Melcor Developments (MRD) AI Stock Analysis

• Market Cap: C$430.36M
• Dividend Yield: 3.09%
• Average Volume (3M): 11.16K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.40
• Revenue Growth: 6.56%
• EPS Growth: -64.68%
• Country: CA
• Employees: 135
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Development
• EPS (TTM): 0.16
• Shares Outstanding: 30,221,754
• 10 Day Avg. Volume: 16,460
• 30 Day Avg. Volume: 11,156
• PEG Ratio: 0.06
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.62
• 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

• Rating: 77 Outperform
• Price Target: C$16.00 ▲(12.36%Upside)

Melcor Developments receives a strong overall score of 77, driven by solid financial performance, technical strength, and positive corporate events. The company's strategic initiatives, such as share buybacks and REIT acquisitions, enhance its market position. Valuation remains fair, providing moderate attractiveness to investors.

Melcor Developments Business Overview & Revenue Model

Company Description

Melcor Developments Ltd. (MRD) is a real estate development and asset management company based in Edmonton, Alberta, Canada. The company operates in several sectors including community development, property development, investment properties, and recreational properties. Melcor is involved in the acquisition, planning, development, and management of residential, commercial, and industrial properties across Western Canada and the United States.

How the Company Makes Money

Melcor Developments generates revenue through a diversified real estate business model. The company's primary revenue streams include the sale of residential lots and commercial land through its community development segment. In the property development sector, Melcor earns income from constructing and selling commercial properties. Its investment properties segment contributes to recurring revenue through rental income from office, retail, and industrial properties. Additionally, Melcor operates recreational properties, such as golf courses, which provide ancillary income. The company's strategic land holdings and development expertise are pivotal in driving its earnings, alongside partnerships with builders and investors to optimize property value and returns.

Melcor Developments Financial Statement Overview

Summary

Melcor Developments exhibits solid financial performance with strengths in revenue growth and cash flow generation. The balance sheet is strong with a high equity ratio and improved debt-to-equity ratio. While profitability margins have faced pressure, the overall financial health remains robust.

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: Positive
• Last Price: 14.24
• 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:MRD, the sentiment is Positive. The current price of 14.24 is above the 20-day moving average (MA) of 13.85, above the 50-day MA of 12.78, and above the 200-day MA of 12.66, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 62.33 is Neutral, neither overbought nor oversold. The STOCH value of 55.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRD.

Melcor Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDC	80 Outperform	C$178.06M	4.61	15.16%	6.37%	49.81%	81.65%
MRD	77 Outperform	C$430.36M	16.82	2.04%	3.09%	6.56%	-64.68%
WFC	75 Outperform	C$494.25M	16.68	17.13%	―	33.53%	30.85%
DRM	72 Outperform	C$851.34M	4.97	11.76%	3.22%	13.04%	―
HMT	72 Outperform	C$147.00M	7.57	8.80%	―	93.57%	-1.26%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
MRT.UN	59 Neutral	C$373.16M	―	-3.77%	4.17%	0.18%	68.25%

Melcor Developments Corporate Events

Melcor Developments Initiates Share Buyback Program

Melcor Developments Ltd. announced its intention to initiate a normal course issuer bid, allowing the company to repurchase up to 5% of its common shares over a year. This move is aimed at capitalizing on potential undervaluation of its shares, thereby potentially enhancing shareholder value by increasing their equity interest. The company has also entered into an automatic share purchase plan agreement to facilitate share repurchases during trading blackout periods, reflecting strategic flexibility in managing its share capital.

The most recent analyst rating on (TSE:MRD) stock is a Hold with a C$14.00 price target. To see the full list of analyst forecasts on Melcor Developments stock, see the TSE:MRD Stock Forecast page.

Melcor Developments Reports Q1 Growth and Strategic REIT Acquisition

Melcor Developments reported a 2.0% increase in consolidated revenue to $50.74 million for Q1 2025, driven by a rise in land revenues. The company completed significant land sales in the US, contributing to a 15.7% rise in gross profit. Despite a decline in revenue from its Properties and REIT divisions, Melcor’s acquisition of all outstanding public trust units in Melcor REIT marks a strategic move to enhance shareholder value. The company plans to pay down its increased bank operating line through asset sales and operational cash flows.

The most recent analyst rating on (TSE:MRD) stock is a Hold with a C$14.00 price target. To see the full list of analyst forecasts on Melcor Developments stock, see the TSE:MRD Stock Forecast page.

Melcor Developments Completes Acquisition and Restructuring of Melcor REIT

Melcor Developments Ltd. has completed the acquisition of its unowned equity interest in Melcor REIT Limited Partnership, marking a significant restructuring move. The acquisition, approved by the REIT’s unitholders and the Court of King’s Bench of Alberta, will result in the delisting of Melcor REIT’s units from the Toronto Stock Exchange and the termination of its public reporting obligations, impacting stakeholders by consolidating ownership and simplifying corporate structure.