M D C Holdings Inc (MDC) Stock Fundamental Analysis
USA - NYSE:MDC - US5526761086 - Common Stock
62.98 USD
+0.03 (+0.05%)
62.98 USD
0 (0%)
Overall MDC gets a fundamental rating of 6 out of 10. We evaluated MDC against 61 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 correct valuation and a medium growth rate. Finally MDC also has an excellent dividend rating. With these ratings, MDC could be worth investigating further 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.
In the past 5 years MDC has always 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 has a better Return On Assets (7.08%) than 62.69% of its industry peers.
MDC has a Return On Equity (11.81%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.75%, MDC is in line with its industry, outperforming 52.24% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MDC is in line with the industry average of 9.86%.
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 has a better Profit Margin (8.59%) than 68.66% of its industry peers.
MDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.03%, MDC is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
In the last couple of years the Operating Margin of MDC has grown nicely.
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.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MDC is 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
The debt/assets ratio for MDC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that MDC is not in any danger for 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.
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.
With a Debt to FCF ratio value of 3.28, MDC perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
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 worse Debt to Equity ratio (0.50) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.73
WACC9.28%
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.
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 better Quick ratio (2.69) than 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.
Looking at the last year, MDC shows a very negative growth in Revenue. The Revenue has decreased by -18.80% in the last year.
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.
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 is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
MDC is valuated correctly with a Price/Forward Earnings ratio of 12.14.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDC is on the same level as its industry peers.
MDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, MDC is valued a bit cheaper than the industry average as 68.66% of the companies are valued more expensively.
| 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 3.32. MDC pays more dividend than 88.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, MDC pays a bit more dividend than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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
Revenue(TTM)4.64B
Net Income(TTM)398.81M
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
Graham NumberN/A
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%
ROICexgc growth 3Y-6.21%
ROICexgc 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
M D C Holdings Inc / MDC FAQ
What is the ChartMill fundamental rating of M D C Holdings Inc (MDC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDC.
Can you provide the valuation status for M D C Holdings Inc?
ChartMill assigns a valuation rating of 5 / 10 to M D C Holdings Inc (MDC). This can be considered as Fairly Valued.
Can you provide the profitability details for M D C Holdings Inc?
M D C Holdings Inc (MDC) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for MDC stock?
The Price/Earnings (PE) ratio for M D C Holdings Inc (MDC) is 11.93 and the Price/Book (PB) ratio is 1.4.
Can you provide the expected EPS growth for MDC stock?
The Earnings per Share (EPS) of M D C Holdings Inc (MDC) is expected to decline by -1.74% in the next year.