M D C Holdings Inc (MDC) Stock Fundamental Analysis
NYSE:MDC - New York Stock Exchange, Inc. - US5526761086 - Common Stock - Currency: USD
MDC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. MDC has only an average score on both its financial health and profitability. MDC has a correct valuation and a medium growth rate. MDC also has an excellent dividend rating. This makes MDC very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
MDC had positive earnings in the past year.
MDC had a positive operating cash flow in the past year.
In the past 5 years MDC has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: MDC reported negative operating cash flow in multiple years.
1.2 Ratios
MDC has a better Return On Assets (7.08%) than 62.69% of its industry peers.
MDC has a Return On Equity (11.81%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.75%, MDC is in line with its industry, outperforming 52.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDC is in line with the industry average of 12.03%.
The last Return On Invested Capital (6.75%) for MDC is well below the 3 year average (11.24%), which needs to be investigated, but indicates that MDC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 11.81% | ||
| ROIC | 6.75% |
ROA(3y)9.67%
ROA(5y)9.11%
ROE(3y)17.29%
ROE(5y)16.48%
ROIC(3y)11.24%
ROIC(5y)10.2%
1.3 Margins
With a decent Profit Margin value of 8.59%, MDC is doing good in the industry, outperforming 68.66% of the companies in the same industry.
In the last couple of years the Profit Margin of MDC has grown nicely.
MDC's Operating Margin of 10.03% is fine compared to the rest of the industry. MDC outperforms 61.19% of its industry peers.
In the last couple of years the Operating Margin of MDC has grown nicely.
Looking at the Gross Margin, with a value of 19.29%, MDC is doing worse than 82.09% of the companies in the same industry.
MDC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.03% | ||
| PM (TTM) | 8.59% | ||
| GM | 19.29% |
OM growth 3Y-5.46%
OM growth 5Y1.73%
PM growth 3Y-2.84%
PM growth 5Y4.67%
GM growth 3Y-4.58%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MDC is still creating some value.
The number of shares outstanding for MDC has been increased compared to 1 year ago.
The number of shares outstanding for MDC has been increased compared to 5 years ago.
The debt/assets ratio for MDC has been reduced compared to a year ago.
2.2 Solvency
MDC has an Altman-Z score of 3.68. This indicates that MDC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.68, MDC is doing good in the industry, outperforming 62.69% of the companies in the same industry.
MDC has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as MDC would need 3.28 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.28, MDC perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that MDC is somewhat dependend on debt financing.
MDC has a worse Debt to Equity ratio (0.50) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.73
WACC9.28%
2.3 Liquidity
MDC has a Current Ratio of 7.70. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MDC (7.70) is better than 85.07% of its industry peers.
A Quick Ratio of 2.69 indicates that MDC has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.69, MDC belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
MDC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.16%.
Measured over the past years, MDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.85% on average per year.
MDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.80%.
The Revenue has been growing by 8.66% on average over the past years. This is quite good.
EPS 1Y (TTM)-31.16%
EPS 3Y0.91%
EPS 5Y10.85%
EPS Q2Q%44.44%
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y5.97%
Revenue growth 5Y8.66%
Sales Q2Q%-11.39%
3.2 Future
Based on estimates for the next years, MDC will show a small growth in Earnings Per Share. The EPS will grow by 2.76% on average per year.
MDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
EPS Next Y-1.74%
EPS Next 2Y2.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.2%
Revenue Next 2Y7.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.93, the valuation of MDC can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as MDC.
Compared to an average S&P500 Price/Earnings ratio of 28.47, MDC is valued rather cheaply.
MDC is valuated correctly with a Price/Forward Earnings ratio of 12.14.
The rest of the industry has a similar Price/Forward Earnings ratio as MDC.
When comparing the Price/Forward Earnings ratio of MDC to the average of the S&P500 Index (92.74), we can say MDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDC is on the same level as its industry peers.
MDC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MDC is cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
MDC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y2.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.49%, MDC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.94, MDC pays a better dividend. On top of this MDC pays more dividend than 88.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, MDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
On average, the dividend of MDC grows each year by 15.41%, which is quite nice.
MDC has paid a dividend for at least 10 years, which is a reliable track record.
MDC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)15.41%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
MDC pays out 38.93% of its income as dividend. This is a sustainable payout ratio.
MDC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.93%
EPS Next 2Y2.76%
EPS Next 3YN/A
M D C Holdings Inc
NYSE:MDC (4/18/2024, 8:07:10 PM)
After market: 62.98 0 (0%)62.98
+0.03 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners26.27%
Inst Owner Change-46.5%
Ins Owners0.23%
Ins Owner Change0%
Market Cap4.73B
Analysts48.33
Price Target58.14 (-7.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend2.11
Dividend Growth(5Y)15.41%
DP38.93%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.26%
Min EPS beat(2)3.38%
Max EPS beat(2)15.13%
EPS beat(4)4
Avg EPS beat(4)44.26%
Min EPS beat(4)3.38%
Max EPS beat(4)93.72%
EPS beat(8)6
Avg EPS beat(8)17.75%
EPS beat(12)9
Avg EPS beat(12)12.15%
EPS beat(16)12
Avg EPS beat(16)14.32%
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-2.9%
Max Revenue beat(2)3.41%
Revenue beat(4)3
Avg Revenue beat(4)9.71%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)20.29%
Revenue beat(8)7
Avg Revenue beat(8)7.44%
Revenue beat(12)8
Avg Revenue beat(12)3.75%
Revenue beat(16)10
Avg Revenue beat(16)3.81%
PT rev (1m)-3.39%
PT rev (3m)8.37%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)8.96%
Revenue NQ rev (3m)12.73%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 | ||
| P/S | 1.02 | ||
| P/FCF | 9.12 | ||
| P/OCF | 8.42 | ||
| P/B | 1.4 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)5.28
EY8.38%
EPS(NY)5.19
Fwd EY8.24%
FCF(TTM)6.91
FCFY10.97%
OCF(TTM)7.48
OCFY11.88%
SpS61.86
BVpS45.01
TBVpS44.93
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 11.81% | ||
| ROCE | 9.36% | ||
| ROIC | 6.75% | ||
| ROICexc | 9.88% | ||
| ROICexgc | 10.89% | ||
| OM | 10.03% | ||
| PM (TTM) | 8.59% | ||
| GM | 19.29% | ||
| FCFM | 11.17% |
ROA(3y)9.67%
ROA(5y)9.11%
ROE(3y)17.29%
ROE(5y)16.48%
ROIC(3y)11.24%
ROIC(5y)10.2%
ROICexc(3y)13.75%
ROICexc(5y)12.3%
ROICexgc(3y)15.03%
ROICexgc(5y)13.54%
ROCE(3y)15.67%
ROCE(5y)14.28%
ROICexcg growth 3Y-6.21%
ROICexcg growth 5Y1.48%
ROICexc growth 3Y-5.69%
ROICexc growth 5Y1.3%
OM growth 3Y-5.46%
OM growth 5Y1.73%
PM growth 3Y-2.84%
PM growth 5Y4.67%
GM growth 3Y-4.58%
GM growth 5Y-0.69%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 168.85% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 507.7 | ||
| Cash Conversion | 114.36% | ||
| Profit Quality | 130.01% | ||
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 | ||
| Altman-Z | 3.68 |
F-Score5
WACC9.28%
ROIC/WACC0.73
Cap/Depr(3y)122.4%
Cap/Depr(5y)114.53%
Cap/Sales(3y)0.67%
Cap/Sales(5y)0.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.16%
EPS 3Y0.91%
EPS 5Y10.85%
EPS Q2Q%44.44%
EPS Next Y-1.74%
EPS Next 2Y2.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y5.97%
Revenue growth 5Y8.66%
Sales Q2Q%-11.39%
Revenue Next Year6.2%
Revenue Next 2Y7.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-48.03%
EBIT growth 3Y0.19%
EBIT growth 5Y10.54%
EBIT Next Year47.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-40.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.98%
OCF growth 3YN/A
OCF growth 5YN/A