(CAR-UN) Canadian Apartment - Ratings and Ratios

Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) stands as Canadas largest publicly traded provider of quality rental housing, managing a diverse portfolio of residential properties. As of December 31, 2024, CAPREIT owns approximately 46,900 residential apartment suites and townhomes, with an additional 1,800 units classified as assets held for sale. These properties are strategically located across Canada and the Netherlands, reflecting a total fair value of $14.9 billion, excluding $0.3 billion allocated to assets held for sale. CAPREITs operational focus is on acquiring, developing, and managing high-quality rental housing, emphasizing affordability and long-term sustainability in urban and suburban markets.

From a technical and fundamental perspective, CAPREITs stock (CAR-UN) is trading at $40.95, with a 20-day average volume of 510,068 shares. The stocks short-term trend indicators show a 20-day SMA of $40.81, slightly below the current price, while the 50-day SMA of $40.92 suggests a stable trend. The 200-day SMA of $45.07 indicates a longer-term downtrend. The Average True Range (ATR) of 1.11 reflects moderate price volatility. Fundamentally, CAPREITs market cap is $6.6 billion CAD, with a trailing P/E of 23.55 and a forward P/E of 15.53, signaling expectations of earnings growth. The price-to-book ratio of 0.73 and price-to-sales ratio of 5.95 suggest undervaluation relative to book value but a premium based on sales. The return on equity (RoE) of 3.24% is below industry averages, indicating room for operational efficiency improvements.

3-Month Forecast: - Technical Outlook: The stock is likely to experience sideways movement with potential downside pressure due to the bearish crossover of the 20-day SMA above the 50-day SMA. Support levels are expected near $39.50, with resistance at $42.50. - Fundamental Outlook: CAPREITs forward P/E of 15.53 suggests investor confidence in future earnings, driven by potential rental income growth and asset revaluation. However, the current P/E of 23.55 and low RoE may limit upside momentum. - Volatility: With an ATR of 1.11, price fluctuations are expected to remain moderate, offering limited trading opportunities for short-term investors. - Overall: The stock is likely to remain range-bound, with potential for a slight rebound if earnings or economic conditions improve. Investors should monitor rental market trends and CAPREITs asset management strategies for clearer directional signals.