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

Mainstreet Equity Corp.

Melcor Developments Ltd.

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Tricon Residential, Inc.

Morguard Corp.

Colliers International Group, Inc.

Park Lawn Corp.

DREAM Unlimited Corp.

Why is Melcor Developments Ltd. ?

OPERATING CASH FLOW(Y) Highest at CAD 147.9 MM
DEBT-EQUITY RATIO (HY) Lowest at 41.85 %
INVENTORY TURNOVER RATIO(HY) Highest at 0.28%

With ROE of 5.10%, it has a fair valuation with a 0.38 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 18.29%, its profits have fallen by -16.6%

Real-Time Research Report

Verdict Report

How much should you hold?

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.

53.44%

3.01

20.22%

S&P/TSX 60

23.72%

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)

12.60%

EBIT Growth (5y)

17.70%

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

0.44

EV to EBIT

2.98

EV to EBITDA

2.96

EV to Capital Employed

0.40

EV to Sales

1.16

PEG Ratio

0.64

Dividend Yield

ROCE (Latest)

13.43%

ROE (Latest)

6.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly 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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 113.6 MM

PRE-TAX PROFIT(Q)

At CAD 26.18 MM has Grown at 152.73%

DIVIDEND PAYOUT RATIO(Y)

Highest at 27.78%

RAW MATERIAL COST(Y)

Fallen by -3.27% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 0.28 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.09 times

NET PROFIT(Q)

At CAD 18.56 MM has Grown at 90.31%

-2What is not working for the Company

INTEREST(Q)

At CAD 7.56 MM has Grown at 32.96%

Here's what is working for Melcor Developments Ltd.

Operating Cash Flow

Highest at CAD 113.6 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Pre-Tax Profit

At CAD 26.18 MM has Grown at 152.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 18.56 MM has Grown at 90.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 0.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.09 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 27.78%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.27% (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 Melcor Developments Ltd.

Interest

At CAD 7.56 MM has Grown at 32.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)