Morguard (OTC) (MRC) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: 0.67%
• Average Volume (3M): 2.03K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.28
• Revenue Growth: -7.92%
• EPS Growth: 256.12%
• Country: CA
• Employees: 1,177
• Sector: Real Estate
• Sector Strength: 79
• Industry: Real Estate - Diversified
• EPS (TTM): 24.23
• Shares Outstanding: 10,721,363
• 10 Day Avg. Volume: 1,558
• 30 Day Avg. Volume: 2,031
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.18
• Price to Cash Flow (P/CF): 3.30
• P/FCF Ratio: 2.80
• 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: $140.06
• Price Target Upside: 25.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Morguard Corporation's overall stock score reflects its strong financial performance and attractive valuation, offset by neutral technical indicators. The company's strategic portfolio adjustments and debt management have strengthened its financial foundation, but challenges in revenue growth and short-term market momentum are concerns. The valuation suggests potential undervaluation, which may appeal to investors seeking long-term growth. Overall, Morguard presents a balanced investment opportunity with both strengths and areas for improvement.

Morguard (OTC) Business Overview & Revenue Model

Company Description

Morguard Corporation is a real estate investment and management company based in Canada, with its shares trading over-the-counter under the ticker MRC. The company operates in the real estate sector, primarily focusing on the ownership, development, and management of diversified property portfolios, including multi-suite residential, retail, office, industrial, and hotel properties across North America. Morguard aims to deliver value to its shareholders through strategic acquisitions, property development, and efficient property management services.

How the Company Makes Money

Morguard Corporation generates revenue through a combination of property rental income, property management fees, and strategic real estate investment activities. The company earns rental income by leasing its diverse portfolio of properties to tenants across various sectors, including residential, commercial, and industrial. Additionally, Morguard provides property management services, for which it receives management fees from property owners. Another key revenue stream comes from the acquisition and development of real estate, where the company seeks to enhance property value and capitalize on market opportunities. Morguard's earnings are also influenced by its partnerships and joint ventures in the real estate industry, allowing it to leverage additional capital and expertise to maximize returns on its investments.

Morguard (OTC) Financial Statement Overview

Summary

Morguard demonstrates a strong financial foundation with improvements in profitability and equity management. Despite revenue growth challenges, the company effectively managed debt levels and maintained robust cash flow metrics relative to profitability. The financial statements indicate a trajectory towards greater operational efficiency and financial stability, though attention to revenue growth remains crucial for sustained success.

Income Statement

Morguard's income statement shows a mixed performance. The company experienced a decline in total revenue from 2023 to 2024, with a drop in gross profit margin from 51.6% to 46.8%. However, net profit showed a significant improvement, with the net profit margin increasing from 6.0% in 2023 to 23.6% in 2024. The EBITDA margin improved to 50.3% in 2024, reflecting better operational efficiency, though EBIT was not reported. Overall, the company demonstrated strong profitability but faced challenges in revenue growth.

Balance Sheet

Morguard maintains a stable balance sheet with a healthy equity base. The debt-to-equity ratio improved slightly from 1.49 in 2023 to 1.27 in 2024, indicating effective debt management. The equity ratio increased to 36.5% in 2024, showing a solid financial structure. Additionally, ROE jumped significantly to 6.1% in 2024, up from 1.9% in 2023, reflecting improved profitability from shareholders' investments. Overall, the balance sheet shows financial stability with an improvement in leverage and equity ratios.

Cash Flow

Morguard's cash flow statement reveals a decrease in operating cash flow from 2023 to 2024, with a corresponding decline in free cash flow. However, the company managed to maintain a positive free cash flow to net income ratio, indicating efficient cash generation relative to net income. Free cash flow growth rate was negative, highlighting potential challenges in sustaining cash flow levels. The operating cash flow to net income ratio was stable, underscoring effective cash management despite revenue fluctuations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	1.23B	1.12B	1.02B	1.03B
	Gross Profit
518.72M	634.03M	500.36M	533.30M	533.32M
	EBIT
0.00	1.23B	508.53M	394.73M	490.97M
	EBITDA
557.29M	362.60M	535.04M	427.23M	-51.99M
	Net Income Common Stockholders
261.80M	74.18M	122.77M	249.76M	-250.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.72M	116.52M	111.81M	173.66M	142.09M
	Total Assets
11.76B	11.62B	11.71B	11.49B	11.05B
	Total Debt
5.44B	5.81B	5.80B	5.80B	5.83B
	Net Debt
5.30B	5.69B	5.69B	5.63B	5.68B
	Total Liabilities
7.04B	7.28B	7.32B	7.32B	7.14B
	Stockholders Equity
4.29B	3.89B	3.87B	3.63B	3.37B
Cash Flow		Free Cash Flow
260.21M	288.52M	251.19M	264.77M	209.80M
	Operating Cash Flow
263.49M	297.89M	252.85M	265.44M	211.94M
	Investing Cash Flow
371.39M	-332.16M	-84.51M	-125.62M	-68.09M
	Financing Cash Flow
-613.37M	37.65M	-234.49M	-106.63M	-122.85M

Morguard (OTC) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRC, the sentiment is Negative. The current price of 112 is below the 20-day moving average (MA) of 116.11, below the 50-day MA of 115.81, and below the 200-day MA of 115.82, indicating a bearish trend. The MACD of -1.67 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRC.

Morguard (OTC) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRU.UN	76 Outperform	C$4.34B	19.17	4.50%	7.26%	9.46%	-42.77%
FCR.UN	72 Outperform	C$3.50B	17.08	5.20%	5.28%	6.55%	―
REI.UN	71 Outperform	$5.09B	10.87	6.34%	6.51%	11.62%	1120.60%
MRC	66 Neutral	$1.21B	4.64	6.46%	0.67%	-7.92%	256.12%
CAR.UN	64 Neutral	C$6.60B	23.46	3.20%	3.66%	4.45%	―
Sector *	59 Neutral	$2.71B	11.52	0.08%	8691.97%	5.56%	-16.56%
AX.UN	57 Neutral	C$705.43M	―	-2.86%	8.63%	-10.56%	81.41%

Morguard (OTC) Corporate Events

Morguard Corporation Expands Stake in Real Estate Investment Trust

Morguard Corporation has increased its ownership in Morguard Real Estate Investment Trust by acquiring 1,307,418 trust units, raising its stake from 80.72% to 82.30%. This strategic move, executed through the Toronto Stock Exchange and the REIT’s distribution reinvestment plan, underscores Morguard’s commitment to enhancing its investment portfolio. The acquisition, valued at approximately $7.25 million, is part of Morguard’s broader investment strategy, potentially impacting its market position and offering implications for stakeholders in terms of ownership concentration and future investment activities.

Morguard Corporation Reports Strong 2024 Financial Results Amid Strategic Portfolio Adjustments

Morguard Corporation announced a positive financial performance for 2024, highlighted by strong liquidity and significant debt reduction following the sale of a hotel portfolio. The company reported a notable increase in net income due to these sales and managed to refinance mortgages at favorable rates. However, revenue from hotel properties declined sharply due to the disposition, impacting overall revenue growth. Morguard also launched a new rental community project in Mississauga, indicating continued investment in residential property development.