Melcor Developments Ltd. (MRD.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+113.0%

CA$40.17

vs CA$18.86 price

Levered DCF

CA$49.35

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.84

Grey zone

Rating

S-

Overall 5 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	7.94×	11.73×	5.52×	3.87×	8.38×	27.71×	11.79×	6.4×
P/B	0.36×	0.32×	0.29×	0.29×	0.42×	0.29×	0.41×	0.38×
P/S	1.12×	1.12×	1.11×	1.43×	1.49×	1.38×	2.13×	1.53×
EV / EBITDA	6.92×	11.44×	9.39×	7.28×	10.94×	25.37×	17.28×	9.79×
Gross margin	45.9%	45.0%	45.2%	48.9%	44.4%	43.3%	46.5%	46.8%
Operating margin	39.0%	24.1%	33.9%	52.5%	26.0%	50.7%	25.7%	39.7%
Net margin	14.1%	9.6%	20.0%	37.0%	17.8%	5.1%	18.1%	24.0%
Current ratio	5.23×	17.3×	19.68×	18.67×	17×	23.8×	20.67×	17.8×
Debt / equity	0.43×	0.49×	0.55×	0.63×	0.64×	0.67×	0.7×	0.62×
Interest coverage	5.81×	3.14×	2.71×	5.2×	3.59×	4.6×	2.3×	4.85×
Dividend yield	3.1%	3.4%	5.7%	5.4%	3.1%	3.6%	3.7%	4.2%
Payout ratio	25.0%	40.0%	31.4%	20.9%	25.8%	98.3%	44.1%	27.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.6%	2.7%	5.2%	7.6%	5.0%	1.1%	3.5%	6.0%
Return on invested capital	4.4%	2.5%	4.3%	4.8%	2.8%	5.1%	2.3%	3.7%
Return on assets	2.8%	1.6%	3.0%	4.1%	2.7%	0.6%	1.8%	3.2%
Free cash flow yield	20.0%	24.9%	13.8%	5.1%	15.2%	16.6%	6.8%	7.3%
Earnings yield	12.6%	8.5%	18.1%	25.9%	12.0%	3.7%	8.5%	15.7%
Enterprise value	CA$934.1M	CA$949.4M	CA$983.9M	CA$1B	CA$1.1B	CA$1B	CA$1.2B	CA$1B
Net debt / EBITDA	3.51×	6.71×	6.07×	4.78×	6.37×	17.47×	10.66×	5.94×
Cash conversion cycle (days)	1,334	1,497	1,659	2,330	1,649	2,179	2,582	2,098