Morguard Corporation
Morguard Corporation Fundamental Analysis
Morguard Corporation (MRC.TO) shows moderate financial fundamentals with a PE ratio of 7.10, profit margin of 15.68%, and ROE of 4.01%. The company generates $1.1B in annual revenue with weak year-over-year growth of -9.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MRC.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakMRC.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRC.TO trades at attractive valuation levels.
Growth Score
WeakMRC.TO faces weak or negative growth trends.
Financial Health Score
WeakMRC.TO carries high financial risk with limited liquidity.
Profitability Score
ModerateMRC.TO maintains healthy but balanced margins.
Key Financial Metrics
Is MRC.TO Expensive or Cheap?
P/E Ratio
MRC.TO trades at 7.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MRC.TO's PEG of -0.31 indicates potential undervaluation.
Price to Book
The market values Morguard Corporation at 0.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.00 times EBITDA. This is generally considered low.
How Well Does MRC.TO Make Money?
Net Profit Margin
For every $100 in sales, Morguard Corporation keeps $15.68 as profit after all expenses.
Operating Margin
Core operations generate 47.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.01 in profit for every $100 of shareholder equity.
ROA
Morguard Corporation generates $1.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Morguard Corporation produces operating cash flow of $214.44M, showing steady but balanced cash generation.
Free Cash Flow
Morguard Corporation generates strong free cash flow of $210.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.67 in free cash annually.
FCF Yield
MRC.TO converts 16.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MRC.TO Stacks Against Its Sector Peers
| Metric | MRC.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.10 | 22.46 | Better (Cheaper) |
| ROE | 4.01% | 681.00% | Weak |
| Net Margin | 15.68% | -37308.00% (disorted) | Strong |
| Debt/Equity | 1.28 | -20.87 (disorted) | Distorted |
| Current Ratio | 0.27 | 1953.63 | Weak Liquidity |
| ROA | 1.48% | -1226.00% (disorted) | Weak |
MRC.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Morguard Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.60%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
46.25%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-2.57%
Industry Style: Income, Inflation Hedge, REIT
Declining