Firm Cap Mortgage Invest (FC) AI Stock Analysis

• Market Cap: C$431.64M
• Dividend Yield: 8.04%
• Average Volume (3M): 49.51K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.35
• Revenue Growth: -4.56%
• EPS Growth: 0.77%
• Country: CA
• Employees: 1
• Sector: Financial
• Sector Strength: 76
• Industry: Financial - Mortgages
• EPS (TTM): 0.99
• Shares Outstanding: 36,735,065
• 10 Day Avg. Volume: 61,993
• 30 Day Avg. Volume: 49,506
• PEG Ratio: 15.34
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.56
• Price to Cash Flow (P/CF): 6.80
• P/FCF Ratio: 5.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.00
• Price Target Upside: 10.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Firm Cap Mortgage Invest has a strong financial foundation and attractive valuation, bolstered by positive corporate events. However, cash flow challenges and short-term technical caution weigh on the overall score. Addressing cash flow inefficiencies is crucial for maintaining stability and supporting future growth.

Firm Cap Mortgage Invest Business Overview & Revenue Model

Company Description

Firm Capital Mortgage Investment Corporation, through its mortgage banker, Firm Capital Corporation, provides residential and commercial short-term bridge, and conventional real estate finance in Canada. It engages in originating, funding, purchasing, and servicing mortgage investments. The company also offers mortgage services, such as real estate financing, real estate investment financing, capital market, and loan servicing and advisory services; and a line of lending programs, including construction and development lending, investment property financing, short term lending, bridge finance, mezzanine and equity investments, capital market facilities, residential and non-conventional house lending, and condominium capital improvement loans, as well as special situation loans. In addition, it provides related investment services. The company was founded in 1988 and is based in Toronto, Canada.

How the Company Makes Money

Firm Cap Mortgage Invest generates revenue primarily through the origination and servicing of mortgage loans. The company earns interest income on the mortgage loans it holds, as well as fees associated with originating and servicing these loans. Additionally, FC may package and sell mortgage-backed securities, earning income from the premiums on these sales. The company's partnerships with real estate firms, financial institutions, and investment entities enhance its ability to source and manage high-quality mortgage assets, while also expanding its market reach and customer base. Significant factors contributing to its earnings include fluctuations in interest rates, housing market conditions, and the overall economic environment.

Firm Cap Mortgage Invest Financial Statement Overview

Summary

Firm Cap Mortgage Invest demonstrates strong financial health with robust profitability and efficient cost management, as seen in its high profit margins. The balance sheet reflects a stable leverage position and strong equity backing. Although there are minor concerns regarding asset reduction and free cash flow growth, the company's overall financial position is solid, with a good balance of growth and stability.

Income Statement

The company has shown solid revenue growth with a notable increase of 51.73% in the TTM (Trailing-Twelve-Months) compared to the previous year. Gross profit margins are strong at 93.52% for TTM, indicating efficiency in controlling costs. With a net profit margin of 48.75% and an EBIT margin of 92.75%, the firm demonstrates high profitability. However, the EBITDA margin has decreased, which may indicate increased non-operating expenses.

Balance Sheet

The debt-to-equity ratio is 0.44, indicating a conservative leverage position, which is favorable for stability. The return on equity (ROE) is strong at 8.10% for TTM, though slightly lower than the previous year, suggesting solid profitability. The equity ratio of 68.50% shows strong capitalization. However, a decrease in total assets may pose a potential risk for future growth.

Cash Flow

The company has maintained a positive free cash flow, with a slight decrease in growth rate by 20.48% in the TTM. The operating cash flow to net income ratio of 1.47 indicates healthy cash generation relative to net income. Additionally, the free cash flow to net income ratio of 1.47 reflects robust financial health. Despite a decrease in free cash flow growth, the overall cash flow situation remains stable.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
70.55M	46.49M	43.15M	34.21M	33.64M	34.67M
	Gross Profit
65.98M	41.64M	38.46M	30.06M	29.87M	30.99M
	EBIT
65.47M	39.84M	47.10M	29.99M	26.35M	28.00M
	EBITDA
31.75M	59.58M	47.10M	39.93M	38.29M	28.00M
	Net Income Common Stockholders
34.40M	34.16M	32.23M	29.99M	26.35M	28.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	9.37M	0.00	0.00	0.00	0.00
	Total Assets
520.07M	589.61M	656.18M	641.71M	557.87M	479.80M
	Total Debt
227.42M	182.80M	251.24M	252.36M	209.37M	159.50M
	Net Debt
227.42M	173.43M	251.24M	252.36M	209.37M	159.50M
	Total Liabilities
233.96M	190.42M	257.13M	259.04M	214.53M	165.90M
	Stockholders Equity
286.11M	399.19M	399.05M	382.67M	343.35M	313.90M
Cash Flow		Free Cash Flow
50.47M	63.47M	51.86M	41.29M	37.79M	40.65M
	Operating Cash Flow
50.47M	63.47M	51.86M	41.29M	37.79M	40.65M
	Investing Cash Flow
-66.91M	62.79M	-18.80M	-83.52M	-77.80M	40.01M
	Financing Cash Flow
-40.88M	-101.66M	-27.75M	40.35M	22.51M	-68.29M

Firm Cap Mortgage Invest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FC, the sentiment is Positive. The current price of 11.75 is above the 20-day moving average (MA) of 11.60, above the 50-day MA of 11.71, and above the 200-day MA of 11.27, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 87.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FC.

Firm Cap Mortgage Invest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AI	68 Neutral	C$514.36M	10.19	9.58%	8.44%	-1.56%	-9.70%
FC	67 Neutral	C$431.64M	11.80	8.57%	8.04%	-4.56%	0.77%
Sector *	63 Neutral	$12.07B	9.35	8.15%	79.57%	12.85%	-5.13%
FN	59 Neutral	C$2.35B	11.79	27.56%	6.30%	16.99%	-19.87%

Firm Cap Mortgage Invest Corporate Events

Firm Capital Announces Monthly Dividends and Shareholder Plans

Firm Capital Mortgage Investment Corporation announced a monthly cash dividend of $0.078 per share for shareholders, with specific payment dates in May, June, and July 2025. The company also offers a Dividend Reinvestment Plan (DRIP) and Share Purchase Plan, allowing shareholders to reinvest dividends and purchase additional shares without commission, thus enhancing shareholder value and engagement.

Spark’s Take on TSE:FC Stock

According to Spark, TipRanks’ AI Analyst, TSE:FC is a Neutral.

Firm Cap Mortgage Invest is supported by strong financial performance and attractive valuation, despite cash flow challenges. The positive corporate events further bolster the stock’s appeal, but technical analysis shows some short-term caution.

To see Spark’s full report on TSE:FC stock, click here.

Firm Capital Announces Early Redemption of Debentures

Firm Capital Mortgage Investment Corporation announced the early redemption of its 5.40% convertible unsecured subordinated debentures due June 30, 2025, with a redemption date set for May 12, 2025. This strategic move, funded through cash on hand, reflects the company’s proactive financial management and may enhance its market positioning by potentially reducing interest obligations and improving liquidity.

Spark’s Take on TSE:FC Stock

According to Spark, TipRanks’ AI Analyst, TSE:FC is a Neutral.

Firm Cap Mortgage Invest is supported by strong financial performance and attractive valuation, despite cash flow challenges. The positive corporate events further bolster the stock’s appeal, but technical analysis shows some short-term caution.

To see Spark’s full report on TSE:FC stock, click here.

Firm Capital Mortgage Investment Corporation Reports Growth in Q4 2024 Results

Firm Capital Mortgage Investment Corporation reported a 9.9% increase in net income for Q4 2024, with a 3.1% rise for the entire year. The investment portfolio grew by 9.3% to $653.8 million, with new investment funding reaching $329 million. The company maintains a diversified mortgage investment portfolio, primarily in Ontario, and offers a Dividend Reinvestment Plan and Share Purchase Plan to shareholders. The corporation declared dividends totaling $35.2 million for 2024, slightly up from the previous year.