Firm Capital Mortgage Investment Corp. (FC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

First National Financial Corp. (Ontario)

MCAN Mortgage Corp.

Atrium Mortgage Investment Corp.

Firm Capital Mortgage Investment Corp.

Timbercreek Financial Corp.

ECN Capital Corp.

Element Fleet Management Corp.

Altus Group Ltd.

Real Matters, Inc.

Chesswood Group Ltd.

goeasy Ltd.

Why is Firm Capital Mortgage Investment Corp. ?

Poor long term growth as Operating profit has grown by an annual rate of 7.85%

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CAD 45.27 MM
INTEREST COVERAGE RATIO(Q) Lowest at 466.89
NET PROFIT(Q) Lowest at CAD 9.62 MM

With ROE of 10.70%, it has a very attractive valuation with a 1.04 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.05%, its profits have fallen by -5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.05% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Firm Capital Mortgage Investment 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 Firm Capital Mortgage Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Firm Capital Mortgage Investment Corp.

-100.0%

1.26

9.35%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.04%

EBIT Growth (5y)

7.85%

EBIT to Interest (avg)

3.78

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

91.76%

Pledged Shares

Institutional Holding

ROCE (avg)

12.88%

ROE (avg)

9.45%

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

1.04

EV to EBIT

7.40

EV to EBITDA

7.40

EV to Capital Employed

1.04

EV to Sales

6.67

PEG Ratio

Dividend Yield

ROCE (Latest)

14.03%

ROE (Latest)

10.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bearish

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 26.01 %

RAW MATERIAL COST(Y)

Fallen by 0.74% (YoY

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 45.27 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 466.89

NET PROFIT(Q)

Lowest at CAD 9.62 MM

NET SALES(Q)

Lowest at CAD 13.72 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 9.62 MM

EPS(Q)

Lowest at CAD 0.23

Here's what is working for Firm Capital Mortgage Investment Corp.

Debt-Equity Ratio

Lowest at 26.01 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.74% (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 Firm Capital Mortgage Investment Corp.

Net Sales

At CAD 13.72 MM has Fallen at -17.75%

over average net sales of the previous four periods of CAD 16.68 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest Coverage Ratio

Lowest at 466.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

Lowest at CAD 9.62 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 45.27 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 13.72 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Pre-Tax Profit

Lowest at CAD 9.62 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

EPS

Lowest at CAD 0.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)