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MCAN MORTGAGE CORP (MKP.CA) Stock Fundamental Analysis

TSX:MKP - Toronto Stock Exchange - CA5791761086 - Common Stock - Currency: CAD

18.55  +0.19 (+1.03%)

Fundamental Rating

4

Taking everything into account, MKP scores 4 out of 10 in our fundamental rating. MKP was compared to 33 industry peers in the Financial Services industry. MKP has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on MKP.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

MKP had positive earnings in the past year.
In the past year MKP had a positive cash flow from operations.
In the past 5 years MKP has always been profitable.
In multiple years MKP reported negative operating cash flow during the last 5 years.
MKP.CA Yearly Net Income VS EBIT VS OCF VS FCFMKP.CA 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 50M -50M -100M

1.2 Ratios

MKP has a worse Return On Assets (1.72%) than 60.61% of its industry peers.
MKP has a better Return On Equity (14.91%) than 84.85% of its industry peers.
MKP's Return On Invested Capital of 1.28% is on the low side compared to the rest of the industry. MKP is outperformed by 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MKP is below the industry average of 5.86%.
The last Return On Invested Capital (1.28%) for MKP is above the 3 year average (1.13%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.72%
ROE 14.91%
ROIC 1.28%
ROA(3y)1.56%
ROA(5y)1.69%
ROE(3y)13.58%
ROE(5y)13.55%
ROIC(3y)1.13%
ROIC(5y)1.35%
MKP.CA Yearly ROA, ROE, ROICMKP.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

1.3 Margins

MKP has a Profit Margin (29.68%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MKP has declined.
The Operating Margin of MKP (30.33%) is worse than 60.61% of its industry peers.
In the last couple of years the Operating Margin of MKP has remained more or less at the same level.
MKP has a better Gross Margin (47.88%) than 69.70% of its industry peers.
In the last couple of years the Gross Margin of MKP has declined.
Industry RankSector Rank
OM 30.33%
PM (TTM) 29.68%
GM 47.88%
OM growth 3Y-3.09%
OM growth 5Y-1.17%
PM growth 3Y-3.66%
PM growth 5Y-2.55%
GM growth 3Y-4.59%
GM growth 5Y-2.34%
MKP.CA Yearly Profit, Operating, Gross MarginsMKP.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

0

2. Health

2.1 Basic Checks

MKP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MKP has more shares outstanding
The number of shares outstanding for MKP has been increased compared to 5 years ago.
MKP has a worse debt/assets ratio than last year.
MKP.CA Yearly Shares OutstandingMKP.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
MKP.CA Yearly Total Debt VS Total AssetsMKP.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of -0.27, we must say that MKP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MKP (-0.27) is worse than 96.97% of its industry peers.
MKP has a debt to FCF ratio of 42.54. This is a negative value and a sign of low solvency as MKP would need 42.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 42.54, MKP is doing worse than 78.79% of the companies in the same industry.
A Debt/Equity ratio of 7.57 is on the high side and indicates that MKP has dependencies on debt financing.
With a Debt to Equity ratio value of 7.57, MKP is not doing good in the industry: 84.85% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 7.57
Debt/FCF 42.54
Altman-Z -0.27
ROIC/WACC0.3
WACC4.26%
MKP.CA Yearly LT Debt VS Equity VS FCFMKP.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

MKP has a Current Ratio of 0.04. 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's Current ratio of 0.04 is on the low side compared to the rest of the industry. MKP is outperformed by 78.79% of its industry peers.
A Quick Ratio of 0.04 indicates that MKP may have some problems paying its short term obligations.
The Quick ratio of MKP (0.04) is worse than 78.79% of its industry peers.
Industry RankSector Rank
Current Ratio 0.04
Quick Ratio 0.04
MKP.CA Yearly Current Assets VS Current LiabilitesMKP.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

4

3. Growth

3.1 Past

MKP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.82%.
MKP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
Looking at the last year, MKP shows a very strong growth in Revenue. The Revenue has grown by 32.44%.
Measured over the past years, MKP shows a quite strong growth in Revenue. The Revenue has been growing by 19.43% on average per year.
EPS 1Y (TTM)0.82%
EPS 3Y8.29%
EPS 5Y8.67%
EPS Q2Q%32.08%
Revenue 1Y (TTM)32.44%
Revenue growth 3Y26.42%
Revenue growth 5Y19.43%
Sales Q2Q%34.33%

3.2 Future

Based on estimates for the next years, MKP will show a decrease in Earnings Per Share. The EPS will decrease by -0.20% on average per year.
MKP is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -17.04% yearly.
EPS Next Y6.23%
EPS Next 2Y-3.54%
EPS Next 3Y-0.2%
EPS Next 5YN/A
Revenue Next Year-53.17%
Revenue Next 2Y-29.5%
Revenue Next 3Y-17.04%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MKP.CA Yearly Revenue VS EstimatesMKP.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
MKP.CA Yearly EPS VS EstimatesMKP.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.63, the valuation of MKP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MKP indicates a rather cheap valuation: MKP is cheaper than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.35, MKP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.98, 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 87.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.00, MKP is valued rather cheaply.
Industry RankSector Rank
PE 7.63
Fwd PE 8.98
MKP.CA Price Earnings VS Forward Price EarningsMKP.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300 400

4.2 Price Multiples

84.85% of the companies in the same industry are more expensive than MKP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKP indicates a rather cheap valuation: MKP is cheaper than 81.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.62
EV/EBITDA 31.45
MKP.CA Per share dataMKP.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

MKP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.22
PEG (5Y)0.88
EPS Next 2Y-3.54%
EPS Next 3Y-0.2%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.31%, MKP is a good candidate for dividend investing.
MKP's Dividend Yield is a higher than the industry average which is at 7.81.
Compared to an average S&P500 Dividend Yield of 2.28, MKP pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.31%

5.2 History

The dividend of MKP decreases each year by -7.23%.
MKP has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MKP decreased in the last 3 years.
Dividend Growth(5Y)-7.23%
Div Incr Years2
Div Non Decr Years2
MKP.CA Yearly Dividends per shareMKP.CA 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

MKP pays out 47.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of MKP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP47.13%
EPS Next 2Y-3.54%
EPS Next 3Y-0.2%
MKP.CA Yearly Income VS Free CF VS DividendMKP.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M -100M
MKP.CA Dividend Payout.MKP.CA Dividend Payout, showing the Payout Ratio.MKP.CA Dividend Payout.PayoutRetained Earnings

MCAN MORTGAGE CORP

TSX:MKP (2/5/2025, 7:00:00 PM)

18.55

+0.19 (+1.03%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-11 2024-11-11/amc
Earnings (Next)02-21 2025-02-21/amc
Inst Owners0.47%
Inst Owner ChangeN/A
Ins Owners1%
Ins Owner ChangeN/A
Market Cap714.73M
Analysts76.67
Price Target19.89 (7.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 8.31%
Yearly Dividend1.01
Dividend Growth(5Y)-7.23%
DP47.13%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.24%
Min EPS beat(2)2.97%
Max EPS beat(2)57.52%
EPS beat(4)2
Avg EPS beat(4)8.79%
Min EPS beat(4)-17.25%
Max EPS beat(4)57.52%
EPS beat(8)4
Avg EPS beat(8)10.91%
EPS beat(12)N/A
Avg EPS beat(12)N/A
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)0%
PT rev (3m)5.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)12.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 7.63
Fwd PE 8.98
P/S 2.36
P/FCF 6.62
P/OCF 6.29
P/B 1.19
P/tB 1.19
EV/EBITDA 31.45
EPS(TTM)2.43
EY13.1%
EPS(NY)2.07
Fwd EY11.13%
FCF(TTM)2.8
FCFY15.1%
OCF(TTM)2.95
OCFY15.91%
SpS7.84
BVpS15.62
TBVpS15.62
PEG (NY)1.22
PEG (5Y)0.88
Profitability
Industry RankSector Rank
ROA 1.72%
ROE 14.91%
ROCE 3.2%
ROIC 1.28%
ROICexc 1.3%
ROICexgc 1.3%
OM 30.33%
PM (TTM) 29.68%
GM 47.88%
FCFM 35.72%
ROA(3y)1.56%
ROA(5y)1.69%
ROE(3y)13.58%
ROE(5y)13.55%
ROIC(3y)1.13%
ROIC(5y)1.35%
ROICexc(3y)1.16%
ROICexc(5y)1.39%
ROICexgc(3y)1.16%
ROICexgc(5y)1.39%
ROCE(3y)2.96%
ROCE(5y)4.02%
ROICexcg growth 3Y-4.58%
ROICexcg growth 5Y-8.64%
ROICexc growth 3Y-4.57%
ROICexc growth 5Y-8.63%
OM growth 3Y-3.09%
OM growth 5Y-1.17%
PM growth 3Y-3.66%
PM growth 5Y-2.55%
GM growth 3Y-4.59%
GM growth 5Y-2.34%
F-Score5
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 7.57
Debt/FCF 42.54
Debt/EBITDA 49.18
Cap/Depr 632.34%
Cap/Sales 1.9%
Interest Coverage 0.58
Cash Conversion 122.79%
Profit Quality 120.34%
Current Ratio 0.04
Quick Ratio 0.04
Altman-Z -0.27
F-Score5
WACC4.26%
ROIC/WACC0.3
Cap/Depr(3y)58.69%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.82%
EPS 3Y8.29%
EPS 5Y8.67%
EPS Q2Q%32.08%
EPS Next Y6.23%
EPS Next 2Y-3.54%
EPS Next 3Y-0.2%
EPS Next 5YN/A
Revenue 1Y (TTM)32.44%
Revenue growth 3Y26.42%
Revenue growth 5Y19.43%
Sales Q2Q%34.33%
Revenue Next Year-53.17%
Revenue Next 2Y-29.5%
Revenue Next 3Y-17.04%
Revenue Next 5YN/A
EBIT growth 1Y15.11%
EBIT growth 3Y22.51%
EBIT growth 5Y18.03%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y161.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y165.08%
OCF growth 3YN/A
OCF growth 5YN/A