MELCOR DEVELOPMENTS LTD (MRD.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MRD - CA5854671032 - Common Stock
16.28 CAD
-0.02 (-0.12%)
We assign a fundamental rating of 6 out of 10 to MRD. MRD was compared to 32 industry peers in the Real Estate Management & Development industry. MRD has an excellent financial health rating, but there are some minor concerns on its profitability. MRD is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, MRD could be worth investigating further for value investing!.
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.
- In the past 5 years MRD has always been profitable.
- In the past 5 years MRD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.85%, MRD is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
- MRD has a Return On Equity (4.72%) which is in line with its industry peers.
- The Return On Invested Capital of MRD (5.50%) is better than 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MRD is significantly below the industry average of 10.66%.
- The last Return On Invested Capital (5.50%) for MRD is above the 3 year average (3.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 4.72% | ||
| ROIC | 5.5% |
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
- MRD has a better Profit Margin (14.91%) than 62.50% of its industry peers.
- MRD's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 38.68%, MRD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of MRD has grown nicely.
- Looking at the Gross Margin, with a value of 47.83%, MRD is in line with its industry, outperforming 56.25% of the companies in the same industry.
- 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 | 38.68% | ||
| PM (TTM) | 14.91% | ||
| GM | 47.83% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MRD is destroying value.
- Compared to 1 year ago, MRD has less shares outstanding
- MRD has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for MRD has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.66, we must say that MRD is in the distress zone and has some risk of bankruptcy.
- MRD has a Altman-Z score of 1.66. This is in the better half of the industry: MRD outperforms 62.50% of its industry peers.
- The Debt to FCF ratio of MRD is 5.63, which is a neutral value as it means it would take MRD, 5.63 years of fcf income to pay off all of its debts.
- MRD has a Debt to FCF ratio of 5.63. This is amongst the best in the industry. MRD outperforms 87.50% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that MRD is not too dependend on debt financing.
- MRD's Debt to Equity ratio of 0.48 is fine compared to the rest of the industry. MRD outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.81
WACC6.8%
2.3 Liquidity
- A Current Ratio of 3.44 indicates that MRD has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.44, MRD belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
- A Quick Ratio of 3.44 indicates that MRD has no problem at all paying its short term obligations.
- MRD's Quick ratio of 3.44 is amongst the best of the industry. MRD outperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.44 | ||
| Quick Ratio | 3.44 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 414.41% over the past year.
- The Earnings Per Share has been decreasing by -0.67% on average over the past years.
- MRD shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.55%.
- Measured over the past years, MRD shows a quite strong growth in Revenue. The Revenue has been growing by 10.94% on average per year.
EPS 1Y (TTM)414.41%
EPS 3Y-13.69%
EPS 5Y-0.67%
EPS Q2Q%140.67%
Revenue 1Y (TTM)29.55%
Revenue growth 3Y3.46%
Revenue growth 5Y10.94%
Sales Q2Q%21.9%
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
- With a Price/Earnings ratio of 8.57, the valuation of MRD can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of MRD indicates a somewhat cheap valuation: MRD is cheaper than 78.13% of the companies listed in the same industry.
- MRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of MRD.
- Based on the Price/Forward Earnings ratio, MRD is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
- MRD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
- MRD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRD is cheaper than 93.75% of the companies in the same industry.
- MRD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MRD is cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 6.54 |
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 3.19%. Purely for dividend investing, there may be better candidates out there.
- MRD's Dividend Yield is a higher than the industry average which is at 2.31.
- MRD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
- 23.67% of the earnings are spent on dividend by MRD. This is a low number and sustainable payout ratio.
- MRD's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP23.67%
EPS Next 2YN/A
EPS Next 3YN/A
MELCOR DEVELOPMENTS LTD / MRD.CA FAQ
What is the ChartMill fundamental rating of MELCOR DEVELOPMENTS LTD (MRD.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MRD.CA.
What is the valuation status for MRD stock?
ChartMill assigns a valuation rating of 7 / 10 to MELCOR DEVELOPMENTS LTD (MRD.CA). This can be considered as Undervalued.
What is the profitability of MRD stock?
MELCOR DEVELOPMENTS LTD (MRD.CA) has a profitability rating of 6 / 10.
What is the valuation of MELCOR DEVELOPMENTS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MELCOR DEVELOPMENTS LTD (MRD.CA) is 8.57 and the Price/Book (PB) ratio is 0.39.
What is the earnings growth outlook for MELCOR DEVELOPMENTS LTD?
The Earnings per Share (EPS) of MELCOR DEVELOPMENTS LTD (MRD.CA) is expected to decline by -5.24% in the next year.