NYSE:MDC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with adequate balance sheet 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


Market Performance


7 Day Return

12.8%

NYSE:MDC

1.0%

US Consumer Durables

0.8%

US Market


1 Year Return

26.5%

NYSE:MDC

0.4%

US Consumer Durables

4.8%

US Market

MDC outperformed the Consumer Durables industry which returned 0.3% over the past year.

MDC outperformed the Market in United States of America which returned 4.7% over the past year.


Share holder returns

MDCIndustryMarket
7 Day12.8%1.0%0.8%
30 Day11.1%0.3%4.3%
90 Day20.7%3.0%2.8%
1 Year31.6%26.5%1.8%0.4%7.1%4.8%
3 Year92.9%72.5%38.8%34.8%47.6%37.9%
5 Year91.2%58.0%33.4%24.9%61.5%43.5%

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 based on future cash flows and its price relative to the stock market?

10.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

M.D.C. Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

M.D.C. Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

M.D.C. Holdings is good value based on earnings compared to the US Consumer Durables industry average.

M.D.C. Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

M.D.C. Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

M.D.C. Holdings is good value based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

How is M.D.C. Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

M.D.C. Holdings's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

M.D.C. Holdings's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

M.D.C. Holdings's revenue growth is positive but not above the United States of America market average.

M.D.C. Holdings's earnings growth is positive but not above the United States of America market average.

M.D.C. Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if M.D.C. Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

14.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

M.D.C. Holdings's year on year earnings growth rate has been positive over the past 5 years.

M.D.C. Holdings's 1-year earnings growth exceeds its 5-year average (34.1% vs 14.9%)

M.D.C. Holdings's earnings growth has exceeded the US Consumer Durables industry average in the past year (34.1% vs 20.6%).


Return on Equity

M.D.C. Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

M.D.C. Holdings used its assets less efficiently than the US Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

M.D.C. Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

M.D.C. Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

M.D.C. Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

M.D.C. Holdings's level of debt (67.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (93.8% vs 67.6% today).

Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).

M.D.C. Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Next Steps

Dividend

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

3.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

M.D.C. Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).

M.D.C. Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of M.D.C. Holdings's salary, the management and board of directors tenure and is there insider trading?

17.2yrs

Average management tenure


CEO

Larry Mizel (76yo)

31.5yrs

Tenure

US$11,605,548

Compensation

Mr. Larry A. Mizel serves as been Chief Executive Officer of M.D.C. Holdings, Inc. since January, 1972. Mr. Mizel served as President of M.D.C. Holdings, Inc. from March 1996 to July 1999. He has been the ...


CEO Compensation Analysis

Larry's remuneration is higher than average for companies of similar size in United States of America.

Larry's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

17.2yrs

Average Tenure

72.5yo

Average Age

The average tenure for the M.D.C. Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.2yrs

Average Tenure

68yo

Average Age

The average tenure for the M.D.C. Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

M.D.C. Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$222,53031 May 19
Robert Martin
EntityIndividual
Role
Senior VP
Shares7,000
Max PriceUS$31.79
SellUS$8,08016 May 19
David Siegel
EntityIndividual
Role
Member of the Board of Directors
Shares250
Max PriceUS$32.32
SellUS$81,72207 Mar 19
David Siegel
EntityIndividual
Role
Member of the Board of Directors
Shares2,900
Max PriceUS$28.18
SellUS$156,05406 Mar 19
Herbert Buchwald
EntityIndividual
Role
Lead Director
Shares5,466
Max PriceUS$28.55
SellUS$114,04006 Mar 19
David Blackford
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUS$28.51

Ownership Breakdown


Management Team

  • John Heaney

    Senior VP & Treasurer

  • David Sprouse

    Divisional President of Houston division

    • Tenure: 14.3yrs
  • Kelly Taga

    Chief Information Officer & VP

    • Tenure: 11.9yrs
  • Larry Mizel (76yo)

    Chairman & CEO

    • Tenure: 31.5yrs
    • Compensation: $11.61m
  • David Mandarich (71yo)

    President

    • Tenure: 20.1yrs
    • Compensation: $11.25m
  • Michael Touff (74yo)

    Senior VP & General Counsel

    • Tenure: 24.6yrs
    • Compensation: $958.97k
  • Daniel O'Brien

    President of Chicago Division

  • Bob Martin (40yo)

    Senior VP

    • Tenure: 4.2yrs
    • Compensation: $2.46m
  • Karen Gard

    Chief Human Resources Officer & VP

  • Joseph Fretz

    Secretary & Corporate Counsel


Board Members

  • David Siegel (62yo)

    Director

    • Tenure: 10.1yrs
    • Compensation: $303.28k
  • Larry Mizel (76yo)

    Chairman & CEO

    • Tenure: 47.5yrs
    • Compensation: $11.61m
  • David Blackford (70yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: $288.28k
  • David Mandarich (71yo)

    President

    • Tenure: 25.3yrs
    • Compensation: $11.25m
  • Ray Baker (68yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: $301.54k
  • Gary Reece (65yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: $315.99k
  • Michael Berman (68yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: $332.50k
  • Leslie Fox (60yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: $201.28k
  • Courtney Mizel (44yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: $249.28k
  • Herbert Buchwald (88yo)

    Lead Director

    • Tenure: 12.3yrs
    • Compensation: $561.34k

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$2.291b
  • Shares outstanding: 61.52m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDCNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1975
MDHDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
0JW5LSE (London Stock Exchange)YesCommon StockGBUSDJan 1975

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 Analysis2019/07/14 23:41
End of Day Share Price2019/07/12 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.