Builders Capital Mortgage Corp.
Record Q1 Revenue / Pursuing a $50M Bond Financing
Published: 5/31/2024
Author: Sid Rajeev, B.Tech, CFA, MBA
![Record Q1 Revenue / Pursuing a $50M Bond Financing - Main Image](/_next/image?url=https%3A%2F%2Ffrc-backend.s3.ca-central-1.amazonaws.com%2Fpictures%2F83c816ae-0f78-4450-976d-6e9cf59fee60-posting-images-8-665e4a6166efa%2520%25283%2529.webp&w=1080&q=75)
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 |
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 |
- 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.
Rating and Key Data
Metrics | Value |
---|---|
Current Price | CAD $8.55 |
Fair Value | CAD $10.05 |
Risk | 3 |
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 |