# Flagship Communities Real Estate Investment Trust (MHC-U.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Real Estate / Equity Real Estate Investment Trusts (REITs). Price $21.69, market value $546 million.

## Valuation
- **P/E (trailing): 4.4×** (5-yr avg 4.0×, 3-yr avg 3.1×). Flagship Communities Real Estate Investment Trust trades at 4.4× trailing earnings, close to its own five-year average of 4.0×. The Real Estate median in the September 2026 study was 25.2×. Forward P/E is 13.9×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 1.20**. A PEG of 1.20 is in the range usually read as fairly priced for its growth.
- **Price / sales: 4.8×**. Each dollar of revenue is priced at 4.8×.
- **Price / book: 0.6×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 8.6×**. Enterprise value is 8.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -0.7%** (5-yr avg 5.6%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 22.9%**. The inverse of the P/E: 22.9% of the price is earned each year.

## Profitability
- **Gross margin: 64.5%**. Flagship Communities Real Estate Investment Trust keeps 64.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 28.5%**. 28.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 111.9%**. 111.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.1%**. 17.1% on shareholders' equity is solid.
- **Return on invested capital: 2.1%**. Return on all capital, debt included, is 2.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 7.3%**. Each dollar of assets produces 7.3% of profit.

## Growth
- **Revenue growth (1 yr): 19.4%** (3-yr 21.4%/yr, 5-yr 25.9%/yr). Revenue grew 19.4% over the last year, against 25.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 11.6%** (3-yr 39.8%/yr, 5-yr -26.7%/yr). Earnings per share rose 11.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -2.6%/yr**. Free cash flow has compounded at -2.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.77**. Debt is 0.77 times equity, moderate leverage.
- **Net debt / EBITDA: 4.2×**. It would take 4.2 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 1.3×**. Operating profit covers interest only 1.3×: fragile.
- **Current ratio: 9.45** (quick 9.45). Current assets cover the next year's liabilities 9.45 times.
- **Altman Z-score: 1.35**. A Z-score of 1.35 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.02%** ($0.65 per share, trailing). Flagship Communities Real Estate Investment Trust yields 3.02%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 13%**. 13% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 39.7%/yr** (1-yr 6.0%). The dividend has compounded at 39.7% a year over five years, doubling roughly every 2 years at that pace.

## Price and momentum
- **Total return (1 yr): 22.3%** (YTD 10.3%, 3-mo 9.7%). The shares are up 22.3% over twelve months including dividends.
- **From 52-week high: -7.4%** (2168900.0% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.14** (volatility 24%). Beta of 0.14 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MHC-U.TO · Page: https://foliofundamentals.com/stocks/mhc-u.to

Not investment advice.