Melcor Developments Ltd. (MRD) 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

Melcor Developments Ltd.

Halmont Properties Corp.

Urbanfund Corp.

Tricon Residential, Inc.

FirstService Corp.

Mainstreet Equity Corp.

Morguard Corp.

DREAM Unlimited Corp.

Colliers International Group, Inc.

Wall Financial Corp.

Park Lawn Corp.

Why is Melcor Developments Ltd. ?

With ROE of 7.61%, it has a very attractive valuation with a 0.43 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 34.03%, its profits have risen by 33.7% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Melcor Developments Ltd. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Melcor Developments Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Melcor Developments Ltd.

-100.0%

5.78

16.47%

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)

11.39%

EBIT Growth (5y)

15.57%

EBIT to Interest (avg)

3.77

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

46.65%

Dividend Payout Ratio

24.98%

Pledged Shares

Institutional Holding

ROCE (avg)

9.64%

ROE (avg)

5.35%

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

0.43

EV to EBIT

3.19

EV to EBITDA

3.16

EV to Capital Employed

0.41

EV to Sales

1.23

PEG Ratio

0.16

Dividend Yield

ROCE (Latest)

12.77%

ROE (Latest)

7.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

NET PROFIT(Q)

At CAD 22.15 MM has Grown at 200.46%

DEBT-EQUITY RATIO (HY)

Lowest at 34.97 %

INVENTORY TURNOVER RATIO(HY)

Highest at 0.31 times

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 46.69 MM

INTEREST(Q)

At CAD 6.5 MM has Grown at 13.23%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 19.48%

RAW MATERIAL COST(Y)

Grown by 10.77% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.34 times

NET SALES(Q)

Lowest at CAD 45.37 MM

Here's what is working for Melcor Developments Ltd.

Net Profit

At CAD 22.15 MM has Grown at 200.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Debt-Equity Ratio

Lowest at 34.97 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 0.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Melcor Developments Ltd.

Interest

At CAD 6.5 MM has Grown at 13.23%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 46.69 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 45.37 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Debtors Turnover Ratio

Lowest at 2.34 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 19.48%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 10.77% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales