NasdaqCM:MDRR

Stock Analysis Report

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Executive Summary

Medalist Diversified REIT Inc. is a Maryland corporation formed on September 28, 2015.


Snowflake Analysis

Fair value with concerning outlook.

Share Price & News

How has Medalist Diversified REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

8.7%

MDRR

6.6%

US REITs

3.8%

US Market


1 Year Return

-58.2%

MDRR

-5.9%

US REITs

9.7%

US Market

Return vs Industry: MDRR underperformed the US REITs industry which returned -7.2% over the past year.

Return vs Market: MDRR underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MDRRIndustryMarket
7 Day8.7%6.6%3.8%
30 Day11.1%13.4%11.4%
90 Day-21.9%-8.2%6.8%
1 Year-53.4%-58.2%-2.0%-5.9%12.1%9.7%
3 Yearn/a18.5%3.9%36.2%27.2%
5 Yearn/a50.1%19.4%63.7%45.4%

Price Volatility Vs. Market

How volatile is Medalist Diversified REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Medalist Diversified REIT 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: MDRR ($1.86) is trading below our estimate of fair value ($8.19)

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


Price To Earnings Ratio

PE vs Industry: MDRR is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: MDRR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MDRR is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

How is Medalist Diversified REIT forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

75.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDRR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MDRR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MDRR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MDRR's revenue (18.7% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: MDRR's revenue (18.7% 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 MDRR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Medalist Diversified REIT performed over the past 5 years?

-59.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDRR is currently unprofitable.

Growing Profit Margin: MDRR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDRR is unprofitable, and losses have increased over the past 5 years at a rate of -59.8% per year.

Accelerating Growth: Unable to compare MDRR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MDRR is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (5.2%).


Return on Equity

High ROE: MDRR has a negative Return on Equity (-25.28%), as it is currently unprofitable.


Next Steps

Financial Health

How is Medalist Diversified REIT's financial position?


Financial Position Analysis

Short Term Liabilities: MDRR's short term assets ($3.5M) exceed its short term liabilities ($2.4M).

Long Term Liabilities: MDRR's short term assets ($3.5M) do not cover its long term liabilities ($61.7M).


Debt to Equity History and Analysis

Debt Level: MDRR's debt to equity ratio (322.2%) is considered high.

Reducing Debt: Insufficient data to determine if MDRR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MDRR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MDRR has less than a year of cash runway if free cash flow continues to reduce at historical rates of 63.2% each year


Next Steps

Dividend

What is Medalist Diversified REIT's current dividend yield, its reliability and sustainability?

25.00%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MDRR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MDRR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MDRR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MDRR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MDRR is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MDRR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average board tenure


CEO

Tim Messier (65yo)

no data

Tenure

US$367,600

Compensation

Mr. Thomas Edward Messier, also known as Tim, is Chairman of the Board, Chief Executive Officer, Secretary and Treasurer at Medalist Diversified REIT, Inc. and serves as its Director since September 2015.  ...


Board Members

NamePositionTenureCompensationOwnership
Thomas Messier
Chairmanno dataUS$367.60k2.67% $242.5k
William Elliott
Founderno dataUS$367.60k2.7% $244.5k
Mark Mullinix
Independent Director0.92yrno data0.39% $35.8k
Dianna Raedle
Independent Director0.92yrno data0.36% $32.5k
Charles Pearson
Independent Director1.58yrsUS$18.38k0.36% $32.5k
Neil Farmer
Independent Director3.17yrsUS$18.38k0.45% $40.6k
Charles Polk
Independent Director1.58yrsUS$18.38k0.084% $7.6k

1.6yrs

Average Tenure

62yo

Average Age

Experienced Board: MDRR's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MDRR insiders have bought more shares than they have sold 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 5.7%.


Top Shareholders

Company Information

Medalist Diversified REIT, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medalist Diversified REIT, Inc.
  • Ticker: MDRR
  • Exchange: NasdaqCM
  • Founded: 2015
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$9.066m
  • Market Cap: US$9.496m
  • Shares outstanding: 4.87m
  • Website: https://www.medalistreit.com

Location

  • Medalist Diversified REIT, Inc.
  • 11 South 12th Street
  • Suite 401
  • Richmond
  • Virginia
  • 23219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDRRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2018
MDRR.PNasdaqCM (Nasdaq Capital Market)8% SER A PFD STKUSUSDFeb 2020

Biography

Medalist Diversified REIT Inc. is a Maryland corporation formed on September 28, 2015. Beginning with taxable year ended December 31, 2017, company operated in a manner qualifying as a real estate investment trust (“REIT”), and have elected to be taxed as a REIT for federal income tax purposes. Company serves as the general partner of Medalist Diversified Holdings, LP which was formed as a Delaware limited partnership on September 29, 2015. Company was formed to acquire, reposition, renovate, lease and manage income-producing properties, with a primary focus on (i) commercial properties, including flex-industrial, limited service hotels, and retail properties, (ii) multi-family residential properties and (iii) hotel properties in secondary and tertiary markets in the southeastern part of the United States, with an expected concentration in Virginia, North Carolina, South Carolina, Georgia, Florida and Alabama. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 05:57
End of Day Share Price2020/06/05 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.