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Firm Cap Mortgage Invest (TSE:FC)
TSX: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 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 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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
69.48M68.63M46.49M43.15M34.21M33.64M
Gross Profit
60.41M50.82M41.64M38.46M30.06M29.87M
EBIT
59.96M67.93M39.84M47.10M29.99M26.35M
EBITDA
55.21M58.66M59.58M47.10M39.93M38.29M
Net Income Common Stockholders
36.63M35.23M34.16M32.23M29.99M26.35M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.000.009.37M0.000.000.00
Total Assets
593.33M631.22M589.61M656.18M641.71M557.87M
Total Debt
188.56M199.90M182.80M251.24M252.36M209.37M
Net Debt
188.56M199.90M173.43M251.24M252.36M209.37M
Total Liabilities
193.61M207.84M190.42M257.13M259.04M214.53M
Stockholders Equity
399.72M423.39M399.19M399.05M382.67M343.35M
Cash FlowFree Cash Flow
-123.82K-13.76M63.47M51.86M41.29M37.79M
Operating Cash Flow
3.72M-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 Price12.37
Price Trends
50DMA
11.75
Positive
100DMA
11.68
Positive
200DMA
11.34
Positive
Market Momentum
MACD
0.16
Negative
RSI
72.06
Negative
STOCH
72.79
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 12.37 is above the 20-day moving average (MA) of 12.07, above the 50-day MA of 11.75, and above the 200-day MA of 11.34, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 72.06 is Negative, neither overbought nor oversold. The STOCH value of 72.79 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$785.91M7.888.68%3.94%20.65%-2.36%
TSTF
75
Outperform
C$607.41M13.086.74%9.40%-8.68%-25.42%
TSMKP
74
Outperform
C$766.98M10.6111.99%8.07%19.71%-15.59%
TSAI
68
Neutral
C$531.49M10.729.47%8.12%-1.56%-9.70%
TSFC
67
Neutral
C$453.69M12.148.89%7.58%-4.56%0.77%
64
Neutral
$12.76B9.777.59%16985.66%12.30%-7.71%
$336.67M13.066.79%0.69%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FC
Firm Cap Mortgage Invest
12.37
2.42
24.32%
TSE:AGF.B
AGF Management B NV
12.00
3.83
46.88%
TSE:AI
Atrium Mortgage Invest
11.22
0.91
8.83%
TSE:MKP
MCAN Mortgage
19.63
4.48
29.57%
TSE:TF
Timbercreek Financial
7.42
0.76
11.41%
VBNK
Versabank
10.39
-0.17
-1.61%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.