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Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Firm Capital Mortgage Investment (FC-T) is a small mortgage lender with a relatively cheap stock and a high yield. However, the lack of growth in per share earnings over the past 15 years and its close tie to housing, rates, and the economy make it a higher-risk income option. Competitive pressures and potential economic downturns could further impact the stock. While there are no significant red flags, experts would prefer to see growth in the company.

Consensus
Mixed
Valuation
Fair Value
RISKY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

FC is a relatively small mortgage lender. The stock is cheap at 10X earnings, and it mostly trades for its 9.4% yield. The dividend has not been raised for at least 10 years, but it does pay fairly regular small special dividends annually. There has been esssentially no growth in per share earnings in 15 years, and its business is very closely tied to housing, rates, and the economy. With this, and with its small size, it should be consider higher-risk income, certainly. We do not really see any red flags other than these risks, but we would prefer to see growth. Competitive pressures have increased, and a recession or 'higher for longer' rates would not help the stock much. The stock has declined about 30% over the past decade. This has been offset by the dividend, but the stock could still drift lower, lowering net gains on the dividend. 
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Financial Services
COMMENT

He prefers the private space, because they are just getting the trend on how much you are receiving from the mortgages. You are getting a lot more ability, and pricewise it is about the same. Firm Capital is a well-run company.

Financial Services
DON'T BUY

A mortgage corp. They invest in mortgages, both commercial and residential. It is a very well run company that has a nice dividend. There is a potential for them to be impacted by the new mortgage rules if the housing market slows down.

Financial Services
DON'T BUY

Lending for real estate projects. As interest rates rise, there might be a slowdown in projects so could slow down business for this one. Maybe this real estate cycle is long in the tooth on the building side. He owns more REITs instead of the financing side.

Financial Services
BUY

High payout ratio, but more like a high yield bond. They pay out most of their profits. There is no capital appreciation but you get 9 or 10% payout during the year. The stock is not designed to go up. It goes up and down with the appetite for yield.

Financial Services
BUY

This would be among the best.Concientious management. Has had a little bit of a correction but feels that correction is based on interest rates, not anything that has gone on with the company.

Financial Services
COMMENT

This company doesn’t retain any of its profits. Pays out 100% of its profits in the form of dividends so the BV per share never grows. This is like a high-yield bond.

Financial Services
COMMENT
Is dividend safe? Has no worries about this company. Consistent track record. Predominately in Toronto and there is very good loan to value.
Financial Services
BUY
Very good management. Focused on smaller community centre shopping areas and tend to take long-term views on their assets. (He owns the bonds, not the stocks.)
Financial Services
HOLD
As close to a mortgage REIT as you get in Canada. Essentially underwrite a portfolio of construction financing, mezzanine loans and commercial real estate. Average loan term is probably about 1 year. Payout ratio is sustainable. Limited competition. 9% yield but very little growth.
Financial Services
BUY
A short-term financer of commercial and multi-residential construction. No exposure to the sub prime market. A good name. Stable yield and modest appreciation.
Financial Services
BUY
Small “mortgage” REIT. Mezzanine financing for residential for multi-residential and commercial development. Involves loans for 12 to 16 months for some to develop a property or to reposition one. Expensive debt, so it is short term. Compelling value and a great yield. Fairly illiquid.
Financial Services
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Firm Capital Mortgage Investment(FC-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Firm Capital Mortgage Investment is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Firm Capital Mortgage Investment(FC-T) Frequently Asked Questions

What is Firm Capital Mortgage Investment stock symbol?

Firm Capital Mortgage Investment is a Canadian stock, trading under the symbol FC-T on the Toronto Stock Exchange (FC-CT). It is usually referred to as TSX:FC or FC-T

Is Firm Capital Mortgage Investment a buy or a sell?

In the last year, there was no coverage of Firm Capital Mortgage Investment published on Stockchase.

Is Firm Capital Mortgage Investment a good investment or a top pick?

Firm Capital Mortgage Investment was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Firm Capital Mortgage Investment.

Why is Firm Capital Mortgage Investment stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Firm Capital Mortgage Investment worth watching?

0 stock analysts on Stockchase covered Firm Capital Mortgage Investment In the last year. It is a trending stock that is worth watching.

What is Firm Capital Mortgage Investment stock price?

On 2024-10-08, Firm Capital Mortgage Investment (FC-T) stock closed at a price of $11.45.