# Flagship Communities (MHC-UN.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Real Estate / REIT - Residential. Price C$29.70, market value C$724 million.

## Valuation
- **P/E (trailing): 4.3×** (5-yr avg 5.0×, 3-yr avg 4.4×). Flagship Communities trades at 4.3× trailing earnings, close to its own five-year average of 5.0×. The Real Estate median in the September 2026 study was 25.2×. Forward P/E is 25.8×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 2.20**. A PEG of 2.20 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 6.4×**. Each dollar of revenue is priced at 6.4×.
- **Price / book: 0.6×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 10.3×**. Enterprise value is 10.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.4%** (5-yr avg 4.8%). Free cash flow equals 3.4% of the market value, below its five-year average of 4.8%, so the shares are pricier on cash than usual.
- **Earnings yield: 23.2%**. The inverse of the P/E: 23.2% of the price is earned each year.

## Profitability
- **Gross margin: 64.7%**. Flagship Communities keeps 64.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 54.0%**. 54.0% of revenue is left after running the business, an exceptional level.
- **Net margin: 111.9%**. 111.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.8%**. 16.8% on shareholders' equity is solid.
- **Return on invested capital: 4.0%**. Return on all capital, debt included, is 4.0%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 7.1%**. Each dollar of assets produces 7.1% of profit.

## Growth
- **Revenue growth (1 yr): 17.3%** (3-yr 20.7%/yr). Revenue grew 17.3% over the last year.
- **EPS growth (1 yr): 11.7%** (3-yr 25.5%/yr). Earnings per share rose 11.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 31.7%/yr**. Free cash flow has compounded at 31.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.77**. Debt is 0.77 times equity, moderate leverage.
- **Net debt / EBITDA: 4.3×**. It would take 4.3 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.6×**. Operating profit covers interest 2.6×, thin but manageable.
- **Current ratio: 0.14** (quick 0.14). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.47**. A Z-score of 1.47 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.35%** (C$0.87 per share, trailing). Flagship Communities yields 3.35%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 14%** (65% of free cash flow). 14% of earnings goes out as dividends, leaving room to keep raising it.

## Price and momentum
- **Total return (1 yr): 17.6%** (YTD 7.2%, 3-mo 7.1%). The shares are up 17.6% over twelve months including dividends.
- **From 52-week high: -8.6%** (20.8% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): -0.13** (volatility 24%). Beta of -0.13 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MHC-UN.TO · Page: https://foliofundamentals.com/stocks/mhc-un.to

Not investment advice.