# Melcor Developments Ltd. (MRD.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Real Estate / Real Estate Management & Development. Price C$18.92, market value C$567 million.

## Valuation
- **P/E (trailing): 6.3×** (5-yr avg 6.8×, 3-yr avg 7.9×). Melcor Developments Ltd. trades at 6.3× trailing earnings, close to its own five-year average of 6.8×. The Real Estate median in the September 2026 study was 25.2×.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 0.4×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 8.4×**. Enterprise value is 8.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.0%** (5-yr avg 17.4%). Free cash flow equals 6.0% of the market value, below its five-year average of 17.4%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 15.9%**. The inverse of the P/E: 15.9% of the price is earned each year.

## Profitability
- **Gross margin: 43.6%**. Melcor Developments Ltd. keeps 43.6% of revenue after the direct cost of what it sells.
- **Operating margin: 34.4%**. 34.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 14.1%**. 14.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.6%**. 4.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.6%**. Return on all capital, debt included, is 6.6%.
- **Return on assets: 4.4%**. Each dollar of assets produces 4.4% of profit.

## Growth
- **Revenue growth (1 yr): 17.5%** (3-yr 19.3%/yr, 5-yr 12.6%/yr). Revenue grew 17.5% over the last year, against 12.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 75.2%** (3-yr -11.3%/yr, 5-yr 41.2%/yr). Earnings per share rose 75.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 73.4%/yr**. Free cash flow has compounded at 73.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.43**. Debt is 0.43 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 3.8×**. It would take 3.8 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 5.6×**. Operating profit covers interest 5.6× over, a safe margin.
- **Current ratio: 5.23**. Current assets cover the next year's liabilities 5.23 times.
- **Altman Z-score: 1.89**. A Z-score of 1.89 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.17%** (C$0.56 per share, trailing). Melcor Developments Ltd. yields 3.17%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 25%** (81% of free cash flow). 25% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 7.1%/yr** (1-yr 9.1%). The dividend has grown 7.1% a year over five years.
- **Shareholder yield: 4.0%**. Dividends plus net buybacks return 4.0% of the market value a year.

## Price and momentum
- **Total return (1 yr): 30.9%** (YTD 28.6%, 3-mo 6.0%). The shares are up 30.9% over twelve months including dividends.
- **From 52-week high: -2.8%** (33.4% above the low). Trading within 5% of 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): 58**. An RSI of 58 is neutral.
- **Beta (1 yr): 0.16** (volatility 17%). Beta of 0.16 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MRD.TO · Page: https://foliofundamentals.com/stocks/mrd.to

Not investment advice.