MCAN Mortgage Corp reports 75.1 pp EBITDA Margin growth from to 75.1% in 2016
24.02.2017 • About MCAN Mortgage Corp (
$MKP) • By InTwits
MCAN Mortgage Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- MCAN Mortgage Corp doesn't have a profitable business model yet: 2016 ROIC is 1.9%
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 13.8x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
MCAN Mortgage Corp ($MKP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 69.065 | 67.269 | 71.049 | 83.943 | 93.013 | 10.8% |
| EBITDA | 55.937 | | | | 69.815 | |
| Net Income | 21.493 | 30.805 | 25.446 | 32.857 | 40.182 | 22.3% |
Balance Sheet
|
|---|
| Cash | 123.825 | 64.945 | 51.090 | 75.762 | 111.732 | 47.5% |
| Short Term Debt | 0.000 | 17.991 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 2,015.046 | 1,054.656 | 746.063 | 1,070.304 | 1,071.786 | 0.1% |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -6.5% | -2.6% | 5.6% | 18.1% | 10.8% | |
| EBITDA growth | -11.3% | | | | | |
| EBITDA Margin | 81.0% | 0.0% | 0.0% | 0.0% | 75.1% | 75.1% |
| Net Income Margin | 31.1% | 45.8% | 35.8% | 39.1% | 43.2% | 4.1% |
| ROIC | | 1.0% | 1.7% | 2.0% | 1.9% | -0.0% |
| ROE | 12.8% | 15.9% | 11.7% | 13.6% | 14.9% | 1.3% |
| Net Debt/EBITDA | 33.8x | | | | 13.8x | 13.8x |
MCAN Mortgage Corp ($MKP) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 22 | 27 | 23 | 22 | 25.0% | 25.4% | 14.1% | -14.0% |
| EBITDA | 16 | 20 | 18 | 16 | | | | |
| Net Income | 8 | 14 | 10 | 9 | 80.9% | 14.4% | 35.9% | -4.8% |
Balance Sheet
|
|---|
| Cash | 78 | 74 | 80 | 112 | -0.1% | -33.0% | -12.5% | 47.5% |
| Long Term Debt | 1,043 | 1,062 | 1,058 | 1,072 | 18.4% | 6.1% | -8.4% | 0.1% |
Ratios
|
|---|
| EBITDA Margin | 71.7% | 76.2% | 76.3% | 75.6% | 71.7% | 76.2% | 76.3% | 75.6% |
| Net Income Margin | 35.7% | 51.4% | 42.4% | 41.6% | 11.0% | -4.9% | 6.8% | 4.0% |
Revenue and profitability
MCAN Mortgage Corp's Revenue jumped on 10.8%. Revenue growth showed slow down in 16Q4 - it was -14.0% YoY.
Net Income marign increased on 4.1 pp from 39.1% to 43.2% in 2016.
Return on investment
The company operates at good ROE (14.87%) while ROIC is low (1.94%). ROIC showed almost no change in 2016. ROE increased slightly on 1.3 pp from 13.6% to 14.9% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.8x and Debt / EBITDA is 15.4x. Net Debt / EBITDA surged13.8x from to 13.8x in 2016. Debt showed almost no change in 2016 while cash jumped on 47.5%.
Appendix 1: Peers in Financial
Below we provide MCAN Mortgage Corp benchmarking against other companies in Financial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.5% | 9.1% | 3.0% | 5.1% |
|---|
| MCAN Mortgage Corp ($MKP) | | -2.6% | 5.6% | 18.1% | 10.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (37 companies) | 39.5% | 33.5% | 39.8% | 32.5% | 42.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.9% |
|---|
| MCAN Mortgage Corp ($MKP) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (55 companies) | 4.6% | 4.3% | 4.3% | 3.5% | 3.2% |
|---|
| MCAN Mortgage Corp ($MKP) | | 1.0% | 1.7% | 2.0% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.2x | 4.6x | 4.7x | 6.0x | 6.0x |
|---|
