Morguard (OTC) (MRC) AI Stock Analysis

• Market Cap: C$1.22B
• Dividend Yield: 0.7%
• Average Volume (3M): 1.23K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.28
• Revenue Growth: -1.66%
• EPS Growth: 15.27%
• Country: CA
• Employees: 1,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 3.54
• Shares Outstanding: 10,678,003
• 10 Day Avg. Volume: 1,004
• 30 Day Avg. Volume: 1,229
• PEG Ratio: 0.02
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 4.83
• 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$140.18
• Price Target Upside: 22.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$125.00 ▲(9.08% Upside)

Morguard's strong financial performance, particularly in revenue and cash flow growth, is a significant positive factor. The stock's undervaluation based on the P/E ratio further supports its attractiveness. However, technical indicators suggest neutral to bearish momentum, and high leverage poses a risk to financial stability.

Positive Factors

Revenue Growth

Morguard's robust revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Cash Flow Generation

Strong cash flow growth highlights Morguard's ability to efficiently convert earnings into cash, supporting future investments and debt management.

Margin Sustainability

Healthy gross margins reflect effective cost management and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

High Leverage

High leverage could strain Morguard's financial flexibility, especially in rising interest rate environments, impacting long-term stability.

Declining Net Income

A decline in net income suggests challenges in maintaining profitability, which could affect Morguard's ability to fund growth initiatives.

Moderate Return on Equity

A modest ROE indicates limited profitability relative to shareholder equity, potentially impacting investor confidence and capital attraction.

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 generates revenue through multiple streams primarily related to its real estate operations. The core revenue model includes rental income from its owned and managed properties, which provides a stable cash flow. Additionally, Morguard earns management fees from third-party clients for managing their properties, further diversifying its income. The company may also engage in development projects, which can lead to significant profits upon completion and leasing of new properties. Strategic partnerships with other real estate entities and participation in joint ventures can enhance its market reach and operational efficiency, contributing positively to its earnings.

Morguard (OTC) Financial Statement Overview

Summary

Morguard shows strong operational efficiency with robust EBIT and EBITDA margins. However, challenges include declining revenue growth and high leverage, which pose financial risks despite stable cash flow.

Income Statement

Morguard's income statement shows a mixed performance. The company has a strong gross profit margin of 48.1% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 17% from 23.6% in the previous year, reflecting reduced profitability. Revenue growth has been negative, with a decline of 21.4% in TTM, which is a concern for future growth prospects. The EBIT and EBITDA margins remain robust at 44% and 46.2%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.27, indicating significant leverage, which could pose financial risks. The return on equity is relatively low at 4.5% in TTM, suggesting limited profitability from equity investments. However, the equity ratio is stable, with stockholders' equity making up a substantial portion of total assets, reflecting a balanced capital structure.

Cash Flow

Cash flow analysis shows a positive trend with a 2.7% growth in free cash flow in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.17, suggesting that operating cash flow covers net income adequately. The free cash flow to net income ratio is high at 98.4%, highlighting strong cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	1.11B	1.23B	1.12B	1.02B	1.03B
Gross Profit	538.80M	518.72M	634.03M	500.36M	533.30M	533.32M
EBITDA	555.19M	557.29M	362.60M	535.04M	427.23M	-51.99M
Net Income	226.98M	261.80M	74.18M	122.77M	249.76M	-250.05M
Balance Sheet
Total Assets	11.91B	11.76B	11.62B	11.71B	11.49B	11.05B
Cash, Cash Equivalents and Short-Term Investments	172.36M	140.72M	116.52M	111.81M	173.66M	142.09M
Total Debt	5.47B	5.44B	5.81B	5.80B	5.80B	5.83B
Total Liabilities	7.14B	7.04B	7.28B	7.32B	7.32B	7.14B
Stockholders Equity	4.39B	4.29B	3.89B	3.87B	3.63B	3.37B
Cash Flow
Free Cash Flow	239.50M	260.21M	288.52M	251.19M	264.77M	209.80M
Operating Cash Flow	242.26M	263.49M	297.89M	252.85M	265.44M	211.94M
Investing Cash Flow	-270.71M	371.39M	-332.16M	-84.51M	-125.62M	-68.09M
Financing Cash Flow	-35.85M	-613.37M	37.65M	-234.49M	-106.63M	-122.85M

Morguard (OTC) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 114.6 is below the 20-day moving average (MA) of 114.75, below the 50-day MA of 115.25, and below the 200-day MA of 115.66, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 10.27 is Positive, 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	74 Outperform	C$1.82B	12.80	6.52%	5.57%	26.88%	77.26%
MRC	68 Neutral	C$1.22B	5.42	5.23%	0.70%	-1.66%	15.27%
MRG.UN	68 Neutral	C$891.74M	7.35	6.37%	4.46%	3.83%	63.32%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NWH.UN	59 Neutral	$1.29B	25.84	3.01%	6.98%	-13.30%	―
AP.UN	55 Neutral	C$1.85B	-3.20	-10.26%	13.71%	1.86%	1.84%
HOM.UN	54 Neutral	C$641.84M	-26.23	-3.64%	4.78%	-6.91%	82.31%

Morguard (OTC) Corporate Events

Morguard Corporation Reports Q3 2025 Financial Results and Declares Dividend

Morguard Corporation reported a slight increase in total revenue for the third quarter of 2025, reaching $278.2 million, driven by higher average monthly rents despite increased vacancy rates. The company’s net income saw a significant rise to $44.0 million, attributed to a lower income tax provision and reduced net fair value loss. Morguard’s strong liquidity position and strategic refinancing efforts, including the issuance of $250 million in senior unsecured debentures, highlight its robust financial health and operational resilience.

Morguard Completes $250 Million Debenture Offering, Strengthening Market Position

Morguard Corporation has successfully completed a $250 million offering of 5.00% Series I Senior Unsecured Debentures, maturing in 2028. The offering, which was well-received with over $1 billion in demand from 38 buyers, will be used to repay indebtedness and for general corporate purposes. This transaction marks a significant milestone for Morguard, reflecting strong market confidence in its strategy and financial strength. The debentures received a ‘BB (high)’ rating with a ‘Positive’ trend from DBRS Morningstar, and the transaction positions Morguard for continued growth and future offerings.