MCAN MORTGAGE CORP (MKP.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MKP - CA5791761086 - Common Stock
22.49 CAD
+0.04 (+0.18%)
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.
- MKP had a positive operating cash flow in the past year.
- In the past 5 years MKP has always 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 (1.10%) which is comparable to the rest of the industry.
- MKP's Return On Equity of 10.21% is amongst the best of the industry. MKP outperforms 82.14% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.78%, MKP is doing worse than 78.57% of the companies in the same industry.
- MKP had an Average Return On Invested Capital over the past 3 years of 1.07%. This is significantly below the industry average of 7.80%.
| 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
- Looking at the Profit Margin, with a value of 21.07%, MKP is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of MKP has declined.
- With a Operating Margin value of 20.78%, MKP is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- MKP's Operating Margin has declined in the last couple of years.
- The Gross Margin of MKP (43.37%) is better than 67.86% of its industry peers.
- In the last couple of years the Gross Margin of MKP has declined.
| 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.
- 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.
- Compared to 1 year ago, MKP has about the same debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.25, 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: 92.86% 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.
- The Debt to FCF ratio of MKP (77.63) is worse than 60.71% of its industry peers.
- MKP has a Debt/Equity ratio of 8.25. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 8.25, MKP is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.25 | ||
| Debt/FCF | 77.63 | ||
| Altman-Z | -0.25 |
ROIC/WACC0.17
WACC4.67%
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.
- MKP's Current ratio of 0.06 is on the low side compared to the rest of the industry. MKP is outperformed by 75.00% of its industry peers.
- MKP has a Quick 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 Quick ratio, with a value of 0.06, MKP is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
- MKP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.69%.
- The Earnings Per Share has been growing slightly by 1.42% on average over the past years.
- Looking at the last year, MKP shows a small growth in Revenue. The Revenue has grown by 2.07% in the last year.
- Measured over the past years, MKP shows a quite strong growth in Revenue. The Revenue has been growing by 19.97% on average per year.
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
- Based on estimates for the next years, MKP will show a small growth in Earnings Per Share. The EPS will grow by 4.22% on average per year.
- The Revenue is expected to grow by 13.90% on average over the next years. This is quite good.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 13.55 indicates a correct valuation of MKP.
- Based on the Price/Earnings ratio, MKP is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. MKP is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.31 indicates a reasonable valuation of MKP.
- Based on the Price/Forward Earnings ratio, MKP is valued a bit cheaper than 75.00% of the companies in the same industry.
- MKP is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are more expensive than MKP, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MKP is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| EV/EBITDA | 53.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)9.54
EPS Next 2Y2.66%
EPS Next 3Y4.22%
5. Dividend
5.1 Amount
- MKP has a Yearly Dividend Yield of 7.31%, which is a nice return.
- MKP's Dividend Yield is comparable with the industry average which is at 5.64.
- MKP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
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
- 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%
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.
Can you provide the valuation status for MCAN MORTGAGE CORP?
ChartMill assigns a valuation rating of 5 / 10 to MCAN MORTGAGE CORP (MKP.CA). This can be considered as Fairly Valued.
What is the profitability of MKP 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 13.55 and the Price/Book (PB) ratio is 1.42.
What is the expected EPS growth for MCAN MORTGAGE CORP (MKP.CA) stock?
The Earnings per Share (EPS) of MCAN MORTGAGE CORP (MKP.CA) is expected to decline by -5.83% in the next year.