Gulf & Pacific Equities Corp. :GUF-CA: Earnings Analysis: Q2, 2017 By the Numbers : August 30, 2017

Gulf & Pacific Equities Corp. reports financial results for the quarter ended June 30, 2017.

We analyze the earnings along side the following peers of Gulf & Pacific Equities Corp. – Morguard Corporation and First Capital Realty Inc. (MRC-CA and FCR-CA) that have also reported for this period.


  • Summary numbers: Revenues of CAD 1.02 million, Net Earnings of CAD 0.08 million.
  • Gross margins narrowed from 59.88% to 55.39% compared to the same period last year, operating (EBITDA) margins now 7.19% from 15.42%.
  • Year-on-year change in operating cash flow of -112.43% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2017-06-30 2017-03-31 2016-12-31 2016-09-30 2016-06-30
Relevant Numbers (Quarterly)
Revenues (mil) 1.02 0.94 0.89 1.01 1.11
Revenue Growth (%YOY) -8.18 -6.59 23.93 -7.63 1.83
Earnings (mil) 0.08 0.07 -2.02 0.1 0.07
Earnings Growth (%YOY) 13.24 -43.63 -939.17 -42.65 160.08
Net Margin (%) 7.78 7.08 -227.93 9.52 6.31
EPS 0 0 -0.1 0 0
Return on Equity (%) 0.55 0.46 -13.25 0.59 0.43
Return on Assets (%) 0.76 0.63 -18.71 0.87 0.63

Access our Ratings and Scores for Gulf & Pacific Equities Corp.

Market Share Versus Profits

Revenues History
Earnings History

GUF-CA‘s change in revenue this period compared to the same period last year of -8.18% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that GUF-CA is holding onto its market share. Also, for comparison purposes, revenues changed by 8.28% and earnings by 18.96% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s earnings rose year-on-year. But this growth has not come as a result of improvement in gross margins or any cost control activities in its operations. Gross margins went from 55.39% to 59.88% for the same period last year, while operating margins (EBITDA margins) went from 7.19% to 15.42% over the same time frame.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

GUF-CA‘s change in operating cash flow of -112.43% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.


Despite a decline in operating (EBIT) margins as well as a decline in pretax margins, the company’s earnings rose.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Gulf & Pacific Equities Corp.

Company Profile

Gulf & Pacific Equities Corp. engages in the acquisition, managing, and development of anchored shopping malls in rural centers in Alberta and British Columbia. Its current portfolio consists of properties located in Northern Alberta which include Tri-City Mall located in Cold Lake, Alberta; St. Paul Shopping Centre, St. Paul, Alberta; and a stand alone property in Three Hills, Alberta. The company was founded by Anthony Jan Cohen on April 8, 1998 and is headquartered in Toronto, Canada.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of GUF-CA.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any of our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website