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

Adequate balance sheet average dividend payer.


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

3.1%

MDC

2.8%

US Consumer Durables

1.0%

US Market


1 Year Return

84.6%

MDC

45.9%

US Consumer Durables

8.0%

US Market

Return vs Industry: MDC exceeded the US Consumer Durables industry which returned 45.9% over the past year.

Return vs Market: MDC exceeded the US Market which returned 8% over the past year.


Shareholder returns

MDCIndustryMarket
7 Day3.1%2.8%1.0%
30 Day7.8%7.1%-0.07%
90 Day23.7%16.0%-1.0%
1 Year91.7%84.6%47.9%45.9%10.4%8.0%
3 Year163.3%135.8%31.3%25.2%46.2%36.7%
5 Year154.1%110.2%39.9%30.9%64.3%46.2%

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 ($45.76) is trading below our estimate of fair value ($105.17)

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


Price To Earnings Ratio

PE vs Industry: MDC is poor value based on its PE Ratio (13.8x) compared to the Consumer Durables industry average (13.3x).

PE vs Market: MDC is good value based on its PE Ratio (13.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: MDC is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MDC is overvalued based on its PB Ratio (1.7x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

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

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDC's forecast earnings growth (13.8% per year) is above the savings rate (2.7%).

Earnings vs Market: MDC's earnings (13.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MDC's revenue (8.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MDC's revenue (8.8% 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


Next Steps

Past Performance

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

27.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MDC's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: MDC's earnings growth over the past year (7.8%) is below its 5-year average (27.3% per year).

Earnings vs Industry: MDC earnings growth over the past year (7.8%) underperformed the Consumer Durables industry 13.5%.


Return on Equity

High ROE: MDC's Return on Equity (12.2%) is considered low.


Return on Assets

ROA vs Industry: MDC's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: MDC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: MDC's short term assets ($2.9B) exceeds its short term liabilities ($638.4M)

Long Term Liabilities: MDC's short term assets (2.9B) exceeds its long term liabilities (786.6M)


Debt to Equity History and Analysis

Debt Level: MDC's debt to equity ratio (65.4%) is considered high

Reducing Debt: MDC's debt to equity ratio has reduced from 93.1% to 65.4% over the past 5 years.

Debt Coverage: MDC's debt is not well covered by operating cash flow (9.6%).

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


Balance Sheet

Inventory Level: MDC has a high level of physical assets or inventory.

Debt Coverage by Assets: MDC's debt is covered by short term assets (assets are 2.698570x debt).


Next Steps

Dividend

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

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MDC's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MDC's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 reasonably low payout ratio (34.8%), 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

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

17.4yrs

Average management tenure


CEO

Larry Mizel (76yo)

31.8yrs

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

Compensation vs. Market: Larry's total compensation ($USD11.61M) is about average for companies of similar size in the US market ($USD5.12M).

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


Management Age and Tenure

17.4yrs

Average Tenure

72.5yo

Average Age

Experienced Management: MDC's management team is seasoned and experienced (17.4 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

68yo

Average Age

Experienced Board: MDC's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: MDC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$636,90020 Sep 19
Raymond Baker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$42.46
SellUS$169,60017 Sep 19
David Blackford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$42.40
SellUS$289,93817 Sep 19
Michael Berman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,900
Max PriceUS$42.02
SellUS$204,21116 Sep 19
Michael Berman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,015
Max PriceUS$40.72
SellUS$155,44009 Sep 19
David Siegel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$38.86
SellUS$222,53031 May 19
Robert Martin
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares7,000
Max PriceUS$31.79
SellUS$8,08016 May 19
David Siegel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$32.32
SellUS$81,72207 Mar 19
David Siegel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,900
Max PriceUS$28.18
SellUS$156,05406 Mar 19
Herbert Buchwald
EntityIndividual
Role
Lead Director
Lead Director
Shares5,466
Max PriceUS$28.55
SellUS$114,04006 Mar 19
David Blackford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$28.51

Ownership Breakdown


Management Team

  • Larry Mizel (76yo)

    Chairman & CEO

    • Tenure: 31.8yrs
    • Compensation: US$11.61m
  • David Mandarich (71yo)

    President

    • Tenure: 25.6yrs
    • Compensation: US$11.25m
  • Michael Touff (74yo)

    Senior VP & General Counsel

    • Tenure: 24.8yrs
    • Compensation: US$958.97k
  • Daniel O'Brien

    President of Chicago Division

    • Tenure: 0yrs
  • Joseph Fretz

    Secretary & Corporate Counsel

    • Tenure: 0yrs
  • John Heaney

    Senior VP & Treasurer

    • Tenure: 0yrs
  • David Sprouse

    Divisional President of Houston division

    • Tenure: 14.5yrs
  • Karen Gard

    Chief Human Resources Officer & VP

    • Tenure: 0yrs
  • Bob Martin (40yo)

    Senior VP

    • Tenure: 4.4yrs
    • Compensation: US$2.46m
  • Kelly Taga

    Chief Information Officer & VP

    • Tenure: 12.2yrs

Board Members

  • Larry Mizel (76yo)

    Chairman & CEO

    • Tenure: 31.8yrs
    • Compensation: US$11.61m
  • David Mandarich (71yo)

    President

    • Tenure: 25.6yrs
    • Compensation: US$11.25m
  • Gary Reece (65yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$315.99k
  • Leslie Fox (60yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$201.28k
  • Herbert Buchwald (88yo)

    Lead Director

    • Tenure: 12.6yrs
    • Compensation: US$561.34k
  • Ray Baker (68yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$301.54k
  • David Blackford (70yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$288.28k
  • Michael Berman (68yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$332.50k
  • David Siegel (62yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$303.28k
  • Courtney Mizel (44yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$249.28k

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$2.835b
  • Shares outstanding: 61.95m
  • Website: https://www.richmondamerican.com

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 Analysis2019/10/22 23:41
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.