MELCOR DEVELOPMENTS LTD (MRD.CA) Stock Fundamental Analysis
TSX:MRD - Toronto Stock Exchange - CA5854671032 - Common Stock - Currency: CAD
Overall MRD gets a fundamental rating of 6 out of 10. We evaluated MRD against 26 industry peers in the Real Estate Management & Development industry. MRD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MRD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MRD was profitable.
In the past year MRD had a positive cash flow from operations.
Each year in the past 5 years MRD has been profitable.
MRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MRD's Return On Assets of 1.26% is fine compared to the rest of the industry. MRD outperforms 61.54% of its industry peers.
MRD's Return On Equity of 2.07% is fine compared to the rest of the industry. MRD outperforms 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.50%, MRD is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
MRD had an Average Return On Invested Capital over the past 3 years of 3.82%. This is below the industry average of 8.58%.
The 3 year average ROIC (3.82%) for MRD is below the current ROIC(4.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 2.07% | ||
| ROIC | 4.5% |
ROA(3y)2.91%
ROA(5y)2.39%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)3.82%
ROIC(5y)3.63%
1.3 Margins
MRD has a better Profit Margin (7.35%) than 69.23% of its industry peers.
MRD's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 35.28%, MRD belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
MRD's Operating Margin has improved in the last couple of years.
MRD has a Gross Margin of 45.96%. This is comparable to the rest of the industry: MRD outperforms 57.69% of its industry peers.
MRD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.28% | ||
| PM (TTM) | 7.35% | ||
| GM | 45.96% |
OM growth 3Y0.63%
OM growth 5Y5.89%
PM growth 3Y-18.68%
PM growth 5Y-11.95%
GM growth 3Y0.48%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MRD is destroying value.
MRD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MRD has less shares outstanding
The debt/assets ratio for MRD has been reduced compared to a year ago.
2.2 Solvency
MRD has an Altman-Z score of 1.56. This is a bad value and indicates that MRD is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.56, MRD is doing good in the industry, outperforming 61.54% of the companies in the same industry.
MRD has a debt to FCF ratio of 4.99. This is a neutral value as MRD would need 4.99 years to pay back of all of its debts.
MRD's Debt to FCF ratio of 4.99 is amongst the best of the industry. MRD outperforms 88.46% of its industry peers.
MRD has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
MRD has a Debt to Equity ratio of 0.44. This is in the better half of the industry: MRD outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.99 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.69
WACC6.52%
2.3 Liquidity
MRD has a Current Ratio of 3.81. This indicates that MRD is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.81, MRD belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
A Quick Ratio of 3.81 indicates that MRD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.81, MRD belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.81 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
MRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.36%.
Measured over the past years, MRD shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.67% on average per year.
The Revenue has been growing slightly by 6.57% in the past year.
The Revenue has been growing by 10.94% on average over the past years. This is quite good.
EPS 1Y (TTM)-66.36%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%-61.9%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%2%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-5.24%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.26%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.75 indicates a rather expensive valuation of MRD.
Based on the Price/Earnings ratio, MRD is valued a bit cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of MRD to the average of the S&P500 Index (27.30), we can say MRD is valued slightly cheaper.
MRD is valuated cheaply with a Price/Forward Earnings ratio of 7.07.
Based on the Price/Forward Earnings ratio, MRD is valued cheaper than 96.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRD to the average of the S&P500 Index (21.76), we can say MRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.75 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MRD is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.92 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The decent profitability rating of MRD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRD has a Yearly Dividend Yield of 3.12%.
Compared to an average industry Dividend Yield of 3.04, MRD pays a better dividend. On top of this MRD pays more dividend than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, MRD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
The dividend of MRD decreases each year by -2.57%.
MRD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MRD pays out 51.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of MRD has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP51.91%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:MRD (7/11/2025, 7:00:00 PM)
14.2
+0.25 (+1.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners8.77%
Inst Owner ChangeN/A
Ins Owners14.05%
Ins Owner ChangeN/A
Market Cap429.55M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0.44
Dividend Growth(5Y)-2.57%
DP51.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.75 | ||
| Fwd PE | 7.07 | ||
| P/S | 1.23 | ||
| P/FCF | 3.92 | ||
| P/OCF | 3.36 | ||
| P/B | 0.35 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)0.8
EY5.63%
EPS(NY)2.01
Fwd EY14.15%
FCF(TTM)3.62
FCFY25.48%
OCF(TTM)4.23
OCFY29.79%
SpS11.59
BVpS41.11
TBVpS41.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 2.07% | ||
| ROCE | 6.24% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 4.79% | ||
| OM | 35.28% | ||
| PM (TTM) | 7.35% | ||
| GM | 45.96% | ||
| FCFM | 31.23% |
ROA(3y)2.91%
ROA(5y)2.39%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)3.82%
ROIC(5y)3.63%
ROICexc(3y)3.93%
ROICexc(5y)3.72%
ROICexgc(3y)4.06%
ROICexgc(5y)3.84%
ROCE(3y)5.31%
ROCE(5y)5.03%
ROICexcg growth 3Y4.23%
ROICexcg growth 5Y17.72%
ROICexc growth 3Y4.16%
ROICexc growth 5Y17.7%
OM growth 3Y0.63%
OM growth 5Y5.89%
PM growth 3Y-18.68%
PM growth 5Y-11.95%
GM growth 3Y0.48%
GM growth 5Y-0.66%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.99 | ||
| Debt/EBITDA | 4.37 | ||
| Cap/Depr | 1515.14% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.48% | ||
| Profit Quality | 425.01% | ||
| Current Ratio | 3.81 | ||
| Quick Ratio | 3.81 | ||
| Altman-Z | 1.56 |
F-Score7
WACC6.52%
ROIC/WACC0.69
Cap/Depr(3y)1460.36%
Cap/Depr(5y)1587.21%
Cap/Sales(3y)6.3%
Cap/Sales(5y)7.47%
Profit Quality(3y)95.67%
Profit Quality(5y)124.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-66.36%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%-61.9%
EPS Next Y-5.24%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%2%
Revenue Next Year-3.26%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.75%
EBIT growth 3Y4.12%
EBIT growth 5Y17.48%
EBIT Next Year-3.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1768.67%
FCF growth 3Y18.66%
FCF growth 5Y52.08%
OCF growth 1Y941.33%
OCF growth 3Y10.64%
OCF growth 5Y25.86%