DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:DBM • CA25703L1004
9.61 CAD
-0.21 (-2.14%)
Last: Jan 30, 2026, 07:00 PM
DBM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of DBM while its profitability can be described as average. DBM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally DBM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- DBM had positive earnings in the past year.
- DBM had a positive operating cash flow in the past year.
- Each year in the past 5 years DBM has been profitable.
- DBM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DBM has a Return On Assets of 4.08%. This is comparable to the rest of the industry: DBM outperforms 58.33% of its industry peers.
- Looking at the Return On Equity, with a value of 11.88%, DBM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- The Return On Invested Capital of DBM (10.37%) is better than 75.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DBM is in line with the industry average of 8.04%.
- The last Return On Invested Capital (10.37%) for DBM is above the 3 year average (8.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 11.88% | ||
| ROIC | 10.37% |
ROA(3y)4.48%
ROA(5y)5.45%
ROE(3y)11.72%
ROE(5y)14.81%
ROIC(3y)8.74%
ROIC(5y)10%
1.3 Margins
- DBM has a Profit Margin (2.44%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of DBM has grown nicely.
- The Operating Margin of DBM (5.19%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DBM has grown nicely.
- DBM has a Gross Margin of 16.07%. This is in the lower half of the industry: DBM underperforms 75.00% of its industry peers.
- In the last couple of years the Gross Margin of DBM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.19% | ||
| PM (TTM) | 2.44% | ||
| GM | 16.07% |
OM growth 3Y-13.05%
OM growth 5Y5.99%
PM growth 3Y-21.38%
PM growth 5Y9.56%
GM growth 3Y1.24%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DBM is still creating some value.
- Compared to 1 year ago, DBM has more shares outstanding
- DBM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DBM is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.48 indicates that DBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DBM has a Altman-Z score of 2.48. This is in the lower half of the industry: DBM underperforms 75.00% of its industry peers.
- The Debt to FCF ratio of DBM is 6.16, which is on the high side as it means it would take DBM, 6.16 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.16, DBM perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- DBM has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
- DBM has a Debt to Equity ratio of 1.09. This is amonst the worse of the industry: DBM underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.19
WACC8.73%
2.3 Liquidity
- DBM has a Current Ratio of 1.38. This is a normal value and indicates that DBM is financially healthy and should not expect problems in meeting its short term obligations.
- DBM's Current ratio of 1.38 is on the low side compared to the rest of the industry. DBM is outperformed by 83.33% of its industry peers.
- A Quick Ratio of 0.65 indicates that DBM may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.65, DBM is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 39.06% over the past year.
- The Earnings Per Share has been growing by 18.06% on average over the past years. This is quite good.
- The Revenue has grown by 28.20% in the past year. This is a very strong growth!
- DBM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.83% yearly.
EPS 1Y (TTM)39.06%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%23.53%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%19.91%
3.2 Future
- The Earnings Per Share is expected to grow by 9.65% on average over the next years. This is quite good.
- Based on estimates for the next years, DBM will show a quite strong growth in Revenue. The Revenue will grow by 9.53% on average per year.
EPS Next Y46.53%
EPS Next 2Y19.33%
EPS Next 3Y17.35%
EPS Next 5Y9.65%
Revenue Next Year19.2%
Revenue Next 2Y11.17%
Revenue Next 3Y9.53%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- DBM is valuated reasonably with a Price/Earnings ratio of 10.80.
- Based on the Price/Earnings ratio, DBM is valued cheaper than 91.67% of the companies in the same industry.
- DBM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
- DBM is valuated reasonably with a Price/Forward Earnings ratio of 11.06.
- DBM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DBM is cheaper than 83.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DBM to the average of the S&P500 Index (25.64), we can say DBM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 11.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBM indicates a somewhat cheap valuation: DBM is cheaper than 66.67% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBM indicates a rather cheap valuation: DBM is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.15 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of DBM may justify a higher PE ratio.
- DBM's earnings are expected to grow with 17.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)0.6
EPS Next 2Y19.33%
EPS Next 3Y17.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.70%, DBM is a good candidate for dividend investing.
- DBM's Dividend Yield is rather good when compared to the industry average which is at 6.07. DBM pays more dividend than 91.67% of the companies in the same industry.
- DBM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
- The dividend of DBM has a limited annual growth rate of 0.01%.
- DBM has paid a dividend for at least 10 years, which is a reliable track record.
- DBM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- DBM pays out 63.08% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of DBM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.08%
EPS Next 2Y19.33%
EPS Next 3Y17.35%
DOMAN BUILDING MATERIALS GRO / DBM.CA FAQ
What is the fundamental rating for DBM stock?
ChartMill assigns a fundamental rating of 5 / 10 to DBM.CA.
What is the valuation status for DBM stock?
ChartMill assigns a valuation rating of 8 / 10 to DOMAN BUILDING MATERIALS GRO (DBM.CA). This can be considered as Undervalued.
How profitable is DOMAN BUILDING MATERIALS GRO (DBM.CA) stock?
DOMAN BUILDING MATERIALS GRO (DBM.CA) has a profitability rating of 6 / 10.
How financially healthy is DOMAN BUILDING MATERIALS GRO?
The financial health rating of DOMAN BUILDING MATERIALS GRO (DBM.CA) is 2 / 10.
Can you provide the dividend sustainability for DBM stock?
The dividend rating of DOMAN BUILDING MATERIALS GRO (DBM.CA) is 7 / 10 and the dividend payout ratio is 63.08%.