* Note: Prices are in Million (M) USD.
Description:
City Office REIT, Inc. (NYSE: CIO) is a real estate investment trust focused on the acquisition and management of high-quality office properties in rapidly growing urban markets across the southern and western United States. Leveraging a disciplined investment strategy, the company targets assets with robust economic fundamentals and strong potential for appreciation, aligning with favorable demographic trends in these dynamic 18-hour cities. City Office aims to deliver sustainable income and long-term capital growth, making it an attractive option for institutional investors seeking resilience and value in the ever-evolving real estate sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $21 M
Debt : $398 M
EBITDA : $-34 M
Net Debt (Debt - Cash): $377 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - office
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 14 overlapping fiscal years (max 20).Average Free Cash Flow: $-77 M
Average Revenue: $104 M
Revenue Converted To Free Cash Flow (%): -74.4%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $171 M
Revenue 5 Years Ago (2019-12-31): $156 M
Total Growth over 5 Years: 9.5%
5-Year Revenue CAGR (Historical): 1.8%
Forward 5-Year CAGR (Tapered): 1.6%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $40 M
Share Count 5 Years Ago (2020-12-31): $47 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.40
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 4.36%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.40
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 14 valid ROE years (max 20).Average ROE: -0.1%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $6.87
52-Week Low: $4.12
Threshold Price (15% Above 52-Week Low): $4.73
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $277 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.77
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 14 points to above City Office (CIO) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 1 Years Avg PE 38.32 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Last 1 Years Avg PE 38.32, Fair Value PE 12, Industry Based PE 20, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 5 values, average assigned is 20.76. The fair value of City Office (CIO) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
