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Melcor Developments Ltd (TSE:MRD)
TSX:MRD
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Melcor Developments (MRD) AI Stock Analysis

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TSE:MRD

Melcor Developments

(TSX:MRD)

Rating:64Neutral
Price Target:
C$16.00
▲(4.99% Upside)
Melcor Developments' overall stock score is driven by stable financial performance and strong cash flow management, though profitability margins are under pressure. The technical analysis indicates bullish momentum, but potential overbought conditions could pose risks. The high P/E ratio suggests overvaluation, which is a concern despite the moderate dividend yield.

Melcor Developments (MRD) vs. iShares MSCI Canada ETF (EWC)

Melcor Developments Business Overview & Revenue Model

Company DescriptionMelcor Developments (MRD) is a diversified real estate development and management company based in Canada, primarily engaged in the residential, commercial, and industrial sectors. Founded in 1923, Melcor is involved in the planning, development, and management of properties, offering a wide array of services including land development, property management, and investment in real estate assets. The company operates various divisions that cater to different market segments, focusing on creating sustainable communities and enhancing the value of its properties.
How the Company Makes MoneyMelcor Developments generates revenue through multiple streams, including residential and commercial property sales, leasing and property management services, and land development activities. Key revenue sources include the sale of residential units in completed developments, rental income from commercial properties, and profits from land sales and development projects. The company also benefits from strategic partnerships with local governments and private investors, which can provide access to better financing options and collaborative development opportunities. Additionally, Melcor's focus on sustainable building practices and community development enhances its reputation and marketability, contributing to its overall earnings.

Melcor Developments Financial Statement Overview

Summary
Melcor Developments exhibits a strong financial position with consistent revenue and profit margins, a stable capital structure, and excellent cash flow management. Minor fluctuations in certain metrics do not detract from the overall positive trajectory.
Income Statement
82
Very Positive
Melcor Developments shows a solid financial performance with a consistent gross profit margin and healthy net profit margin. Revenue growth has been stable over the years, although there was a slight decline in EBIT margin in the TTM period compared to the previous year. The company maintains strong profitability metrics, indicating effective cost management and pricing strategies.
Balance Sheet
75
Positive
The balance sheet is strong, with a manageable debt-to-equity ratio and a robust equity ratio, reflecting a solid capital structure. However, the return on equity has seen some fluctuations, indicating some variability in profit generation relative to equity. Overall, the balance sheet displays good financial health with a focus on stability.
Cash Flow
88
Very Positive
Cash flow generation is impressive, with strong free cash flow growth and a solid operating cash flow to net income ratio. The company effectively converts its income into cash, which supports operational stability and potential growth opportunities. The positive cash flow metrics underscore efficient cash management and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue380.93M349.50M315.24M241.75M315.63M226.82M
Gross Profit181.04M157.39M142.35M118.26M140.13M98.22M
EBITDA86.52M83.03M104.77M96.59M83.48M116.45M
Net Income9.67M33.53M62.98M89.35M56.31M11.46M
Balance Sheet
Total Assets2.04B2.11B2.10B2.17B2.11B2.00B
Cash, Cash Equivalents and Short-Term Investments84.14M58.11M34.69M80.47M59.92M29.20M
Total Debt601.05M611.34M670.17M740.37M716.91M721.79M
Total Liabilities800.04M865.92M887.89M988.71M997.46M923.86M
Stockholders Equity1.24B1.24B1.21B1.18B1.12B1.08B
Cash Flow
Free Cash Flow148.98M97.69M48.09M17.62M71.60M52.06M
Operating Cash Flow149.71M98.63M48.81M18.35M72.82M53.12M
Investing Cash Flow51.16M2.69M4.63M18.33M-17.68M-17.41M
Financing Cash Flow-155.53M-82.08M-98.97M-17.26M-24.56M-43.22M

Melcor Developments Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.24
Price Trends
50DMA
14.41
Positive
100DMA
13.70
Positive
200DMA
13.05
Positive
Market Momentum
MACD
0.25
Negative
RSI
64.98
Neutral
STOCH
91.84
Negative
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 15.24 is above the 20-day moving average (MA) of 14.88, above the 50-day MA of 14.41, and above the 200-day MA of 13.05, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 91.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRD.

Melcor Developments Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$170.21M9.258.50%70.26%-21.05%
74
Outperform
C$173.97M4.6714.54%6.04%18.60%48.05%
66
Neutral
C$481.26M16.2917.13%33.53%30.85%
64
Neutral
$459.66M47.450.69%2.89%14.27%-86.95%
63
Neutral
$7.02B13.41-0.50%6.86%4.08%-25.24%
61
Neutral
C$873.09M10.685.58%7.89%-26.40%
51
Neutral
C$377.35M-3.72%4.29%-2.90%68.88%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MRD
Melcor Developments
15.24
3.44
29.19%
TSE:DRM
DREAM Un Cl A
20.60
-4.65
-18.42%
TSE:GDC
Genesis Land Dev
3.12
-0.65
-17.24%
TSE:HMT
Halmont Properties
1.10
0.28
34.15%
TSE:MRT.UN
Morguard Real Estate ate
5.76
0.64
12.50%
TSE:WFC
Wall Financial
14.53
-5.01
-25.64%

Melcor Developments Corporate Events

M&A TransactionsDividendsFinancial Disclosures
Melcor Developments Reports Strong Q2 2025 Results and Increases Dividend
Positive
Aug 14, 2025

Melcor Developments reported a strong second quarter for 2025, with a significant increase in consolidated revenues and gross margin compared to the previous year. The company successfully completed the acquisition of all outstanding public trust units in Melcor REIT, bringing all income-producing properties under its full ownership, and declared a quarterly dividend increase, reflecting its commitment to shareholder value.

Executive/Board ChangesShareholder Meetings
Melcor Developments Announces AGM Results and Director Elections
Positive
Jun 24, 2025

Melcor Developments Ltd. announced the results of its annual general meeting, where shareholders approved all items of business, including the election of directors. The meeting saw a high participation rate, with 79.59% of outstanding shares voted. This election is crucial for Melcor as it continues to strengthen its leadership and governance, impacting its operations and strategic direction in the real estate industry.

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.

Stock BuybackBusiness Operations and Strategy
Melcor Developments Initiates Share Buyback Program
Positive
Jun 6, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 25, 2025