Morguard (OTC) (MRC) AI Stock Analysis

• Market Cap: C$1.22B
• Dividend Yield: 0.69%
• Average Volume (3M): 1.23K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.30
• 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): 2.33
• Shares Outstanding: 10,678,094
• 10 Day Avg. Volume: 1,004
• 30 Day Avg. Volume: 1,229
• PEG Ratio: -0.22
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 5.93
• 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$145.01
• Price Target Upside: 26.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 16.42
• Revenue Forecast (FY): C$1.08B

• Rating: 67 Neutral
• Price Target: C$125.00 ▲(9.07% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by solid but risk-moderated financial performance (consistent free cash flow and decent margins, offset by leverage and volatility), supported by attractive valuation (low P/E and very high yield). Technical indicators are slightly bearish/neutral, limiting upside near term.

Positive Factors

Diversified recurring revenue

Morguard earns recurring operating income from rentals, management fees, development activity and investment distributions. This multi‑stream model stabilizes cash flow across cycles, supports predictable NOI, and reduces dependence on any single asset type or transaction timing.

Consistent free cash flow generation

Steady positive free cash flow indicates disciplined operations and the ability to fund maintenance, dividends and selective development internally. Over 2–6 months this durability supports capital allocation flexibility and reduces immediate refinancing pressure despite occasional FCF growth swings.

Healthy operating margins

Sustained gross and above‑average net margins for a diversified real estate operator show operational efficiency and pricing power in many properties. These margins create a buffer against rent softness and support long‑term NOI resilience and internal reinvestment capacity.

Negative Factors

High financial leverage

Meaningful leverage raises sensitivity to interest rates and refinancing cycles, increasing funding risk if credit conditions tighten. High debt multiplies property valuation swings and constrains strategic moves like large acquisitions or opportunistic capex without additional capital or asset sales.

Volatile revenue and earnings

Steep negative growth metrics and documented uneven revenue/earnings reduce predictability of distributions and reinvestment capacity. Structural volatility complicates multi‑period planning, increases reliance on asset sales or external financing, and can pressure stakeholder confidence over months.

Variable FCF growth & weak OCF coverage

While FCF is positive, variability and low operating‑cash‑flow coverage versus earnings imply earnings include non‑cash items or working‑capital swings. This limits internal financing reliability for development or debt paydown and raises dependence on external funding in adverse periods.

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

Financials are supported by solid profitability and consistently positive free cash flow, but moderated by meaningful leverage (debt-to-equity consistently above 1.0) and uneven revenue/earnings trends with notable volatility across the period.

Income Statement

Profitability is generally solid for a diversified real estate business, with strong operating profitability in 2024–2025 (net margins ~24% in 2024 and ~16% in 2025) and healthy gross margins (mid-to-high 40%s to mid-50%s). However, earnings have been volatile across the period (notably a loss in 2020 and a sharp swing in margins/earnings in 2023), and revenue growth has been inconsistent—2025 shows strong growth (+52.5%) but follows a revenue decline in 2024. Overall: good profitability, but uneven trajectory and higher-than-ideal volatility.

Balance Sheet

The balance sheet reflects meaningful leverage typical of real estate, with debt-to-equity consistently above 1.0 (roughly ~1.27–1.73 across the years), which increases sensitivity to refinancing and property value swings. Equity has grown over time, which is supportive, but returns on equity are modest in recent years (~6.1% in 2024 and ~4.0% in 2025) versus the leverage employed, suggesting profitability is not consistently high enough to fully offset balance-sheet risk.

Cash Flow

Cash generation appears steady and disciplined: operating cash flow and free cash flow are consistently positive, and free cash flow tracks net income closely (roughly ~0.97–1.00x in 2021–2025). The main weakness is variability in free cash flow growth (down in 2022, roughly flat/down in 2024, and down again in 2025), and operating cash flow is relatively small versus the earnings base in recent years (coverage below ~0.25x), implying profits may be influenced by non-cash items and/or working-capital swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.12B	1.11B	1.23B	1.12B	1.02B
Gross Profit	607.03M	518.72M	634.03M	500.36M	533.30M
EBITDA	503.20M	557.29M	362.60M	535.04M	427.23M
Net Income	174.87M	261.80M	74.18M	122.77M	249.76M
Balance Sheet
Total Assets	11.84B	11.76B	11.62B	11.71B	11.49B
Cash, Cash Equivalents and Short-Term Investments	184.62M	140.72M	116.52M	111.81M	173.66M
Total Debt	5.62B	5.44B	5.81B	5.80B	5.80B
Total Liabilities	7.07B	7.04B	7.28B	7.32B	7.32B
Stockholders Equity	4.39B	4.29B	3.89B	3.87B	3.63B
Cash Flow
Free Cash Flow	209.29M	260.21M	288.52M	251.19M	264.77M
Operating Cash Flow	214.44M	263.49M	297.89M	252.85M	265.44M
Investing Cash Flow	-205.82M	371.39M	-332.16M	-84.51M	-125.62M
Financing Cash Flow	40.59M	-613.37M	37.65M	-234.49M	-106.63M

Morguard (OTC) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.61
• 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 114.61 is below the 20-day moving average (MA) of 115.19, below the 50-day MA of 116.65, and below the 200-day MA of 115.71, indicating a bearish trend. The MACD of -0.55 indicates Negative momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 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
MRG.UN	70 Outperform	C$972.79M	8.80	6.37%	4.41%	3.83%	63.32%
MEQ	69 Neutral	C$1.71B	8.83	17.29%	0.09%	10.61%	43.64%
MRC	67 Neutral	C$1.22B	7.10	5.23%	0.69%	-1.66%	15.27%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KMP.UN	61 Neutral	C$2.05B	69.28	18.10%	4.42%	6.19%	79.98%
MRT.UN	49 Neutral	C$438.24M	-25.11	-4.91%	3.85%	-5.37%	13.86%
AP.UN	49 Neutral	$1.30B	-1.41	-10.26%	13.67%	1.86%	1.84%

Morguard (OTC) Corporate Events

Morguard to Take $1 Billion Stake in TD Asset Management Residential Portfolio

Morguard Corporation and Morguard North American Residential REIT have agreed to invest $1.0 billion for a 20% interest in a $5.0 billion Canadian multi-suite residential portfolio currently owned by TD Asset Management, covering more than 15,500 suites across major urban and suburban markets. The deal will see Morguard assume property and joint asset management responsibilities, immediately expanding its institutional mandate and third-party managed residential platform.

The transaction, expected to close in the third quarter of 2026 subject to approvals and due diligence, is projected to be immediately accretive to both Morguard entities and to deepen their presence in markets such as Montreal, Calgary, Edmonton and Halifax. With this portfolio, Morguard’s owned and managed assets will rise to about $24.0 billion and its residential platform to 162 properties and 33,300 suites, reinforcing multi-suite residential as a core growth driver and strengthening its competitive position in Canada’s rental housing market.

The most recent analyst rating on (TSE:MRC) stock is a Buy with a C$130.00 price target. To see the full list of analyst forecasts on Morguard (OTC) stock, see the TSE:MRC Stock Forecast page.

Morguard Posts Steady 2025 Results and Strengthens Balance Sheet

Morguard Corporation reported 2025 results showing largely stable operations, with total assets steady at $11.8 billion and real estate revenue flat at about $1.0 billion despite softness in hotels and offices. The company maintained strong liquidity of $483.0 million in cash and credit, issued $250.0 million of 5.00% senior unsecured debentures, and committed to sell a major Ottawa office leasehold for $148.2 million, which should further bolster its balance sheet.

Normalized funds from operations were essentially unchanged at $220.5 million, as modest revenue growth and financing moves offset a 0.9% decline in NOI driven by an office lease expiry and prior hotel sales. Morguard continued to reposition its portfolio and fee platform, investing $97.2 million in development, notably a 431-suite residential project in Mississauga, refinancing mortgages on more favourable terms, and acquiring the remaining 40% of Lincluden Investment Management to expand its branded asset and investment management capabilities.

The most recent analyst rating on (TSE:MRC) stock is a Buy with a C$130.00 price target. To see the full list of analyst forecasts on Morguard (OTC) stock, see the TSE:MRC Stock Forecast page.

Morguard Rebrands Lincluden as Morguard Lincluden Global Investments After Full Acquisition

Morguard Corporation has rebranded its wholly owned investment management subsidiary Lincluden Investment Management as Morguard Lincluden Global Investments, signaling a deeper integration of the value-focused asset manager into Morguard’s broader institutional platform while preserving its long-standing investment philosophy and client-service model. Following the completion of Morguard’s full acquisition of Lincluden in 2025, the new branding underscores the combined firm’s enhanced scale, financial strength and governance, highlighted by recent recognition as a 2025 GMR Top Performer and a top 3% five‑year ranking for its Balanced Fund, and is supported by the launch of a new website aimed at providing greater transparency into its investment capabilities for institutional and private clients.

The most recent analyst rating on (TSE:MRC) stock is a Buy with a C$130.00 price target. To see the full list of analyst forecasts on Morguard (OTC) stock, see the TSE:MRC Stock Forecast page.