Centuria Industrial REIT (CIP.AX) stock analysis

In our weekly check, Centuria Industrial REIT is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 7.

About Centuria Industrial REIT

Centuria Industrial REIT is a Real Estate company (REIT - Industrial) based in Australia, listed on ASX as CIP.AX.

What our checks show for CIP.AX

Red flags

• Net debt is 6x a year of EBITDA (debt/equity 0.55). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
• The net margin fell by 115 points over 5 years, to 64.3%: the company keeps less of each sale as profit.
• The gross margin fell by 23.2 points, to 65.8%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 0.9% a year.
• Analysts expect the net margin to shrink by 10.2 points from today's 64.3%.
• Return on capital (ROCE) is only 4.2%.

Warning signs

• Operating cash flow is only 0.6x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 6.6% a year.
• Revenue grew only 3% a year over the last 3 years.
• The dividend takes 93% of profit: little cushion if profit falls.
• A small company (market value $1.26 billion): usually riskier and followed by fewer analysts.

Strengths

• Earnings per share grew 29.4% a year over the last 3 years.
• The company keeps 64.3% of its revenue as net profit.
• Free cash flow is 38.3% of revenue: cash for dividends, buybacks or growth.
• The price is 11 times earnings (P/E), reasonable for its growth.
• The price moves calmly: 16.6% annual volatility.
• Pay in shares is only 0% of free cash flow.

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Questions

What grade does Centuria Industrial REIT (CIP.AX) have?

In our weekly check, Centuria Industrial REIT is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CIP.AX stock?

This week's biggest flags for Centuria Industrial REIT: High debt, Weak interest cover, Margins falling. In total 12 of 24 checks show a warning or a red flag.

What does Centuria Industrial REIT do?

Centuria Industrial REIT is a Real Estate company (REIT - Industrial) based in Australia, listed on ASX as CIP.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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