Melcor Developments (MRD) AI Stock Analysis

• Market Cap: C$466.23M
• Dividend Yield: 2.97%
• Average Volume (3M): 7.39K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.53
• Revenue Growth: 29.55%
• EPS Growth: 425.60%
• Country: CA
• Employees: 135
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.46
• Shares Outstanding: 30,079,391
• 10 Day Avg. Volume: 6,882
• 30 Day Avg. Volume: 7,391
• PEG Ratio: -0.25
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 4.02
• 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
• EPS Forecast (FY): 2.78
• Revenue Forecast (FY): C$414.67M

• Rating: 60 Neutral
• Price Target: C$15.50 ▲(6.75% Upside)

Melcor Developments' overall stock score is driven by stable financial performance with strong cash flow management, though profitability margins are under pressure. The technical analysis indicates a lack of strong momentum, and the high P/E ratio suggests the stock is expensive, partially offset by a reasonable dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Stable Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Improved Cash Flow

Robust cash flow generation enhances financial flexibility, allowing for reinvestment and debt reduction, supporting sustainable growth.

Reduced Leverage

Lower leverage reduces financial risk and interest expenses, providing a stable foundation for future expansion and resilience.

Negative Factors

Declining Profit Margins

Eroding profit margins may indicate rising costs or pricing pressures, potentially impacting long-term profitability and competitiveness.

Lower Returns on Equity

Reduced returns on equity suggest less efficient use of shareholder funds, which could hinder investor confidence and capital raising.

Profitability Challenges

Ongoing challenges in maintaining profitability margins could limit the company's ability to invest in growth and reward shareholders.

Melcor Developments Business Overview & Revenue Model

Company Description

Melcor Developments (MRD) is a prominent real estate development and investment company based in Canada, specializing in residential, commercial, and industrial property development. Established in 1923, the company operates across various sectors, including land development, property management, and real estate investment. Melcor is known for creating vibrant communities and innovative spaces, offering a diverse portfolio of properties including single-family homes, multi-family complexes, office buildings, and retail spaces.

How the Company Makes Money

Melcor Developments generates revenue through multiple channels, primarily by developing and selling residential and commercial properties. Their revenue model includes land development sales, where they acquire raw land, develop it into serviced lots, and sell these lots to builders or end-users. Additionally, the company earns money through property management services, which involve managing a portfolio of rental properties that provide ongoing rental income. Melcor also engages in joint venture partnerships with other developers, allowing them to share resources and risks while expanding their reach. The company benefits from its established reputation and long-standing relationships in the real estate market, contributing significantly to its earnings through consistent project completions and sales. Furthermore, Melcor's strategic focus on sustainable and innovative development practices enhances its appeal to investors and buyers alike.

Melcor Developments Financial Statement Overview

Summary

Melcor Developments demonstrates stable revenue growth and improved cash flow generation, though profitability margins have declined. The balance sheet shows reduced leverage, enhancing financial stability, but lower returns on equity. Overall, the company is in a stable financial position with strong cash flow management, though it faces challenges in maintaining profitability margins.

Income Statement

Melcor Developments shows a moderate revenue growth rate of 8.68% in the TTM period, with a stable gross profit margin of 45.96%. However, the net profit margin has decreased to 7.35% from 9.59% in the previous year, indicating pressure on profitability. The EBIT and EBITDA margins are healthy at 21.14% and 19.75% respectively, though slightly lower than the previous year. Overall, the income statement reflects stable revenue growth but declining profitability margins.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.44, indicating a reduction in leverage compared to previous years, which enhances financial stability. The return on equity has decreased to 2.09%, reflecting lower profitability on shareholders' equity. The equity ratio remains strong at 60.70%, suggesting a solid equity base relative to total assets. Overall, the balance sheet shows improved leverage but reduced returns on equity.

Cash Flow

Melcor Developments exhibits a strong free cash flow growth rate of 16.88% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is robust at 2.37, suggesting efficient cash conversion. The free cash flow to net income ratio is nearly 1, demonstrating that the company effectively converts its net income into free cash flow. Overall, the cash flow statement reflects strong cash generation and efficient cash management.

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: Positive
• Last Price: 14.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 14.52 is below the 20-day moving average (MA) of 15.03, below the 50-day MA of 14.89, and above the 200-day MA of 13.73, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 94.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMT	76 Outperform	C$157.83M	8.58	8.49%	―	70.08%	-20.96%
WFC	70 Outperform	C$513.38M	16.67	16.84%	―	2.59%	23.96%
GDC	69 Neutral	C$187.51M	5.54	12.71%	―	7.07%	-3.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MRD	60 Neutral	C$466.23M	7.99	4.72%	2.97%	29.55%	425.60%
DRM	58 Neutral	C$758.36M	9.27	5.70%	9.39%	-17.89%	―
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.22%	-5.37%	13.86%

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.