M D C Holdings Inc (MDC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MDC • US5526761086
62.98 USD
+0.03 (+0.05%)
At close: Apr 18, 2024
62.98 USD
0 (0%)
After Hours: 4/18/2024, 8:07:10 PM
We assign a fundamental rating of 6 out of 10 to MDC. MDC was compared to 60 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. Finally MDC also has an excellent dividend rating. With these ratings, MDC could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year MDC was profitable.
- In the past year MDC had a positive cash flow from operations.
- In the past 5 years MDC has always been profitable.
- In multiple years MDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.08%, MDC is doing good in the industry, outperforming 62.69% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 11.81%, MDC is in line with its industry, outperforming 56.72% of the companies in the same industry.
- MDC has a Return On Invested Capital (6.75%) which is in line with its industry peers.
- MDC had an Average Return On Invested Capital over the past 3 years of 11.24%. This is in line with the industry average of 9.70%.
- 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
- Looking at the Profit Margin, with a value of 8.59%, MDC is in the better half of 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.
- The Operating Margin of MDC (10.03%) is better than 61.19% of its industry peers.
- MDC's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 19.29%, MDC is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of MDC has remained more or less at the same level.
| 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
- MDC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for MDC has been increased compared to 1 year ago.
- MDC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.68 indicates that MDC is not in any danger for bankruptcy at the moment.
- MDC's Altman-Z score of 3.68 is fine compared to the rest of the industry. MDC outperforms 62.69% of its industry peers.
- The Debt to FCF ratio of MDC is 3.28, which is a good value as it means it would take MDC, 3.28 years of fcf income to pay off 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.
- Looking at the Debt to Equity ratio, with a value of 0.50, MDC is doing worse than 61.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.73
WACC9.28%
2.3 Liquidity
- A Current Ratio of 7.70 indicates that MDC has no problem at all paying its short term obligations.
- MDC's Current ratio of 7.70 is amongst the best of the industry. MDC outperforms 85.07% of its industry peers.
- MDC has a Quick Ratio of 2.69. This indicates that MDC is financially healthy and has no problem in meeting its short term obligations.
- MDC has a Quick ratio of 2.69. This is amongst the best in the industry. MDC outperforms 92.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
- The earnings per share for MDC have decreased strongly by -31.16% in the last year.
- The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
- MDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.80%.
- MDC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.66% yearly.
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
- The Earnings Per Share is expected to grow by 2.76% on average over the next years.
- The Revenue is expected to grow by 7.39% on average over the next years.
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
- Compared to the rest of the industry, the Price/Earnings ratio of MDC is on the same level as its industry peers.
- MDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- The Price/Forward Earnings ratio is 12.14, which indicates a correct valuation of MDC.
- MDC's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, 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.
- Based on the Price/Free Cash Flow ratio, MDC is valued a bit 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
- MDC has a Yearly Dividend Yield of 3.49%.
- Compared to an average industry Dividend Yield of 1.22, 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 1.83, 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- As MDC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
- The dividend of MDC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.93%
EPS Next 2Y2.76%
EPS Next 3YN/A
M D C Holdings Inc / MDC FAQ
What is the ChartMill fundamental rating of M D C Holdings Inc (MDC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDC.
What is the valuation status for MDC stock?
ChartMill assigns a valuation rating of 5 / 10 to M D C Holdings Inc (MDC). This can be considered as Fairly Valued.
Can you provide the profitability details for M D C Holdings Inc?
M D C Holdings Inc (MDC) has a profitability rating of 6 / 10.
How financially healthy is M D C Holdings Inc?
The financial health rating of M D C Holdings Inc (MDC) is 6 / 10.
What is the expected EPS growth for M D C Holdings Inc (MDC) stock?
The Earnings per Share (EPS) of M D C Holdings Inc (MDC) is expected to decline by -1.74% in the next year.