M D C Holdings Inc (MDC)
US5526761086 - Common Stock
MDC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. MDC has an average financial health and profitability rating. 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
MDC had positive earnings in the past year.
MDC had a positive operating cash flow in the past year.
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 Return On Assets of 7.08%. This is in the better half of the industry: MDC outperforms 62.69% of its industry peers.
With a Return On Equity value of 11.81%, MDC perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
MDC has a Return On Invested Capital (6.75%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MDC is in line with the industry average of 10.06%.
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.
MDC has a Operating Margin of 10.03%. This is in the better half of the industry: MDC outperforms 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.
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.
Compared to 1 year ago, MDC has more shares outstanding
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.
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.
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.
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.
The Debt to FCF ratio of MDC (3.28) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.50 indicates that MDC is somewhat dependend on debt financing.
The Debt to Equity ratio of MDC (0.50) is worse 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.
The Current ratio of MDC (7.70) is better 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.
MDC's Quick ratio of 2.69 is amongst the best of 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
The earnings per share for MDC have decreased strongly by -31.16% in the last year.
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
Measured over the past years, MDC shows a quite strong growth in Revenue. The Revenue has been growing by 8.66% on average per year.
EPS 1Y (TTM)-31.16%
EPS 3Y0.91%
EPS 5Y10.85%
EPS growth Q2Q44.44%
Revenue 1Y (TTM)-18.8%
Revenue growth 3Y5.97%
Revenue growth 5Y8.66%
Revenue growth 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.
The Revenue is expected to grow by 7.39% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
MDC is valuated reasonably with a Price/Earnings ratio of 11.93.
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 25.20.
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 indicates a somewhat cheap valuation: MDC is cheaper than 61.19% of the companies listed in the same industry.
MDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.63.
| 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 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%.
Compared to an average industry Dividend Yield of 3.32, 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 2.44, MDC pays a bit more dividend than the S&P500 average.
| 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 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
38.93% of the earnings are spent on dividend by MDC. This is a low number and 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
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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)
Growth
EPS 1Y (TTM)-31.16%
EPS 3Y0.91%
EPS 5Y
EPS growth 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
Revenue growth 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