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Firm Cap Mortgage Invest (TSE:FC)
:FC

Firm Cap Mortgage Invest (FC) AI Stock Analysis

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Firm Cap Mortgage Invest

(TSX:FC)

Rating:67Neutral
Price Target:―
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 (FC) vs. iShares MSCI Canada ETF (EWC)

Firm Cap Mortgage Invest Business Overview & Revenue Model

Company DescriptionFirm Cap Mortgage Invest (FC) is a financial services company specializing in the mortgage investment sector. The company focuses on providing a range of mortgage-related products and services, including residential and commercial mortgage loans, mortgage-backed securities, and investment opportunities for institutional and individual investors. FC leverages its expertise in the mortgage market to offer customized financial solutions that meet the diverse needs of its clients.
How the Company Makes MoneyFirm 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 shows strong revenue growth and profitability, supported by a solid balance sheet. Concerns arise from negative cash flow and the absence of EBIT/EBITDA in 2024, indicating potential operational and cash management issues.
Income Statement
75
Positive
Firm Cap Mortgage Invest shows a consistent revenue growth trend, with a 9.3% increase in 2024. The gross profit margin remains robust at 100% due to the nature of the mortgage industry. However, the absence of EBIT and EBITDA in 2024 raises concerns about operational efficiency. Net profit margin slightly improved to 69.3% in 2024, indicating strong profitability.
Balance Sheet
70
Positive
The company maintains a stable debt-to-equity ratio of 0.47, suggesting a balanced leverage strategy. Return on Equity (ROE) is healthy at 8.3%, reflecting efficient use of equity to generate profits. The equity ratio of 67.1% indicates a strong equity base. However, fluctuations in total debt and equity over the years suggest potential volatility.
Cash Flow
60
Neutral
Operating cash flow turned negative in 2024, raising concerns about cash generation from operations. Free cash flow also declined, impacting the company's cash reserves. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income to cash. These cash flow challenges could pose risks if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue69.48M68.63M46.49M43.15M34.21M33.64M
Gross Profit60.41M50.82M41.64M38.46M30.06M29.87M
EBITDA55.21M58.66M59.58M47.10M39.93M38.29M
Net Income36.63M35.23M34.16M32.23M29.99M26.35M
Balance Sheet
Total Assets607.01M631.22M589.61M656.18M641.71M557.87M
Cash, Cash Equivalents and Short-Term Investments0.000.009.37M0.000.000.00
Total Debt176.94M199.90M182.80M251.24M252.36M209.37M
Total Liabilities182.23M207.84M190.42M257.13M259.04M214.53M
Stockholders Equity424.78M423.39M399.19M399.05M382.67M343.35M
Cash Flow
Free Cash Flow-123.82K-13.76M63.47M51.86M41.29M37.79M
Operating Cash Flow3.72M-13.76M63.47M51.86M41.29M37.79M
Investing Cash Flow-48.61M-63.72M62.79M-18.80M-83.52M-77.80M
Financing Cash Flow-12.69M-7.30M-88.26M-27.75M40.35M22.51M

Firm Cap Mortgage Invest Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.26
Price Trends
50DMA
12.06
Positive
100DMA
11.81
Positive
200DMA
11.48
Positive
Market Momentum
MACD
0.06
Positive
RSI
52.03
Neutral
STOCH
24.09
Neutral
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 12.26 is below the 20-day moving average (MA) of 12.33, above the 50-day MA of 12.06, and above the 200-day MA of 11.48, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 24.09 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSAI
68
Neutral
C$547.94M11.059.47%11.18%-1.56%-9.70%
TSFC
67
Neutral
C$450.39M12.038.89%10.48%-4.56%0.77%
60
Neutral
C$14.55B5.4520.17%6.14%26.88%-38.18%
TSFN
57
Neutral
C$2.47B14.2024.01%8.31%13.85%-33.76%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FC
Firm Cap Mortgage Invest
12.26
2.16
21.39%
TSE:AI
Atrium Mortgage Invest
11.53
1.59
16.00%
TSE:FN
First National Financial
41.26
7.97
23.94%

Firm Cap Mortgage Invest Corporate Events

Dividends
Firm Capital Announces Monthly Dividends and Shareholder Plans
Positive
Apr 8, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Firm Capital Announces Early Redemption of Debentures
Positive
Apr 8, 2025

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.

DividendsFinancial Disclosures
Firm Capital Mortgage Investment Corporation Reports Growth in Q4 2024 Results
Positive
Mar 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 09, 2025