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MDC

M.D.C. Holdings NYSE:MDC Stock Report

Last Price

US$36.63

Market Cap

US$2.6b

7D

1.0%

1Y

-35.1%

Updated

19 May, 2022

Data

Company Financials +
MDC fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends5/6

MDC Stock Overview

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

M.D.C. Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for M.D.C. Holdings
Historical stock prices
Current Share PriceUS$36.63
52 Week HighUS$58.92
52 Week LowUS$34.56
Beta1.34
1 Month Change-4.06%
3 Month Change-15.13%
1 Year Change-35.05%
3 Year Change25.11%
5 Year Change35.84%
Change since IPO6,047.83%

Recent News & Updates

May 19
Why The 20% Return On Capital At M.D.C. Holdings (NYSE:MDC) Should Have Your Attention

Why The 20% Return On Capital At M.D.C. Holdings (NYSE:MDC) Should Have Your Attention

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 16

M.D.C. Holdings: A Challenged Housing Sector Might Present An Opportunity

Today, we revisit home builder M.D.C. Holdings for the first time since last summer. Conditions for the housing market have decayed significantly since then, as mortgage rates have spiked. This leaves this stock with a dirt cheap P/E ratio and over five percent dividend yield. Is it time to add to this holding despite a challenged housing sector? A full investment analysis follows in the paragraphs below.

Shareholder Returns

MDCUS Consumer DurablesUS Market
7D1.0%-1.8%0.1%
1Y-35.1%-28.5%-12.7%

Return vs Industry: MDC underperformed the US Consumer Durables industry which returned -28% over the past year.

Return vs Market: MDC underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is MDC's price volatile compared to industry and market?
MDC volatility
MDC Average Weekly Movement6.5%
Consumer Durables Industry Average Movement7.9%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: MDC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MDC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19722,080David Mandarichhttps://www.mdcholdings.com

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 construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name. The company conducts its homebuilding operations in Arizona, California, Nevada, New Mexico, Oregon, Texas, Washington, Colorado, Idaho, Utah, Maryland, Pennsylvania, Virginia, Tennessee, and Florida.

M.D.C. Holdings Fundamentals Summary

How do M.D.C. Holdings's earnings and revenue compare to its market cap?
MDC fundamental statistics
Market CapUS$2.58b
Earnings (TTM)US$608.28m
Revenue (TTM)US$5.44b

4.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDC income statement (TTM)
RevenueUS$5.44b
Cost of RevenueUS$4.03b
Gross ProfitUS$1.34b
Other ExpensesUS$735.84m
EarningsUS$608.28m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.55
Gross Margin24.72%
Net Profit Margin11.19%
Debt/Equity Ratio61.6%

How did MDC perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is M.D.C. Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MDC ($36.63) is trading below our estimate of fair value ($112.35)

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 (4.3x) compared to the US Consumer Durables industry average (8.4x).

PE vs Market: MDC is good value based on its PE Ratio (4.3x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: MDC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: MDC is good value based on its PB Ratio (1x) compared to the US Consumer Durables industry average (1.3x).


Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDC's forecast earnings growth (10.1% per year) is above the savings rate (1.9%).

Earnings vs Market: MDC's earnings (10.1% per year) are forecast to grow slower than the US market (12.4% per year).

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

Revenue vs Market: MDC's revenue (12% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: MDC's revenue (12% 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?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MDC has high quality earnings.

Growing Profit Margin: MDC's current net profit margins (11.2%) are higher than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: MDC's earnings have grown significantly by 33% per year over the past 5 years.

Accelerating Growth: MDC's earnings growth over the past year (38.6%) exceeds its 5-year average (33% per year).

Earnings vs Industry: MDC earnings growth over the past year (38.6%) underperformed the Consumer Durables industry 45.1%.


Return on Equity

High ROE: MDC's Return on Equity (22.6%) is considered high.


Financial Health

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

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MDC's short term assets ($4.9B) exceed its short term liabilities ($826.9M).

Long Term Liabilities: MDC's short term assets ($4.9B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: MDC's net debt to equity ratio (44.1%) is considered high.

Reducing Debt: MDC's debt to equity ratio has reduced from 69.5% to 61.6% 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?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.46%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MDC's dividend (5.46%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MDC's dividend (5.46%) is in the top 25% of dividend payers in the US market (4.07%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22%), MDC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: MDC is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

David Mandarich (73 yo)

22.92yrs

Tenure

US$16,992,615

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, I...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD16.99M) is above average for companies of similar size in the US market ($USD6.81M).

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 ( 2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

M.D.C. Holdings, Inc.'s 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
  • Implied Market Cap: US$2.584b
  • Shares outstanding: 71.16m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
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.