3 Financial Stocks with High Level of Debt

Debt-to-GDP continues to rise in Canada, increasing the risk for many families when interest rates rise

SmallCapPower | July 21, 2016: The Great Recession was caused, in large part, due to a severe housing bubble in the U.S as a consequence of unstable and irresponsible lending. While Canada is unlikely to experience an event that troublesome, investors should be cautious when getting involved with debt-laden consumer lending stocks such as the ones on our list.

 

SciVacMCAN Mortgage Corp (TSE:MKP) – $14.05
Consumer Lending

MCAN Mortgage Corporation (MCAN) is a Canada-based loan company and mortgage investment corporation. Its primary objective is to generate income by investing its corporate funds in a portfolio of mortgages (including single family residential, residential construction, non-residential construction and commercial loans), as well as other types of financial investments, loans and real estate investments.

  • Market Cap: 322,206,009
  • Revenues: 100,548,000
  • Operating Income: 35,597,000
  • Total Debt: 979,748,000

 

SciVacRifco Inc. (CVE:RFC) – $1.66
Consumer Lending

Rifco Inc. is a Canada-based auto purchase finance company that operates through its subsidiary, Rifco National Auto Finance Corporation, and is engaged in vehicle financing. The Company provides non-traditional vehicle financing to motorists through a network of select new and used vehicle retailers. It specializes in building long-term partnerships with vehicle dealers by providing personalized services through account managers.

  • Market Cap: 215,285,203.21
  • Revenues: 37,385,820
  • Operating Income: 5,700,480
  • Total Debt: 201,420,700

SciVacMogo Finance Technology Inc. (TSE:GO) – $1.82
Consumer Lending

Mogo Finance Technology Inc. is a Canada-based financial technology company, which is focused on building a digital financial brand, Mogo. The Company’s technology platform provides consumers with access to responsible credit solutions. It leverages big data algorithms and the technologies to manage the customer experience. The Company has over 180 thousand Mogo Members and over 1.2 million loans originated.

  • Market Cap: 114,570,744.63
  • Revenues: 47,119,040
  • Operating Income: -10,705,980
  • Total Debt: 82,632,320

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