Is it a good company at a reasonable price? I can see the attraction of this company. It has a high yield and has been consistent in paying its dividends. My only reliable test is the dividend yield test because I have enough data. It takes a long time to fill in the data for stocks and I need to do 3 new stocks. The stock seems to be pointing to a reasonable price. (I am also having computer problems the last couple of days, so this does not help.)
I do not own this stock of Firm Capital Mortgage Investment Corp (TSX-FC, OTC-FCMGF). It was recommended by Gordon Pape for his RRIF Portfolio.
When I was updating my spreadsheet, I noticed that the dividend yield was high. The company does not increase their dividends, but each year they give a special dividend that can vary.
Also note I have only updated my spreadsheet with certain years like one, 5 and 10 years. I have updated the spreadsheet on dividends and stock prices. It takes a long time to update a new spreadsheet completely and I needed to add 3 new stocks to complete the year.
If you had invested in this company in December 2014, for $1,004.40 you would have bought 81 shares at $12.40 per share. In December 2024, after 10 years you would have received $792.10 in dividends. The stock would be worth $967.14. Your total return would have been $1,759.24. This would be a total return of 7.63% per year with 0.38% from capital loss and 8.01% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $12.40 | $1,004.40 | 81 | 10 | $792.10 | $967.14 | $1,759.24 |
The current dividend yield is high with dividend no growth, but special dividends. The dividend yield is high (7% or higher) at 8.03%. The 5, 10 year and historical dividend yields are also high at 8.07%, 7.32 and 7.55%. The dividends have been flat since 2008. This company pays a special dividend each year, but they can vary in amount.
The Dividend Payout Ratios (DPR) seem fine. The DPR for 2024 for Earnings per Share (EPS) is high at 100% with 5 year coverage at 100%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 58%. I do not have 5 year coverage as I have not completely updated my spreadsheet with first 5 years of financial data. The DPR for 2024 for Free Cash Flow (FCF) is non-calculable for 2024 with 5 year coverage good at 29%. I have only FCF from Morningstar.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 100.20% | 100.00% |
| CFPS | 58.40% | |
| FCF | -250.87% | 47.17% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.15 and currently at 0.15. The Liquidity Ratio for 2024 is good at 2.67 and 3.59 currently. The Debt Ratio for 2024 is good at 3.04 and 3.47 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.49 and 0.49 and currently at 1.40 and 0.40.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.15 | 0.15 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 2.67 | 3.59 |
| Liq. + CF | -1.90 | 3.59 |
| Debt Ratio | 3.04 | 3.47 |
| Leverage | 1.49 | 1.40 |
| D/E Ratio | 0.49 | 0.40 |
The Total Return per year is shown below for years of 5 to 25 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | 2.99% | -4.10% | 7.09% |
| 2013 | 10 | 0.00% | 7.63% | -0.38% | 8.01% |
| 2008 | 15 | 0.00% | 9.83% | 0.87% | 8.96% |
| 2003 | 20 | -5.37% | 8.89% | 0.24% | 8.65% |
| 1998 | 25 | 0.00% | 8.78% | 0.75% | 8.03% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 10.51, 12.76 and 15.74. The corresponding 10 year ratios are 12.28. 13.50 and 14.78. The current P/E Ratio is 11.53 based on EPS estimate for 2025 of $1.01 and a stock price of $11.65. The ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $16.24. The 10-year low, median, and high median Price/Graham Price Ratios are probably 0.68, 0.75, and 0.84. (I have not finished setting up my spreadsheet). The current ratio 0.72 and it is between the low and median ratios I have. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Price/Book Value per Share Ratio of 1.00 based on Book Value 426.4M, Book Value per Share of $11.61 and a stock price of $11.65. The ratios over the last 10 years vary from 1.48 to 1.65 to 1.93. The current ratio is below the low ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratios go from 3.32 to 8.99 and 9.17. The current ratio is 7.33 based on a Stock Price of $11.65, Cash Flow for the last 12 months of $58M and Cash Flow per Share of $1.59. The current ratio is between the low and median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an historical median dividend yield of 7.55%. The current dividend yield is 8.03% based on a stock price of $11.65 and Dividends of $0.94. The current dividend yield is 6.42% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an historical median dividend yield of 7.32%. The current dividend yield is 8.03% based on a stock price of $11.65 and Dividends of $0.94. The current dividend yield is 9.69% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10-year median Price/Sales (Revenue) Ratio is 6.50. The ratios for the past 10 years vary from 5.20 to 8.15. The current ratio is between these values. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable. The dividend yield tests are the best because my spreadsheet contains all the dividend paid historically on this stock. Who knows how good the rest are between my spreadsheet is not complete, but seem to be pointing to a relatively reasonable price. Note that the P/E Ratio test is also good and points to a relatively cheap price.
When I look at analysts’ recommendations, I find Strong Buys (2) only. The consensus would be a Strong Buy. The 12 month stock price consensus is $13.00 with a high of $13.00 and a low of $13.00, so obviously one analysts pointing to a future price. The stock price of $13.00 implies a total return of $20.35% with 11.59% from capital gains and 8.76% from dividends based on a current stock price of $11.64. (The company just announced the annuals dividends of $0.084.)
There is only one entry on Stock Chase for 2025. It is by Lorne Steinberg and he says do not buy as it is a pure yield play. Sneha Nahata on Motley Fool likes this stock because it has a history of payments and high yields. Adam Othman on Motley Fool likes this stock because it is a reliable dividend paying stock with a high yield. The company put out a press release via Globe Newswireabout their fourth quarter of 2024. The company put out a press release via Globe Newswire about their third quarter of 2025.
Simply Wall Street has no review of this stock, but has one risk of dividend of 8.03% is not well covered by earnings.
Firm Capital Mortgage Investment Corp is a Canadian financial provider. It acts as a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine, and equity investments. The company's revenue comprises Interest and fee income and commission fees arising from Canada and United States. Its web site is here Firm Capital Mortgage Investment Corp.
The last stock I wrote about was about was Propel Holdings Inc. (TSX-PRL, OTC-PRLPF) ... learn more. The next stock I will write about will be Dexterra Group Inc (TSX-DXT, OTC-HZNOF) ... learn more on Monday, December 29, 2025 around 5 pm. .
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