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MKP

MCAN Mortgage TSX:MKP Stock Report

Last Price

CA$16.25

Market Cap

CA$515.5m

7D

0%

1Y

-8.6%

Updated

15 Aug, 2022

Data

Company Financials +
MKP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends3/6

MKP Stock Overview

MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada.

MCAN Mortgage Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MCAN Mortgage
Historical stock prices
Current Share PriceCA$16.25
52 Week HighCA$19.49
52 Week LowCA$15.64
Beta1.04
1 Month Change1.50%
3 Month Change-8.81%
1 Year Change-8.55%
3 Year Change2.46%
5 Year Change9.80%
Change since IPO96.97%

Recent News & Updates

Shareholder Returns

MKPCA MortgageCA Market
7D0%1.6%3.0%
1Y-8.6%-22.1%0.7%

Return vs Industry: MKP exceeded the Canadian Mortgage industry which returned -22.1% over the past year.

Return vs Market: MKP underperformed the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is MKP's price volatile compared to industry and market?
MKP volatility
MKP Average Weekly Movement2.7%
Mortgage Industry Average Movement3.2%
Market Average Movement10.6%
10% most volatile stocks in CA Market18.9%
10% least volatile stocks in CA Market4.3%

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

Volatility Over Time: MKP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1980133Karen Weaverhttps://www.mcanmortgage.com

MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada. The company offers single-family residential mortgages, as well as residential construction, non-residential construction, and commercial loans, as well as engages in the real estate investments trusts and private investment activities. It also provides term deposits through a network of independent financial agents.

MCAN Mortgage Fundamentals Summary

How do MCAN Mortgage's earnings and revenue compare to its market cap?
MKP fundamental statistics
Market CapCA$515.46m
Earnings (TTM)CA$48.68m
Revenue (TTM)CA$86.31m

10.6x

P/E Ratio

1.2x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MKP income statement (TTM)
RevenueCA$86.31m
Cost of RevenueCA$9.98m
Gross ProfitCA$76.33m
Other ExpensesCA$27.65m
EarningsCA$48.68m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.53
Gross Margin88.43%
Net Profit Margin56.40%
Debt/Equity Ratio413.1%

How did MKP perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

84%

Payout Ratio

Does MKP pay a reliable dividends?

See MKP dividend history and benchmarks
When do you need to buy MKP by to receive an upcoming dividend?
MCAN Mortgage dividend dates
Ex Dividend DateSep 14 2022
Dividend Pay DateSep 29 2022
Days until Ex dividend29 days
Days until Dividend pay date44 days

Does MKP pay a reliable dividends?

See MKP dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is MKP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MKP?

Other financial metrics that can be useful for relative valuation.

MKP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does MKP's PE Ratio compare to its peers?

MKP PE Ratio vs Peers
The above table shows the PE ratio for MKP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.6x
AI Atrium Mortgage Investment
12.3x2.9%CA$524.0m
FC Firm Capital Mortgage Investment
13.8xn/aCA$433.1m
HCG Home Capital Group
6.5x13.3%CA$1.3b
TF Timbercreek Financial
17.9x17.3%CA$721.6m
MKP MCAN Mortgage
10.6x16.8%CA$515.5m

Price-To-Earnings vs Peers: MKP is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (12.6x).


Price to Earnings Ratio vs Industry

How does MKP's PE Ratio compare vs other companies in the North American Mortgage Industry?

Price-To-Earnings vs Industry: MKP is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the Canadian Mortgage industry average (9.1x)


Price to Earnings Ratio vs Fair Ratio

What is MKP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MKP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.6x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: MKP is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).


Share Price vs Fair Value

What is the Fair Price of MKP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MKP (CA$16.25) is trading below our estimate of fair value (CA$33.17)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is MCAN Mortgage forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKP's forecast earnings growth (16.8% per year) is above the savings rate (1.6%).

Earnings vs Market: MKP's earnings (16.8% per year) are forecast to grow faster than the Canadian market (7.9% per year).

High Growth Earnings: MKP's earnings are forecast to grow, but not significantly.

Revenue vs Market: MKP's revenue (12.1% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: MKP's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MKP's Return on Equity is forecast to be low in 3 years time (13.4%).


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Past Performance

How has MCAN Mortgage performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MKP has high quality earnings.

Growing Profit Margin: MKP's current net profit margins (56.4%) are lower than last year (72.3%).


Past Earnings Growth Analysis

Earnings Trend: MKP's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: MKP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MKP had negative earnings growth (-39.3%) over the past year, making it difficult to compare to the Mortgage industry average (2.3%).


Return on Equity

High ROE: MKP's Return on Equity (11.1%) is considered low.


Discover strong past performing companies

Financial Health

How is MCAN Mortgage'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: MKP's Assets to Equity ratio (9.2x) is low.

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

Low Risk Liabilities: MKP reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

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

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

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


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Dividend

What is MCAN Mortgage current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.86%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 16 2022Ex Dividend DateSep 14 2022Dividend Pay DateSep 29 202215 days from Ex DividendBuy in the next 29 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: MKP's dividend (8.86%) is higher than the bottom 25% of dividend payers in the Canadian market (1.82%).

High Dividend: MKP's dividend (8.86%) is in the top 25% of dividend payers in the Canadian market (5.3%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Earnings Coverage: At its current payout ratio (84.1%), MKP's payments are 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?

2.9yrs

Average management tenure


CEO

Karen Weaver (63 yo)

3.83yrs

Tenure

CA$1,250,398

Compensation

Ms. Karen H. Weaver, CPA, ICD D, has been President and Chief Executive Officer at MCAN Mortgage Corporation since May 08, 2019. Prior to June 2017, Ms. Weaver served as Chief Financial Officer and Executi...


CEO Compensation Analysis

Compensation vs Market: Karen's total compensation ($USD969.35K) is about average for companies of similar size in the Canadian market ($USD1.18M).

Compensation vs Earnings: Karen's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MKP's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: MKP's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MKP 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 15.1%.


Top Shareholders

Company Information

MCAN Mortgage Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: MCAN Mortgage Corporation
  • Ticker: MKP
  • Exchange: TSX
  • Founded: 1980
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Implied Market Cap: CA$515.464m
  • Shares outstanding: 31.72m
  • Website: https://www.mcanmortgage.com

Number of Employees


Location

  • MCAN Mortgage Corporation
  • 200 King Street West
  • Suite 600
  • Toronto
  • Ontario
  • M5H 3T4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.