M D C Holdings Inc (MDC) Stock Fundamental Analysis
NYSE:MDC - US5526761086 - Common Stock
62.98 USD
+0.03 (+0.05%)
62.98 USD
0 (0%)
MDC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 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. MDC also has an excellent dividend rating. This makes MDC very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year MDC was profitable.
In the past year MDC had a positive cash flow from operations.
Each year in the past 5 years MDC has been profitable.
In multiple years MDC reported negative operating cash flow during the last 5 years.
1.2 Ratios
MDC's Return On Assets of 7.08% is fine compared to the rest of the industry. MDC outperforms 62.69% of its industry peers.
MDC's Return On Equity of 11.81% is in line compared to the rest of the industry. MDC outperforms 56.72% of its industry peers.
MDC has a Return On Invested Capital of 6.75%. This is comparable to the rest of the industry: MDC outperforms 52.24% of its industry peers.
MDC had an Average Return On Invested Capital over the past 3 years of 11.24%. This is in line with the industry average of 10.39%.
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
With a decent Profit Margin value of 8.59%, MDC is doing good in the industry, outperforming 68.66% of the companies in the same industry.
MDC's Profit Margin has improved in the last couple of years.
MDC's Operating Margin of 10.03% is fine compared to the rest of the industry. MDC outperforms 61.19% of its industry peers.
MDC's Operating Margin has improved in the last couple of years.
MDC has a worse Gross Margin (19.29%) than 82.09% of its industry peers.
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.
MDC has more shares outstanding than it did 1 year ago.
MDC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MDC has an improved debt to assets ratio.
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.
MDC's Altman-Z score of 3.68 is fine compared to the rest of the industry. MDC outperforms 62.69% of its industry peers.
MDC has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as MDC would need 3.28 years to pay back of all of its debts.
MDC has a Debt to FCF ratio (3.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.50 indicates that MDC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, MDC is doing worse than 61.19% of the companies in the same industry.
| 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.
MDC has a Quick ratio of 2.69. This is amongst the best in the industry. MDC outperforms 92.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
MDC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.16%.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
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.
Based on estimates for the next years, MDC will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.93 indicates a reasonable valuation of MDC.
Compared to the rest of the industry, the Price/Earnings ratio of MDC is on the same level as its industry peers.
MDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 12.14, the valuation of MDC can be described as correct.
MDC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MDC to the average of the S&P500 Index (35.82), we can say MDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
MDC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MDC is valued a bit cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
The decent profitability rating of MDC 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%.
MDC's Dividend Yield is rather good when compared to the industry average which is at 3.26. MDC pays more dividend than 88.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of MDC is nicely growing with an annual growth rate of 15.41%!
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
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
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%
ROICexcg growth 3Y-6.21%
ROICexcg 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