Firm Cap Mortgage Invest (FC) AI Stock Analysis

• Market Cap: C$441.22M
• Dividend Yield: 8.38%
• Average Volume (3M): 42.31K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.47
• Revenue Growth: -6.64%
• EPS Growth: 4.43%
• Country: CA
• Employees: 1
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.25
• Shares Outstanding: 36,737,434
• 10 Day Avg. Volume: 51,687
• 30 Day Avg. Volume: 42,308
• PEG Ratio: -2.81
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 6.16
• P/FCF Ratio: -30.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$13.00 ▲(10.08% Upside)

The score is primarily held back by weak and volatile recent cash flow (poor cash conversion vs. earnings) and softer TTM revenue momentum, despite strong reported profitability and improving leverage. Technicals are mildly supportive with price above major moving averages and positive MACD, while valuation is a plus due to a moderate P/E and very high dividend yield; recent corporate updates further support the income and balance-sheet narrative.

Positive Factors

Revenue Growth

Consistent revenue and net income growth indicate strong market demand and effective business strategies, supporting long-term financial stability.

Proactive Financial Management

Early redemption of debentures demonstrates proactive financial management, potentially reducing interest expenses and improving liquidity.

Shareholder Value Enhancement

Regular dividends and reinvestment plans enhance shareholder value, fostering investor confidence and long-term engagement.

Negative Factors

Negative Cash Flow

Negative cash flow indicates inefficiencies in converting revenue to cash, potentially impacting liquidity and operational flexibility.

Operational Efficiency Concerns

Lack of EBIT and EBITDA suggests operational inefficiencies, which could hinder profitability and growth if not addressed.

Cash Flow Challenges

Declining free cash flow affects the company's ability to fund operations and investments, posing risks to financial health.

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 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.35M	68.63M	66.22M	58.02M	45.30M	44.18M
Gross Profit	49.30M	50.82M	40.81M	40.14M	35.36M	32.24M
EBITDA	43.87M	58.66M	34.16M	32.23M	29.99M	26.35M
Net Income	37.90M	35.23M	34.16M	32.23M	29.99M	26.35M
Balance Sheet
Total Assets	598.73M	631.22M	589.61M	656.18M	640.28M	557.87M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	9.37M	0.00	0.00	0.00
Total Debt	167.46M	199.90M	182.80M	251.24M	252.36M	209.37M
Total Liabilities	172.31M	207.84M	190.42M	257.13M	257.61M	214.53M
Stockholders Equity	426.42M	423.39M	399.19M	399.05M	382.67M	343.35M
Cash Flow
Free Cash Flow	3.25M	-13.76M	63.47M	51.86M	40.95M	37.79M
Operating Cash Flow	3.25M	-13.76M	63.47M	51.86M	40.95M	37.79M
Investing Cash Flow	45.14M	0.00	62.79M	-18.80M	-83.19M	-77.80M
Financing Cash Flow	-43.91M	-7.30M	-88.26M	-27.75M	40.35M	22.51M

Firm Cap Mortgage Invest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.81
• 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 11.81 is above the 20-day moving average (MA) of 11.77, above the 50-day MA of 11.71, and above the 200-day MA of 11.68, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 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	70 Outperform	C$559.40M	11.21	9.72%	7.95%	-13.69%	-1.60%
FC	69 Neutral	C$441.22M	11.69	8.90%	8.38%	-6.64%	4.43%
MKP	69 Neutral	C$912.62M	13.65	10.50%	7.33%	7.74%	-31.96%
TF	68 Neutral	C$581.76M	15.43	5.52%	10.00%	-9.00%	-35.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSZ	62 Neutral	C$652.53M	21.01	11.26%	8.78%	-0.88%	-52.30%
ECN	56 Neutral	C$859.29M	144.29	5.73%	1.32%	27.37%	―

Firm Cap Mortgage Invest Corporate Events

Firm Capital Confirms Special Year-End Dividend and Sets 2026 Payouts

Firm Capital Mortgage Investment Corporation has confirmed a special year-end dividend of $0.084 per common share, bringing the total December 2025 distribution to $0.162 per share, payable on January 15, 2026 to shareholders of record on December 31, 2025. The special payout reflects that 2025 income exceeded regular dividends and ensures full distribution of taxable income, resulting in total 2025 dividends of $1.02 per share, slightly above the prior year; the board has also declared monthly cash dividends of $0.078 per common share for the first quarter of 2026, underscoring the company’s continued focus on providing stable income to shareholders while cautioning that the special dividend should not be viewed as a signal of future performance.

The most recent analyst rating on (TSE:FC) stock is a Hold with a C$13.00 price target. To see the full list of analyst forecasts on Firm Cap Mortgage Invest stock, see the TSE:FC Stock Forecast page.

Firm Capital Announces Special Dividend and Future Payouts

Firm Capital Mortgage Investment Corporation announced a special year-end cash dividend of $0.084 per share, bringing the total dividends for 2025 to $1.02 per share. Additionally, the company declared dividends for December 2025 and the first quarter of 2026, aiming to provide stable returns to shareholders. This announcement highlights the company’s strong financial performance and commitment to delivering consistent dividends, which may positively impact its market positioning and shareholder confidence.

The most recent analyst rating on (TSE:FC) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Firm Cap Mortgage Invest stock, see the TSE:FC Stock Forecast page.

Firm Capital Mortgage Investment Corporation Reports Q3 2025 Financial Results

Firm Capital Mortgage Investment Corporation reported a 1.4% increase in net income for Q3 2025, with a 10.3% rise over the nine months ending September 30, 2025, compared to the previous year. Despite a 4.1% decrease in its investment portfolio, the company maintained strong earnings and distributions, with a notable portion of its portfolio maturing by the end of 2025. The corporation continues to offer a Dividend Reinvestment Plan and Share Purchase Plan to its shareholders, enhancing shareholder value.

The most recent analyst rating on (TSE:FC) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Firm Cap Mortgage Invest stock, see the TSE:FC Stock Forecast page.

Firm Capital Mortgage Investment Corporation Expands Debenture Offering

Firm Capital Mortgage Investment Corporation announced the partial exercise of an over-allotment option by underwriters, resulting in the issuance of an additional $3,150,000 in convertible unsecured subordinated debentures. This brings the total to $28,150,000, with proceeds intended to repay indebtedness. The debentures are listed on the Toronto Stock Exchange, and the move is expected to strengthen the company’s financial position and provide stability to its stakeholders.

The most recent analyst rating on (TSE:FC) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Firm Cap Mortgage Invest stock, see the TSE:FC Stock Forecast page.

Firm Capital Completes $25 Million Debenture Offering

Firm Capital Mortgage Investment Corporation has successfully completed a $25 million public offering of convertible unsecured subordinated debentures, which will trade on the Toronto Stock Exchange. The proceeds from this offering will be used to repay existing indebtedness, potentially strengthening the company’s financial position and enhancing its ability to meet its investment objectives.

The most recent analyst rating on (TSE:FC) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Firm Cap Mortgage Invest stock, see the TSE:FC Stock Forecast page.