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MCAN Mortgage Corp. (TSE:MKP)
TSX:MKP
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MCAN Mortgage (MKP) AI Stock Analysis

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TSE:MKP

MCAN Mortgage

(TSX:MKP)

Rating:73Outperform
Price Target:
C$24.00
▲(9.69% Upside)
MCAN Mortgage's overall stock score is driven by strong technical indicators and a solid valuation, supported by a high dividend yield. While financial performance is robust, challenges in cash flow management present a risk. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Dividend Yield
MKP shares offer a sustainable 8.6% yield underpinned by a conservative regular dividend payout and management's focus on maintaining net interest margins.
Monetary Policies
Earnings growth appears set to resume supported by more accommodative monetary policies and expectation for spreads to stabilize.
Operational Performance
MKP's core operating performance continues to demonstrate margin focus and impressive loan growth amid a challenged housing market.
Negative Factors
Earnings Performance
Q1/25 results were below expectations, with EPS of $0.43 compared to a consensus of $0.52.
Impaired Mortgages
Impaired mortgages tick higher to 246 bps of the corporate mortgage portfolio, mainly related to five construction mortgages.

MCAN Mortgage (MKP) vs. iShares MSCI Canada ETF (EWC)

MCAN Mortgage Business Overview & Revenue Model

Company DescriptionMCAN Mortgage Corporation (MKP) is a Canadian financial institution primarily engaged in the real estate sector through the provision of residential and commercial mortgage products. The company's core services include originating, underwriting, and servicing mortgage loans. MCAN also invests in a diverse portfolio of real estate investments, including residential construction and commercial projects, aiming to generate stable and consistent returns for its shareholders.
How the Company Makes MoneyMCAN Mortgage makes money primarily through the interest income generated from its mortgage loan portfolio. The company originates both residential and commercial mortgages, collecting interest from borrowers over the life of the loans. Additionally, MCAN invests in a range of real estate-related assets and securities, which contribute to its earnings through dividends, interest, and capital appreciation. The company also engages in securitization activities, where it bundles mortgages into securities and sells them to investors, earning fees and potentially retaining interests in the securitized assets. Partnerships with other financial institutions and strategic alliances also play a role in enhancing MCAN's revenue streams and market reach.

MCAN Mortgage Financial Statement Overview

Summary
MCAN Mortgage exhibits strong revenue growth and profitability, with a solid balance sheet characterized by low leverage. However, challenges in cash flow management, including negative operating and free cash flows, pose risks to financial flexibility.
Income Statement
75
Positive
MCAN Mortgage has demonstrated strong revenue growth with a 22.83% increase in the TTM period, indicating a positive trajectory. The gross profit margin stands at 45.75%, and the net profit margin is 34.72%, both reflecting solid profitability. However, the decline in EBIT and EBITDA margins compared to previous periods suggests some pressure on operational efficiency.
Balance Sheet
65
Positive
The company maintains a low debt-to-equity ratio of 0.19, indicating conservative leverage and financial stability. The return on equity is 11.76%, which is decent but has decreased from previous years. The equity ratio is healthy, suggesting a strong capital structure, but the declining ROE could be a concern if the trend continues.
Cash Flow
55
Neutral
MCAN Mortgage's cash flow situation is challenging, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is high at 310.12%, but this is due to a recovery from a low base. The free cash flow to net income ratio is strong at 1.25, indicating good cash conversion, but the negative cash flows pose a risk to liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue257.36M127.28M123.94M88.43M96.50M66.42M
Gross Profit133.06M127.28M32.94M32.99M55.59M26.87M
EBITDA87.14M104.94M96.08M132.12M63.97M42.65M
Net Income71.39M77.59M77.50M55.35M64.36M42.89M
Balance Sheet
Total Assets5.74B5.35B4.74B4.08B3.81B2.73B
Cash, Cash Equivalents and Short-Term Investments134.52M61.70M60.34M78.21M122.27M88.93M
Total Debt258.37M6.17M66.38M8.60M1.70B2.77M
Total Liabilities5.12B4.75B4.21B3.59B3.37B2.38B
Stockholders Equity620.89M599.19M531.84M489.31M433.26M346.51M
Cash Flow
Free Cash Flow-157.16M48.97M-60.26M27.98M-113.73M58.81M
Operating Cash Flow-150.96M53.77M-59.59M28.27M-113.57M59.12M
Investing Cash Flow12.56M13.79M17.19M18.07M17.70M15.22M
Financing Cash Flow212.75M-66.20M24.54M-90.39M129.22M-39.87M

MCAN Mortgage Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.88
Price Trends
50DMA
20.39
Positive
100DMA
19.50
Positive
200DMA
18.65
Positive
Market Momentum
MACD
0.41
Negative
RSI
77.61
Negative
STOCH
92.84
Negative
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 21.88 is above the 20-day moving average (MA) of 21.32, above the 50-day MA of 20.39, and above the 200-day MA of 18.65, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 77.61 is Negative, neither overbought nor oversold. The STOCH value of 92.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MKP.

MCAN Mortgage Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$868.74M11.8611.84%7.40%12.10%-18.24%
70
Neutral
C$640.51M14.546.30%9.03%-10.69%-28.58%
68
Neutral
$17.95B11.5410.27%3.74%9.64%1.17%
68
Neutral
C$552.47M10.809.72%8.07%-11.04%0.44%
67
Neutral
C$442.31M11.619.14%8.50%-0.92%4.84%
52
Neutral
C$697.35M37.65-143.13%1.58%35.22%-1246.65%
$353.31M13.846.79%0.65%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MKP
MCAN Mortgage
21.63
5.43
33.52%
TSE:AI
Atrium Mortgage Invest
11.47
0.87
8.21%
TSE:FC
Firm Cap Mortgage Invest
12.04
1.62
15.55%
TSE:DLCG
Dominion Lending Centres, Inc. (Canada) Class A
8.84
5.15
139.57%
TSE:TF
Timbercreek Financial
7.64
0.56
7.91%
VBNK
Versabank
11.36
-1.92
-14.46%

MCAN Mortgage Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
MCAN Financial Group Renews $75 Million ATM Equity Program
Positive
Aug 11, 2025

MCAN Financial Group has renewed its at-the-market (ATM) equity program, allowing the company to issue up to $75 million in common shares to the public. The program, which has been a successful tool for raising capital over the past four years, will support the company’s growth in its mortgage lending and investing business. The ATM program offers a low-cost source of capital, and its renewal is expected to further enhance MCAN’s ability to expand its operations and strengthen its market position.

The most recent analyst rating on (TSE:MKP) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on MCAN Mortgage stock, see the TSE:MKP Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
MCAN Financial Group Reports Q2 2025 Results and Declares Dividend
Positive
Aug 7, 2025

MCAN Financial Group reported a net income of $20.2 million for Q2 2025, showing a slight increase from the previous year. The company’s performance was driven by higher mortgage spread income and increased income from MCAP, despite facing higher provisions for credit losses. MCAN’s total assets reached $5.7 billion, with significant growth in both non-securitized and securitized mortgage portfolios. The company launched a new uninsured residential mortgage securitization program with a major Canadian bank, aiming to enhance its securitization income and grow its uninsured originations. The Board declared a third-quarter cash dividend of $0.41 per share, reflecting MCAN’s strategy of distributing all taxable income to shareholders through dividends.

The most recent analyst rating on (TSE:MKP) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on MCAN Mortgage stock, see the TSE:MKP Stock Forecast page.

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: Aug 20, 2025