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 5 out of 10. We evaluated MRD against 33 industry peers in the Real Estate Management & Development industry. MRD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. MRD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MRD had positive earnings in the past year.
MRD had a positive operating cash flow in the past year.
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 0.55% is in line compared to the rest of the industry. MRD outperforms 54.84% of its industry peers.
MRD has a Return On Equity (0.95%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 4.37%, MRD is doing good in the industry, outperforming 74.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRD is below the industry average of 6.71%.
The last Return On Invested Capital (4.37%) for MRD is above the 3 year average (4.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 0.95% | ||
| ROIC | 4.37% |
ROA(3y)3.26%
ROA(5y)2.43%
ROE(3y)5.95%
ROE(5y)4.48%
ROIC(3y)4.12%
ROIC(5y)3.53%
1.3 Margins
The Profit Margin of MRD (3.77%) is better than 67.74% of its industry peers.
In the last couple of years the Profit Margin of MRD has declined.
MRD's Operating Margin of 35.70% is fine compared to the rest of the industry. MRD outperforms 77.42% of its industry peers.
MRD's Operating Margin has declined in the last couple of years.
MRD has a Gross Margin of 45.02%. This is comparable to the rest of the industry: MRD outperforms 54.84% of its industry peers.
MRD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.7% | ||
| PM (TTM) | 3.77% | ||
| GM | 45.02% |
OM growth 3Y3.1%
OM growth 5Y-1.81%
PM growth 3Y57.94%
PM growth 5Y-3.64%
GM growth 3Y1.41%
GM growth 5Y-0.72%
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.
The number of shares outstanding for MRD has been reduced compared to 5 years ago.
Compared to 1 year ago, MRD has an improved debt to assets ratio.
2.2 Solvency
MRD has an Altman-Z score of 1.38. This is a bad value and indicates that MRD is not financially healthy and even has some risk of bankruptcy.
MRD has a Altman-Z score of 1.38. This is in the better half of the industry: MRD outperforms 61.29% of its industry peers.
MRD has a debt to FCF ratio of 14.17. This is a negative value and a sign of low solvency as MRD would need 14.17 years to pay back of all of its debts.
The Debt to FCF ratio of MRD (14.17) is better than 70.97% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that MRD is somewhat dependend on debt financing.
MRD has a better Debt to Equity ratio (0.53) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 14.17 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.66
WACC6.62%
2.3 Liquidity
MRD has a Current Ratio of 2.94. This indicates that MRD is financially healthy and has no problem in meeting its short term obligations.
MRD has a better Current ratio (2.94) than 90.32% of its industry peers.
MRD has a Quick Ratio of 2.94. This indicates that MRD is financially healthy and has no problem in meeting its short term obligations.
MRD has a better Quick ratio (2.94) than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
The earnings per share for MRD have decreased strongly by -87.12% in the last year.
Measured over the past 5 years, MRD shows a small growth in Earnings Per Share. The EPS has been growing by 1.07% on average per year.
Looking at the last year, MRD shows a quite strong growth in Revenue. The Revenue has grown by 14.15% in the last year.
Measured over the past years, MRD shows a small growth in Revenue. The Revenue has been growing by 3.35% on average per year.
EPS 1Y (TTM)-87.12%
EPS 3Y81.27%
EPS 5Y1.07%
EPS Q2Q%-222.45%
Revenue 1Y (TTM)14.15%
Revenue growth 3Y11.6%
Revenue growth 5Y3.35%
Sales Q2Q%-32.99%
3.2 Future
MRD is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.68% yearly.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y-4.11%
EPS Next 2Y-4.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.64%
Revenue Next 2Y2.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 33.30, which means the current valuation is very expensive for MRD.
MRD's Price/Earnings ratio is a bit cheaper when compared to the industry. MRD is cheaper than 64.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MRD is valued at the same level.
With a Price/Forward Earnings ratio of 6.13, the valuation of MRD can be described as very cheap.
96.77% of the companies in the same industry are more expensive than MRD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.3 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRD indicates a rather cheap valuation: MRD is cheaper than 90.32% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MRD is valued a bit cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.25 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
A cheap valuation may be justified as MRD's earnings are expected to decrease with -4.68% in the coming years.
PEG (NY)N/A
PEG (5Y)31.1
EPS Next 2Y-4.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRD has a Yearly Dividend Yield of 3.57%.
Compared to an average industry Dividend Yield of 3.32, MRD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, MRD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
The dividend of MRD has a limited annual growth rate of 4.18%.
MRD has been paying a dividend for at least 10 years, so it has a reliable track record.
MRD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.18%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
130.70% of the earnings are spent on dividend by MRD. This is not a sustainable payout ratio.
The Dividend Rate of MRD has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP130.7%
EPS Next 2Y-4.68%
EPS Next 3YN/A
TSX:MRD (3/6/2025, 7:00:00 PM)
12.32
+0.17 (+1.4%)
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 Owners13.81%
Ins Owner ChangeN/A
Market Cap373.67M
Analysts45.71
Price Target14.28 (15.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
Yearly Dividend0.64
Dividend Growth(5Y)4.18%
DP130.7%
Div Incr Years3
Div Non Decr Years3
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)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 | 33.3 | ||
| Fwd PE | 6.13 | ||
| P/S | 1.23 | ||
| P/FCF | 8.25 | ||
| P/OCF | 5.8 | ||
| P/B | 0.31 | ||
| P/tB | 0.31 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)0.37
EY3%
EPS(NY)2.01
Fwd EY16.31%
FCF(TTM)1.49
FCFY12.13%
OCF(TTM)2.13
OCFY17.26%
SpS10.03
BVpS39.64
TBVpS39.64
PEG (NY)N/A
PEG (5Y)31.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 0.95% | ||
| ROCE | 5.38% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.46% | ||
| ROICexgc | 4.6% | ||
| OM | 35.7% | ||
| PM (TTM) | 3.77% | ||
| GM | 45.02% | ||
| FCFM | 14.9% |
ROA(3y)3.26%
ROA(5y)2.43%
ROE(3y)5.95%
ROE(5y)4.48%
ROIC(3y)4.12%
ROIC(5y)3.53%
ROICexc(3y)4.23%
ROICexc(5y)3.62%
ROICexgc(3y)4.37%
ROICexgc(5y)3.73%
ROCE(3y)5.06%
ROCE(5y)4.35%
ROICexcg growth 3Y13.7%
ROICexcg growth 5Y0.61%
ROICexc growth 3Y13.54%
ROICexc growth 5Y0.54%
OM growth 3Y3.1%
OM growth 5Y-1.81%
PM growth 3Y57.94%
PM growth 5Y-3.64%
GM growth 3Y1.41%
GM growth 5Y-0.72%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 14.17 | ||
| Debt/EBITDA | 5.85 | ||
| Cap/Depr | 1522.64% | ||
| Cap/Sales | 6.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.71% | ||
| Profit Quality | 395.53% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z | 1.38 |
F-Score7
WACC6.62%
ROIC/WACC0.66
Cap/Depr(3y)1605.01%
Cap/Depr(5y)1620.04%
Cap/Sales(3y)7.2%
Cap/Sales(5y)8.53%
Profit Quality(3y)43.53%
Profit Quality(5y)80.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-87.12%
EPS 3Y81.27%
EPS 5Y1.07%
EPS Q2Q%-222.45%
EPS Next Y-4.11%
EPS Next 2Y-4.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.15%
Revenue growth 3Y11.6%
Revenue growth 5Y3.35%
Sales Q2Q%-32.99%
Revenue Next Year9.64%
Revenue Next 2Y2.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.97%
EBIT growth 3Y15.06%
EBIT growth 5Y1.47%
EBIT Next Year7.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y138.97%
FCF growth 3Y-2.33%
FCF growth 5Y25.24%
OCF growth 1Y90.71%
OCF growth 3Y-2.78%
OCF growth 5Y9.62%