MCAN MORTGAGE CORP (MKP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MKP - CA5791761086 - Common Stock
22.59 CAD
+0.33 (+1.48%)
Taking everything into account, MKP scores 3 out of 10 in our fundamental rating. MKP was compared to 28 industry peers in the Financial Services industry. MKP may be in some trouble as it scores bad on both profitability and health. MKP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MKP was profitable.
In the past year MKP had a positive cash flow from operations.
MKP had positive earnings in each of the past 5 years.
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
MKP's Return On Assets of 1.10% is in line compared to the rest of the industry. MKP outperforms 46.43% of its industry peers.
MKP's Return On Equity of 10.21% is amongst the best of the industry. MKP outperforms 89.29% of its industry peers.
With a Return On Invested Capital value of 0.78%, MKP is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
MKP had an Average Return On Invested Capital over the past 3 years of 1.07%. This is below the industry average of 5.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 10.21% | ||
| ROIC | 0.78% |
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
MKP has a Profit Margin (21.07%) which is comparable to the rest of the industry.
MKP's Profit Margin has declined in the last couple of years.
The Operating Margin of MKP (20.78%) is worse than 75.00% of its industry peers.
In the last couple of years the Operating Margin of MKP has declined.
The Gross Margin of MKP (43.37%) is better than 67.86% of its industry peers.
MKP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.78% | ||
| PM (TTM) | 21.07% | ||
| GM | 43.37% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MKP 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.
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 -0.25, we must say that MKP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.25, MKP is not doing good in the industry: 96.43% of the companies in the same industry are doing better.
MKP has a debt to FCF ratio of 77.63. This is a negative value and a sign of low solvency as MKP would need 77.63 years to pay back of all of its debts.
MKP has a Debt to FCF ratio (77.63) which is comparable to the rest of the industry.
A Debt/Equity ratio of 8.25 is on the high side and indicates that MKP has dependencies on debt financing.
MKP has a worse Debt to Equity ratio (8.25) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.25 | ||
| Debt/FCF | 77.63 | ||
| Altman-Z | -0.25 |
ROIC/WACC0.2
WACC3.98%
2.3 Liquidity
MKP has a Current Ratio of 0.06. This is a bad value and indicates that MKP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.06, MKP is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 0.06 indicates that MKP may have some problems paying its short term obligations.
MKP has a Quick ratio of 0.06. This is in the lower half of the industry: MKP underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
The earnings per share for MKP have decreased strongly by -31.69% in the last year.
Measured over the past 5 years, MKP shows a small growth in Earnings Per Share. The EPS has been growing by 1.42% on average per year.
MKP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.07%.
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)-31.69%
EPS 3Y-3.4%
EPS 5Y1.42%
EPS Q2Q%-25.71%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y25.04%
Revenue growth 5Y19.97%
Sales Q2Q%3.24%
3.2 Future
The Earnings Per Share is expected to grow by 4.22% on average over the next years.
MKP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.90% yearly.
EPS Next Y-5.83%
EPS Next 2Y2.66%
EPS Next 3Y4.22%
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
A Price/Earnings ratio of 13.61 indicates a correct valuation of MKP.
MKP's Price/Earnings ratio is a bit cheaper when compared to the industry. MKP is cheaper than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of MKP to the average of the S&P500 Index (26.46), we can say MKP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.35, the valuation of MKP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MKP is valued cheaper than 82.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. MKP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKP indicates a rather cheap valuation: MKP is cheaper than 82.14% of the companies listed in the same industry.
MKP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MKP is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 53.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)9.58
EPS Next 2Y2.66%
EPS Next 3Y4.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.37%, MKP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.82, 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 | 7.37% |
5.2 History
The dividend of MKP decreases each year by -2.27%.
MKP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MKP decreased in the last 3 years.
Dividend Growth(5Y)-2.27%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
83.27% of the earnings are spent on dividend by MKP. This is not a sustainable payout ratio.
DP83.27%
EPS Next 2Y2.66%
EPS Next 3Y4.22%
TSX:MKP (12/5/2025, 7:00:00 PM)
22.59
+0.33 (+1.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners0.15%
Inst Owner ChangeN/A
Ins Owners1.24%
Ins Owner ChangeN/A
Market Cap908.57M
Revenue(TTM)308.54M
Net Income(TTM)65.01M
Analysts76.67
Price Target22.95 (1.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
Yearly Dividend1.14
Dividend Growth(5Y)-2.27%
DP83.27%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.18%
Min EPS beat(2)5.2%
Max EPS beat(2)13.15%
EPS beat(4)2
Avg EPS beat(4)-14.41%
Min EPS beat(4)-57.87%
Max EPS beat(4)13.15%
EPS beat(8)4
Avg EPS beat(8)-2.81%
EPS beat(12)6
Avg EPS beat(12)2.47%
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)5.88%
PT rev (3m)5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.93%
EPS NY rev (3m)2.93%
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 | 13.61 | ||
| Fwd PE | 10.35 | ||
| P/S | 2.94 | ||
| P/FCF | 13.43 | ||
| P/OCF | 12.65 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 53.53 |
EPS(TTM)1.66
EY7.35%
EPS(NY)2.18
Fwd EY9.66%
FCF(TTM)1.68
FCFY7.45%
OCF(TTM)1.79
OCFY7.91%
SpS7.67
BVpS15.82
TBVpS15.82
PEG (NY)N/A
PEG (5Y)9.58
Graham Number24.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 10.21% | ||
| ROCE | 1.87% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 0.81% | ||
| OM | 20.78% | ||
| PM (TTM) | 21.07% | ||
| GM | 43.37% | ||
| FCFM | 21.93% |
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%
ROICexgc growth 3Y-6.16%
ROICexgc 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-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.25 | ||
| Debt/FCF | 77.63 | ||
| Debt/EBITDA | 79.3 | ||
| Cap/Depr | 198.1% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | 0.41 | ||
| Cash Conversion | 108.46% | ||
| Profit Quality | 104.09% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | -0.25 |
F-Score4
WACC3.98%
ROIC/WACC0.2
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)-31.69%
EPS 3Y-3.4%
EPS 5Y1.42%
EPS Q2Q%-25.71%
EPS Next Y-5.83%
EPS Next 2Y2.66%
EPS Next 3Y4.22%
EPS Next 5YN/A
Revenue 1Y (TTM)2.07%
Revenue growth 3Y25.04%
Revenue growth 5Y19.97%
Sales Q2Q%3.24%
Revenue Next Year6.14%
Revenue Next 2Y10.42%
Revenue Next 3Y13.9%
Revenue Next 5YN/A
EBIT growth 1Y-30.06%
EBIT growth 3Y6.35%
EBIT growth 5Y9.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y97.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y107.23%
OCF growth 3YN/A
OCF growth 5YN/A
MCAN MORTGAGE CORP / MKP.CA FAQ
What is the ChartMill fundamental rating of MCAN MORTGAGE CORP (MKP.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to MKP.CA.
What is the valuation status of MCAN MORTGAGE CORP (MKP.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to MCAN MORTGAGE CORP (MKP.CA). This can be considered as Fairly Valued.
How profitable is MCAN MORTGAGE CORP (MKP.CA) stock?
MCAN MORTGAGE CORP (MKP.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for MKP stock?
The Price/Earnings (PE) ratio for MCAN MORTGAGE CORP (MKP.CA) is 13.61 and the Price/Book (PB) ratio is 1.43.
What is the earnings growth outlook for MCAN MORTGAGE CORP?
The Earnings per Share (EPS) of MCAN MORTGAGE CORP (MKP.CA) is expected to decline by -5.83% in the next year.