MCAN Mortgage Corp. (MKP) 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

First National Financial Corp. (Ontario)

Firm Capital Mortgage Investment Corp.

MCAN Mortgage Corp.

Atrium Mortgage Investment Corp.

ECN Capital Corp.

Timbercreek Financial Corp.

Element Fleet Management Corp.

goeasy Ltd.

Altus Group Ltd.

Chesswood Group Ltd.

Real Matters, Inc.

Why is MCAN Mortgage Corp. ?

Strong Long Term Fundamental Strength with a 27.23% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 27.23%

With ROE of 11.50%, it has a very attractive valuation with a 1.35 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 20.82%, its profits have fallen by -12.2%

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MCAN 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 MCAN Mortgage Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

MCAN Mortgage Corp.

-100.0%

4.53

17.74%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.23%

EBIT Growth (5y)

34.00%

EBIT to Interest (avg)

2.38

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

75.67%

Pledged Shares

Institutional Holding

ROCE (avg)

26.88%

ROE (avg)

14.25%

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

1.30

EV to EBIT

4.97

EV to EBITDA

4.89

EV to Capital Employed

1.51

EV to Sales

1.94

PEG Ratio

Dividend Yield

1.74%

ROCE (Latest)

30.39%

ROE (Latest)

11.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.08% (YoY

CASH AND EQV(HY)

Highest at CAD 493.25 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 0

NET SALES(Q)

Highest at CAD 72.22 MM

-11What is not working for the Company

NET PROFIT(9M)

At CAD 44.5 MM has Grown at -29.16%

INTEREST(HY)

At CAD 32.31 MM has Grown at 23.78%

ROCE(HY)

Lowest at 11.84%

DEBT-EQUITY RATIO (HY)

Highest at 395.24 %

Here's what is working for MCAN Mortgage Corp.

Net Sales

Highest at CAD 72.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Cash and Eqv

Highest at CAD 493.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CAD 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -10.08% (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 MCAN Mortgage Corp.

Interest

At CAD 32.31 MM has Grown at 23.78%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 395.24 % and Grown

In each half year 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

Net Profit

At CAD 44.5 MM has Grown at -29.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)