MCAN MORTGAGE CORP (MKP.CA) Stock Fundamental Analysis
TSX:MKP - Toronto Stock Exchange - CA5791761086 - Common Stock - Currency: CAD
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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MKP had positive earnings in the past year.
MKP had a negative 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
With a Return On Assets value of 1.30%, MKP perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
With an excellent Return On Equity value of 11.68%, MKP belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
MKP's Return On Invested Capital of 0.93% is on the low side compared to the rest of the industry. MKP is outperformed by 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKP is below the industry average of 5.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 11.68% | ||
| ROIC | 0.93% |
ROA(3y)1.48%
ROA(5y)1.54%
ROE(3y)12.94%
ROE(5y)13.21%
ROIC(3y)1.07%
ROIC(5y)1.15%
1.3 Margins
MKP has a Profit Margin of 23.63%. This is comparable to the rest of the industry: MKP outperforms 46.43% of its industry peers.
In the last couple of years the Profit Margin of MKP has declined.
With a Operating Margin value of 23.33%, MKP is not doing good in the industry: 75.00% 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 (44.43%) is better than 71.43% of its industry peers.
MKP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.33% | ||
| PM (TTM) | 23.63% | ||
| GM | 44.43% |
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
MKP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MKP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MKP has been increased compared to 5 years ago.
MKP has about the same debt/assets ratio as last year.
2.2 Solvency
MKP has an Altman-Z score of -0.29. This is a bad value and indicates that MKP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MKP (-0.29) is worse than 96.43% of its industry peers.
MKP has a Debt/Equity ratio of 7.94. This is a high value indicating a heavy dependency on external financing.
MKP has a Debt to Equity ratio of 7.94. This is amonst the worse of the industry: MKP underperforms 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.29 |
ROIC/WACC0.21
WACC4.37%
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's Current ratio of 0.05 is on the low side compared to the rest of the industry. MKP is outperformed by 64.29% 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 Quick ratio of 0.05. This is in the lower half of the industry: MKP underperforms 64.29% 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 -15.91%.
MKP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.42% yearly.
The Revenue has grown by 15.33% in the past year. This is quite good.
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)-15.91%
EPS 3Y-3.4%
EPS 5Y1.42%
EPS Q2Q%-33.85%
Revenue 1Y (TTM)15.33%
Revenue growth 3Y25.04%
Revenue growth 5Y19.97%
Sales Q2Q%2.82%
3.2 Future
The Earnings Per Share is expected to grow by 3.96% 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 Y2.71%
EPS Next 2Y3.96%
EPS Next 3YN/A
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
MKP is valuated reasonably with a Price/Earnings ratio of 10.55.
Based on the Price/Earnings ratio, MKP is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
MKP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
MKP is valuated reasonably with a Price/Forward Earnings ratio of 8.73.
MKP's Price/Forward Earnings ratio is rather cheap when compared to the industry. MKP is cheaper than 85.71% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.55 | ||
| Fwd PE | 8.73 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 42.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MKP does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.9
PEG (5Y)7.43
EPS Next 2Y3.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.39%, MKP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.26, MKP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MKP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
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
MKP pays out 69.86% of its income as dividend. This is not a sustainable payout ratio.
DP69.86%
EPS Next 2Y3.96%
EPS Next 3YN/A
TSX:MKP (7/11/2025, 7:00:00 PM)
19.52
-0.02 (-0.1%)
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 Cap766.55M
Analysts76.67
Price Target20.27 (3.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
Yearly Dividend1.14
Dividend Growth(5Y)-2.27%
DP69.86%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38%
Min EPS beat(2)-57.87%
Max EPS beat(2)-18.13%
EPS beat(4)2
Avg EPS beat(4)-3.88%
Min EPS beat(4)-57.87%
Max EPS beat(4)57.52%
EPS beat(8)2
Avg EPS beat(8)-11.69%
EPS beat(12)4
Avg EPS beat(12)-3.9%
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)-0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 10.55 | ||
| Fwd PE | 8.73 | ||
| P/S | 2.55 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 42.22 |
EPS(TTM)1.85
EY9.48%
EPS(NY)2.24
Fwd EY11.46%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)-0.78
OCFYN/A
SpS7.65
BVpS15.47
TBVpS15.47
PEG (NY)3.9
PEG (5Y)7.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 11.68% | ||
| ROCE | 2.34% | ||
| ROIC | 0.93% | ||
| ROICexc | 0.95% | ||
| ROICexgc | 0.95% | ||
| OM | 23.33% | ||
| PM (TTM) | 23.63% | ||
| GM | 44.43% | ||
| 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-Score3
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 67.37 | ||
| Cap/Depr | 515.12% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 0.44 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | -0.29 |
F-Score3
WACC4.37%
ROIC/WACC0.21
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)-15.91%
EPS 3Y-3.4%
EPS 5Y1.42%
EPS Q2Q%-33.85%
EPS Next Y2.71%
EPS Next 2Y3.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.33%
Revenue growth 3Y25.04%
Revenue growth 5Y19.97%
Sales Q2Q%2.82%
Revenue Next Year6.14%
Revenue Next 2Y10.42%
Revenue Next 3Y13.9%
Revenue Next 5YN/A
EBIT growth 1Y-9.96%
EBIT growth 3Y6.35%
EBIT growth 5Y9.83%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-272.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-207.72%
OCF growth 3YN/A
OCF growth 5YN/A