TSX:FC

Stock Analysis Report

Firm Capital Mortgage Investment

Executive Summary

Firm Capital Mortgage Investment Corporation, through its mortgage banker Firm Capital Corporation, provides residential and commercial real estate finance in Canada.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

How has Firm Capital Mortgage Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

FC

9.7%

CA Mortgage

4.5%

CA Market


1 Year Return

-27.1%

FC

-24.1%

CA Mortgage

-24.5%

CA Market

Return vs Industry: FC underperformed the Canadian Mortgage industry which returned -24.1% over the past year.

Return vs Market: FC underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

FCIndustryMarket
7 Day10.2%9.7%4.5%
30 Day-28.2%-39.2%-20.1%
90 Day-33.7%-45.3%-24.9%
1 Year-21.5%-27.1%-15.3%-24.1%-22.0%-24.5%
3 Year-12.7%-30.3%-11.7%-25.8%-14.2%-22.2%
5 Year16.0%-20.2%-11.9%-29.3%-1.9%-16.5%

Price Volatility Vs. Market

How volatile is Firm Capital Mortgage Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Firm Capital Mortgage Investment undervalued compared to its fair value and its price relative to the market?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FC (CA$9.76) is trading below our estimate of fair value (CA$15.08)

Significantly Below Fair Value: FC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FC is poor value based on its PE Ratio (9.7x) compared to the Mortgage industry average (6.7x).

PE vs Market: FC is good value based on its PE Ratio (9.7x) compared to the Canadian market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FC is overvalued based on its PB Ratio (0.9x) compared to the CA Mortgage industry average (0.7x).


Next Steps

Future Growth

How is Firm Capital Mortgage Investment forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FC's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if FC's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FC's revenue (13.7% per year) is forecast to grow faster than the Canadian market (3.8% per year).

High Growth Revenue: FC's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FC's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Firm Capital Mortgage Investment performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FC has high quality earnings.

Growing Profit Margin: FC's current net profit margins (87.1%) are higher than last year (84.7%).


Past Earnings Growth Analysis

Earnings Trend: FC's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: FC's earnings growth over the past year (8.7%) exceeds its 5-year average (7.9% per year).

Earnings vs Industry: FC earnings growth over the past year (8.7%) underperformed the Mortgage industry 12.7%.


Return on Equity

High ROE: FC's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Firm Capital Mortgage Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FC has a low level of unsold assets or inventory.

Debt Coverage by Assets: FC's debt is covered by short term assets (assets are 3x debt).


Financial Institutions Analysis

Asset Level: FC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FC has a sufficient allowance for bad loans.

Low Risk Liabilities: FC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FC has an appropriate level of bad loans.


Next Steps

Dividend

What is Firm Capital Mortgage Investment's current dividend yield, its reliability and sustainability?

10.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FC's dividend (10.31%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).

High Dividend: FC's dividend (10.31%) is in the top 25% of dividend payers in the Canadian market (8.69%)


Stability and Growth of Payments

Stable Dividend: FC's dividend payments have been volatile in the past 10 years.

Growing Dividend: FC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.9%), FC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FC's dividends in 3 years are not forecast to be well covered by earnings (104.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Eli Dadouch

no data

Tenure

CA$1,813,744

Compensation

Mr. Eli Dadouch has been President and Chief Executive Officer at Firm Capital American Realty Partners Trust (former name is Firm Capital American Realty Partners Corp) since September 18, 2018. Mr. Dadou ...


Leadership Team

NamePositionTenureCompensationOwnership
Stanley Goldfarb
Independent Chairmanno dataCA$85.00k0.13% CA$361.1k
Eli Dadouch
Presidentno dataCA$1.81m0.81% CA$2.2m
Boris Baril
Chief Financial Officer1.83yrsCA$150.00kno data
Jonathan Mair
COO, Executive VP & Director21.17yrsCA$300.00k0.32% CA$882.3k
Sandy Poklar
Executive VP & MD of Finance1.83yrsCA$50.00k0.017% CA$45.9k
Victoria Granovski
Internal Credit Manager2.25yrsCA$12.00kno data
Joseph Fried
General Counsel & Secretary21.17yrsno data0.16% CA$439.2k
Michael Warner
Senior Vice President of Mortgage Lendingno datano datano data

1.8yrs

Average Tenure

Experienced Management: FC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stanley Goldfarb
Independent Chairmanno dataCA$85.00k0.13% CA$361.1k
Eli Dadouch
Presidentno dataCA$1.81m0.81% CA$2.2m
Jonathan Mair
COO, Executive VP & Director21.17yrsCA$300.00k0.32% CA$882.3k
Victoria Granovski
Internal Credit Manager2.25yrsCA$12.00kno data
Anthony Heller
Independent Director21.17yrsCA$30.00k0.0032% CA$8.8k
Geoffrey Bledin
Independent Director11.67yrsCA$30.00kno data
Morris Fischtein
Independent Director20.17yrsCA$30.00k0.0035% CA$9.8k
Edward Gilbert
Director21.17yrsno data0.34% CA$947.8k
Lawrence Shulman
Independent Director14.17yrsCA$30.00k0.062% CA$170.8k
Keith Ray
Independent Director5.58yrsCA$30.00k0.27% CA$735.5k

20.2yrs

Average Tenure

70.5yo

Average Age

Experienced Board: FC's board of directors are seasoned and experienced ( 20.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

Company Information

Firm Capital Mortgage Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Firm Capital Mortgage Investment Corporation
  • Ticker: FC
  • Exchange: TSX
  • Founded: 1988
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$276.549m
  • Shares outstanding: 28.33m
  • Website: https://firmcapital.com/fcmic

Number of Employees


Location

  • Firm Capital Mortgage Investment Corporation
  • 163 Cartwright Avenue
  • Toronto
  • Ontario
  • M6A 1V5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCTSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1999
FCMG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1999

Biography

Firm Capital Mortgage Investment Corporation, through its mortgage banker Firm Capital Corporation, provides residential and commercial real estate finance in Canada. It engages in originating, funding, purchasing, and servicing mortgage investments. The company offers mortgage services, such as real estate financing, real estate investment financing, capital market services, and loan servicing and advisory services; lending programs, including construction and development lending, investment property financing, short term lending, bridge finance, mezzanine and equity investments, capital market facilities, residential and non-conventional house lending, and condominium capital improvement loans, as well as special situations loans; and various types of lending facilities to mortgage brokers. It also provides asset management and related investment services. The company was founded in 1988 and is based in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:18
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.