Melcor Developments (MRD) AI Stock Analysis

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Melcor Developments

(TSX:MRD)

Select Model

Rating:69Neutral

Price Target:CAD 20.00▲(6.21% Upside)

Action:reiterated

Date:08/19/26

The score is driven primarily by solid underlying financial performance (strong margins and improving leverage) and an attractive valuation (low P/E and high dividend yield). These positives are partially offset by softer technical momentum and the financial risk signal from declining TTM revenue and volatile cash flow conversion.

Positive Factors

Strong profitabilityHealthy gross and operating margins provide resilience across development and property operations. Sustained profitability can support reinvestment, debt service and shareholder distributions even when individual projects produce uneven results.

Negative Factors

Declining TTM revenueThe reversal from prior annual growth shows that revenue is not yet consistently expanding. For a development-oriented company, uneven land sales, project timing and leasing conditions can make future earnings less predictable.

Melcor Developments (MRD) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 399.48M
Dividend Yield: 4.94%
Average Volume (3M): 5,926
Price to Earnings (P/E): 6.3
Beta (1Y): 0.39
Revenue Growth: -3.65%
EPS Growth: 840.07%
Country: Canada
Employees: 140
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

Melcor Developments Business Overview & Revenue Model

Company Description

Melcor Developments Ltd. is a real estate development and management firm with operations spanning the United States and Canada. The company segments its business into Community Development, Property Development, REIT, Investment Property, and Recrea...

How the Company Makes Money

MRD makes money through multiple real-estate-based revenue streams tied to developing, owning, and operating properties. (1) Land and community development: the company acquires and services land (e.g., planning, zoning, and installing infrastructure...

Melcor Developments Financial Statement Overview

Summary

Profitability is strong with healthy margins and an improving leverage profile, but TTM revenue declined and cash generation is uneven (operating cash flow fell sharply and free cash flow growth is negative), which tempers overall financial quality.

Income Statement

76Positive

Balance Sheet

72Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	367.02M	410.55M	349.50M	315.24M	241.75M	315.63M
Gross Profit	159.75M	188.26M	157.39M	142.35M	118.26M	140.13M
EBITDA	124.39M	135.07M	83.03M	104.77M	138.20M	103.08M
Net Income	90.85M	58.02M	33.53M	62.98M	89.35M	56.31M
Balance Sheet
Total Assets	1.98B	2.05B	2.11B	2.10B	2.17B	2.11B
Cash, Cash Equivalents and Short-Term Investments	69.28M	74.88M	58.11M	34.69M	80.47M	59.92M
Total Debt	490.24M	548.74M	611.34M	670.17M	740.37M	716.91M
Total Liabilities	686.85M	783.06M	865.92M	887.89M	988.71M	997.46M
Stockholders Equity	1.30B	1.27B	1.24B	1.21B	1.18B	1.12B
Cash Flow
Free Cash Flow	33.82M	91.88M	97.69M	48.09M	17.62M	71.60M
Operating Cash Flow	34.96M	92.55M	98.63M	48.81M	18.35M	72.82M
Investing Cash Flow	79.36M	84.95M	2.69M	4.63M	18.33M	-17.68M
Financing Cash Flow	-136.49M	-157.28M	-82.08M	-98.97M	-17.26M	-24.56M

Melcor Developments Technical Analysis

Technical Analysis SentimentPositive

Last Price18.83

Price Trends

50DMA18.68Positive

100DMA18.56Positive

200DMA17.86Positive

Market Momentum

MACD0.04Negative

RSI52.95Neutral

STOCH28.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRD, the sentiment is Positive. The current price of 18.83 is above the 20-day moving average (MA) of 18.74, above the 50-day MA of 18.68, and above the 200-day MA of 17.86, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRD.

Melcor Developments Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

TSE:MRD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:GDC	76Outperform	CAD 196.39M	5.90	10.76%	―	15.40%	-15.19%
TSE:MRD	69Neutral	CAD 565.21M	6.25	7.14%	4.94%	-3.65%	840.07%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
TSE:WFC	61Neutral	CAD 700.32M	19.38	18.20%	4.55%	-6.50%	18.98%
TSE:KMP.UN	57Neutral	CAD 2.09B	290.50	0.25%	4.13%	4.80%	-99.27%

* Real Estate Sector Average

Performance Comparison

TSE:MRD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:MRD	Melcor Developments OTC	18.83	5.30	39.21%
TSE:GDC	Genesis Land Dev	3.30	0.23	7.39%
TSE:KMP.UN	Killam Apartment REIT Un	17.43	1.34	8.35%
TSE:WFC	Wall Financial	22.00	7.22	48.87%
TSE:MHC.UN	Flagship Communities Real Estate Investment Trust	30.00	5.07	20.35%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026

Melcor Developments AI Stock Analysis