Melcor Developments (MRD) AI Stock Analysis

• Market Cap: C$357.94M
• Dividend Yield: 3.77%
• Average Volume (3M): 8.04K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.39
• Revenue Growth: 10.87%
• EPS Growth: -46.32%
• Country: CA
• Employees: 135
• Sector: Real Estate
• Sector Strength: 78
• Industry: Real Estate - Development
• EPS (TTM): 1.10
• Shares Outstanding: 30,307,901
• 10 Day Avg. Volume: 7,881
• 30 Day Avg. Volume: 8,036
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.09
• Price to Cash Flow (P/CF): 2.30
• P/FCF Ratio: 2.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Melcor Developments scores well due to strong financial performance and strategic corporate developments. The stock's moderate valuation and steady technical indicators support a positive outlook. While profitability margins face some pressure, the company's strong cash flow and strategic acquisitions position it well for future growth.

Melcor Developments Business Overview & Revenue Model

Company Description

Melcor Developments Ltd. (MRD) is a diversified real estate development and asset management company headquartered in Alberta, Canada. The company operates in several segments including Community Development, Property Development, Investment Properties, and Recreational Properties. Melcor is engaged in the acquisition of land and the development of master-planned residential communities, as well as the development and management of commercial real estate properties.

How the Company Makes Money

Melcor Developments makes money through a diversified revenue model primarily consisting of land sales, property development, and rental income. The Community Development segment generates revenue by acquiring raw land and developing it into serviced lots for residential and commercial purposes, which are then sold to builders and developers. The Property Development segment focuses on the construction of commercial properties, which are either sold upon completion or retained in Melcor's investment portfolio. The Investment Properties segment provides a steady income stream through leasing office, retail, and industrial properties. Additionally, the Recreational Properties segment contributes to revenue through the operation of golf courses. Strategic partnerships with builders, municipalities, and joint ventures further enhance Melcor's ability to generate earnings across its various business segments.

Melcor Developments Financial Statement Overview

Summary

Melcor Developments exhibits strong financial performance with significant revenue growth and excellent cash flow generation. While profitability margins have faced pressure, the company maintains a healthy balance sheet with manageable leverage.

Income Statement

Melcor Developments has demonstrated steady revenue growth with a notable increase of 10.86% from 2023 to 2024. The gross profit margin stands at 45.04% for 2024, indicating efficient cost control. However, the net profit margin has decreased to 9.59% from 19.98% in 2023, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins are healthy at 24.09% and 23.75% respectively, though slightly lower than previous years.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 58.93%, indicating financial stability. The debt-to-equity ratio has improved to 0.49, reflecting prudent financial management. Return on equity is moderate at 2.70%, suggesting room for improvement in asset utilization and profitability.

Cash Flow

Melcor Developments reports a robust free cash flow with a significant growth rate of 103.13% from 2023 to 2024. The operating cash flow to net income ratio is strong at 2.94, indicating solid cash generation capabilities. The free cash flow to net income ratio is 2.91, demonstrating effective conversion of earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
349.50M	315.24M	241.75M	315.63M	226.82M
	Gross Profit
157.39M	142.35M	118.26M	140.13M	98.22M
	EBIT
84.22M	106.87M	126.97M	82.15M	115.04M
	EBITDA
83.03M	104.77M	96.59M	83.48M	116.45M
	Net Income Common Stockholders
33.53M	62.98M	89.35M	56.31M	11.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.11M	34.69M	80.47M	59.92M	29.20M
	Total Assets
2.11B	2.10B	2.17B	2.11B	2.00B
	Total Debt
611.34M	670.17M	740.37M	716.91M	721.79M
	Net Debt
557.00M	635.48M	659.90M	656.99M	692.59M
	Total Liabilities
865.92M	887.89M	988.71M	997.46M	923.86M
	Stockholders Equity
1.24B	1.21B	1.18B	1.12B	1.08B
Cash Flow		Free Cash Flow
97.69M	48.09M	17.62M	71.60M	52.06M
	Operating Cash Flow
98.63M	48.81M	18.35M	72.82M	53.12M
	Investing Cash Flow
2.69M	4.63M	18.33M	-17.68M	-17.41M
	Financing Cash Flow
-82.08M	-98.97M	-17.26M	-24.56M	-43.22M

Melcor Developments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.81
• 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:MRD, the sentiment is Negative. The current price of 11.81 is below the 20-day moving average (MA) of 12.19, below the 50-day MA of 12.49, and below the 200-day MA of 12.38, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 65.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRD.

Melcor Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRC	78 Outperform	$1.30B	5.01	6.46%	0.61%	-7.92%	256.12%
MRD	74 Outperform	C$357.94M	10.74	2.70%	3.77%	10.87%	-46.32%
Sector *	61 Neutral	$4.44B	16.16	-3.31%	11.40%	5.81%	-21.40%

Melcor Developments Corporate Events

Melcor Developments Reports Strong 2024 Results and Strategic REIT Acquisition

Melcor Developments reported a successful 2024 with a 12.6% increase in revenues and a 10.8% rise in earnings, driven by strong sales in Alberta’s real estate market. The company reduced its general debt by 8.8% and declared a $0.11 per share dividend. Melcor is also progressing with a strategic acquisition of its unowned equity interest in Melcor REIT, aiming to strengthen its market position despite economic challenges.

Melcor Developments Secures Support for REIT Acquisition

Melcor Developments Ltd. and Melcor REIT have announced voting support agreements with Telsec Property Corporation and FC Private Equity Realty Management Corp. for Melcor’s acquisition of Melcor REIT. The agreement involves Melcor acquiring its unowned equity interest in Melcor REIT Limited Partnership for $5.50 per unit, an 11% increase from prior offers. This acquisition will lead to the repurchase and cancellation of all outstanding trust units, with a special meeting scheduled for April 11, 2025, to finalize the arrangement. The support from key stakeholders like the Telsec Group and FC Group is crucial for the successful completion of this transaction.