MORGUARD CORP (MRC.CA) Stock Fundamental Analysis
TSX:MRC - Toronto Stock Exchange - CA6175771014 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to MRC. MRC was compared to 30 industry peers in the Real Estate Management & Development industry. While MRC is still in line with the averages on profitability rating, there are concerns on its financial health. MRC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MRC had positive earnings in the past year.
In the past year MRC had a positive cash flow from operations.
MRC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MRC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.72%, MRC is doing good in the industry, outperforming 68.97% of the companies in the same industry.
MRC has a Return On Equity of 4.82%. This is in the better half of the industry: MRC outperforms 65.52% of its industry peers.
MRC has a better Return On Invested Capital (4.19%) than 62.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRC is below the industry average of 7.11%.
The last Return On Invested Capital (4.19%) for MRC is above the 3 year average (3.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.82% | ||
| ROIC | 4.19% |
ROA(3y)1.29%
ROA(5y)0.9%
ROE(3y)3.99%
ROE(5y)2.81%
ROIC(3y)3.98%
ROIC(5y)3.93%
1.3 Margins
Looking at the Profit Margin, with a value of 17.25%, MRC belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
MRC's Profit Margin has declined in the last couple of years.
MRC's Operating Margin of 47.60% is amongst the best of the industry. MRC outperforms 82.76% of its industry peers.
MRC's Operating Margin has been stable in the last couple of years.
MRC's Gross Margin of 60.68% is in line compared to the rest of the industry. MRC outperforms 58.62% of its industry peers.
MRC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.6% | ||
| PM (TTM) | 17.25% | ||
| GM | 60.68% |
OM growth 3Y-0.28%
OM growth 5Y0.32%
PM growth 3YN/A
PM growth 5Y-25.95%
GM growth 3Y-3.94%
GM growth 5Y-4.22%
2. Health
2.1 Basic Checks
The number of shares outstanding for MRC has been reduced compared to 1 year ago.
MRC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRC has about the same debt to assets ratio.
2.2 Solvency
MRC has an Altman-Z score of 0.69. This is a bad value and indicates that MRC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MRC (0.69) is comparable to the rest of the industry.
The Debt to FCF ratio of MRC is 22.73, which is on the high side as it means it would take MRC, 22.73 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 22.73, MRC perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
MRC has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MRC (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 22.73 | ||
| Altman-Z | 0.69 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MRC has a Current Ratio of 0.24. This is a bad value and indicates that MRC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.24, MRC is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
A Quick Ratio of 0.24 indicates that MRC may have some problems paying its short term obligations.
The Quick ratio of MRC (0.24) is worse than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 162.82% over the past year.
MRC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.68% yearly.
MRC shows a decrease in Revenue. In the last year, the revenue decreased by -4.22%.
Measured over the past years, MRC shows a small growth in Revenue. The Revenue has been growing by 0.82% on average per year.
EPS 1Y (TTM)162.82%
EPS 3YN/A
EPS 5Y-24.68%
EPS Q2Q%-90.93%
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.44%
Revenue growth 5Y0.82%
Sales Q2Q%-11.36%
3.2 Future
The Earnings Per Share is expected to grow by 5.29% on average over the next years.
Based on estimates for the next years, MRC will show a decrease in Revenue. The Revenue will decrease by -1.68% on average per year.
EPS Next Y114.26%
EPS Next 2Y-0.05%
EPS Next 3Y5.29%
EPS Next 5YN/A
Revenue Next Year-8.27%
Revenue Next 2Y-4.22%
Revenue Next 3Y-1.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.12, the valuation of MRC can be described as very cheap.
MRC's Price/Earnings ratio is rather cheap when compared to the industry. MRC is cheaper than 93.10% of the companies in the same industry.
MRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 10.57 indicates a reasonable valuation of MRC.
MRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. MRC is cheaper than 93.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRC to the average of the S&P500 Index (22.68), we can say MRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.12 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MRC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MRC may justify a higher PE ratio.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y-0.05%
EPS Next 3Y5.29%
5. Dividend
5.1 Amount
MRC has a yearly dividend return of 0.73%, which is pretty low.
MRC's Dividend Yield is comparable with the industry average which is at 3.36.
With a Dividend Yield of 0.73, MRC pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of MRC has a limited annual growth rate of 0.41%.
MRC has been paying a dividend for at least 10 years, so it has a reliable track record.
MRC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.41%
Div Incr Years1
Div Non Decr Years21
5.3 Sustainability
MRC pays out 3.26% of its income as dividend. This is a sustainable payout ratio.
MRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP3.26%
EPS Next 2Y-0.05%
EPS Next 3Y5.29%
TSX:MRC (2/21/2025, 7:00:00 PM)
112.18
+2.73 (+2.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners3.31%
Inst Owner ChangeN/A
Ins Owners62.9%
Ins Owner ChangeN/A
Market Cap1.20B
Analysts45.71
Price Target142.8 (27.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.59
Dividend Growth(5Y)0.41%
DP3.26%
Div Incr Years1
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-19.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.12 | ||
| Fwd PE | 10.57 | ||
| P/S | 1.05 | ||
| P/FCF | 4.69 | ||
| P/OCF | 4.69 | ||
| P/B | 0.29 | ||
| P/tB | 0.3 | ||
| EV/EBITDA | N/A |
EPS(TTM)18.34
EY16.35%
EPS(NY)10.62
Fwd EY9.46%
FCF(TTM)23.9
FCFY21.31%
OCF(TTM)23.9
OCFY21.31%
SpS107.27
BVpS383.57
TBVpS380.22
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.82% | ||
| ROCE | 5.45% | ||
| ROIC | 4.19% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.33% | ||
| OM | 47.6% | ||
| PM (TTM) | 17.25% | ||
| GM | 60.68% | ||
| FCFM | 22.28% |
ROA(3y)1.29%
ROA(5y)0.9%
ROE(3y)3.99%
ROE(5y)2.81%
ROIC(3y)3.98%
ROIC(5y)3.93%
ROICexc(3y)4.04%
ROICexc(5y)3.98%
ROICexgc(3y)4.08%
ROICexgc(5y)4.03%
ROCE(3y)5.24%
ROCE(5y)5.17%
ROICexcg growth 3Y5.85%
ROICexcg growth 5Y1.64%
ROICexc growth 3Y5.91%
ROICexc growth 5Y1.69%
OM growth 3Y-0.28%
OM growth 5Y0.32%
PM growth 3YN/A
PM growth 5Y-25.95%
GM growth 3Y-3.94%
GM growth 5Y-4.22%
F-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 22.73 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 129.18% | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.69 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)237.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)162.82%
EPS 3YN/A
EPS 5Y-24.68%
EPS Q2Q%-90.93%
EPS Next Y114.26%
EPS Next 2Y-0.05%
EPS Next 3Y5.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.22%
Revenue growth 3Y5.44%
Revenue growth 5Y0.82%
Sales Q2Q%-11.36%
Revenue Next Year-8.27%
Revenue Next 2Y-4.22%
Revenue Next 3Y-1.68%
Revenue Next 5YN/A
EBIT growth 1Y-2.85%
EBIT growth 3Y5.14%
EBIT growth 5Y1.14%
EBIT Next Year-8.38%
EBIT Next 3Y-1.58%
EBIT Next 5YN/A
FCF growth 1Y-14.15%
FCF growth 3Y12.02%
FCF growth 5Y0.44%
OCF growth 1Y-14.15%
OCF growth 3Y12.02%
OCF growth 5Y0.44%