M D C Holdings Inc (MDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDC - US5526761086 - Common Stock
62.98 USD
+0.03 (+0.05%)
62.98 USD
0 (0%)
Overall MDC gets a fundamental rating of 6 out of 10. We evaluated MDC against 61 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 decent growth rate and is not valued too expensively. Finally 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.
MDC had positive earnings in each of the past 5 years.
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
The Return On Assets of MDC (7.08%) is better than 62.69% of its industry peers.
With a Return On Equity value of 11.81%, MDC perfoms like the industry average, 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 9.73%.
The 3 year average ROIC (11.24%) for MDC is well above the current ROIC(6.75%). The reason for the recent decline needs to be investigated.
| 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.
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.
MDC has more shares outstanding than it did 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.
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.
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.
The Debt to Equity ratio of MDC (0.50) is worse 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.
With an excellent Current ratio value of 7.70, MDC belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
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.
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
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.
The Revenue for MDC has decreased by -18.80% in the past year. This is quite bad
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
MDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.76% yearly.
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.
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
The Price/Earnings ratio is 11.93, which indicates a very decent valuation of MDC.
MDC's Price/Earnings ratio is in line with the industry average.
MDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
MDC is valuated correctly with a Price/Forward Earnings ratio of 12.14.
MDC's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MDC to the average of the S&P500 Index (24.04), we can say MDC is valued slightly 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.
68.66% of the companies in the same industry are more expensive than MDC, based on the Price/Free Cash Flow ratio.
| 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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.20, MDC pays a better dividend. On top of this MDC pays more dividend than 88.06% of the companies listed in the same industry.
MDC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| 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.
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.
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
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 Change0%
Ins Owners0.23%
Ins Owner Change0%
Market Cap4.73B
Revenue(TTM)4.64B
Net Income(TTM)398.81M
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
Graham NumberN/A
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%
ROICexgc growth 3Y-6.21%
ROICexgc 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
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.
Can you provide the valuation status for M D C Holdings Inc?
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.
Can you provide the PE and PB ratios for MDC stock?
The Price/Earnings (PE) ratio for M D C Holdings Inc (MDC) is 11.93 and the Price/Book (PB) ratio is 1.4.
Can you provide the expected EPS growth for 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.