Morguard (OTC) (MRC) AI Stock Analysis

• Market Cap: C$1.20B
• Dividend Yield: 0.67%
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.27
• Revenue Growth: -7.03%
• EPS Growth: -20.10%
• Country: CA
• Employees: 1,000
• Sector: Real Estate
• Sector Strength: 60
• Industry: Real Estate - Diversified
• EPS (TTM): 5.42
• Shares Outstanding: 10,703,843
• 10 Day Avg. Volume: 2,462
• 30 Day Avg. Volume: 2,117
• PEG Ratio: -0.23
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.27
• 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$140.31
• Price Target Upside: 25.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: C$122.00 ▲(8.83%Upside)

Morguard's overall stock score is driven primarily by its attractive valuation and solid financial performance, despite the decline in net income. Technical analysis adds a slight negative aspect due to mixed signals. Corporate events reinforce the company's strategic direction but do not impact the overall score due to weight redistribution.

Morguard (OTC) Business Overview & Revenue Model

Company Description

Morguard Corporation, a real estate investment and management corporation, acquires, owns, and develops multi-suite residential, commercial, and hotel properties in Canada and the United States. As of February 25, 2022, the company owned a portfolio of 197 multi-suite residential, retail, office, industrial, and hotel properties, including 17,752 residential suites, approximately 16.8 million square feet of commercial leasable space, and 5,058 hotel rooms. It also offers real estate management services, including acquisitions, development, dispositions, leasing, performance measurement, and asset and property management; real estate advisory services; and investment products across equity, fixed income, and balanced portfolios to institutional clients and private investors. The company is headquartered in Mississauga, Canada. Morguard Corporation is a subsidiary of Paros Enterprises Limited.

How the Company Makes Money

Morguard Corporation generates revenue through a combination of property rental income, property management fees, and strategic real estate investment activities. The company earns rental income by leasing its diverse portfolio of properties to tenants across various sectors, including residential, commercial, and industrial. Additionally, Morguard provides property management services, for which it receives management fees from property owners. Another key revenue stream comes from the acquisition and development of real estate, where the company seeks to enhance property value and capitalize on market opportunities. Morguard's earnings are also influenced by its partnerships and joint ventures in the real estate industry, allowing it to leverage additional capital and expertise to maximize returns on its investments.

Morguard (OTC) Financial Statement Overview

Summary

Morguard exhibits solid financial performance with strong profitability margins and efficient cash management. However, a declining net profit margin and moderate leverage suggest potential risks if earnings decline. Overall, the financial position is stable with room for improvement in net income efficiency.

Income Statement

The income statement shows healthy profitability with a TTM gross profit margin of 48.1% and EBIT margin of 57.2%. However, the net profit margin has declined to 17.0% from 23.6% last year. Revenue growth is slightly positive year-over-year, indicating stability in sales. The EBIT and EBITDA margins are strong, reflecting efficient operations despite the dip in net income.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.26, suggesting an increased risk of financial instability if earnings decline. The equity ratio of 36.6% is fairly stable, indicating a balanced capital structure. Return on equity is at 4.4%, indicating room for improvement in earnings efficiency.

Cash Flow

Cash flow from operations adequately covers net income, with an operating cash flow to net income ratio of 1.24, indicating strong cash generation. Free cash flow growth is slightly negative, affected by reduced net income, yet remains positive, ensuring liquidity. The free cash flow to net income ratio is robust at 1.22, suggesting strong cash conversion.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	1.11B	1.23B	1.12B	1.02B	1.03B
	Gross Profit
535.22M	518.72M	634.03M	500.36M	533.30M	533.32M
	EBIT
636.71M	507.70M	1.23B	508.53M	394.73M	490.97M
	EBITDA
514.54M	557.29M	362.60M	535.04M	427.23M	-51.99M
	Net Income Common Stockholders
189.49M	261.80M	74.18M	122.77M	249.76M	-250.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.32M	140.72M	116.52M	111.81M	173.66M	142.09M
	Total Assets
11.89B	11.76B	11.62B	11.71B	11.49B	11.05B
	Total Debt
5.51B	5.44B	5.81B	5.80B	5.80B	5.83B
	Net Debt
5.35B	5.30B	5.69B	5.69B	5.63B	5.68B
	Total Liabilities
7.14B	7.04B	7.28B	7.32B	7.32B	7.14B
	Stockholders Equity
4.35B	4.29B	3.89B	3.87B	3.63B	3.37B
Cash Flow		Free Cash Flow
231.05M	260.21M	288.52M	251.19M	264.77M	209.80M
	Operating Cash Flow
234.85M	263.49M	297.89M	252.85M	265.44M	211.94M
	Investing Cash Flow
-173.79M	371.39M	-332.16M	-84.51M	-125.62M	-68.09M
	Financing Cash Flow
-49.32M	-613.37M	37.65M	-234.49M	-106.63M	-122.85M

Morguard (OTC) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRC, the sentiment is Negative. The current price of 112.1 is below the 20-day moving average (MA) of 112.73, below the 50-day MA of 113.80, and below the 200-day MA of 116.16, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 45.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRC.

Morguard (OTC) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PMZ.UN	77 Outperform	C$1.55B	27.09	2.99%	5.51%	22.60%	-48.92%
MRG.UN	75 Outperform	C$969.19M	8.69	5.83%	4.06%	3.85%	-31.81%
MRC	68 Neutral	C$1.20B	6.37	4.49%	0.67%	-7.03%	-20.10%
HOM.UN	66 Neutral	C$976.44M	―	-11.97%	4.22%	4.39%	56.33%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
NWHUF		$899.82M	―	-14.74%	7.19%	―	―
APYRF		$1.66B	―	-7.48%	10.88%	―	―

Morguard (OTC) Corporate Events

Morguard Corporation Announces 2025 Shareholder Meeting Results

Morguard Corporation announced the results of its 2025 Annual Meeting of Shareholders, where all nine nominees for the board of directors were elected, and Ernst & Young LLP was appointed as the auditor. The meeting saw high shareholder participation, with 89.35% of outstanding common shares represented. These decisions are expected to maintain stability in Morguard’s governance and financial oversight, reinforcing its position in the real estate industry.

Morguard Corporation Reports Q1 2025 Financial Results and Dividend

Morguard Corporation reported its financial results for the first quarter of 2025, highlighting a strong liquidity position with $278 million in cash and credit facilities, and a $1.1 billion pool of unencumbered properties. The company saw a modest increase in total revenue to $282.2 million, driven by higher revenues from real estate properties, despite a decrease in hotel property revenue following the sale of 14 hotels in 2024. Net income decreased significantly to $54.8 million, primarily due to the absence of gains from the previous year’s hotel sales, although there was an increase in non-cash net fair value gains. The company also acquired the remaining 40% of Lincluden Investment Management Limited. DBRS Limited upgraded Morguard’s rating trend to Positive, reflecting a stable outlook for the company’s financial health.

Morguard Corporation Expands Stake in Real Estate Investment Trust

Morguard Corporation has increased its ownership in Morguard Real Estate Investment Trust by acquiring 1,307,418 trust units, raising its stake from 80.72% to 82.30%. This strategic move, executed through the Toronto Stock Exchange and the REIT’s distribution reinvestment plan, underscores Morguard’s commitment to enhancing its investment portfolio. The acquisition, valued at approximately $7.25 million, is part of Morguard’s broader investment strategy, potentially impacting its market position and offering implications for stakeholders in terms of ownership concentration and future investment activities.