MCAN MORTGAGE CORP (MKP.CA) Stock Fundamental Analysis
Canada - TSX:MKP - CA5791761086 - Common Stock
20.43 CAD
-0.48 (-2.3%)
Overall MKP gets a fundamental rating of 3 out of 10. We evaluated MKP against 29 industry peers in the Financial Services industry. Both the profitability and financial health of MKP have multiple concerns. 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.
In multiple years MKP reported negative operating cash flow during the last 5 years.
1.2 Ratios
MKP has a Return On Assets (1.24%) which is in line with its industry peers.
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.
MKP has a worse Return On Invested Capital (0.88%) than 75.86% of its industry peers.
MKP had an Average Return On Invested Capital over the past 3 years of 1.07%. This is below the industry average of 5.38%.
| 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
MKP's Profit Margin of 23.34% is in line compared to the rest of the industry. MKP outperforms 44.83% of its industry peers.
In the last couple of years the Profit Margin of MKP has declined.
MKP has a Operating Margin of 22.99%. This is in the lower half of the industry: MKP underperforms 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.
MKP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MKP has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.30, we must say that MKP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.30, MKP is doing worse than 96.55% of the companies in the same industry.
A Debt/Equity ratio of 8.21 is on the high side and indicates that MKP has dependencies on debt financing.
With a Debt to Equity ratio value of 8.21, MKP is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.21 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.3 |
ROIC/WACC0.22
WACC3.96%
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 Current ratio of 0.05. This is in the lower half of the industry: MKP underperforms 68.97% of its industry peers.
MKP has a Quick 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's Quick ratio of 0.05 is on the low side compared to the rest of the industry. MKP is outperformed by 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
The earnings per share for MKP have decreased strongly by -18.58% in the last year.
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.
The Revenue has been growing by 19.97% on average over the past years. This is quite good.
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
Based on estimates for the next years, MKP will show a small growth in Earnings Per Share. The EPS will grow by 5.40% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
MKP is valuated reasonably with a Price/Earnings ratio of 11.10.
Compared to the rest of the industry, the Price/Earnings ratio of MKP indicates a rather cheap valuation: MKP is cheaper than 82.76% of the companies listed in the same industry.
MKP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
The Price/Forward Earnings ratio is 9.54, which indicates a very decent valuation of MKP.
86.21% of the companies in the same industry are more expensive than MKP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MKP to the average of the S&P500 Index (22.57), we can say MKP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 9.54 |
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 | 43.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.82
EPS Next 2Y1.71%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.84%, MKP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.85, MKP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
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.
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
74.01% of the earnings are spent on dividend by MKP. This is not a sustainable payout ratio.
DP74.01%
EPS Next 2Y1.71%
EPS Next 3Y5.4%
TSX:MKP (10/10/2025, 7:00:00 PM)
20.43
-0.48 (-2.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners0.14%
Inst Owner ChangeN/A
Ins Owners1.3%
Ins Owner ChangeN/A
Market Cap812.71M
Analysts76.67
Price Target21.68 (6.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
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)0%
PT rev (3m)6.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.21%
EPS NY rev (1m)0%
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 | 11.1 | ||
| Fwd PE | 9.54 | ||
| P/S | 2.66 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.31 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 43.39 |
EPS(TTM)1.84
EY9.01%
EPS(NY)2.14
Fwd EY10.48%
FCF(TTM)-3.95
FCFYN/A
OCF(TTM)-3.79
OCFYN/A
SpS7.69
BVpS15.61
TBVpS15.61
PEG (NY)N/A
PEG (5Y)7.82
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 | -0.3 |
F-Score2
WACC3.96%
ROIC/WACC0.22
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