Melcor Developments Ltd (TSE:MRD)
TSX:MRD
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Melcor Developments
(TSX:MRD)
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Rating:76Outperform
Price Target:
C$21.00
▲(36.36% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by very strong valuation (low P/E and a reasonable dividend yield) alongside solid margins and an improving leverage profile. The main constraint is cash-flow and earnings variability (notably the recent free-cash-flow decline) plus only moderate technical momentum.
Positive Factors
High profitability and margins
Sustained high gross and operating margins provide structural cash generation and margin cushion across cycles. For a developer/operator, strong margins support reinvestment in land servicing, fund property upkeep, and sustain cash returns even when lot sales timing varies.
Negative Factors
Free cash flow decline and variability
A large recent drop in FCF and historically swinging operating cash flow indicate cash generation can be timing-dependent. For a capital-intensive developer, this raises the risk that funding for projects or distributions requires careful sequencing and may constrain strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained high gross and operating margins provide structural cash generation and margin cushion across cycles. For a developer/operator, strong margins support reinvestment in land servicing, fund property upkeep, and sustain cash returns even when lot sales timing varies.
Read all positive factors
Melcor Developments (MRD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$539.22M
Dividend Yield3.14%
Average Volume (3M)6.18K
Price to Earnings (P/E)5.9
Beta (1Y)0.45
Revenue Growth15.60%
EPS Growth198.76%
CountryCA
Employees135
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)2.52
Shares Outstanding30,073,350
10 Day Avg. Volume3,162
30 Day Avg. Volume6,179
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.36
Price to Sales (P/S)1.12
P/FCF Ratio5.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)C$295.00M
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 dev...
How the Company Makes Money
Melcor primarily makes money through (1) land development profits and (2) recurring income from investment properties. In its land development business, the company acquires and holds land, advances entitlements (e.g., zoning/approvals), installs ...
Melcor Developments Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 405.17M | 410.55M | 349.50M | 315.24M | 241.75M | 315.63M |
| Gross Profit | 183.74M | 188.26M | 157.39M | 142.35M | 118.26M | 140.13M |
| EBITDA | 137.40M | 135.07M | 83.03M | 104.77M | 96.59M | 83.48M |
| Net Income | 76.18M | 58.02M | 33.53M | 62.98M | 89.35M | 56.31M |
Balance Sheet | ||||||
| Total Assets | 1.98B | 2.05B | 2.11B | 2.10B | 2.17B | 2.11B |
| Cash, Cash Equivalents and Short-Term Investments | 54.48M | 74.88M | 58.11M | 34.69M | 80.47M | 59.92M |
| Total Debt | 501.55M | 548.74M | 611.34M | 670.17M | 740.37M | 716.91M |
| Total Liabilities | 698.26M | 783.06M | 865.92M | 887.89M | 988.71M | 997.46M |
| Stockholders Equity | 1.28B | 1.27B | 1.24B | 1.21B | 1.18B | 1.12B |
Cash Flow | ||||||
| Free Cash Flow | 47.09M | 91.88M | 97.69M | 48.09M | 17.62M | 71.60M |
| Operating Cash Flow | 47.72M | 92.55M | 98.63M | 48.81M | 18.35M | 72.82M |
| Investing Cash Flow | 83.02M | 84.95M | 2.69M | 4.63M | 18.33M | -17.68M |
| Financing Cash Flow | -141.08M | -157.28M | -82.08M | -98.97M | -17.26M | -24.56M |
Melcor Developments Technical Analysis
Neutral
15.40
Price Trends
18.20
Negative
16.94
Positive
15.67
Positive
Market Momentum
-0.03
Positive
38.53
Neutral
1.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRD, the sentiment is Neutral. The current price of 15.4 is below the 20-day moving average (MA) of 18.54, below the 50-day MA of 18.20, and below the 200-day MA of 15.67, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 1.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MRD.
Melcor Developments Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$539.22M | 5.90 | 4.65% | 3.14% | 15.60% | 198.76% | |
76 Outperform | C$194.78M | 56.48 | 13.95% | ― | 6.68% | -11.83% | |
68 Neutral | C$2.19B | 9.91 | -0.71% | 4.42% | 4.79% | -103.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | C$520.77M | 41.84 | 17.19% | ― | -12.68% | 22.30% | |
52 Neutral | C$637.78M | -2.70 | -39.64% | 3.87% | -0.32% | -340.85% |
* Real Estate Sector Average
TSE:MRD
Melcor Developments
17.49
5.10
41.21%
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3.46
0.50
16.89%
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38.19%
Melcor Developments Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Melcor Posts Record 2025 Results, Trims Debt and Issues Special Dividend
Positive
Mar 10, 2026
Melcor Developments reported a record 2025, with revenue surpassing $400 million and funds from operations topping $100 million for the first time, driven largely by a 28.7% jump in Land division revenue to $292.49 million and strong activity in b...
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.