Builders Capital Mortgage Corp.
Q1 Earnings Beat and Lower Risk Profile Boost Outlook
Published: 6/4/2025
Author: FRC Analysts
Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:BCF - TSX 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $8.76 |
| Fair Value | CAD $10.2 |
| Risk | 3 |
| 52 Week Range | CAD $7.99-9.23 |
| Shares O/S (M) | 3.1 |
| Market Cap. (M) | CAD $28 |
| Current Yield (%) | N/A |
| P/E (forward) | 8.3 |
| P/B | 0.9 |
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Report Highlights
- BCF reported record revenue and EPS in Q1. Mortgage receivables (net) increased 20% QoQ to $52M, surpassing our year-end estimate of $49M.
- EPS was up 13% YoY, beating our estimate by 2%. Annual regular dividends remained unchanged at $0.80/share, reflecting a yield of 9.13%.
- We believe the MIC has lowered its risk profile, driven by a higher allocation to first mortgages. Additionally, stage three mortgages (impaired) decreased 33% QoQ to 2.6% of mortgages.
- BCF’s strong loan growth is encouraging, given the slowdown in key Canadian housing markets caused by high interest rates, affordability issues, and economic uncertainty.
- Although the BoC is expected to hold rates in this week’s upcoming meeting, we believe there is potential for one or two more cuts later this year, driven by slowing GDP growth, elevate
