Builders Capital Mortgage Corp.
A Resilient Dividend Play
Published: 12/10/2024
Author: FRC Analysts
Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:BCF - TSX 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $9.23 |
| Fair Value | CAD $10.13 |
| Risk | 3 |
| 52 Week Range | CAD $8.01-9.23 |
| Shares O/S (M) | 3.16 |
| Market Cap. (M) | CAD $29 |
| Current Yield (%) | 8.7 |
| P/E (forward) | 11.6 |
| P/B | 0.99 |
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Report Highlights
- In Q3-2024, BCF recorded its highest-ever quarterly revenue (up 5% YoY), amid higher lending rates, and mortgage originations, beating our estimate by 3%.
- However, EPS was flat YoY, driven by higher loan loss provisions, missing our estimate by 7%. Annual regular dividends remained unchanged at $0.80/share, reflecting a yield of 8.7%.
- Stage three mortgages (impaired) increased QoQ, from 1.7% to 5.7% of mortgages, driven by a builder with two mortgages facing liquidity challenges. However, management is opt
