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

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.

Real Matters, Inc.

Altus Group Ltd.

Chesswood Group Ltd.

goeasy Ltd.

Why is MCAN Mortgage Corp. ?

Strong Long Term Fundamental Strength with a 23.13% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 23.13%

Negative results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 526.2 %
INTEREST COVERAGE RATIO(Q) Lowest at 155.34
DIVIDEND PAYOUT RATIO(Y) Lowest at 72.99%

With ROE of 12.39%, it has a very attractive valuation with a 1.53 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 9.81%, its profits have risen by 14.6% ; the PEG ratio of the company is 1.3

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

Underperformed the market in the last 1 year

The stock has generated a return of 9.81% in the last 1 year, much lower than market (S&P/TSX 60) returns of 28.13%

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.

9.81%

5.04

17.63%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.13%

EBIT Growth (5y)

24.07%

EBIT to Interest (avg)

2.16

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

86.68%

Pledged Shares

Institutional Holding

ROCE (avg)

27.89%

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

1.53

EV to EBIT

5.31

EV to EBITDA

5.23

EV to Capital Employed

1.86

EV to Sales

2.43

PEG Ratio

1.25

Dividend Yield

0.35%

ROCE (Latest)

35.01%

ROE (Latest)

12.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,262.49 MM

RAW MATERIAL COST(Y)

Fallen by -16.27% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 19.83

NET PROFIT(Q)

Highest at CAD 24.01 MM

EPS(Q)

Highest at CAD 0.59

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 526.2 %

INTEREST COVERAGE RATIO(Q)

Lowest at 155.34

DIVIDEND PAYOUT RATIO(Y)

Lowest at 72.99%

INTEREST(Q)

Highest at CAD 29.2 MM

Here's what is working for MCAN Mortgage Corp.

Operating Cash Flow

Highest at CAD 1,262.49 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Profit

Highest at CAD 24.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.59

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Dividend per share

Highest at CAD 19.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -16.27% (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 Coverage Ratio

Lowest at 155.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 526.2 % 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

Interest

Highest at CAD 29.2 MM

in the last five periods and Increased by 8.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Dividend Payout Ratio

Lowest at 72.99%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)