Chartwell Retirement Residences (CSH.UN) AI Stock Analysis

• Market Cap: C$4.62B
• Dividend Yield: 3.65%
• Average Volume (3M): 385.25K
• Price to Earnings (P/E): 194.7
• Beta (1Y): 0.80
• Revenue Growth: 15.38%
• EPS Growth: -84.98%
• Country: CA
• Employees: 11,452
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate
• EPS (TTM): 0.08
• Shares Outstanding: 274,902,000
• 10 Day Avg. Volume: 385,313
• 30 Day Avg. Volume: 385,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.40
• Price to Cash Flow (P/CF): 21.00
• 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$19.33
• Price Target Upside: 16.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Chartwell Retirement Residences demonstrates moderate financial health and strong cash flow generation but faces challenges with thin profitability and high leverage. Positive technical indicators and recent strategic corporate actions support growth prospects, while a high P/E ratio suggests potential overvaluation. Overall, the stock presents a mixed investment case with both opportunities and risks.

Positive Factors

Financial Performance

Chartwell's balance sheet continues to move in the right direction, with a reduced net debt/EBITDA ratio and improved cost of capital.

Occupancy and Demographics

Chartwell Retirement Residences is expected to be the primary beneficiary of improving occupancy, limited new supply, and increasing demographic tailwinds.

Strategic Initiatives

Strategic initiatives have driven a stronger portfolio, including the disposition of the LTC platform and capital recycling, improving property quality.

Negative Factors

Chartwell Retirement Residences Business Overview & Revenue Model

Company Description

Chartwell Retirement Residences is an unincorporated open-ended trust. The company is engaged in the ownership, operation, and management of retirement and long-term care communities in Canada. It operates its retirement and long-term care facilities separately. The Retirement Operations segment consists of communities that the company owns and operates in Canada. The Long-Term Care operations segment represents the 24 long-term care communities in Ontario. The majority of the revenue is derived from the Canadian Retirement segment.

How the Company Makes Money

Chartwell Retirement Residences generates revenue primarily through rental and service fees charged to its residents. These fees are derived from the provision of living accommodations and a variety of supportive services, including meals, housekeeping, and personalized care plans that cater to the needs of seniors. Additionally, Chartwell benefits from government funding and subsidies related to its long-term care facilities, which contribute to its revenue streams. The company may also engage in strategic partnerships and real estate development activities to optimize its portfolio and enhance its financial performance.

Chartwell Retirement Residences Financial Statement Overview

Summary

Chartwell Retirement Residences shows moderate financial health. Revenue and free cash flow are growing, but profitability is thin and leverage is high, indicating potential risks if not managed properly. Strong cash flow generation is a positive, but operational efficiencies need improvement to enhance EBIT margins.

Income Statement

Chartwell Retirement Residences shows a mixed financial performance. The gross profit margin for 2024 is approximately 40.0%, which is decent but has decreased slightly from previous years. The net profit margin for 2024 stands at 2.6%, indicating thin profitability. Revenue growth from 2023 to 2024 is 15.3%, which is positive, but EBIT margin is zero, reflecting operational challenges. EBITDA margin is strong at 38.7%, suggesting that non-operational expenses are significant.

Balance Sheet

The company's balance sheet indicates stability with a debt-to-equity ratio of 2.42 in 2024, showing high leverage. Return on equity is low at 2.1%, indicating limited returns for shareholders. The equity ratio is 26.2%, suggesting a moderate level of equity financing. This high leverage could pose risks if not managed properly.

Cash Flow

Chartwell Retirement Residences exhibits a healthy cash flow with an operating cash flow to net income ratio of 8.96, indicating strong cash generation relative to income. Free cash flow grew significantly from 2023 to 2024, with a free cash flow to net income ratio of 4.18, reflecting efficient cash management. Despite some volatility in investing activities, the cash flow position remains robust.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
848.54M	736.24M	706.80M	903.61M	924.72M
	Gross Profit
339.36M	272.87M	242.10M	273.89M	302.22M
	EBIT
0.00	36.08M	30.28M	51.95M	76.78M
	EBITDA
328.20M	184.49M	188.43M	220.04M	256.46M
	Net Income Common Stockholders
22.41M	128.27M	27.39M	10.13M	14.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.05M	24.62M	28.47M	95.49M	70.16M
	Total Assets
4.09B	3.23B	3.51B	3.42B	3.49B
	Total Debt
2.60B	2.03B	2.34B	2.35B	2.52B
	Net Debt
2.58B	2.00B	2.31B	2.25B	2.45B
	Total Liabilities
3.01B	2.44B	2.74B	2.59B	2.76B
	Stockholders Equity
1.07B	791.46M	769.80M	826.11M	733.98M
Cash Flow		Free Cash Flow
93.58M	28.18M	26.35M	40.98M	52.23M
	Operating Cash Flow
200.85M	157.43M	137.71M	156.32M	184.62M
	Investing Cash Flow
-652.99M	78.94M	-165.61M	-36.49M	-62.19M
	Financing Cash Flow
447.57M	-240.21M	-39.11M	-94.51M	-75.16M

Chartwell Retirement Residences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.62
• 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:CSH.UN, the sentiment is Neutral. The current price of 16.62 is below the 20-day moving average (MA) of 16.71, above the 50-day MA of 16.00, and above the 200-day MA of 14.70, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CSH.UN.

Chartwell Retirement Residences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	81 Outperform	C$1.09B	14.65	70.86%	3.67%	12.36%	123.26%
SIA	66 Neutral	C$1.47B	31.76	8.99%	5.85%	13.72%	429.22%
Sector *	61 Neutral	$4.74B	19.16	-3.00%	7.93%	6.45%	-20.78%
CSH.UN	60 Neutral	C$4.62B	194.65	2.36%	3.65%	15.38%	-84.98%
MPCT.UN	35 Underperform	C$50.38M	―	-6.27%	1.95%	-2.06%	43.41%

Chartwell Retirement Residences Corporate Events

Chartwell Retirement Residences Announces $400 Million Debenture Offering

Chartwell Retirement Residences announced a $400 million offering of senior unsecured debentures, divided equally between Series E and Series F, with interest rates of 3.650% and 4.500%, maturing in 2028 and 2032, respectively. The proceeds are intended to repay existing debts and finance future acquisitions, potentially enhancing Chartwell’s financial flexibility and growth prospects in the senior housing market.

Chartwell Retirement Residences Reports Strong Q4 2024 Results

Chartwell Retirement Residences reported a significant financial turnaround in the fourth quarter of 2024, with a notable increase in resident revenue and a shift from a net loss to a net income. The company attributes its success to improvements in employee engagement, resident satisfaction, and operational efficiency, alongside strategic growth and optimization efforts. Chartwell’s CEO expressed confidence in sustaining strong performance through continued focus on operational excellence and capital management, positioning the company well for future growth.

Chartwell Announces Cash Distribution and Reports Strong Occupancy Trends

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on March 17, 2025, with the option for unitholders to participate in a Distribution Reinvestment Plan (DRIP) that includes a 3% bonus in units. Additionally, Chartwell reported higher than usual January occupancy rates due to strong winter sales activity, with expectations of continued positive momentum into the spring, indicating robust demand and potential growth in occupancy rates.

Chartwell Completes Strategic Transaction with Welltower

Chartwell Retirement Residences has completed a strategic transaction with Welltower Inc., transferring its interests in 23 co-owned residences to Welltower and management of 25 properties to Cogir. This move, in exchange for cash and Welltower’s interests in 16 residences, aims to ensure a smooth transition for residents and employees while potentially strengthening Chartwell’s market position.

Chartwell Expands Quebec Portfolio with $136M Acquisition

Chartwell Retirement Residences announced the acquisition of Rosemont Les Quartiers, a retirement residence in Montreal, for $136 million. This strategic acquisition, expected to close in Q1 2025, enhances Chartwell’s Quebec platform and expands its presence in a prime urban location, offering significant value below replacement costs.

Chartwell Retirement Residences to Announce Q4 and Year-End 2024 Results

Chartwell Retirement Residences announced that it will release its financial results for the fourth quarter and year ending December 31, 2024, on February 27, 2025. The company will host a conference call and webcast on February 28, 2025, to discuss these results, providing stakeholders an opportunity to gain insights into its financial performance and strategic direction.

Chartwell Announces Distribution and Occupancy Update

Chartwell Retirement Residences announced a cash distribution of $0.051 per Trust Unit, payable on February 18, 2025, to unitholders recorded by January 31, 2025. The company also offers a Distribution Reinvestment Plan (DRIP) that allows unitholders to reinvest their distributions into Trust Units with a 3% bonus, enhancing ownership without incurring additional fees. Additionally, Chartwell provided an update on its same property occupancy rates, which indicates the company’s focus on transparency and operational performance metrics.

Chartwell Appoints Alka Gautam to Board of Directors

Chartwell Retirement Residences has appointed Alka Gautam to its Board of Directors, bringing her extensive leadership, finance, and risk management experience from her tenure at Reinsurance Group of America. Gautam’s expertise is expected to significantly contribute to Chartwell’s strategic growth and evolution, particularly as she joins the Audit and Investment Committees, further strengthening the company’s governance and operations.