Builders Capital Mortgage Corp.
Record Q1 Revenue / Pursuing a $50M Bond Financing
Published: 5/31/2024
Author: Sid Rajeev, B.Tech, CFA, MBA
Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:BCF - TSX 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $8.55 |
| Fair Value | CAD $10.05 |
| Risk | 3 |
| 52 Week Range | CAD $8.07-9.00 |
| Shares O/S (M) | 3.16 |
| 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 Q1-2024, BCF reported record revenue (up 9% YoY) due to higher lending rates. However, EPS decreased 2% due to higher loan loss provisions. EPS was 5% higher than our estimate. While loan loss provisions were in line, lending rates were higher than anticipated.
- Annual dividends remained unchanged at $0.80/share, implying a yield of 9.4%.
- We believe the portfolio’s risk profile has decreased due to higher first mortgages, and lower LTV.
- The company is pursuing a $50M bond financing. We believe this financing is indicative of the company’s robust pipeline of mortgages. Bondholders will participate on a pari passu (equal
