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MCAN Financial
(TSX:MKP)
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Rating:63Neutral
Price Target:
C$25.00
▼(-2.87% Downside)
Action:Downgraded
Date:08/01/26
The score is driven primarily by solid financial performance (strong profitability, re-accelerating revenue, and strong recent cash generation) but is held back by significantly higher leverage on the balance sheet. Valuation is supportive (low-to-moderate P/E and high dividend yield), while technicals are weak in the near-to-medium term with the price below key shorter moving averages.
Positive Factors
Profitability & Revenue Momentum
Sustained high net margin and re-accelerating revenue indicate durable core earning power from mortgage spread and fee activities. Strong trailing cash generation tied to earnings supports reinvestment, dividends, and resilience versus cyclical slowdowns in originations.
Negative Factors
High Leverage
Debt-to-equity above 5x materially increases refinancing and liquidity sensitivity. Elevated leverage reduces financial flexibility to endure rate shocks or credit stress, raising the probability that funding or capital measures could constrain growth or force asset dispositions.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Revenue Momentum
Sustained high net margin and re-accelerating revenue indicate durable core earning power from mortgage spread and fee activities. Strong trailing cash generation tied to earnings supports reinvestment, dividends, and resilience versus cyclical slowdowns in originations.
Read all positive factors
MCAN Financial (MKP) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$917.40M
Dividend Yield7.46%
Average Volume (3M)55.88K
Price to Earnings (P/E)10.7
Beta (1Y)0.70
Revenue Growth12.78%
EPS Growth14.21%
CountryCA
Employees163
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)2.11
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.12
Revenue Forecast (FY)N/A
MCAN Financial Business Overview & Revenue Model
Company Description
MCAN Mortgage Corporation is a Canadian financial entity that specializes in mortgage and loan investments. Its extensive lending activities encompass financing for single-family homes, capital for both residential and commercial construction proj...
How the Company Makes Money
MCAN primarily makes money from (1) net interest income on its mortgage portfolio and (2) fee-based income tied to mortgage origination and servicing, with results influenced by funding costs, credit performance, and market interest rates.
1) Net...
MCAN Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
48
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 320.59M | 295.21M | 298.26M | 245.88M | 165.48M | 152.87M |
| Gross Profit | 193.37M | 181.43M | 127.28M | 123.13M | 88.43M | 96.50M |
| EBITDA | 145.75M | 150.13M | 76.55M | 78.23M | 55.65M | 64.65M |
| Net Income | 85.13M | 74.87M | 77.59M | 77.50M | 55.35M | 64.36M |
Balance Sheet | ||||||
| Total Assets | 6.64B | 6.48B | 5.35B | 4.74B | 4.08B | 3.81B |
| Cash, Cash Equivalents and Short-Term Investments | 192.76M | 205.83M | 61.70M | 60.34M | 78.21M | 122.27M |
| Total Debt | 3.70B | 3.47B | 6.17M | 66.38M | 8.60M | 100.97M |
| Total Liabilities | 5.97B | 5.83B | 4.75B | 4.21B | 3.59B | 3.37B |
| Stockholders Equity | 666.90M | 644.85M | 599.19M | 531.84M | 489.31M | 433.26M |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 1.07B | 48.97M | -60.26M | 27.98M | -113.73M |
| Operating Cash Flow | 1.15B | 1.07B | 53.77M | -59.59M | 28.27M | -113.57M |
| Investing Cash Flow | -800.19M | -1.08B | 13.79M | 17.19M | 18.07M | 17.70M |
| Financing Cash Flow | -412.39M | 42.03M | -66.20M | 24.54M | -90.39M | 129.22M |
MCAN Financial Technical Analysis
Negative
25.74
Price Trends
24.77
Negative
24.36
Negative
23.08
Negative
Market Momentum
-0.56
Positive
33.07
Neutral
63.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MKP, the sentiment is Negative. The current price of 25.74 is above the 20-day moving average (MA) of 23.84, above the 50-day MA of 24.77, and above the 200-day MA of 23.08, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 33.07 is Neutral, neither overbought nor oversold. The STOCH value of 63.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | C$433.16M | 12.25 | 8.48% | 8.42% | -10.14% | -7.73% | |
68 Neutral | C$689.47M | 31.17 | 16.54% | 1.96% | 3.93% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$561.30M | 11.73 | 9.06% | 8.65% | -10.85% | -5.88% | |
63 Neutral | C$917.40M | 10.67 | 13.08% | 6.53% | 12.78% | 14.21% | |
62 Neutral | C$505.62M | 19.83 | 3.85% | 11.15% | -5.01% | -41.36% | |
55 Neutral | C$866.71M | 29.00 | 5.64% | 0.36% | 9.23% | -14.64% |
* Financial Sector Average
TSE:MKP
MCAN Financial
22.51
2.49
12.45%
TSE:AI
Atrium Mortgage Invest
11.61
0.90
8.37%
TSE:FC
Firm Cap Mortgage Invest
11.76
0.66
5.99%
TSE:DLCG
Dominion Lending Centres, Inc. (Canada) Class A
8.97
0.36
4.16%
TSE:TF
Timbercreek Financial
6.07
-0.89
-12.80%
TSE:VBNK
Versabank
27.26
12.31
82.33%
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.