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Market Cap

US$3.6b

Last Updated

2021/09/19 22:02 UTC

Data Sources

Company Financials +

Executive Summary

M.D.C. Holdings, Inc., through its subsidiaries, engages in the homebuilding and financial service businesses. More Details

Rewards

Trading at 83.4% below our estimate of its fair value

Earnings are forecast to grow 24.06% per year

Earnings grew by 93.6% over the past year

Pays a reliable dividend of 3.1%

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has M.D.C. Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MDC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

MDC

-0.8%

US Consumer Durables

-0.6%

US Market


1 Year Return

20.6%

MDC

36.8%

US Consumer Durables

33.8%

US Market

Return vs Industry: MDC underperformed the US Consumer Durables industry which returned 36.8% over the past year.

Return vs Market: MDC underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

MDCIndustryMarket
7 Day1.6%-0.8%-0.6%
30 Day0.1%-1.9%1.0%
90 Day-2.3%2.3%3.4%
1 Year24.2%20.6%38.3%36.8%35.8%33.8%
3 Year115.1%94.3%89.3%81.9%60.0%50.1%
5 Year219.0%167.9%101.9%86.3%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is M.D.C. Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is M.D.C. Holdings 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: MDC ($51.55) is trading below our estimate of fair value ($309.97)

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


Price To Earnings Ratio

PE vs Industry: MDC is good value based on its PE Ratio (7.2x) compared to the US Consumer Durables industry average (11x).

PE vs Market: MDC is good value based on its PE Ratio (7.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MDC is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MDC is good value based on its PB Ratio (1.6x) compared to the US Consumer Durables industry average (2x).


Future Growth

How is M.D.C. Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDC's forecast earnings growth (24.1% per year) is above the savings rate (2%).

Earnings vs Market: MDC's earnings (24.1% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: MDC's revenue (17.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: MDC's revenue (17.6% 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 MDC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has M.D.C. Holdings performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDC has a high level of non-cash earnings.

Growing Profit Margin: MDC's current net profit margins (10.7%) are higher than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: MDC's earnings have grown significantly by 31% per year over the past 5 years.

Accelerating Growth: MDC's earnings growth over the past year (93.6%) exceeds its 5-year average (31% per year).

Earnings vs Industry: MDC earnings growth over the past year (93.6%) exceeded the Consumer Durables industry 71.4%.


Return on Equity

High ROE: MDC's Return on Equity (21.9%) is considered high.


Financial Health

How is M.D.C. Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MDC's short term assets ($4.3B) exceed its short term liabilities ($705.2M).

Long Term Liabilities: MDC's short term assets ($4.3B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: MDC's debt to equity ratio (66.9%) is considered high.

Reducing Debt: MDC's debt to equity ratio has reduced from 74.3% to 66.9% over the past 5 years.

Debt Coverage: MDC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MDC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is M.D.C. Holdings's current dividend yield, its reliability and sustainability?

3.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MDC's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: MDC's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: MDC's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.1%), MDC'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?

1.7yrs

Average management tenure


CEO

David Mandarich (73 yo)

0.92

Tenure

US$13,922,882

Compensation

Mr. David D. Mandarich has been President and Chief Executive Officer of M.D.C. Holdings, Inc. since June 1999 and October 26, 2020 respectively. He served as Chief Operating Officer of M.D.C.Holdings, In...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD13.92M) is above average for companies of similar size in the US market ($USD5.27M).

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


Leadership Team

Experienced Management: MDC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: MDC's board of directors are seasoned and experienced ( 14.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MDC 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 3.1%.


Top Shareholders

Company Information

M.D.C. Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: M.D.C. Holdings, Inc.
  • Ticker: MDC
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: US$3.640b
  • Shares outstanding: 70.62m
  • Website: https://www.mdcholdings.com

Number of Employees


Location

  • M.D.C. Holdings, Inc.
  • 4350 South Monaco Street
  • Suite 500
  • Denver
  • Colorado
  • 80237
  • United States

Listings


Biography

M.D.C. Holdings, Inc., through its subsidiaries, engages in the homebuilding and financial service businesses. Its homebuilding operations include purchasing finished lots or developing lots for the constr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.