MCAN Mortgage Corporation (MKP.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada.The company offers single-family residential mortgages, as well as residential construction, non-residential construction, and commercial loans, as well as engages in the real estate investments trusts and private investment activities.It also provides term deposits through a network of independent financial agents.

The company was formerly known as MCAP Inc.and changed its name to MCAN Mortgage Corporation in September 2006.MCAN Mortgage Corporation was founded in 1980 and is headquartered in Toronto, Canada.

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1.b. Last Insights on MKP

MCAN Mortgage Corporation's recent performance was driven by strong Q2 2025 earnings, beating expectations with revenue of CA$60.8m, up 81% from 2Q 2024. The company's net income was $20.2 million, with $0.51 earnings per share, slightly up from $19.7 million in Q2 2024. Additionally, MCAN renewed its base shelf prospectus, enabling public offerings of various securities. A declared 41-cent cash dividend also contributed to the positive momentum. These results showcase the company's resilience and potential for growth.

1.c. Company Highlights

Last Price	22.59
Change Percentage	1.48%
Open	22.25
Previous Close	22.26
Market Cap ( Millions)	909
Volume	40445
Year High	22.59
Year Low	16.7
M A 50	21.55
M A 200	20.13

FCF Yield	-17.30%
Dividend Yield	7.17%
ROE	11.76%
Debt / Equity	41.61%
Net Debt / EBIDTA	142.12%
Price To Book	1.43
Price Earnings Ratio	12.42
Price To FCF	-5.78
Price To sales	3.53
EV / EBITDA	11.85

2. Transcript Summary

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3. NewsRoom

MCAN FINANCIAL GROUP REPORTS THIRD QUARTER RESULTS AND DECLARES 41 CENTS CASH DIVIDEND

Nov -06

Source:

MCAN Mortgage Second Quarter 2025 Earnings: Beats Expectations

Aug -09

Source:

MCAN Financial Group Announces Base Shelf Prospectus Renewal

Aug -07

Source:

MCAN FINANCIAL GROUP RELEASES Q2 2025 RESULTS AND DECLARES 41 CENTS CASH DIVIDEND

Aug -07

Source:

3 Undervalued Small Caps In Global With Insider Action To Consider

Aug -06

Source:

Undervalued Small Caps With Insider Action In Global For July 2025

Jul -31

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Spotlight On Global Undervalued Small Caps With Insider Buying In July 2025

Jul -28

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Undervalued Global Small Caps With Insider Buying In July 2025

Jul -18

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Investment and Related Activities

Expected Growth: 4%

MCAN Mortgage Corporation's 4% growth in Investment and Related Activities is driven by increasing mortgage originations, strategic investments in securitization, and a growing portfolio of insured mortgages. Additionally, the company's focus on single-family residential mortgages and expansion into new markets have contributed to its growth.

7. Detailed Products

Single-Family Residential Mortgages

MCAN Mortgage Corporation offers single-family residential mortgages to individuals and families to purchase or refinance their homes.

Commercial Mortgages

MCAN Mortgage Corporation provides commercial mortgages to businesses and investors to finance their commercial properties.

Construction Mortgages

MCAN Mortgage Corporation offers construction mortgages to builders, developers, and homeowners to finance their construction projects.

Insured Mortgages

MCAN Mortgage Corporation provides insured mortgages to borrowers who require mortgage insurance to secure their loan.

Mortgage Investment Corporations (MICs)

MCAN Mortgage Corporation offers mortgage investment corporations (MICs) to investors seeking a diversified portfolio of mortgages.

8. MCAN Mortgage Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for MCAN Mortgage Corporation is moderate, as there are alternative mortgage providers and financial institutions that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers is low, as individual customers have limited negotiating power in the mortgage market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as MCAN Mortgage Corporation relies on a network of brokers and agents to originate mortgages.

Threat Of New Entrants

The threat of new entrants is high, as the mortgage market is attractive to new entrants and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high, as the mortgage market is highly competitive with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	19.82%
Debt Cost	8.10%
Equity Weight	80.18%
Equity Cost	8.10%
WACC	8.10%
Leverage	24.72%

11. Quality Control: MCAN Mortgage Corporation passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

MCAN Mortgage

A-Score: 7.7/10

Value: 6.2

Growth: 5.3

Quality: 7.4

Yield: 10.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

First National

A-Score: 6.8/10

Value: 4.0

Growth: 5.0

Quality: 5.2

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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

1-Year Total Return ->

Timbercreek Financial

A-Score: 6.6/10

Value: 5.8

Growth: 3.7

Quality: 5.8

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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

1-Year Total Return ->

UWM Holdings

A-Score: 4.5/10

Value: 2.2

Growth: 3.0

Quality: 4.2

Yield: 10.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

27.83%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.10%

MCAN Mortgage Corporation - CA5791761086

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MKP

1.c. Company Highlights

Higher Yield

Less Volatile

Stable Momentum

Earnings Miss

Average Quality

Earnings Beats

Fairly Valued

Average Growth

Revenues Beats

Better Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Investment and Related Activities

Expected Growth: 4%

7. Detailed Products

Single-Family Residential Mortgages

Commercial Mortgages

Construction Mortgages

Insured Mortgages

Mortgage Investment Corporations (MICs)

8. MCAN Mortgage Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: MCAN Mortgage Corporation passed 3 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.59$

Current Price

22.59$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA