Melcor Developments (MRD) AI Stock Analysis

• Market Cap: $416.15M
• Dividend Yield: 3.19%
• Average Volume (3M): 9.56K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.41
• Revenue Growth: 6.56%
• EPS Growth: -64.68%
• Country: CA
• Employees: 135
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): 0.16
• Shares Outstanding: 30,221,754
• 10 Day Avg. Volume: 7,848
• 30 Day Avg. Volume: 9,564
• PEG Ratio: -0.70
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.26
• 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: $16.01
• Price Target Upside: 12.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: C$15.50 ▲(9.15%Upside)

Melcor Developments demonstrates a robust financial performance and strategic corporate actions, which significantly contribute to its overall score. Technical analysis and valuation also play important roles, but the lack of earnings call data slightly limits the assessment. Overall, the company's strong fundamentals and strategic initiatives bolster its stock appeal.

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 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 shows strong financial performance with robust revenue growth and cash flow generation. The balance sheet is stable with a moderate debt level, but profitability margins and return on equity could be improved.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	350.50M	349.50M	315.24M	241.75M	315.63M	226.82M
Gross Profit	161.09M	157.39M	142.35M	118.26M	140.13M	98.22M
EBITDA	69.22M	83.03M	104.77M	96.59M	83.48M	116.45M
Net Income	25.76M	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	59.47M	58.11M	34.69M	80.47M	59.92M	29.20M
Total Debt	546.03M	611.34M	670.17M	740.37M	716.91M	721.79M
Total Liabilities	792.60M	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	127.46M	97.69M	48.09M	17.62M	71.60M	52.06M
Operating Cash Flow	127.98M	98.63M	48.81M	18.35M	72.82M	53.12M
Investing Cash Flow	49.63M	2.69M	4.63M	18.33M	-17.68M	-17.41M
Financing Cash Flow	-149.36M	-82.08M	-98.97M	-17.26M	-24.56M	-43.22M

Melcor Developments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.20
• 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 14.2 is above the 20-day moving average (MA) of 13.92, above the 50-day MA of 13.39, and above the 200-day MA of 12.70, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 63.38 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
MRD	77 Outperform	$416.15M	16.47	2.04%	3.19%	6.56%	-64.68%
GDC	74 Outperform	C$176.92M	4.57	15.16%	6.41%	49.81%	81.65%
WFC	73 Outperform	C$545.56M	18.41	17.13%	―	33.53%	30.85%
HMT	72 Outperform	C$147.00M	7.57	8.80%	―	93.57%	-1.26%
DRM	69 Neutral	C$921.19M	5.37	11.76%	2.98%	13.04%	―
Sector *	59 Neutral	C$1.24B	-0.03	-8.19%	5.00%	10.83%	-22.67%
MRT.UN	59 Neutral	C$375.85M	―	-3.77%	4.16%	0.18%	68.25%

Melcor Developments Corporate Events

Melcor Developments Announces AGM Results and Director Elections

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.

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.