TSX:MKP

Stock Analysis Report

MCAN Mortgage

Executive Summary

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


Snowflake Analysis

Solid track record, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.4%

MKP

9.7%

CA Mortgage

4.5%

CA Market


1 Year Return

-26.6%

MKP

-24.1%

CA Mortgage

-24.5%

CA Market

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

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


Shareholder returns

MKPIndustryMarket
7 Day9.4%9.7%4.5%
30 Day-26.9%-39.2%-20.1%
90 Day-31.5%-45.3%-24.9%
1 Year-20.4%-26.6%-15.3%-24.1%-22.0%-24.5%
3 Year0.03%-22.0%-11.7%-25.8%-14.2%-22.2%
5 Year34.3%-11.7%-11.9%-29.3%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MCAN Mortgage undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MKP (CA$11.71) is trading below our estimate of fair value (CA$28.65)

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


Price To Earnings Ratio

PE vs Industry: MKP is good value based on its PE Ratio (5.8x) compared to the Mortgage industry average (6.7x).

PE vs Market: MKP is good value based on its PE Ratio (5.8x) compared to the Canadian market (10.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Next Steps

Future Growth

How is MCAN Mortgage forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MCAN Mortgage has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MCAN Mortgage performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKP has high quality earnings.

Growing Profit Margin: MKP's current net profit margins (64.1%) are higher than last year (59.2%).


Past Earnings Growth Analysis

Earnings Trend: MKP's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: MKP's earnings growth over the past year (33.1%) exceeds its 5-year average (8.5% per year).

Earnings vs Industry: MKP earnings growth over the past year (33.1%) exceeded the Mortgage industry 12.7%.


Return on Equity

High ROE: MKP's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is MCAN Mortgage'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: MKP has a low level of unsold assets or inventory.

Debt Coverage by Assets: MKP's debt is covered by short term assets (assets are 2.5x debt).


Financial Institutions Analysis

Asset Level: MKP's level of assets compared to its equity 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, loans are made up entirely of externally borrowed funds.

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

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

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


Next Steps

Dividend

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

11.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MKP's dividend (11.61%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).

High Dividend: MKP's dividend (11.61%) is in the top 25% of dividend payers in the Canadian market (8.69%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.8%), MKP's dividend 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 and that it will be covered by earnings.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Karen Weaver (60yo)

1.42s

Tenure

CA$243,376

Compensation

Ms. Karen H. Weaver, CPA, ICD.D, has been President and Chief Executive Officer at MCAN Mortgage Corporation since May 2019. Ms. Weaver serves as Chief Financial Officer and Executive Vice President at D+H ...


CEO Compensation Analysis

Compensation vs Market: Karen's total compensation ($USD172.13K) is below average for companies of similar size in the Canadian market ($USD771.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Karen Weaver
President1.42yrsCA$243.38k0.14% CA$392.7k
Dipti Patel
VP & CFO1.25yrsCA$271.62k0.0056% CA$15.9k
Carl Brown
Vice President of Investments0.42yrCA$334.62k0.13% CA$366.2k
Michael Jensen
VP, Chief Compliance Officer and Chief Anti-Money Laundering & Privacy Officer2.17yrsno data0.043% CA$122.8k
Eugene Basolini
President of MTC Leasing Inc and Chief Operating Officer of MTC Leasing Incno datano datano data
Sylvia Pinto
VP, Corporate Secretary & Governance Officerno datano data0.18% CA$499.2k
Emily Randle
VP & Chief Risk Officer1.42yrsno data0.0036% CA$10.3k
Dale Klein
Chief Executive Officer of Canada ICI Capital Corporationno datano datano data

1.4yrs

Average Tenure

Experienced Management: MKP's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Karen Weaver
President1.42yrsCA$243.38k0.14% CA$392.7k
Ian Sutherland
Independent Director29.17yrsCA$100.00k12.81% CA$36.4m
Gordon Herridge
Independent Director1.83yrsCA$58.01k0.53% CA$1.5m
Susan Doré
Lead Director6.83yrsCA$74.25k0.85% CA$2.4m
Derek Sutherland
Independent Chairmanno dataCA$110.41k0.51% CA$1.4m
Gaelen Morphet
Independent Director2.17yrsCA$56.00k0.068% CA$193.8k
Verna Cuthbert
Independent Director6.42yrsCA$60.50k0.028% CA$78.9k
Loraine McIntosh
Independent Director2.83yrsCA$122.16k0.036% CA$103.8k

6.4yrs

Average Tenure

60yo

Average Age

Experienced Board: MKP's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MCAN Mortgage Corporation's company bio, 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
  • Market Cap: CA$284.470m
  • Shares outstanding: 24.29m
  • Website: https://www.mcanmortgage.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKPTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 2000
MAMT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2000

Biography

MCAN Mortgage Corporation operates as a 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 real estate and securitization investments. It also provides term deposits through a network of independent financial agents. The company was formerly known as MCAP Inc. and changed its name to MCAN Mortgage Corporation in September 2006. MCAN Mortgage Corporation was founded in 1980 and is headquartered 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 02:09
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.