M D C Holdings Inc (MDC)
US5526761086 - Common Stock
Overall MDC gets a fundamental rating of 6 out of 10. We evaluated MDC against 66 industry peers in the Household Durables industry. MDC has only an average score on both its financial health and profitability. MDC is not valued too expensively and it also shows a decent growth rate. Finally MDC also has an excellent dividend rating. These ratings would make MDC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
MDC had positive earnings in the past year.
MDC had a positive operating cash flow in the past year.
Each year in the past 5 years MDC has been profitable.
The reported operating cash flow has been mixed in the past 5 years: MDC reported negative operating cash flow in multiple 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 has a Return On Equity (11.81%) which is in line with 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.
The Average Return On Invested Capital over the past 3 years for MDC is in line with the industry average of 10.45%.
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
MDC's Profit Margin of 8.59% is fine compared to the rest of the industry. MDC outperforms 68.66% of its industry peers.
MDC's Profit Margin has improved in the last couple of years.
MDC has a better Operating Margin (10.03%) than 61.19% of its industry peers.
MDC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.29%, MDC is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MDC has remained more or less at the same level.
| 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.
The number of shares outstanding for MDC has been increased compared to 1 year ago.
Compared to 5 years ago, MDC has more shares outstanding
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 has a Altman-Z score of 3.68. This is in the better half of the industry: MDC outperforms 62.69% of its industry peers.
The Debt to FCF ratio of MDC is 3.28, which is a good value as it means it would take MDC, 3.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.28, MDC is in line with its industry, outperforming 52.24% of the companies in the same 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.
MDC has a better Current ratio (7.70) than 85.07% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.69, MDC belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
The earnings per share for MDC have decreased strongly by -31.16% in the last year.
Measured over the past years, MDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.85% on average per year.
MDC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.80%.
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.
MDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.39% yearly.
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
Based on the Price/Earnings ratio of 11.93, the valuation of MDC can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as MDC.
MDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
The Price/Forward Earnings ratio is 12.14, which indicates a correct valuation of MDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.59. MDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDC.
68.66% of the companies in the same industry are more expensive than MDC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
MDC has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 3.49%, MDC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.49, MDC pays a better dividend. On top of this MDC pays more dividend than 88.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, MDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
On average, the dividend of MDC grows each year by 15.41%, which is quite nice.
MDC has paid a dividend for at least 10 years, which is a reliable track record.
As MDC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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
M D C Holdings Inc
NYSE:MDC (4/18/2024, 7:07:10 PM)
After market: 62.98 0 (0%)62.98
+0.03 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 12.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 11.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.03% | ||
| PM (TTM) | 8.59% | ||
| GM | 19.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.7 | ||
| Quick Ratio | 2.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-31.16%
EPS 3Y0.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y5.97%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y