DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
TSX:DBM - Toronto Stock Exchange - CA25703L1004 - Common Stock - Currency: CAD
Taking everything into account, DBM scores 5 out of 10 in our fundamental rating. DBM was compared to 19 industry peers in the Trading Companies & Distributors industry. DBM has a medium profitability rating, but doesn't score so well on its financial health evaluation. DBM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. DBM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DBM was profitable.
In the past year DBM had a positive cash flow from operations.
DBM had positive earnings in each of the past 5 years.
DBM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DBM (2.89%) is worse than 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 9.52%, DBM is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
DBM has a Return On Invested Capital (6.05%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DBM is in line with the industry average of 6.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 9.52% | ||
| ROIC | 6.05% |
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 of 2.22%. This is comparable to the rest of the industry: DBM outperforms 46.15% of its industry peers.
In the last couple of years the Profit Margin of DBM has grown nicely.
DBM's Operating Margin of 4.76% is in line compared to the rest of the industry. DBM outperforms 53.85% of its industry peers.
DBM's Operating Margin has improved in the last couple of years.
The Gross Margin of DBM (16.01%) is worse than 76.92% of its industry peers.
In the last couple of years the Gross Margin of DBM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.76% | ||
| PM (TTM) | 2.22% | ||
| GM | 16.01% |
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.
DBM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DBM has been increased compared to 5 years ago.
The debt/assets ratio for DBM is higher compared to a year ago.
2.2 Solvency
DBM has an Altman-Z score of 2.15. This is not the best score and indicates that DBM is in the grey zone with still only limited risk for bankruptcy at the moment.
DBM has a worse Altman-Z score (2.15) than 76.92% of its industry peers.
DBM has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as DBM would need 8.80 years to pay back of all of its debts.
DBM's Debt to FCF ratio of 8.80 is on the low side compared to the rest of the industry. DBM is outperformed by 69.23% of its industry peers.
A Debt/Equity ratio of 1.89 is on the high side and indicates that DBM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.89, DBM is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.7
WACC8.66%
2.3 Liquidity
A Current Ratio of 3.89 indicates that DBM has no problem at all paying its short term obligations.
The Current ratio of DBM (3.89) is better than 84.62% of its industry peers.
DBM has a Quick Ratio of 1.70. This is a normal value and indicates that DBM is financially healthy and should not expect problems in meeting its short term obligations.
DBM has a better Quick ratio (1.70) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.89 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
DBM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.28%.
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 14.87% in the past year. This is quite good.
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)-16.28%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%68.75%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%31.66%
3.2 Future
DBM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.47% yearly.
The Revenue is expected to grow by 10.88% on average over the next years. This is quite good.
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y11.47%
Revenue Next Year17.94%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.11 indicates a correct valuation of DBM.
Compared to the rest of the industry, the Price/Earnings ratio of DBM indicates a somewhat cheap valuation: DBM is cheaper than 69.23% of the companies listed in the same industry.
DBM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
With a Price/Forward Earnings ratio of 9.91, the valuation of DBM can be described as very reasonable.
DBM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DBM is cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DBM to the average of the S&P500 Index (21.60), we can say DBM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DBM.
DBM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DBM is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 9.22 |
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.
A more expensive valuation may be justified as DBM's earnings are expected to grow with 13.51% in the coming years.
PEG (NY)0.6
PEG (5Y)0.67
EPS Next 2Y20.12%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
DBM has a Yearly Dividend Yield of 6.38%, which is a nice return.
DBM's Dividend Yield is rather good when compared to the industry average which is at 4.41. DBM pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DBM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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 77.07% of its income as dividend. This is not a sustainable payout ratio.
DBM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.07%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
TSX:DBM (6/30/2025, 7:00:00 PM)
8.72
-0.04 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners3.29%
Inst Owner ChangeN/A
Ins Owners20.69%
Ins Owner ChangeN/A
Market Cap762.48M
Analysts80
Price Target9.91 (13.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
Yearly Dividend0.56
Dividend Growth(5Y)0.01%
DP77.07%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)99.29%
Min EPS beat(2)8.01%
Max EPS beat(2)190.57%
EPS beat(4)3
Avg EPS beat(4)53.29%
Min EPS beat(4)-14.49%
Max EPS beat(4)190.57%
EPS beat(8)7
Avg EPS beat(8)43.45%
EPS beat(12)10
Avg EPS beat(12)42.91%
EPS beat(16)11
Avg EPS beat(16)31.12%
Revenue beat(2)1
Avg Revenue beat(2)3.04%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)8.24%
Revenue beat(4)2
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)8.24%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)5.43%
PT rev (3m)-9.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.27 | ||
| P/FCF | 5.23 | ||
| P/OCF | 6.86 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.22 |
EPS(TTM)0.72
EY8.26%
EPS(NY)0.88
Fwd EY10.09%
FCF(TTM)1.67
FCFY19.14%
OCF(TTM)1.27
OCFY14.58%
SpS32.64
BVpS7.61
TBVpS-1.84
PEG (NY)0.6
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 9.52% | ||
| ROCE | 6.92% | ||
| ROIC | 6.05% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 10.61% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.22% | ||
| GM | 16.01% | ||
| FCFM | 5.11% |
ROA(3y)4.48%
ROA(5y)5.45%
ROE(3y)11.72%
ROE(5y)14.81%
ROIC(3y)8.74%
ROIC(5y)10%
ROICexc(3y)8.9%
ROICexc(5y)10.11%
ROICexgc(3y)17.27%
ROICexgc(5y)17.89%
ROCE(3y)10.04%
ROCE(5y)11.49%
ROICexcg growth 3Y-17.81%
ROICexcg growth 5Y8.16%
ROICexc growth 3Y-20.36%
ROICexc growth 5Y2.39%
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%
F-Score4
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 8.8 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 41.29% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 50.52% | ||
| Profit Quality | 230.25% | ||
| Current Ratio | 3.89 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 2.15 |
F-Score4
WACC8.66%
ROIC/WACC0.7
Cap/Depr(3y)16.58%
Cap/Depr(5y)13.7%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.36%
Profit Quality(3y)201.73%
Profit Quality(5y)183.17%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.28%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%68.75%
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y11.47%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%31.66%
Revenue Next Year17.94%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y-11.71%
EBIT growth 5Y21.71%
EBIT Next Year115.09%
EBIT Next 3Y21.55%
EBIT Next 5Y22.36%
FCF growth 1Y-44.99%
FCF growth 3Y30.02%
FCF growth 5Y9%
OCF growth 1Y-58.97%
OCF growth 3Y29.67%
OCF growth 5Y9.62%