MCAN MORTGAGE CORP (MKP.CA) Stock Fundamental Analysis
TSX:MKP - CA5791761086 - Common Stock
21.63 CAD
-0.25 (-1.14%)
Taking everything into account, MKP scores 3 out of 10 in our fundamental rating. MKP was compared to 29 industry peers in the Financial Services industry. MKP may be in some trouble as it scores bad on both profitability and health. MKP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MKP was profitable.
MKP had a negative operating cash flow in the past year.
Each year in the past 5 years MKP has been profitable.
The reported operating cash flow has been mixed in the past 5 years: MKP reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of MKP (1.24%) is comparable to the rest of the industry.
With an excellent Return On Equity value of 11.50%, MKP belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.88%, MKP is doing worse than 79.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MKP is below the industry average of 5.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 11.5% | ||
| ROIC | 0.88% |
ROA(3y)1.48%
ROA(5y)1.54%
ROE(3y)12.94%
ROE(5y)13.21%
ROIC(3y)1.07%
ROIC(5y)1.15%
1.3 Margins
The Profit Margin of MKP (23.34%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MKP has declined.
MKP has a worse Operating Margin (22.99%) than 75.86% of its industry peers.
MKP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 44.46%, MKP is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
MKP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.99% | ||
| PM (TTM) | 23.34% | ||
| GM | 44.46% |
OM growth 3Y-14.95%
OM growth 5Y-8.46%
PM growth 3Y-14.89%
PM growth 5Y-8.36%
GM growth 3Y-11.97%
GM growth 5Y-6.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MKP is destroying value.
The number of shares outstanding for MKP has been increased compared to 1 year ago.
The number of shares outstanding for MKP has been increased compared to 5 years ago.
The debt/assets ratio for MKP has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.29, we must say that MKP is in the distress zone and has some risk of bankruptcy.
MKP's Altman-Z score of -0.29 is on the low side compared to the rest of the industry. MKP is outperformed by 96.55% of its industry peers.
MKP has a Debt/Equity ratio of 8.21. This is a high value indicating a heavy dependency on external financing.
MKP has a Debt to Equity ratio of 8.21. This is amonst the worse of the industry: MKP underperforms 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.29 |
ROIC/WACC0.19
WACC4.59%
2.3 Liquidity
MKP has a Current Ratio of 0.05. This is a bad value and indicates that MKP is not financially healthy enough and could expect problems in meeting its short term obligations.
MKP has a worse Current ratio (0.05) than 68.97% of its industry peers.
A Quick Ratio of 0.05 indicates that MKP may have some problems paying its short term obligations.
MKP has a worse Quick ratio (0.05) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
MKP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.58%.
MKP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.42% yearly.
Looking at the last year, MKP shows a quite strong growth in Revenue. The Revenue has grown by 8.76% in the last year.
MKP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.97% yearly.
EPS 1Y (TTM)-18.58%
EPS 3Y-3.4%
EPS 5Y1.42%
EPS Q2Q%-1.92%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y25.04%
Revenue growth 5Y19.97%
Sales Q2Q%7.3%
3.2 Future
MKP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
Based on estimates for the next years, MKP will show a quite strong growth in Revenue. The Revenue will grow by 13.90% on average per year.
EPS Next Y-8.51%
EPS Next 2Y1.71%
EPS Next 3Y5.4%
EPS Next 5YN/A
Revenue Next Year6.14%
Revenue Next 2Y10.42%
Revenue Next 3Y13.9%
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 accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.76, the valuation of MKP can be described as reasonable.
Based on the Price/Earnings ratio, MKP is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.84. MKP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.10, the valuation of MKP can be described as reasonable.
MKP's Price/Forward Earnings ratio is rather cheap when compared to the industry. MKP is cheaper than 86.21% of the companies in the same industry.
MKP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
MKP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MKP is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 44.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.27
EPS Next 2Y1.71%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
MKP has a Yearly Dividend Yield of 7.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.12, MKP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.55% |
5.2 History
The dividend of MKP decreases each year by -2.27%.
MKP has been paying a dividend for at least 10 years, so it has a reliable track record.
MKP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.27%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MKP pays out 74.01% of its income as dividend. This is not a sustainable payout ratio.
DP74.01%
EPS Next 2Y1.71%
EPS Next 3Y5.4%
TSX:MKP (9/3/2025, 7:00:00 PM)
21.63
-0.25 (-1.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners0.14%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner ChangeN/A
Market Cap857.63M
Analysts76.67
Price Target21.68 (0.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.55% |
Yearly Dividend1.14
Dividend Growth(5Y)-2.27%
DP74.01%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.46%
Min EPS beat(2)-18.13%
Max EPS beat(2)5.2%
EPS beat(4)2
Avg EPS beat(4)-3.32%
Min EPS beat(4)-57.87%
Max EPS beat(4)57.52%
EPS beat(8)3
Avg EPS beat(8)-7.58%
EPS beat(12)5
Avg EPS beat(12)0.4%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.92%
PT rev (3m)6.25%
EPS NQ rev (1m)-5.21%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)-10.93%
EPS NY rev (3m)-10.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.1 | ||
| P/S | 2.8 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.38 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 44.01 |
EPS(TTM)1.84
EY8.51%
EPS(NY)2.14
Fwd EY9.9%
FCF(TTM)-3.96
FCFYN/A
OCF(TTM)-3.81
OCFYN/A
SpS7.71
BVpS15.66
TBVpS15.66
PEG (NY)N/A
PEG (5Y)8.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 11.5% | ||
| ROCE | 2.27% | ||
| ROIC | 0.88% | ||
| ROICexc | 0.9% | ||
| ROICexgc | 0.91% | ||
| OM | 22.99% | ||
| PM (TTM) | 23.34% | ||
| GM | 44.46% | ||
| FCFM | N/A |
ROA(3y)1.48%
ROA(5y)1.54%
ROE(3y)12.94%
ROE(5y)13.21%
ROIC(3y)1.07%
ROIC(5y)1.15%
ROICexc(3y)1.08%
ROICexc(5y)1.18%
ROICexgc(3y)1.08%
ROICexgc(5y)1.18%
ROCE(3y)2.73%
ROCE(5y)3.09%
ROICexcg growth 3Y-6.16%
ROICexcg growth 5Y-12.83%
ROICexc growth 3Y-6.18%
ROICexc growth 5Y-12.84%
OM growth 3Y-14.95%
OM growth 5Y-8.46%
PM growth 3Y-14.89%
PM growth 5Y-8.36%
GM growth 3Y-11.97%
GM growth 5Y-6.34%
F-Score2
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.21 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 70.7 | ||
| Cap/Depr | 350.31% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 0.46 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.29 |
F-Score2
WACC4.59%
ROIC/WACC0.19
Cap/Depr(3y)205.57%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.68%
Cap/Sales(5y)0.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.58%
EPS 3Y-3.4%
EPS 5Y1.42%
EPS Q2Q%-1.92%
EPS Next Y-8.51%
EPS Next 2Y1.71%
EPS Next 3Y5.4%
EPS Next 5YN/A
Revenue 1Y (TTM)8.76%
Revenue growth 3Y25.04%
Revenue growth 5Y19.97%
Sales Q2Q%7.3%
Revenue Next Year6.14%
Revenue Next 2Y10.42%
Revenue Next 3Y13.9%
Revenue Next 5YN/A
EBIT growth 1Y-14.94%
EBIT growth 3Y6.35%
EBIT growth 5Y9.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5223.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5744.37%
OCF growth 3YN/A
OCF growth 5YN/A