Fundamental analysis: City Office REIT, Inc. (CIO)

Awarener score: 8.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

Business growth has been almost stagnant. It's been encouraging in relation to peer companies.
City Office REIT, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 9.7

CIO profit margins -on goods and services sold- are usually very good. They stand somewhat better than rival companies.
Business profit on sales tends to be huge. It's top tier when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still top-notch against similar companies.
Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 5.3

City Office REIT, Inc. profit -on goods and services sold- has been growing at a low pace. It's been in good shape compared to competitors.
In recent years, earnings -on operations- have been growing at an extremely fast step, which has been top-notch against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares top tier when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be impressive in relation to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 10.0

CIO managed to get a credit on income taxes in the past years, even though it earned money. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.8

City Office REIT, Inc. usually gets very good returns on the resources it controls. It proves top tier when measured against peer firms.
The company normally gets good proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 5.0

CIO usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands top tier when measured against rival firms.
The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is almost average when measured against industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved lacking compared to similar firms.
The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks somewhat better than comparable companies.
The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks similar to competitors.

Balance Sheet score: 5.0

City Office REIT, Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be substantially worse when measured against peer companies.
Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains better than most rival firms.
Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks similar to peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be slightly better than peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a weak position compared to similar companies.
Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands better than most rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 7.9

City Office REIT, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks better than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks excellent in relation to rival firms.
The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains better than most peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 7.2

Company at a glance: City Office REIT, Inc. (CIO)

Sector, industry: Real Estate, REIT—Office

Market Cap: 0.18 billions

Revenues TTM: 0.18 billions

City Office REIT, Inc. (NYSE: CIO) invests in high-quality office properties in 18-hour cities with strong economic fundamentals, primarily in the Southern and Western United States. At September 30, 2020, CIO owned office complexes comprising 5.8 million square feet of net rentable area (NRA).