MCAN Financial (TSE:MKP)
TSX:MKP
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MCAN Financial
(TSX:MKP)
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Rating:70Outperform
Price Target:
C$28.00
▲(15.08% Upside)
Action:Upgraded
Date:05/04/26
The score is driven primarily by solid profitability and very strong recent cash flow, tempered by elevated balance-sheet leverage risk. Technicals are bullish but stretched (overbought), while valuation is supportive due to a moderate P/E and high dividend yield.
Positive Factors
Cash Generation
Sustained TTM operating and free cash flow near $920M provides durable internal funding for lending, securitization activity, dividends and reserves. Strong cash conversion reduces near-term refinancing needs and supports strategic flexibility across 2–6 months.
Negative Factors
High Leverage
Debt-to-equity near 5.4 materially increases sensitivity to funding costs and interest-rate moves, constraining flexibility. Elevated leverage heightens earnings and solvency risk if mortgage performance or securitization markets weaken, affecting durability of returns over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained TTM operating and free cash flow near $920M provides durable internal funding for lending, securitization activity, dividends and reserves. Strong cash conversion reduces near-term refinancing needs and supports strategic flexibility across 2–6 months.
Read all positive factors
MCAN Financial (MKP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$990.66M
Dividend Yield7.33%
Average Volume (3M)55.88K
Price to Earnings (P/E)10.0
Beta (1Y)0.72
Revenue Growth10.47%
EPS Growth9.78%
CountryCA
Employees160
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)2.03
Shares Outstanding40,701,027
10 Day Avg. Volume57,358
30 Day Avg. Volume55,882
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)1.38
Price to Sales (P/S)3.01
P/FCF Ratio0.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$24.50Price Target Upside0.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.11
Revenue Forecast (FY)N/A
MCAN Financial Business Overview & Revenue Model
Company Description
MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada. The company offers single-family residential mortgages, as well as residential construction, non-residential construction, and commercial loans, as well as...
How the Company Makes Money
MCAN primarily makes money from (1) net interest income generated by earning interest on residential mortgages and mortgage-related assets while paying interest on its funding sources (e.g., deposits and other borrowings), capturing the spread bet...
MCAN Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
48
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 318.77M | 295.21M | 298.26M | 245.88M | 165.48M | 152.87M |
| Gross Profit | 174.67M | 181.43M | 127.28M | 123.13M | 88.43M | 96.50M |
| EBITDA | 112.87M | 150.13M | 76.55M | 78.23M | 55.07M | 63.97M |
| Net Income | 81.31M | 74.87M | 77.59M | 77.50M | 55.35M | 64.36M |
Balance Sheet | ||||||
| Total Assets | 6.66B | 6.48B | 5.35B | 4.74B | 4.08B | 3.81B |
| Cash, Cash Equivalents and Short-Term Investments | 129.49M | 205.83M | 61.70M | 60.34M | 78.21M | 122.27M |
| Total Debt | 69.58M | 3.47B | 6.17M | 66.38M | 8.60M | 100.97M |
| Total Liabilities | 6.00B | 5.83B | 4.75B | 4.21B | 3.59B | 3.37B |
| Stockholders Equity | 656.03M | 644.85M | 599.19M | 531.84M | 489.31M | 433.26M |
Cash Flow | ||||||
| Free Cash Flow | 919.76M | 1.07B | 48.97M | -60.26M | 27.98M | -113.73M |
| Operating Cash Flow | 919.77M | 1.07B | 53.77M | -59.59M | 28.27M | -113.57M |
| Investing Cash Flow | -772.89M | -1.08B | 13.79M | 17.19M | 18.07M | 17.70M |
| Financing Cash Flow | -125.41M | 42.03M | -66.20M | 24.54M | -90.39M | 129.22M |
MCAN Financial Technical Analysis
Positive
24.33
Price Trends
23.71
Positive
23.19
Positive
21.98
Positive
Market Momentum
0.16
Positive
50.44
Neutral
20.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MKP, the sentiment is Positive. The current price of 24.33 is below the 20-day moving average (MA) of 24.70, above the 50-day MA of 23.71, and above the 200-day MA of 21.98, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 20.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MKP.
MCAN Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$434.99M | 12.59 | 8.48% | 8.38% | -8.75% | -3.51% | |
70 Outperform | C$990.66M | 9.97 | 12.71% | 7.33% | 10.47% | 9.78% | |
70 Outperform | C$747.22M | 15.26 | 5.89% | 0.49% | 4.86% | -24.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$654.78M | 38.32 | 16.96% | 1.51% | 9.56% | ― | |
62 Neutral | C$561.83M | 11.53 | 9.36% | 7.95% | -11.74% | -1.31% | |
57 Neutral | C$530.45M | 13.44 | 4.48% | 10.00% | -10.08% | -35.26% |
* Financial Sector Average
TSE:MKP
MCAN Financial
24.41
6.69
37.73%
TSE:AI
Atrium Mortgage Invest
11.62
1.46
14.33%
TSE:FC
Firm Cap Mortgage Invest
11.83
0.69
6.17%
TSE:DLCG
Dominion Lending Centres, Inc. (Canada) Class A
8.55
0.21
2.51%
TSE:TF
Timbercreek Financial
6.39
-0.19
-2.89%
TSE:VBNK
Versabank
23.90
7.81
48.51%
MCAN Financial Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
MCAN Financial Posts Steady 2025 Results, Lifts Dividend as Mortgage Assets Surge
Positive
Feb 24, 2026
MCAN Financial Group reported steady 2025 earnings despite falling interest rates, supported by a 30% year-over-year increase in assets under management to $7.8 billion and record residential mortgage originations. Net income for the year slipped ...
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.