TCN pays a decent dividend yield of 2.3% and has grown its dividend by ~3% annually over the past five years.
TCN is fairly levered, and we believe in a better market will be able to demonstrate its ability for high growth rates.
We would consider the current prices to be good entry points - the price to book multiple is 0.5X and its forward price to sales is 4.0X, the lowest across 10 years.
Due to its higher debt balances and uncertainty around the real estate market, we would not consider this to be a screaming buy yet, but we feel that in a better market, these prices will likely look attractive.
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TCN has $5.6B in debt, certainly an amount that can be considered high vs cash flow.
TCN has managed debt well. $3.8B of its debt is fixed rate.
It has collars and caps on its floating rate debt, and its effective interest rate last year was 3.36%.
This will increase somewhat, but because of its hedging it is less vulnerable to rates than others.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Strength in housing market. Govt stimulus & low rates to support sector. Trading below NAV. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Solid industry tailwinds. Fast paced acquisitor. Technology productivity helped scale. Premium valuation warranted. Unlock Premium - Try 5i Free
Tricon Residential is a Canadian stock, trading under the symbol TCN-T on the Toronto Stock Exchange (TCN-CT). It is usually referred to as TSX:TCN or TCN-T
In the last year, 13 stock analysts published opinions about TCN-T. 9 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Tricon Residential .
Tricon Residential was recommended as a Top Pick by on . Read the latest stock experts ratings for Tricon Residential .
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
13 stock analysts on Stockchase covered Tricon Residential In the last year. It is a trending stock that is worth watching.
On 2023-03-31, Tricon Residential (TCN-T) stock closed at a price of $10.48.
Great job on its portfolio, which focuses on 35-39 year olds who've chosen to rent. Likes the sector. Very wide discount to NAV, so it's a buy. High rates on high debt has prevented new asset purchases. Lower rates would be a positive, and would eventually open up the spigot to new purchases.