Melcor Developments (MRD) AI Stock Analysis

• Market Cap: C$440.60M
• Dividend Yield: 3.15%
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.41
• Revenue Growth: 14.27%
• EPS Growth: -86.95%
• Country: CA
• Employees: 135
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.24
• Shares Outstanding: 30,136,936
• 10 Day Avg. Volume: 5,327
• 30 Day Avg. Volume: 5,120
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 58 Neutral
• Price Target: C$15.50 ▲(6.75% Upside)

Melcor Developments has a stable financial position with strong cash flow management, which is a significant strength. However, the technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. These factors contribute to a moderate overall stock score.

Melcor Developments Business Overview & Revenue Model

Company Description

Melcor Developments Ltd. operates as a real estate development company in the United States and Canada. The company operates through Community Development, Property Development, REIT, Investment Property, and Recreational Property segments. It develops, manages, and owns mixed-use residential communities, business and industrial parks, office buildings, retail centers, and golf courses. The company purchases and develops land to be sold as residential, industrial, and commercial lots; develops, constructs, and leases retail, office, and industrial properties; and owns and leases commercial, retail, and residential properties, as well as parking lots and land. It also owns and manages three 18-hole golf courses. Melcor Developments Ltd. was founded in 1923 and is headquartered in Edmonton, Canada.

How the Company Makes Money

Melcor 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	380.93M	349.50M	315.24M	241.75M	315.63M	226.82M
Gross Profit	181.04M	157.39M	142.35M	118.26M	140.13M	98.22M
EBITDA	86.52M	83.03M	104.77M	96.59M	83.48M	116.45M
Net Income	9.67M	33.53M	62.98M	89.35M	56.31M	11.46M
Balance Sheet
Total Assets	2.04B	2.11B	2.10B	2.17B	2.11B	2.00B
Cash, Cash Equivalents and Short-Term Investments	84.14M	58.11M	34.69M	80.47M	59.92M	29.20M
Total Debt	601.05M	611.34M	670.17M	740.37M	716.91M	721.79M
Total Liabilities	800.04M	865.92M	887.89M	988.71M	997.46M	923.86M
Stockholders Equity	1.24B	1.24B	1.21B	1.18B	1.12B	1.08B
Cash Flow
Free Cash Flow	148.98M	97.69M	48.09M	17.62M	71.60M	52.06M
Operating Cash Flow	149.71M	98.63M	48.81M	18.35M	72.82M	53.12M
Investing Cash Flow	51.16M	2.69M	4.63M	18.33M	-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: Negative
• Last Price: 14.52
• 50DMA: Negative
• 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 Negative. The current price of 14.52 is below the 20-day moving average (MA) of 14.96, below the 50-day MA of 14.97, and above the 200-day MA of 13.35, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.27 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
GDC	77 Outperform	C$205.99M	5.38	14.54%	5.32%	18.60%	48.05%
HMT	76 Outperform	C$162.48M	9.00	8.50%	―	70.26%	-21.05%
WFC	67 Neutral	C$463.02M	15.05	16.84%	―	2.59%	23.96%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRM	62 Neutral	C$778.61M	9.52	5.58%	8.77%	-26.40%	―
MRD	58 Neutral	C$440.60M	45.49	0.69%	3.15%	14.27%	-86.95%
MRT.UN	50 Neutral	C$392.87M	―	-3.72%	4.14%	-2.90%	68.88%

Melcor Developments Corporate Events

Melcor Developments Reports Strong Revenue Growth

Melcor Developments Ltd., a real estate development and asset management company based in Alberta, operates in the residential and commercial real estate sectors, transforming raw land into finished products across Canada and the United States.

Melcor Developments Reports Strong Q2 2025 Results and Increases Dividend

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.