M D C Holdings Inc (MDC)
US5526761086 - Common Stock
We assign a fundamental rating of 6 out of 10 to MDC. MDC was compared to 67 industry peers in the Household Durables industry. Both the profitability and the financial health of MDC get a neutral evaluation. Nothing too spectacular is happening here. MDC has a correct valuation and a medium growth rate. Finally MDC also has an excellent dividend rating. These ratings could make MDC a good candidate 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.
Each year in the past 5 years MDC has 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
Looking at the Return On Assets, with a value of 7.08%, MDC is in the better half of 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's Return On Invested Capital of 6.75% is in line compared to the rest of the industry. MDC outperforms 52.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDC is in line with the industry average of 12.04%.
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
The Profit Margin of MDC (8.59%) is better than 68.66% of its industry peers.
MDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.03%, MDC is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MDC is still creating some value.
Compared to 1 year ago, MDC has more shares outstanding
Compared to 5 years ago, MDC has more shares outstanding
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.
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.
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.
MDC has a Debt to FCF ratio of 3.28. This is comparable to the rest of the industry: MDC outperforms 52.24% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that MDC is somewhat dependend on debt financing.
MDC's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. MDC is outperformed by 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.
MDC has a better Current ratio (7.70) than 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.
MDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
Looking at the last year, MDC shows a very negative growth in Revenue. The Revenue has decreased by -18.80% in the last year.
Measured over the past years, MDC shows a quite strong growth in Revenue. The Revenue has been growing by 8.66% on average per year.
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
MDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.76% yearly.
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
MDC is valuated reasonably with a Price/Earnings ratio of 11.93.
Compared to the rest of the industry, the Price/Earnings ratio of MDC is on the same level as its industry peers.
MDC is valuated cheaply when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
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 24.01, MDC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDC indicates a somewhat cheap valuation: MDC is cheaper than 68.66% of the companies listed 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 2.79, 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 2.19, MDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of MDC is nicely growing with an annual growth rate of 15.41%!
MDC has been paying a dividend for at least 10 years, so it has 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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 11.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.03% | ||
| PM (TTM) | 8.59% | ||
| GM | 19.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-31.16%
EPS 3Y0.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y5.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y