying and investing in real estate and real estate related projects. Its assets are located in Toronto, Brampton, Belleville, Kitchener, and London, Ontario; Quebec City and Montreal, Quebec; and Dartmouth, Nova Scotia. Urbanfund Corp. was incorporated in 1997 and is headquartered in Toronto, Canada.

How the Company Makes Money

Urbanfund generates revenue through several key streams: primarily from property development projects, where it earns profit margins on the construction and sale of residential and commercial units. Additionally, the company generates income through leasing activities, receiving rental income from its managed properties. Urbanfund also engages in property management services for third-party owners, charging fees for its expertise in maintaining and optimizing the value of these assets. Strategic partnerships with local governments and community organizations often facilitate favorable development conditions, while collaborations with financial institutions can provide access to capital, further enhancing UFC's revenue potential.

Urbanfund Financial Statement Overview

Summary

Urbanfund demonstrates strong profitability with high net profit and EBIT margins, indicating efficient cost management. However, the company faces challenges with a significant decline in revenue growth and negative free cash flow growth, which could pose risks if not addressed.

Income Statement

Urbanfund's income statement shows a mixed performance. The TTM data indicates a significant decline in revenue growth rate at -17.03%, which is concerning. However, the company maintains strong profitability metrics with a high net profit margin of 59.64% and a solid EBIT margin of 53.64%. These margins suggest efficient cost management and profitability despite the revenue decline.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.65, indicating moderate leverage. The return on equity (ROE) is reasonable at 10.47%, showing decent profitability relative to shareholder equity. The equity ratio stands at 54.68%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -26.88% in the TTM period. The operating cash flow to net income ratio is 0.49, indicating that cash generation from operations is lower relative to net income. However, the free cash flow to net income ratio is relatively healthy at 81.90%, suggesting that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.01M	22.09M	8.64M	23.81M	6.45M	10.16M
Gross Profit	5.68M	9.35M	5.10M	9.90M	3.43M	4.17M
EBITDA	8.31M	8.85M	4.57M	12.13M	8.46M	10.72M
Net Income	9.34M	9.62M	6.38M	7.34M	10.30M	8.00M
Balance Sheet
Total Assets	156.32M	155.60M	155.41M	150.78M	144.47M	124.09M
Cash, Cash Equivalents and Short-Term Investments	10.19M	12.28M	3.57M	13.24M	10.62M	6.78M
Total Debt	54.34M	55.51M	65.10M	65.07M	65.78M	54.55M
Total Liabilities	69.01M	70.60M	77.69M	77.63M	76.76M	65.85M
Stockholders Equity	85.48M	83.12M	75.90M	71.67M	66.47M	57.37M
Cash Flow
Free Cash Flow	3.56M	11.42M	1.23M	5.24M	-6.99M	-14.68M
Operating Cash Flow	4.85M	12.94M	2.48M	8.05M	-2.24M	5.60M
Investing Cash Flow	-1.61M	-237.49K	-4.79M	-2.40M	-4.25M	-21.38M
Financing Cash Flow	-4.53M	-3.99M	-7.48M	-3.02M	10.33M	14.98M

Urbanfund Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.92
• 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:UFC, the sentiment is Neutral. The current price of 0.92 is below the 20-day moving average (MA) of 0.94, above the 50-day MA of 0.88, and above the 200-day MA of 0.83, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:UFC.

Urbanfund Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFC	71 Outperform	C$48.43M	5.17	11.35%	5.88%	-42.83%	15.30%
IEI	66 Neutral	C$34.73M	7.14	4.45%	2.31%	2.03%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
INO.UN	48 Neutral	C$38.71M	-1.08	-17.55%	―	-7.30%	55.77%
KDSX	43 Neutral	C$23.93M	-4.36	-103.14%	―	―	-156.02%

Urbanfund Corporate Events

Urbanfund Extends $10 Million Related-Party Loan to Control Shareholder Westdale

Urbanfund Corp. has entered into a loan agreement to provide a $10 million, one-year loan to Westdale Construction Co. Limited at an annual interest rate of 5.45%. Because Westdale is a control person of Urbanfund and is linked to both the company’s chairman and its CEO, the financing is classified as a related-party transaction under securities regulations, but it is exempt from formal valuation and minority shareholder approval requirements as the loan value is below 25% of Urbanfund’s market capitalization and the company is not listed on a specified senior exchange. The transaction underscores Urbanfund’s ongoing financial ties with its major shareholder while operating within the available regulatory exemptions for related-party dealings.

The most recent analyst rating on (TSE:UFC) stock is a Buy with a C$0.93 price target. To see the full list of analyst forecasts on Urbanfund stock, see the TSE:UFC Stock Forecast page.

Urbanfund Declares Quarterly Dividend and Highlights Discounted DRIP

Urbanfund Corp. has declared a dividend of $0.0125 per common share and $0.0125 per Series A first preferred share for the quarter ended December 31, 2025, equivalent to $0.05 per share on an annualized basis, payable on January 15, 2026 to shareholders of record on December 31, 2025. The dividend has been designated as an eligible dividend for Canadian tax purposes, and investors can elect to reinvest their payouts through the company’s dividend reinvestment plans, which allow shareholders to purchase additional common shares at a 5% discount to the recent volume-weighted average price, underscoring Urbanfund’s efforts to return capital while supporting continued equity participation among its investors.

The most recent analyst rating on (TSE:UFC) stock is a Buy with a C$0.93 price target. To see the full list of analyst forecasts on Urbanfund stock, see the TSE:UFC Stock Forecast page.

Urbanfund Corp. Completes $16.3 Million Refinancing of Toronto Property

Urbanfund Corp. has successfully refinanced its townhouse complex in Toronto with a new $16.3 million mortgage from First National Financial LP. This refinancing, which carries a fixed interest rate of 3.55% for five years, allows Urbanfund to repay an existing $8 million mortgage and allocate remaining funds towards general corporate purposes and future growth initiatives. This move is expected to strengthen Urbanfund’s financial position and support its strategic growth in the Canadian real estate market.

The most recent analyst rating on (TSE:UFC) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Urbanfund stock, see the TSE:UFC Stock Forecast page.

Urbanfund Corp. Reports Strong Financial Results and Strategic Refinancing

Urbanfund Corp. reported its financial results for the three and nine months ended September 30, 2025, highlighting significant sales of commercial units across several properties. The company has successfully returned capital from these investments and entered into a refinancing commitment for a Toronto property, which will provide funds for corporate purposes. These activities demonstrate Urbanfund’s strategic partnerships and operational strengths, positioning them favorably in the real estate market.

The most recent analyst rating on (TSE:UFC) stock is a Buy with a C$1.00 price target. To see the full list of analyst forecasts on Urbanfund stock, see the TSE:UFC Stock Forecast page.