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1. Company Snapshot

1.a. Company Description

Firm Capital Mortgage Investment Corporation, through its mortgage banker, Firm Capital Corporation, provides residential and commercial short-term bridge, and conventional real estate finance in Canada.It engages in originating, funding, purchasing, and servicing mortgage investments.The company also offers mortgage services, such as real estate financing, real estate investment financing, capital market, and loan servicing and advisory services; and a line of lending programs, including construction and development lending, investment property financing, short term lending, bridge finance, mezzanine and equity investments, capital market facilities, residential and non-conventional house lending, and condominium capital improvement loans, as well as special situation loans.


In addition, it provides related investment services.The company was founded in 1988 and is based in Toronto, Canada.

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1.b. Last Insights on FC

Negative drivers behind Firm Capital Mortgage Investment Corporation's recent stock performance include: * Limited visibility on future earnings growth due to market volatility and interest rate uncertainty. * Recent interest rate hikes, which may increase borrowing costs and impact mortgage originations. * No recent earnings release, making it challenging to assess current financial performance. * The company's focus on distributing dividends, as evident from the special year-end dividend of $0.056 per common share, may indicate a lack of emphasis on share buybacks, which could be a positive catalyst for the stock. * No notable acquisitions or new product launches in recent news, suggesting a lack of growth drivers.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Firm Capital Mortgage Investment Corporation Completes $25 Million Bought Deal Financing

Oct -14

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Firm Capital Mortgage Investment Corporation Announces Upsizing of Previously Announced Bought Deal Offering

Oct -07

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Firm Capital Mortgage Investment Corporation Announces $20 Million Bought Deal Financing

Oct -06

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Firm Capital Mortgage Investment Corporation Announces Q2/2025 Results, as Well as the Declaration of October, and November Monthly Cash Dividends

Aug -07

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Firm Capital Mortgage Investment Corporation Announces Election of Directors

Jun -19

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Firm Capital Mortgage Investment Corporation Announces Q1/2025 Results, as Well as the Declaration of July, August, and September Monthly Cash Dividends

May -06

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Firm Capital Mortgage Investment Corporation Announces Monthly Cash Dividends

Apr -07

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Firm Capital Mortgage Investment Corporation Announces Early Redemption of 5.40% Convertible Debentures due June 30, 2025

Apr -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.02%)

6. Segments

Direct Offices

Expected Growth: 8%

Strong demand for mortgage financing, increasing property values, and strategic expansion into new markets drive Direct Offices' growth. Firm Capital Mortgage Investment Corporation's diversified portfolio and access to low-cost capital also contribute to this 8% growth rate. Additionally, the company's efficient operations and experienced management team enable it to capitalize on market opportunities, further fueling growth.

Education

Expected Growth: 12%

Firm Capital Mortgage Investment Corporation's 12% growth is driven by increasing demand for mortgage financing, strategic expansion into new markets, and a strong track record of underwriting and asset management. Additionally, the corporation's diversified portfolio and access to low-cost funding sources have contributed to its growth momentum.

International Licensees

Expected Growth: 9%

Firm Capital Mortgage Investment Corporation's 9% growth in International Licensees is driven by increasing demand for mortgage financing, expansion into new geographic markets, strategic partnerships, and effective risk management. Additionally, the corporation's diversified portfolio and strong relationships with originators have contributed to its growth.

Corporate and Eliminations

Expected Growth: 7%

Firm Capital Mortgage Investment Corporation's 7% growth in Corporate and Eliminations is driven by increasing mortgage investments, expansion into new markets, and strategic partnerships. Additionally, effective cost management, improved operational efficiency, and a favorable interest rate environment contribute to the segment's growth.

7. Detailed Products

Mortgage Investments

Firm Capital Mortgage Investment Corporation provides mortgage investments to individuals and institutions, offering a stable source of income through interest payments.

Conventional Mortgages

The company offers conventional mortgages to borrowers, providing financing for residential and commercial properties.

Construction Mortgages

Firm Capital provides construction mortgages for builders, developers, and property owners, financing their construction projects.

Mezzanine Financing

The company offers mezzanine financing solutions to borrowers, providing additional capital for their projects or businesses.

Syndicated Mortgages

Firm Capital offers syndicated mortgages, allowing multiple investors to pool their funds and invest in a diversified portfolio of mortgages.

8. Firm Capital Mortgage Investment Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Firm Capital Mortgage Investment Corporation is moderate, as there are alternative investment options available to investors, but the company's diversified portfolio and strong brand presence mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as Firm Capital Mortgage Investment Corporation has a diversified customer base and is not heavily reliant on a single customer or group of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Firm Capital Mortgage Investment Corporation relies on a network of suppliers and partners to originate and service its mortgage investments, but has some flexibility to negotiate terms.

Threat Of New Entrants

The threat of new entrants is high, as the mortgage investment industry is relatively easy to enter, and new companies may be attracted to the industry's potential for high returns.

Intensity Of Rivalry

The intensity of rivalry is high, as Firm Capital Mortgage Investment Corporation operates in a competitive industry with several established players, and must continually innovate and improve its offerings to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.41%
Debt Cost 3.95%
Equity Weight 68.59%
Equity Cost 9.12%
WACC 7.49%
Leverage 45.79%

11. Quality Control: Firm Capital Mortgage Investment Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 7.5

Volatility: 10.0

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Firm Capital Mortgage

A-Score: 6.8/10

Value: 4.3

Growth: 4.0

Quality: 7.5

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

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Growth: 3.7

Quality: 5.8

Yield: 10.0

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Greystone Housing Impact Investors

A-Score: 6.3/10

Value: 7.0

Growth: 4.2

Quality: 6.4

Yield: 10.0

Momentum: 1.5

Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.62$

Current Price

11.62$

Potential

-0.00%

Expected Cash-Flows