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Melcor Developments

TSX:MRD
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRD
TSX
CA$239M
Market Cap
  1. Home
  2. CA
  3. Real Estate
Company description

Melcor Developments Ltd. operates as a real estate development company in the United States and Canada. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • Melcor Developments has significant price volatility in the past 3 months.
MRD Share Price and Events
7 Day Returns
-0.8%
TSX:MRD
-1.2%
CA Real Estate
1%
CA Market
1 Year Returns
-45.2%
TSX:MRD
-9.1%
CA Real Estate
-23.3%
CA Market
MRD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Melcor Developments (MRD) -0.8% -41.4% -44.3% -45.2% -57.4% -61.2%
CA Real Estate -1.2% -23.2% -19.5% -9.1% 5.2% 6.7%
CA Market 1% -19.9% -23.8% -23.3% -20.9% -15%
1 Year Return vs Industry and Market
  • MRD underperformed the Real Estate industry which returned -9.1% over the past year.
  • MRD underperformed the Market in Canada which returned -23.3% over the past year.
Price Volatility
MRD
Industry
5yr Volatility vs Market

Value

 Is Melcor Developments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Melcor Developments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Melcor Developments.

TSX:MRD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in CAD CA$ 0.5
Payout Ratio Company Filings (2019-12-31) 3387.2%
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:MRD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.98 (1 + (1- 26.5%) (314.13%))
1.314
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.314 * 5.44%)
8.59%

Discounted Cash Flow Calculation for TSX:MRD using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Melcor Developments is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

TSX:MRD Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= CA$0.5 / (8.59% - 1.44%)
CA$6.99
TSX:MRD Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$6.99
Current discount Discount to share price of CA$7.20
= -1 x (CA$7.20 - CA$6.99) / CA$6.99
-3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Melcor Developments is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Melcor Developments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Melcor Developments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:MRD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.13
TSX:MRD Share Price ** TSX (2020-04-02) in CAD CA$7.2
Canada Real Estate Industry PE Ratio Median Figure of 20 Publicly-Listed Real Estate Companies 10.57x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Melcor Developments.

TSX:MRD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MRD Share Price ÷ EPS (both in CAD)

= 7.2 ÷ 1.13

6.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melcor Developments is good value based on earnings compared to the CA Real Estate industry average.
  • Melcor Developments is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Melcor Developments's expected growth come at a high price?
Raw Data
TSX:MRD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
North America Real Estate Industry PEG Ratio Median Figure of 14 Publicly-Listed Real Estate Companies 0.6x
Canada Market PEG Ratio Median Figure of 232 Publicly-Listed Companies 0.67x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Melcor Developments, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Melcor Developments's assets?
Raw Data
TSX:MRD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$32.51
TSX:MRD Share Price * TSX (2020-04-02) in CAD CA$7.2
Canada Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 0.62x
Canada Market PB Ratio Median Figure of 2,355 Publicly-Listed Companies 0.99x
TSX:MRD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MRD Share Price ÷ Book Value per Share (both in CAD)

= 7.2 ÷ 32.51

0.22x

* Primary Listing of Melcor Developments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melcor Developments is good value based on assets compared to the CA Real Estate industry average.
X
Value checks
We assess Melcor Developments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Melcor Developments has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Melcor Developments expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.1%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Melcor Developments expected to grow at an attractive rate?
  • Unable to compare Melcor Developments's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Melcor Developments's earnings growth to the Canada market average as no estimate data is available.
  • Melcor Developments's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:MRD Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:MRD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 16.1%
North America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 22.7%
Canada Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:MRD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:MRD Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 292 1
2020-12-31 281 1
2020-04-03
TSX:MRD Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 208 31 38
2019-09-30 250 49 57
2019-06-30 256 32 53
2019-03-31 258 33 51
2018-12-31 267 31 64
2018-09-30 257 1 60
2018-06-30 260 -6 60
2018-03-31 264 -5 62
2017-12-31 258 7 39
2017-09-30 255 17 31
2017-06-30 255 55 35
2017-03-31 250 60 33

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Melcor Developments is high growth as no earnings estimate data is available.
  • Melcor Developments's revenue is expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:MRD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Melcor Developments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MRD Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2020-04-03
TSX:MRD Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.13
2019-09-30 1.71
2019-06-30 1.57
2019-03-31 1.55
2018-12-31 1.92
2018-09-30 1.81
2018-06-30 1.81
2018-03-31 1.86
2017-12-31 1.15
2017-09-30 0.91
2017-06-30 1.05
2017-03-31 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Melcor Developments will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Melcor Developments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Melcor Developments has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Melcor Developments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Melcor Developments's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Melcor Developments's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Melcor Developments's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Melcor Developments's 1-year earnings growth is negative, it can't be compared to the CA Real Estate industry average.
Earnings and Revenue History
Melcor Developments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Melcor Developments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MRD Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 207.97 37.74 22.16
2019-09-30 249.90 57.32 21.84
2019-06-30 256.20 52.72 22.26
2019-03-31 257.90 51.22 22.84
2018-12-31 267.43 64.27 22.98
2018-09-30 257.09 59.83 24.66
2018-06-30 259.64 59.88 24.64
2018-03-31 263.80 62.18 24.81
2017-12-31 257.95 38.53 24.91
2017-09-30 254.71 30.55 24.09
2017-06-30 255.35 35.29 23.22
2017-03-31 250.47 33.14 21.83
2016-12-31 242.46 34.43 20.76
2016-09-30 227.79 42.98 21.81
2016-06-30 252.28 51.55 22.37
2016-03-31 256.31 53.68 23.52
2015-12-31 263.31 75.96 23.69
2015-09-30 293.04 93.38 23.15
2015-06-30 298.60 94.75 24.31
2015-03-31 318.55 108.42 25.27
2014-12-31 313.01 100.72 24.77
2014-09-30 343.75 104.55 25.75
2014-06-30 309.46 100.24 29.22
2014-03-31 294.14 92.87 28.83
2013-12-31 303.74 98.63 29.05
2013-09-30 293.51 100.19 27.36
2013-06-30 298.99 103.14 22.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Melcor Developments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Melcor Developments used its assets less efficiently than the CA Real Estate industry average last year based on Return on Assets.
  • Melcor Developments's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Melcor Developments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Melcor Developments has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Melcor Developments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Melcor Developments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Melcor Developments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Melcor Developments's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Melcor Developments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Melcor Developments Company Filings, last reported 3 months ago.

TSX:MRD Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,186.90 751.35 43.73
2019-09-30 1,172.51 702.44 31.42
2019-06-30 1,157.64 700.89 29.46
2019-03-31 1,161.13 677.67 31.56
2018-12-31 1,165.94 659.56 33.66
2018-09-30 1,134.94 677.62 38.30
2018-06-30 1,131.78 639.32 31.62
2018-03-31 1,129.68 637.96 32.24
2017-12-31 1,103.49 658.26 46.34
2017-09-30 1,079.34 643.59 41.93
2017-06-30 1,076.11 605.72 27.46
2017-03-31 1,075.59 606.49 44.45
2016-12-31 1,089.06 608.61 45.16
2016-09-30 1,067.45 635.19 37.48
2016-06-30 1,052.15 657.56 35.18
2016-03-31 1,048.26 640.89 25.81
2015-12-31 1,058.37 631.01 54.57
2015-09-30 945.01 652.95 37.73
2015-06-30 918.39 662.13 8.00
2015-03-31 920.16 658.87 14.11
2014-12-31 901.34 621.34 23.02
2014-09-30 857.98 588.67 28.69
2014-06-30 786.25 596.69 24.25
2014-03-31 780.39 570.01 19.93
2013-12-31 769.23 574.33 33.61
2013-09-30 725.83 500.12 26.21
2013-06-30 705.57 447.65 23.50
  • Melcor Developments's level of debt (63.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (69% vs 63.3% today).
  • Debt is not well covered by operating cash flow (4.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
X
Financial health checks
We assess Melcor Developments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Melcor Developments has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Melcor Developments's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.56%
Current annual income from Melcor Developments dividends. Estimated to be 6.94% next year.
If you bought CA$2,000 of Melcor Developments shares you are expected to receive CA$111 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Melcor Developments's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.67%).
  • Melcor Developments's dividend is below the markets top 25% of dividend payers in Canada (8.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:MRD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Canada Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:MRD Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.52 1.00
2020-12-31 0.48 1.00
2020-04-03
TSX:MRD Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-11 0.400 5.271
2019-11-06 0.480 3.824
2019-08-01 0.480 3.908
2019-03-13 0.520 3.916
2018-11-06 0.520 4.056
2018-05-08 0.520 3.549
2018-03-07 0.520 3.605
2017-03-15 0.520 3.401
2016-11-09 0.480 3.358
2016-08-10 0.480 3.577
2016-05-11 0.480 3.366
2016-03-16 0.480 3.416
2015-11-10 0.600 4.278
2015-08-11 0.600 3.897
2015-05-12 0.600 3.386
2015-03-11 0.600 3.300
2014-11-05 0.600 3.196
2014-05-09 0.560 2.254
2013-11-06 0.500 2.437
2013-05-09 0.500 2.600
2012-11-06 0.460 2.621
2012-10-15 0.440 2.811
2012-05-10 0.440 2.844
2011-11-03 0.400 2.865
2011-06-01 0.400 2.936
2010-11-04 0.400 2.666
2010-05-06 0.300 2.396
2009-11-04 0.250 2.210
2009-07-30 0.200 2.189
2009-05-07 0.270 4.120

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Melcor Developments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Melcor Developments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Melcor Developments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Melcor Developments has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Melcor Developments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Darin Rayburn
COMPENSATION CA$1,006,397
TENURE AS CEO 3 years
CEO Bio

Mr. Darin Anthony Rayburn serves as President & CEO at Melcor Real Estate Investment Trust from October 1, 2019. He has been the Chief Executive Officer and President of Melcor Developments Ltd. since April 15, 2017. Mr. Rayburn served as an Executive Vice President of Investment Properties at Melcor Developments Ltd. since November 2005 until April 15, 2017. Mr. Rayburn served as the Chief Executive Officer at Melcor Real Estate Investment Trust since May 2013 until April 15, 2017. He served as the President of Melcor REIT. He has several years of experience in the accounting and finance industry. Previously, Mr. Rayburn served as Senior Division Manager of Commercial Property and Investment Property at Melcor Developments Ltd. and also served as its Vice President of Investment Property Division and Commercial Property Division. Mr. Rayburn has worked in the real estate industry since 1991. He joined Melcor in 2002. Prior to joining Melcor, Mr. Rayburn held various leasing, operations, management and marketing positions with Oxford Properties Group and Cambridge Shopping Centers. He serves as a Director of Edmonton Oilers Hockey Club. He has been a Trustee at Melcor Real Estate Investment Trust since April 26, 2017. Mr. Rayburn holds a Bachelor of Arts Degree from the University of Alberta.

CEO Compensation
  • Darin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Darin's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Melcor Developments management team in years:

3.7
Average Tenure
  • The tenure for the Melcor Developments management team is about average.
Management Team

Darin Rayburn

TITLE
CEO & President
COMPENSATION
CA$1M
TENURE
3 yrs

Naomi Stefura

TITLE
CFO & Corporate Secretary
COMPENSATION
CA$535K
TENURE
3.7 yrs

Ryan Mott

TITLE
Regional Manager of USA
COMPENSATION
CA$364K

Nicole Forsythe

TITLE
Director of Corporate Communication

Jarett Thompson

TITLE
Vice-President of New Leasing & Sales

Brett Halford

TITLE
Vice-President of Recreational Properties
COMPENSATION
CA$225K

Guy Pelletier

TITLE
Vice-President of Red Deer Region
COMPENSATION
CA$320K
TENURE
23.3 yrs
Board of Directors Tenure

Average tenure and age of the Melcor Developments board of directors in years:

11.3
Average Tenure
71
Average Age
  • The average tenure for the Melcor Developments board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Tim Melton

TITLE
Chairman
COMPENSATION
CA$836K
TENURE
3 yrs

Allan Scott

TITLE
Lead Director
COMPENSATION
CA$52K
TENURE
6.1 yrs

Gordon Clanachan

TITLE
Independent Director
COMPENSATION
CA$50K
AGE
64
TENURE
11.3 yrs

Andy Melton

TITLE
Director
COMPENSATION
CA$657K
TENURE
35.3 yrs

Ralph Young

TITLE
Independent Director
COMPENSATION
CA$36K
AGE
73
TENURE
44.3 yrs

Cathy Roozen

TITLE
Independent Director
COMPENSATION
CA$38K
AGE
63
TENURE
13.3 yrs

Ross Grieve

TITLE
Independent Director
COMPENSATION
CA$36K
AGE
71
TENURE
17.3 yrs

Eric Newell

TITLE
Independent Director
COMPENSATION
CA$38K
AGE
74
TENURE
6 yrs

Kathleen Melton

TITLE
Director
COMPENSATION
CA$32K
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
03. Jan 20 Sell Bob Brown Individual 16. Dec 19 16. Dec 19 -17 CA$13.22 CA$-225
28. Feb 20 Buy Canadian Imperial Bank of Commerce, Asset Management Arm Company 24. Feb 20 28. Feb 20 4,400 CA$12.39 CA$53,605
02. Jan 20 Buy Darin Rayburn Individual 30. Dec 19 30. Dec 19 1,650 CA$12.69 CA$20,939
21. Nov 19 Sell Graeme Melton Individual 19. Nov 19 19. Nov 19 -850 CA$12.22 CA$-10,386
02. Oct 19 Sell Graeme Melton Individual 01. Oct 19 01. Oct 19 -823 CA$12.34 CA$-10,157
29. Aug 19 Buy Canadian Imperial Bank of Commerce, Asset Management Arm Company 28. Aug 19 28. Aug 19 1,000 CA$11.72 CA$11,723
16. Aug 19 Buy Naomi Stefura Individual 16. Aug 19 16. Aug 19 400 CA$12.06 CA$4,824
14. Aug 19 Buy Darin Rayburn Individual 14. Aug 19 14. Aug 19 1,000 CA$12.31 CA$12,310
15. May 19 Buy Gordon Clanachan Individual 14. May 19 15. May 19 2,000 CA$13.59 CA$26,907
X
Management checks
We assess Melcor Developments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Melcor Developments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did You Manage To Avoid Melcor Developments's (TSE:MRD) Painful 53% Share Price Drop?

The falls have accelerated recently, with the share price down 13% in the last three months. … Looking back five years, both Melcor Developments's share price and EPS declined; the latter at a rate of 14% per year. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

Could Melcor Developments Ltd.'s (TSE:MRD) Investor Composition Influence The Stock Price?

See our latest analysis for Melcor Developments TSX:MRD Ownership Summary, August 6th 2019 What Does The Institutional Ownership Tell Us About Melcor Developments? … Insider Ownership Of Melcor Developments The definition of company insiders can be subjective, and does vary between jurisdictions. … Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual.

Simply Wall St -

Melcor Developments (TSE:MRD) Has A Somewhat Strained Balance Sheet

TSX:MRD Historical Debt, July 16th 2019 How Strong Is Melcor Developments's Balance Sheet? … Since Melcor Developments does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … With a net debt to EBITDA ratio of 6.51, it's fair to say Melcor Developments does have a significant amount of debt.

Simply Wall St -

Could Melcor Developments Ltd. (TSE:MRD) Have The Makings Of Another Dividend Aristocrat?

With Melcor Developments yielding 4.0% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. … Some simple analysis can reduce the risk of holding Melcor Developments for its dividend, and we'll focus on the most important aspects below. … TSX:MRD Historical Dividend Yield, June 25th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Melcor Developments paid out 34% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. The company paid out 54% of its free cash flow, which is not bad per se, but does start to limit the amount of cash Melcor Developments has available to meet other needs. It's positive to see that Melcor Developments's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Melcor Developments's Balance Sheet Risky? As Melcor Developments has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover.

Simply Wall St -

Melcor Developments Ltd. (TSE:MRD): Time For A Financial Health Check

Moreover, MRD has produced cash from operations of CA$33m over the same time period, resulting in an operating cash to total debt ratio of 4.9%, indicating that MRD’s operating cash is less than its debt. … Looking at MRD’s CA$47m in current liabilities, it appears that the company has been able to meet these obligations given the level of current assets of CA$912m, with a current ratio of 19.5x. … Next Steps: Although MRD’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

Do You Know What Melcor Developments Ltd.'s (TSE:MRD) P/E Ratio Means?

We'll apply a basic P/E ratio analysis to Melcor Developments Ltd.'s (TSE:MRD), to help you decide if the stock is worth further research. … Melcor Developments has a P/E ratio of 6.96, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Did You Manage To Avoid Melcor Developments's (TSE:MRD) 40% Share Price Drop?

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Looking back five years, both Melcor Developments's share price and EPS declined; the latter at a rate of 9.9% per year. … In this case, the EPS change is really very close to the share price drop of 9.7% a year.

Simply Wall St -

Only 2 Days Left To Cash In On Melcor Developments Ltd. (TSE:MRD) Dividend

(TSE:MRD) will be paying shareholders an upcoming dividend amount of CA$0.13 per share. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Is Melcor Developments Ltd. (TSE:MRD) A Financially Sound Company?

(TSE:MRD) with its market cap of CA$423m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Do Directors Own Melcor Developments Ltd. (TSE:MRD) Shares?

If you want to know who really controls Melcor Developments Ltd. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … With a market capitalization of CA$435m, Melcor Developments is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Company Info

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, Investment Property, REIT, and Recreational Property divisions. It develops, manages, and owns mixed-use residential communities, business and industrial parks, office buildings, retail commercial 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 residential, commercial, retail, and industrial properties. It also owns and manages three 18-hole championship golf courses. The company was founded in 1923 and is headquartered in Edmonton, Canada.

Details
Name: Melcor Developments Ltd.
MRD
Exchange: TSX
Founded: 1923
CA$239,188,874
33,220,677
Website: http://www.melcor.ca
Address: Melcor Developments Ltd.
10310 Jasper Avenue NW,
Suite 900,
Edmonton,
Alberta, T5J 1Y8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX MRD Common Shares The Toronto Stock Exchange CA CAD 06. Jan 1975
OTCPK MODV.F Common Shares Pink Sheets LLC US USD 06. Jan 1975
Number of employees
Current staff
Staff numbers
144
Melcor Developments employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 01:07
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/12
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.