MELCOR DEVELOPMENTS LTD (MRD.CA) Stock Fundamental Analysis
TSX:MRD - Toronto Stock Exchange - CA5854671032 - Common Stock - Currency: CAD
MRD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 industry peers in the Real Estate Management & Development industry. While MRD has a great health rating, its profitability is only average at the moment. MRD is cheap, but on the other hand it scores bad on growth. With these ratings, MRD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
MRD had positive earnings in the past year.
In the past year MRD had a positive cash flow from operations.
MRD had positive earnings in each of the past 5 years.
MRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.59%, MRD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a Return On Equity value of 2.70%, MRD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of MRD (4.46%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRD is significantly below the industry average of 11.02%.
The last Return On Invested Capital (4.46%) for MRD is above the 3 year average (3.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 2.7% | ||
| ROIC | 4.46% |
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
The Profit Margin of MRD (9.59%) is better than 64.29% of its industry peers.
MRD's Profit Margin has declined in the last couple of years.
MRD has a Operating Margin of 36.30%. This is in the better half of the industry: MRD outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of MRD has grown nicely.
MRD has a Gross Margin of 45.03%. This is comparable to the rest of the industry: MRD outperforms 53.57% of its industry peers.
In the last couple of years the Gross Margin of MRD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.3% | ||
| PM (TTM) | 9.59% | ||
| GM | 45.03% |
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
MRD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MRD has been reduced compared to 1 year ago.
Compared to 5 years ago, MRD has less shares outstanding
MRD has a better debt/assets ratio than last year.
2.2 Solvency
MRD has an Altman-Z score of 1.47. 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 1.47, MRD is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MRD has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as MRD would need 7.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.50, MRD is doing good in the industry, outperforming 71.43% of the companies in the same industry.
MRD has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
MRD's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. MRD outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.7
WACC6.39%
2.3 Liquidity
MRD has a Current Ratio of 3.94. This indicates that MRD is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.94, MRD belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
MRD has a Quick Ratio of 3.94. This indicates that MRD is financially healthy and has no problem in meeting its short term obligations.
MRD has a better Quick ratio (3.94) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.94 |
3. Growth
3.1 Past
MRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.79%.
MRD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.67% yearly.
MRD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.87%.
MRD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.94% yearly.
EPS 1Y (TTM)-47.79%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%207.85%
Revenue 1Y (TTM)10.87%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%36.28%
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
The Price/Earnings ratio is 11.49, which indicates a very decent valuation of MRD.
75.00% of the companies in the same industry are more expensive than MRD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.98, MRD is valued rather cheaply.
MRD is valuated cheaply with a Price/Forward Earnings ratio of 6.06.
100.00% of the companies in the same industry are more expensive than MRD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. MRD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 6.06 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRD indicates a rather cheap valuation: MRD is cheaper than 96.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 7.23 |
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 3.73%.
Compared to an average industry Dividend Yield of 3.42, MRD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, MRD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of MRD decreases each year by -2.57%.
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)-2.57%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MRD pays out 39.97% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of MRD has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP39.97%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:MRD (4/29/2025, 7:00:00 PM)
12.18
+0.09 (+0.74%)
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 Cap368.81M
Analysts45.71
Price Target14.28 (17.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend0.44
Dividend Growth(5Y)-2.57%
DP39.97%
Div Incr Years3
Div Non Decr Years3
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 | 11.49 | ||
| Fwd PE | 6.06 | ||
| P/S | 1.06 | ||
| P/FCF | 4.52 | ||
| P/OCF | 3.74 | ||
| P/B | 0.3 | ||
| P/tB | 0.3 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)1.06
EY8.7%
EPS(NY)2.01
Fwd EY16.5%
FCF(TTM)2.69
FCFY22.1%
OCF(TTM)3.26
OCFY26.74%
SpS11.54
BVpS41.04
TBVpS41.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 2.7% | ||
| ROCE | 6.19% | ||
| ROIC | 4.46% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.73% | ||
| OM | 36.3% | ||
| PM (TTM) | 9.59% | ||
| GM | 45.03% | ||
| FCFM | 23.32% |
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 | 0.49 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 4.77 | ||
| Cap/Depr | 1372.81% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.99% | ||
| Profit Quality | 243.1% | ||
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.94 | ||
| Altman-Z | 1.47 |
F-Score7
WACC6.39%
ROIC/WACC0.7
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)-47.79%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%207.85%
EPS Next Y-5.24%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.87%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%36.28%
Revenue Next Year-3.26%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.11%
EBIT growth 3Y4.12%
EBIT growth 5Y17.48%
EBIT Next Year-3.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y207.25%
FCF growth 3Y18.66%
FCF growth 5Y52.08%
OCF growth 1Y102.07%
OCF growth 3Y10.64%
OCF growth 5Y25.86%