Builders Capital Mortgage Corp. (BCF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mogo, Inc.

Builders Capital Mortgage Corp.

Enterprise Group, Inc.

Dominion Lending Centres, Inc.

Zedcor, Inc.

Chesswood Group Ltd.

Solution Financial, Inc.

Red White & Bloom Brands, Inc.

Accord Financial Corp.

Terra Firma Capital Corp.

IOU Financial, Inc.

Why is Builders Capital Mortgage Corp. ?

Poor long term growth as Operating profit has grown by an annual rate of 18.74%

Flat results in Mar 25

INTEREST(HY) At CAD 0.9 MM has Grown at 253.88%
OPERATING CASH FLOW(Y) Lowest at CAD -3.66 MM
INTEREST COVERAGE RATIO(Q) Lowest at 316.77

With ROE of 11.90%, it has a very attractive valuation with a 0.71 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.26%, its profits have risen by 7% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

The stock has generated a return of 7.26% in the last 1 year, much lower than market (S&P/TSX 60) returns of 19.10%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Builders Capital Mortgage Corp. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Builders Capital Mortgage Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Builders Capital Mortgage Corp.

-100.0%

0.52

27.70%

S&P/TSX 60

19.1%

1.25

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.41%

EBIT Growth (5y)

18.74%

EBIT to Interest (avg)

3.65

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

76.62%

Pledged Shares

Institutional Holding

ROCE (avg)

13.67%

ROE (avg)

9.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.71

EV to EBIT

3.45

EV to EBITDA

3.45

EV to Capital Employed

0.71

EV to Sales

3.17

PEG Ratio

0.84

Dividend Yield

ROCE (Latest)

20.41%

ROE (Latest)

11.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 11.52%

RAW MATERIAL COST(Y)

Fallen by -0.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 202,811.86%

NET SALES(Q)

Highest at CAD 1.77 MM

PRE-TAX PROFIT(Q)

Highest at CAD 0.92 MM

NET PROFIT(Q)

Highest at CAD 0.92 MM

EPS(Q)

Highest at CAD 0.29

-14What is not working for the Company

INTEREST(HY)

At CAD 0.9 MM has Grown at 253.88%

OPERATING CASH FLOW(Y)

Lowest at CAD -3.66 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 316.77

DIVIDEND PAYOUT RATIO(Y)

Lowest at 68.26%

DEBT-EQUITY RATIO (HY)

Highest at 75.7 %

Here's what is working for Builders Capital Mortgage Corp.

Net Sales

Highest at CAD 1.77 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 1.77 MM has Grown at 36.47%

over average net sales of the previous four periods of CAD 1.3 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

Highest at CAD 0.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 0.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Highest at 202,811.86%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Builders Capital Mortgage Corp.

Interest

At CAD 0.9 MM has Grown at 253.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 316.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CAD -3.66 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 75.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 68.26%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)