TSX:MRD

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Melcor Developments

Executive Summary

Melcor Developments Ltd. operates as a real estate development company in the United States and Canada.


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

How has Melcor Developments's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.0%

MRD

4.2%

CA Real Estate

1.9%

CA Market


1 Year Return

-44.5%

MRD

4.1%

CA Real Estate

-12.0%

CA Market

Return vs Industry: MRD underperformed the Canadian Real Estate industry which returned 3.3% over the past year.

Return vs Market: MRD underperformed the Canadian Market which returned -13.7% over the past year.


Shareholder returns

MRDIndustryMarket
7 Day7.0%4.2%1.9%
30 Day11.8%5.3%3.5%
90 Day-38.5%-17.7%-10.5%
1 Year-42.0%-44.5%5.2%4.1%-8.9%-12.0%
3 Year-47.0%-52.8%22.8%19.1%-0.1%-9.4%
5 Year-50.8%-59.2%85.8%74.8%14.7%-2.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Melcor Developments undervalued compared to its fair value and its price relative to the market?

2.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRD (CA$7.49) is trading above our estimate of fair value (CA$5.53)

Significantly Below Fair Value: MRD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRD is good value based on its PE Ratio (2.5x) compared to the Real Estate industry average (10.7x).

PE vs Market: MRD is good value based on its PE Ratio (2.5x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRD is good value based on its PB Ratio (0.2x) compared to the CA Real Estate industry average (0.7x).


Next Steps

Future Growth

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

17.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MRD's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MRD'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: MRD's revenue (17.9% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: MRD's revenue (17.9% 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 MRD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Melcor Developments performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRD has high quality earnings.

Growing Profit Margin: MRD's current net profit margins (49.7%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: MRD's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: MRD's earnings growth over the past year (100.6%) exceeds its 5-year average (-6.7% per year).

Earnings vs Industry: MRD earnings growth over the past year (100.6%) exceeded the Real Estate industry 12.6%.


Return on Equity

High ROE: MRD's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Melcor Developments's financial position?


Financial Position Analysis

Short Term Liabilities: MRD's short term assets (CA$884.4M) exceed its short term liabilities (CA$121.7M).

Long Term Liabilities: MRD's short term assets (CA$884.4M) exceed its long term liabilities (CA$790.1M).


Debt to Equity History and Analysis

Debt Level: MRD's debt to equity ratio (63%) is considered high.

Reducing Debt: MRD's debt to equity ratio has reduced from 71.6% to 63% over the past 5 years.

Debt Coverage: MRD's debt is not well covered by operating cash flow (4.5%).

Interest Coverage: MRD's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Melcor Developments's current dividend yield, its reliability and sustainability?

4.27%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MRD's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Canadian market (2.06%).

High Dividend: MRD's dividend (4.27%) is low compared to the top 25% of dividend payers in the Canadian market (6.65%).


Stability and Growth of Payments

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

Growing Dividend: MRD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.4%), MRD's dividend payments are well 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?

3.8yrs

Average management tenure


CEO

Darin Rayburn

3.08yrs

Tenure

CA$1,006,397

Compensation

Mr. Darin Anthony Rayburn serves as President & CEO at Melcor Real Estate Investment Trust from October 1, 2019. He has been the Chief Executive Officer and President of Melcor Developments Ltd. since Apri ...


CEO Compensation Analysis

Compensation vs Market: Darin's total compensation ($USD729.68K) is about average for companies of similar size in the Canadian market ($USD728.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darin Rayburn
CEO & President3.08yrsCA$1.01m0.14% CA$353.8k
Naomi Stefura
CFO & Corporate Secretary3.75yrsCA$534.54k0.031% CA$76.3k
Ryan Mott
Regional Manager of USAno dataCA$364.28kno data
Nicole Forsythe
Director of Corporate Communicationno datano datano data
Jarett Thompson
Vice-President of New Leasing & Salesno datano datano data
Brett Halford
Vice-President of Recreational Propertiesno dataCA$225.00kno data
Guy Pelletier
Vice-President of Red Deer Region23.33yrsCA$320.14k0.22% CA$544.6k

3.8yrs

Average Tenure

Experienced Management: MRD's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Catherine Roozen
Independent Director13.33yrsCA$38.25k0.060% CA$149.8k
Ross Grieve
Independent Director17.33yrsCA$36.00kno data
Andrew Melton
Director35.33yrsCA$657.34k0.49% CA$1.2m
Timothy Melton
Chairman3.08yrsCA$836.03k5.85% CA$14.5m
Ralph Young
Independent Director44.33yrsCA$36.00k4.26% CA$10.6m
Eric Newell
Independent Director6.08yrsCA$38.25kno data
Gordon Clanachan
Independent Director11.33yrsCA$50.25k0.033% CA$82.4k
Allan Scott
Independent Lead Director6.17yrsCA$52.00k0.0090% CA$22.5k
Kathleen Melton
Director4.08yrsCA$31.50k0.11% CA$276.8k

11.3yrs

Average Tenure

71yo

Average Age

Experienced Board: MRD's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MRD 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

Melcor Developments Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melcor Developments Ltd.
  • Ticker: MRD
  • Exchange: TSX
  • Founded: 1923
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: CA$248.482m
  • Shares outstanding: 33.18m
  • Website: https://www.melcor.ca

Number of Employees


Location

  • Melcor Developments Ltd.
  • 10310 Jasper Avenue NW
  • Suite 900
  • Edmonton
  • Alberta
  • T5J 1Y8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRDTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1975
MODV.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1975

Biography

Melcor Developments Ltd. operates as a real estate development company in the United States and Canada. The company operates through Community Development, Property Development, Investment Properties, REIT, and Recreational Property segments. It develops, manages, and owns mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. The company purchases and develops land to be sold as residential, industrial, and commercial lots; develops, constructs, and leases retail, office, and industrial properties; and owns and leases residential, commercial, retail, and industrial properties. It also owns and manages three 18-hole championship golf courses. The company was founded in 1923 and is headquartered in Edmonton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 02:06
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
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.