Firm Capital Mortgage Investment (TSX:FC) - Share price, News & Analysis

FC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	4/6
Financial Health	1/6
Dividends	2/6

FC Stock Overview

Rewards

Trading at 34% below our estimate of its fair value

Revenue is forecast to grow 18.49% per year

Earnings grew by 11.4% over the past year

Risk Analysis

Dividend of 7.2% is not well covered by earnings

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Firm Capital Mortgage Investment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Firm Capital Mortgage Investment
Historical stock prices
Current Share Price	CA$13.17
52 Week High	CA$15.84
52 Week Low	CA$12.71
Beta	0.87
1 Month Change	-5.52%
3 Month Change	-7.51%
1 Year Change	-10.47%
3 Year Change	-2.80%
5 Year Change	-0.53%
Change since IPO	31.70%

Recent News & Updates

May 12

Firm Capital Mortgage Investment (TSE:FC) Has Re-Affirmed Its Dividend Of CA$0.078

Firm Capital Mortgage Investment Corporation's ( TSE:FC ) investors are due to receive a payment of CA$0.078 per share...

Shareholder Returns

	FC	CA Mortgage	CA Market
7D	-0.2%	1.6%	0.8%
1Y	-10.5%	-13.3%	4.8%

Return vs Industry: FC exceeded the Canadian Mortgage industry which returned -13.2% over the past year.

Return vs Market: FC underperformed the Canadian Market which returned 4.6% over the past year.

Price Volatility

Is FC's price volatile compared to industry and market?
FC volatility
FC Average Weekly Movement	2.4%
Mortgage Industry Average Movement	4.0%
Market Average Movement	9.9%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: FC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: FC's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	n/a	Eli Dadouch	https://firmcapital.com/fcmic

Firm Capital Mortgage Investment Corporation, through its mortgage banker, Firm Capital Corporation, provides residential and commercial short-term bridge, and conventional real estate finance in Canada. It engages in originating, funding, purchasing, and servicing mortgage investments. The company also offers mortgage services, such as real estate financing, real estate investment financing, capital market, and loan servicing and advisory services; and a line of 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 situation loans.

Firm Capital Mortgage Investment Fundamentals Summary

How do Firm Capital Mortgage Investment's earnings and revenue compare to its market cap?
FC fundamental statistics
Market Cap	CA$454.14m
Earnings (TTM)	CA$30.54m
Revenue (TTM)	CA$38.69m

14.9x

P/E Ratio

1.1x

P/B Ratio

Is FC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FC income statement (TTM)
Revenue	CA$38.69m
Cost of Revenue	CA$0
Gross Profit	CA$38.69m
Other Expenses	CA$8.15m
Earnings	CA$30.54m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.89
Gross Margin	100.00%
Net Profit Margin	78.94%
Debt/Equity Ratio	54.0%

How did FC perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

99%

Payout Ratio

Does FC pay a reliable dividends?

See FC dividend history and benchmarks

When do you need to buy FC by to receive an upcoming dividend?
Firm Capital Mortgage Investment dividend dates
Ex Dividend Date	May 30 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	8 days
Days until Dividend pay date	24 days

Does FC pay a reliable dividends?

See FC dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

34.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FC (CA$13.17) is trading below our estimate of fair value (CA$19.96)

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 (14.9x) compared to the Canadian Mortgage industry average (8.2x).

PE vs Market: FC is poor value based on its PE Ratio (14.9x) compared to the Canadian market (11.5x).

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's PB Ratio (1.1x) is in line with the CA Mortgage industry average.

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.5%

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 (1.6%).

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 (18.5% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: FC's revenue (18.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if FC's Return on Equity is forecast to be high in 3 years time

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FC has high quality earnings.

Growing Profit Margin: FC's current net profit margins (78.9%) are lower than last year (82.2%).

Past Earnings Growth Analysis

Earnings Trend: FC's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: FC's earnings growth over the past year (11.4%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: FC earnings growth over the past year (11.4%) exceeded the Mortgage industry 7.2%.

Return on Equity

High ROE: FC's Return on Equity (7.7%) is considered low.

Financial Health

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

Financial Health Score

1/6

Financial Health Score 1/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: FC's Assets to Equity ratio (1.6x) 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, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if FC has an appropriate level of Loans to Assets ratio.

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

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

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.20%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: FC's dividend (7.2%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).

High Dividend: FC's dividend (7.2%) is in the top 25% of dividend payers in the Canadian market (4.92%)

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

Earnings Coverage: With its high payout ratio (99%), FC's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure

CEO

Eli Dadouch

no data

Tenure

CA$3,212,764

Compensation

Mr. Eli Dadouch serves as Chairman at Firm Capital Property Trust since July 2021. He is the Founder of Firm Capital Mortgage Investment Corporation. He serves as Vice Chairman at Firm Capital Apartment Re...

CEO Compensation Analysis

Compensation vs Market: Eli's total compensation ($USD2.50M) is above average for companies of similar size in the Canadian market ($USD993.19K).

Compensation vs Earnings: Eli's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: FC's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: FC's board of directors are seasoned and experienced ( 15.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: FC insiders have only sold shares 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 11.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31