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M D C Holdings Inc (MDC) Stock Fundamental Analysis

NYSE:MDC - New York Stock Exchange, Inc. - US5526761086 - Common Stock - Currency: USD

62.98  +0.03 (+0.05%)

After market: 62.98 0 (0%)

Fundamental Rating

6

MDC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. MDC has an average financial health and profitability rating. MDC is not valued too expensively and it also shows a decent growth rate. MDC also has an excellent dividend rating. With these ratings, MDC could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

6

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.
MDC had positive earnings in each of the past 5 years.
In multiple years MDC reported negative operating cash flow during the last 5 years.
MDC Yearly Net Income VS EBIT VS OCF VS FCFMDC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M

1.2 Ratios

MDC has a Return On Assets of 7.08%. This is in the better half 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.
With a Return On Invested Capital value of 6.75%, MDC perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MDC is in line with the industry average of 12.29%.
The last Return On Invested Capital (6.75%) for MDC is well below the 3 year average (11.24%), which needs to be investigated, but indicates that MDC had better years and this may not be a problem.
Industry RankSector 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%
MDC Yearly ROA, ROE, ROICMDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 8.59%, MDC is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
In the last couple of years the Profit Margin of MDC has grown nicely.
The Operating Margin of MDC (10.03%) is better than 61.19% of its industry peers.
MDC's Operating Margin has improved in the last couple of years.
MDC's Gross Margin of 19.29% is on the low side compared to the rest of the industry. MDC is outperformed by 82.09% of its industry peers.
In the last couple of years the Gross Margin of MDC has remained more or less at the same level.
Industry RankSector 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%
MDC Yearly Profit, Operating, Gross MarginsMDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

6

2. Health

2.1 Basic Checks

MDC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MDC has been increased compared to 1 year ago.
The number of shares outstanding for MDC has been increased compared to 5 years ago.
Compared to 1 year ago, MDC has an improved debt to assets ratio.
MDC Yearly Shares OutstandingMDC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
MDC Yearly Total Debt VS Total AssetsMDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 3.68 indicates that MDC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.68, MDC is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
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 in line with its industry peers.
MDC has a Debt/Equity ratio of 0.50. This is a neutral value indicating MDC is somewhat dependend on debt financing.
MDC has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: MDC underperforms 61.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 3.28
Altman-Z 3.68
ROIC/WACC0.73
WACC9.28%
MDC Yearly LT Debt VS Equity VS FCFMDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 7.70 indicates that MDC has no problem at all paying its short term obligations.
MDC's Current ratio of 7.70 is amongst the best of the industry. MDC outperforms 85.07% of its industry peers.
A Quick Ratio of 2.69 indicates that MDC has no problem at all paying 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 RankSector Rank
Current Ratio 7.7
Quick Ratio 2.69
MDC Yearly Current Assets VS Current LiabilitesMDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

4

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

The Earnings Per Share is expected to grow by 2.76% on average over the next years.
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.
MDC Yearly Revenue VS EstimatesMDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B
MDC Yearly EPS VS EstimatesMDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

5

4. Valuation

4.1 Price/Earnings Ratio

MDC is valuated reasonably with a Price/Earnings ratio of 11.93.
MDC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MDC to the average of the S&P500 Index (28.22), we can say MDC is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.14, MDC is valued correctly.
MDC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.86. MDC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 11.93
Fwd PE 12.14
MDC Price Earnings VS Forward Price EarningsMDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 9.12
EV/EBITDA 9.33
MDC Per share dataMDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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

7

5. Dividend

5.1 Amount

MDC has a Yearly Dividend Yield of 3.49%. Purely for dividend investing, there may be better candidates out there.
MDC's Dividend Yield is rather good when compared to the industry average which is at 3.62. MDC pays more dividend than 88.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, MDC pays a bit more dividend than the S&P500 average.
Industry RankSector 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 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
MDC Yearly Dividends per shareMDC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

MDC pays out 38.93% of its income as dividend. This is a sustainable payout ratio.
MDC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.93%
EPS Next 2Y2.76%
EPS Next 3YN/A
MDC Yearly Income VS Free CF VS DividendMDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M 800M
MDC Dividend Payout.MDC Dividend Payout, showing the Payout Ratio.MDC Dividend Payout.PayoutRetained Earnings

M D C Holdings Inc

NYSE:MDC (4/18/2024, 8:07:10 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)04-25 2024-04-25/amc
Earnings (Next)07-25 2024-07-25/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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