MCAN Mortgage (MKP) AI Stock Analysis

• Market Cap: C$912.62M
• Dividend Yield: 7.33%
• Average Volume (3M): 55.88K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.67
• Revenue Growth: 7.74%
• EPS Growth: -31.96%
• Country: CA
• Employees: 160
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.52
• Shares Outstanding: 40,471,073
• 10 Day Avg. Volume: 57,358
• 30 Day Avg. Volume: 55,882
• PEG Ratio: -1.23
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 14.02
• 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: C$21.00
• Price Target Upside: -6.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$24.00 ▲(6.43% Upside)

MCAN Mortgage's overall score reflects its strong profitability and attractive dividend yield, balanced by challenges in revenue growth and high leverage. Technical indicators show positive momentum, supporting a stable outlook.

Positive Factors

Profitability

Strong profitability and improved margins indicate effective cost management and operational efficiency, supporting long-term financial health.

Return on Equity

A healthy return on equity reflects the company's ability to effectively utilize shareholder funds to generate profits, enhancing investor confidence.

Cash Generation

Strong cash generation relative to net income ensures liquidity and financial flexibility, supporting ongoing operations and potential growth investments.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests difficulties in market expansion or product adoption, which could hinder long-term growth prospects.

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to withstand economic downturns.

Negative Free Cash Flow Growth

Negative free cash flow growth highlights potential liquidity issues, affecting the company's ability to fund operations and invest in growth opportunities.

MCAN Mortgage 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 engages in the real estate investments trusts and private investment activities. It also provides term deposits through a network of independent financial agents. The company was formerly known as MCAP Inc. and changed its name to MCAN Mortgage Corporation in September 2006. MCAN Mortgage Corporation was founded in 1980 and is headquartered in Toronto, Canada.

How the Company Makes Money

MCAN Mortgage generates revenue primarily through interest income earned on the mortgages it originates and manages. The company earns interest from both its residential and commercial mortgage portfolios, which are funded through a combination of equity and debt financing. Additionally, MCAN may generate fee income from mortgage origination and servicing fees. Significant partnerships with financial institutions and other mortgage providers enhance its lending capabilities and market reach, contributing to its revenue streams. The company's focus on risk-adjusted returns and diversification of its mortgage holdings further supports its profitability.

MCAN Mortgage Financial Statement Overview

Summary

MCAN Mortgage shows robust revenue growth and profitability, supported by a strong balance sheet with low leverage. However, the company faces challenges in cash flow management, with negative operating and free cash flows that could impact its financial flexibility.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.36M	298.26M	245.88M	165.48M	152.87M	121.78M
Gross Profit	127.76M	127.28M	123.13M	88.43M	96.50M	70.39M
EBITDA	73.05M	76.55M	78.23M	55.07M	63.97M	42.65M
Net Income	65.01M	77.59M	77.50M	55.35M	64.36M	42.89M
Balance Sheet
Total Assets	5.91B	5.35B	4.74B	4.08B	3.81B	2.73B
Cash, Cash Equivalents and Short-Term Investments	141.89M	61.70M	60.34M	78.21M	122.27M	88.93M
Total Debt	2.78B	6.17M	66.38M	8.60M	100.97M	2.77M
Total Liabilities	5.27B	4.75B	4.21B	3.59B	3.37B	2.38B
Stockholders Equity	636.41M	599.19M	531.84M	489.31M	433.26M	346.51M
Cash Flow
Free Cash Flow	136.95M	48.97M	-60.26M	27.98M	-113.73M	58.81M
Operating Cash Flow	141.13M	53.77M	-59.59M	28.27M	-113.57M	59.12M
Investing Cash Flow	-141.50M	13.79M	17.19M	18.07M	17.70M	15.22M
Financing Cash Flow	52.27M	-66.20M	24.54M	-90.39M	129.22M	-39.87M

MCAN Mortgage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 22.55 is above the 20-day moving average (MA) of 22.43, above the 50-day MA of 21.80, and above the 200-day MA of 19.89, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 59.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MKP.

MCAN Mortgage 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%
MKP	69 Neutral	C$912.62M	13.65	10.50%	7.33%	7.74%	-31.96%
FC	69 Neutral	C$441.22M	11.69	8.90%	8.38%	-6.64%	4.43%
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%
VBNK	67 Neutral	$665.43M	23.28	6.08%	0.49%	3.31%	-39.12%
DLCG	50 Neutral	C$753.19M	-4.21	-137.87%	1.51%	36.52%	-1243.96%

MCAN Mortgage Corporate Events

MCAN Financial Group Reports Q3 Growth Amid Economic Uncertainty

MCAN Financial Group reported a 2% increase in net income for the third quarter of 2025, driven by higher income from its investment in MCAP and the successful launch of a new uninsured residential mortgage securitization program. Despite an uncertain economic outlook leading to higher provisions for credit losses, the company maintained resilient credit quality. The company’s total residential mortgage assets grew by 10% year-to-date, with significant increases in both uninsured and insured mortgage originations. MCAP continues to be a key driver of returns, contributing significantly to the company’s income through higher securitization income.

The most recent analyst rating on (TSE:MKP) stock is a Buy with a C$24.00 price target. To see the full list of analyst forecasts on MCAN Mortgage stock, see the TSE:MKP Stock Forecast page.