Builders Capital Mortgage Corp.
Strengthened Portfolio and Dividend Resilience
Published: 5/2/2025
Author: FRC Analysts

Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:BCF - TSX 🔹
Rating and Key Data
Metrics | Value |
---|---|
Current Price | CAD $8.55 |
Fair Value | CAD $9.92 |
Risk | 3 |
52 Week Range | CAD $7.99-9.23 |
Shares O/S (M) | 3.14 |
Market Cap. (M) | CAD $27 |
Current Yield (%) | 9.4 |
P/E (forward) | 10.7 |
P/B | 0.9 |
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Report Highlights
- In 2024, mortgage receivables (net) increased 31% to $43M vs our estimate of $40M. Q4 saw the bulk of receivables growth, funded by proceeds from a $7.5M bond financing.
- Revenue was up 11.0% YoY, beating our estimate by 1.5%. However, EPS held steady at $1.04, in line with our estimate, as higher loan loss provisions offset revenue growth. Annual regular dividends remained unchanged at $0.80/share, reflecting a yield of 9.36%.
- We believe the MIC has lowered its risk profile, driven by a higher allocation to first mortgages. Additionally, stage three mortgages (impaired) decreased 0.9 pp YoY to 4.7% of mortgages, a notable contrast to the broader MIC sector, which saw a rise in impairments.
- Since June 2024, the BoC has cut rates seven times (225 bp), with the potential for one or two more cuts this year, due to slowing GDP growth, high unemployment, and cooling inflation. Consequently, we anticipate BCF’s transaction volumes to rise this year.
- While lower rates have historically boosted MIC/financial stocks, Trump’s tariff threats have negatively impacted both Canadian and U.S. equities across the board. Although tariffs will