DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DBM - CA25703L1004 - Common Stock
9.9 CAD
-0.17 (-1.69%)
Taking everything into account, DBM scores 5 out of 10 in our fundamental rating. DBM was compared to 12 industry peers in the Trading Companies & Distributors industry. While DBM is still in line with the averages on profitability rating, there are concerns on its financial health. 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
- In the past year DBM was profitable.
- DBM had a positive operating cash flow in the past year.
- In the past 5 years DBM has always been profitable.
- In the past 5 years DBM always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.08%, DBM is in line with its industry, outperforming 58.33% of the companies in the same industry.
- DBM has a Return On Equity of 11.88%. This is in the better half of the industry: DBM outperforms 75.00% of its industry peers.
- With a decent Return On Invested Capital value of 10.37%, DBM is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- 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 3 year average ROIC (8.74%) for DBM is below the current ROIC(10.37%), indicating increased profibility in the last year.
| 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
- The Profit Margin of DBM (2.44%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DBM has grown nicely.
- With a Operating Margin value of 5.19%, DBM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of DBM has grown nicely.
- The Gross Margin of DBM (16.07%) is worse than 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
- DBM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, DBM has more shares outstanding
- Compared to 5 years ago, DBM has more shares outstanding
- Compared to 1 year ago, DBM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.49 indicates that DBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DBM (2.49) is worse than 75.00% of its industry peers.
- DBM has a debt to FCF ratio of 6.16. This is a slightly negative value and a sign of low solvency as DBM would need 6.16 years to pay back of all of its debts.
- DBM's Debt to FCF ratio of 6.16 is in line compared to the rest of the industry. DBM outperforms 41.67% of its industry peers.
- A Debt/Equity ratio of 1.09 is on the high side and indicates that DBM has dependencies on debt financing.
- DBM has a worse Debt to Equity ratio (1.09) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.2
WACC8.62%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that DBM should not have too much problems paying its short term obligations.
- DBM has a Current ratio of 1.38. This is amonst the worse of the industry: DBM underperforms 83.33% of its industry peers.
- A Quick Ratio of 0.65 indicates that DBM may have some problems paying its short term obligations.
- DBM has a Quick ratio of 0.65. This is amonst the worse of the industry: DBM underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- DBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.06%, which is quite impressive.
- Measured over the past years, DBM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.06% on average per year.
- DBM shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.20%.
- Measured over the past years, DBM shows a quite strong growth in Revenue. The Revenue has been growing by 14.83% on average per year.
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
- Based on estimates for the next years, DBM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.65% on average per year.
- DBM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.53% yearly.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.12, the valuation of DBM can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of DBM indicates a rather cheap valuation: DBM is cheaper than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, DBM is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of DBM.
- Based on the Price/Forward Earnings ratio, DBM is valued a bit cheaper than 75.00% of the companies in the same industry.
- DBM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 11.4 |
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 | 5.3 | ||
| EV/EBITDA | 7.01 |
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.
- DBM has a very decent profitability rating, which 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)0.24
PEG (5Y)0.62
EPS Next 2Y19.33%
EPS Next 3Y17.35%
5. Dividend
5.1 Amount
- DBM has a Yearly Dividend Yield of 5.50%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.97, DBM pays a better dividend. On top of this DBM pays more dividend than 91.67% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DBM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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%.