OTCPK:MRCB.F

Stock Analysis Report

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Executive Summary

Morguard Corporation, a real estate investment and management corporation, acquires, owns, and develops real estate properties in Canada and the United States.


Snowflake Analysis

Fair value with poor track record.

Share Price & News

How has Morguard's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRCB.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

MRCB.F

3.0%

US Real Estate

1.0%

US Market


1 Year Return

-38.5%

MRCB.F

-27.6%

US Real Estate

4.1%

US Market

Return vs Industry: MRCB.F underperformed the US Real Estate industry which returned -27.4% over the past year.

Return vs Market: MRCB.F underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

MRCB.FIndustryMarket
7 Day0%3.0%1.0%
30 Day-0.5%2.7%5.4%
90 Dayn/a-35.1%-5.7%
1 Year-38.3%-38.5%-27.1%-27.6%6.5%4.1%
3 Yearn/a-24.6%-26.2%28.3%19.8%
5 Year-28.4%-29.6%-33.2%-35.3%52.2%35.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Morguard undervalued compared to its fair value and its price relative to the market?

7.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRCB.F ($86.19) is trading above our estimate of fair value ($4.9)

Significantly Below Fair Value: MRCB.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRCB.F is good value based on its PE Ratio (7.1x) compared to the Real Estate industry average (14.4x).

PE vs Market: MRCB.F is good value based on its PE Ratio (7.1x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MRCB.F is good value based on its PB Ratio (0.4x) compared to the US Real Estate industry average (1x).


Next Steps

Future Growth

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

-4.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MRCB.F's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if MRCB.F's earnings are forecast to grow faster than the US market

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

Revenue vs Market: MRCB.F's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: MRCB.F's revenue is forecast to decline over the next 3 years (-4.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MRCB.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Morguard performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRCB.F has a large one-off loss of CA$179.2M impacting its March 31 2020 financial results.

Growing Profit Margin: MRCB.F's current net profit margins (15.1%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: MRCB.F's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: MRCB.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRCB.F had negative earnings growth (-21%) over the past year, making it difficult to compare to the Real Estate industry average (-6.4%).


Return on Equity

High ROE: MRCB.F's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Morguard's financial position?


Financial Position Analysis

Short Term Liabilities: MRCB.F's short term assets (CA$312.1M) do not cover its short term liabilities (CA$1.3B).

Long Term Liabilities: MRCB.F's short term assets (CA$312.1M) do not cover its long term liabilities (CA$6.2B).


Debt to Equity History and Analysis

Debt Level: MRCB.F's debt to equity ratio (144.3%) is considered high.

Reducing Debt: MRCB.F's debt to equity ratio has increased from 121.4% to 144.3% over the past 5 years.

Debt Coverage: MRCB.F's debt is not well covered by operating cash flow (4.8%).

Interest Coverage: MRCB.F's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Morguard's current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MRCB.F's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: MRCB.F's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: MRCB.F is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MRCB.F is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MRCB.F'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?

13.3yrs

Average management tenure


CEO

Kuldip Sahi (72yo)

no data

Tenure

CA$2,989,609

Compensation

Mr. Kuldip Rai Sahi, FCPA, FCGA, has been the President and Chief Executive Officer of Morguard Real Estate Investment Trust and Trustee since November 10, 1998 and Chairman, President and Chief Executive  ...


CEO Compensation Analysis

Compensation vs Market: Kuldip's total compensation ($USD2.13M) is below average for companies of similar size in the US market ($USD3.24M).

Compensation vs Earnings: Kuldip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman & CEOno dataCA$2.99m59.49% CA$558.0m
Paul Miatello
Senior VP & CFO13.08yrsCA$502.57k0.093% CA$876.8k
Angela Sahi
Senior VP of Corporate Development & Director3yrsCA$402.64kno data
W. MacDonald
Executive Vice President of Retail Asset Management - Morguard Investments Limitedno dataCA$550.04kno data
Gordon Vollmer
Executive Vice President of Office & Industrial Asset Management - Morguard Investments Limited13.33yrsno datano data
John Talano
Senior Vice President of Morguard Managementno dataCA$575.12kno data
David Wyatt
Senior Vice President of Retail Leasing & Operations - MILno dataCA$475.11kno data
Beverley Flynn
Senior VPno datano data0.036% CA$333.5k
Pamela McLean
CFO of Morguard REIT & Senior VP of Finance and CFO of Morguard Investments Ltd.no datano datano data
Margaret Knowles
Senior Vice President of Development - Morguard Investments Limitedno dataCA$385.82kno data

13.3yrs

Average Tenure

Experienced Management: MRCB.F's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kuldip Sahi
Chairman & CEOno dataCA$2.99m59.49% CA$558.0m
Angela Sahi
Senior VP of Corporate Development & Director3yrsCA$402.64kno data
Graeme Eadie
Independent Director2yrsCA$81.00kno data
Chris Cahill
Independent Director5yrsCA$94.31k0.027% CA$250.1k
William Braithwaite
Independent Directorno datano data0.0089% CA$83.4k
Bruce Robertson
Lead Independent Directorno dataCA$104.17k0.076% CA$709.4k
David King
Director29.75yrsCA$50.00k0.70% CA$6.5m
Michael Robb
Independent Director7yrsCA$52.50kno data
Leonard Sharpe
Independent Director9.5yrsCA$52.50k0.027% CA$250.1k

6.0yrs

Average Tenure

69yo

Average Age

Experienced Board: MRCB.F's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MRCB.F insiders have bought more shares than they have sold 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

Morguard Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Morguard Corporation
  • Ticker: MRCB.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Market Cap: CA$1.316b
  • Listing Market Cap: CA$937.943m
  • Shares outstanding: 11.25m
  • Website: https://www.morguard.com

Location

  • Morguard Corporation
  • 55 City Centre Drive
  • Suite 800
  • Mississauga
  • Ontario
  • L5B 1M3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRCTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
MRCB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1972

Biography

Morguard Corporation, a real estate investment and management corporation, acquires, owns, and develops real estate properties in Canada and the United States. As of February 20, 2020, the company owned a portfolio of 207 multi-suite residential, retail, office, industrial, and hotel properties that comprised 17,637 residential suites, approximately 17.2 million square feet of commercial leasable space, and 5,903 hotel rooms. It also offers real estate management services, including acquisitions, development, dispositions, leasing, performance measurement, and asset and property management; real estate advisory services; and investment products across equity, fixed-income, and balanced portfolios to institutional clients and private investors. The company is headquartered in Mississauga, Canada. Morguard Corporation is a subsidiary of Paros Enterprises Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 02:10
End of Day Share Price2020/05/19 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.