MELCOR DEVELOPMENTS LTD (MRD.CA) Stock Fundamental Analysis
TSX:MRD - Toronto Stock Exchange - CA5854671032 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MRD. MRD was compared to 30 industry peers in the Real Estate Management & Development industry. MRD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. MRD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MRD had positive earnings in the past year.
MRD had a positive operating cash flow in the past year.
MRD had positive earnings in each of the past 5 years.
MRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.26%, MRD is in line with its industry, outperforming 56.67% of the companies in the same industry.
MRD has a Return On Equity (2.07%) which is comparable to the rest of the industry.
The Return On Invested Capital of MRD (4.50%) is better than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MRD is significantly below the industry average of 11.10%.
The last Return On Invested Capital (4.50%) for MRD is above the 3 year average (3.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 2.07% | ||
| ROIC | 4.5% |
ROA(3y)2.91%
ROA(5y)2.39%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)3.82%
ROIC(5y)3.63%
1.3 Margins
With a Profit Margin value of 7.35%, MRD perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MRD has declined.
MRD's Operating Margin of 35.28% is fine compared to the rest of the industry. MRD outperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of MRD has grown nicely.
MRD's Gross Margin of 45.96% is in line compared to the rest of the industry. MRD outperforms 56.67% of its industry peers.
In the last couple of years the Gross Margin of MRD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.28% | ||
| PM (TTM) | 7.35% | ||
| GM | 45.96% |
OM growth 3Y0.63%
OM growth 5Y5.89%
PM growth 3Y-18.68%
PM growth 5Y-11.95%
GM growth 3Y0.48%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
MRD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MRD has been reduced compared to 1 year ago.
Compared to 5 years ago, MRD has less shares outstanding
Compared to 1 year ago, MRD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that MRD is in the distress zone and has some risk of bankruptcy.
MRD has a Altman-Z score of 1.56. This is comparable to the rest of the industry: MRD outperforms 60.00% of its industry peers.
MRD has a debt to FCF ratio of 4.99. This is a neutral value as MRD would need 4.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.99, MRD belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
MRD has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
MRD's Debt to Equity ratio of 0.44 is fine compared to the rest of the industry. MRD outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.99 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.69
WACC6.51%
2.3 Liquidity
MRD has a Current Ratio of 3.81. This indicates that MRD is financially healthy and has no problem in meeting its short term obligations.
MRD has a better Current ratio (3.81) than 83.33% of its industry peers.
A Quick Ratio of 3.81 indicates that MRD has no problem at all paying its short term obligations.
MRD's Quick ratio of 3.81 is amongst the best of the industry. MRD outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.81 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
MRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.36%.
MRD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.67% yearly.
Looking at the last year, MRD shows a small growth in Revenue. The Revenue has grown by 6.57% in the last year.
MRD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.94% yearly.
EPS 1Y (TTM)-66.36%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%-61.9%
Revenue 1Y (TTM)6.57%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%2%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-5.24%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.26%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.80, the valuation of MRD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MRD indicates a somewhat cheap valuation: MRD is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. MRD is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 7.08, the valuation of MRD can be described as very cheap.
96.67% of the companies in the same industry are more expensive than MRD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MRD to the average of the S&P500 Index (22.13), we can say MRD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 7.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRD indicates a rather cheap valuation: MRD is cheaper than 100.00% of the companies listed in the same industry.
MRD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MRD is cheaper than 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
The decent profitability rating of MRD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRD has a Yearly Dividend Yield of 3.08%.
MRD's Dividend Yield is a higher than the industry average which is at 3.28.
MRD's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of MRD decreases each year by -2.57%.
MRD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-2.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MRD pays out 51.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
MRD's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP51.91%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:MRD (6/13/2025, 7:00:00 PM)
14.24
-0.05 (-0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners8.77%
Inst Owner ChangeN/A
Ins Owners14.05%
Ins Owner ChangeN/A
Market Cap430.76M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend0.44
Dividend Growth(5Y)-2.57%
DP51.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
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 | 17.8 | ||
| Fwd PE | 7.08 | ||
| P/S | 1.23 | ||
| P/FCF | 3.94 | ||
| P/OCF | 3.37 | ||
| P/B | 0.35 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)0.8
EY5.62%
EPS(NY)2.01
Fwd EY14.11%
FCF(TTM)3.62
FCFY25.41%
OCF(TTM)4.23
OCFY29.71%
SpS11.59
BVpS41.11
TBVpS41.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 2.07% | ||
| ROCE | 6.24% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 4.79% | ||
| OM | 35.28% | ||
| PM (TTM) | 7.35% | ||
| GM | 45.96% | ||
| FCFM | 31.23% |
ROA(3y)2.91%
ROA(5y)2.39%
ROE(3y)5.16%
ROE(5y)4.32%
ROIC(3y)3.82%
ROIC(5y)3.63%
ROICexc(3y)3.93%
ROICexc(5y)3.72%
ROICexgc(3y)4.06%
ROICexgc(5y)3.84%
ROCE(3y)5.31%
ROCE(5y)5.03%
ROICexcg growth 3Y4.23%
ROICexcg growth 5Y17.72%
ROICexc growth 3Y4.16%
ROICexc growth 5Y17.7%
OM growth 3Y0.63%
OM growth 5Y5.89%
PM growth 3Y-18.68%
PM growth 5Y-11.95%
GM growth 3Y0.48%
GM growth 5Y-0.66%
F-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.99 | ||
| Debt/EBITDA | 4.37 | ||
| Cap/Depr | 1515.14% | ||
| Cap/Sales | 5.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.48% | ||
| Profit Quality | 425.01% | ||
| Current Ratio | 3.81 | ||
| Quick Ratio | 3.81 | ||
| Altman-Z | 1.56 |
F-Score7
WACC6.51%
ROIC/WACC0.69
Cap/Depr(3y)1460.36%
Cap/Depr(5y)1587.21%
Cap/Sales(3y)6.3%
Cap/Sales(5y)7.47%
Profit Quality(3y)95.67%
Profit Quality(5y)124.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-66.36%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%-61.9%
EPS Next Y-5.24%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.57%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%2%
Revenue Next Year-3.26%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.75%
EBIT growth 3Y4.12%
EBIT growth 5Y17.48%
EBIT Next Year-3.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1768.67%
FCF growth 3Y18.66%
FCF growth 5Y52.08%
OCF growth 1Y941.33%
OCF growth 3Y10.64%
OCF growth 5Y25.86%