DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
TSX:DBM - Toronto Stock Exchange - CA25703L1004 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to DBM. DBM was compared to 13 industry peers in the Trading Companies & Distributors industry. DBM has an average financial health and profitability rating. DBM has a correct valuation and a medium growth rate.
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.
In the past 5 years DBM has always been profitable.
Each year in the past 5 years DBM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DBM (3.79%) is worse than 61.54% of its industry peers.
DBM has a Return On Equity (9.33%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.91%, DBM is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for DBM is above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.33% | ||
| ROIC | 6.91% |
ROA(3y)5.9%
ROA(5y)5.3%
ROE(3y)16.1%
ROE(5y)14.21%
ROIC(3y)10.1%
ROIC(5y)9.39%
1.3 Margins
Looking at the Profit Margin, with a value of 2.27%, DBM is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of DBM has grown nicely.
The Operating Margin of DBM (4.30%) is worse than 61.54% of its industry peers.
DBM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 15.79%, DBM is doing worse than 76.92% of the companies in the same industry.
DBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.3% | ||
| PM (TTM) | 2.27% | ||
| GM | 15.79% |
OM growth 3Y-5.52%
OM growth 5Y4.36%
PM growth 3Y-6.26%
PM growth 5Y5.54%
GM growth 3Y0.61%
GM growth 5Y1.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DBM is creating some value.
The number of shares outstanding for DBM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, DBM has more shares outstanding
Compared to 1 year ago, DBM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 indicates that DBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
DBM has a worse Altman-Z score (2.60) than 69.23% of its industry peers.
DBM has a debt to FCF ratio of 10.57. This is a negative value and a sign of low solvency as DBM would need 10.57 years to pay back of all of its debts.
DBM's Debt to FCF ratio of 10.57 is on the low side compared to the rest of the industry. DBM is outperformed by 61.54% 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's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. DBM is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 10.57 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.75
WACC9.17%
2.3 Liquidity
DBM has a Current Ratio of 2.94. This indicates that DBM is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.94, DBM is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Quick Ratio of 1.35 indicates that DBM should not have too much problems paying its short term obligations.
DBM has a better Quick ratio (1.35) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
DBM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.00%.
Measured over the past years, DBM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.41% on average per year.
DBM shows a decrease in Revenue. In the last year, the revenue decreased by -2.12%.
DBM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.04% yearly.
EPS 1Y (TTM)-20%
EPS 3Y4.61%
EPS 5Y17.41%
EPS Q2Q%-29.17%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y15.57%
Revenue growth 5Y14.04%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, DBM will show a small growth in Earnings Per Share. The EPS will grow by 3.08% on average per year.
DBM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.08% yearly.
EPS Next Y-23.57%
EPS Next 2Y4%
EPS Next 3Y6.65%
EPS Next 5Y3.08%
Revenue Next Year6.11%
Revenue Next 2Y15.86%
Revenue Next 3Y12.08%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.80, which indicates a very decent 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.
Compared to an average S&P500 Price/Earnings ratio of 29.35, DBM is valued rather cheaply.
The Price/Forward Earnings ratio is 7.34, which indicates a rather cheap valuation of DBM.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DBM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
DBM's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBM indicates a somewhat cheap valuation: DBM is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.34 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y4%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.09%, DBM is a good candidate for dividend investing.
In the last 3 months the price of DBM has falen by -27.42%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
DBM's Dividend Yield is rather good when compared to the industry average which is at 3.96. DBM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, DBM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
5.2 History
The dividend of DBM decreases each year by -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 Years3
5.3 Sustainability
86.40% of the earnings are spent on dividend by DBM. This is not a sustainable payout ratio.
DP86.4%
EPS Next 2Y4%
EPS Next 3Y6.65%
TSX:DBM (3/7/2025, 7:00:00 PM)
6.91
-0.01 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners3.79%
Inst Owner ChangeN/A
Ins Owners20.04%
Ins Owner ChangeN/A
Market Cap603.93M
Analysts82
Price Target11.31 (63.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.09% |
Yearly Dividend0.56
Dividend Growth(5Y)-0.01%
DP86.4%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.29%
Min EPS beat(2)-14.49%
Max EPS beat(2)29.08%
EPS beat(4)3
Avg EPS beat(4)14.44%
Min EPS beat(4)-14.49%
Max EPS beat(4)35.78%
EPS beat(8)7
Avg EPS beat(8)37.01%
EPS beat(12)9
Avg EPS beat(12)27.85%
EPS beat(16)11
Avg EPS beat(16)21.06%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)3.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-5.32%
Max Revenue beat(4)3.79%
Revenue beat(8)1
Avg Revenue beat(8)-3.88%
Revenue beat(12)4
Avg Revenue beat(12)0.07%
Revenue beat(16)6
Avg Revenue beat(16)0.2%
PT rev (1m)-4.32%
PT rev (3m)-5.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.33%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.8 | ||
| Fwd PE | 7.34 | ||
| P/S | 0.24 | ||
| P/FCF | 9.34 | ||
| P/OCF | 4.69 | ||
| P/B | 1 | ||
| P/tB | 8.83 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)0.64
EY9.26%
EPS(NY)0.94
Fwd EY13.62%
FCF(TTM)0.74
FCFY10.71%
OCF(TTM)1.47
OCFY21.32%
SpS28.41
BVpS6.92
TBVpS0.78
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.33% | ||
| ROCE | 8.35% | ||
| ROIC | 6.91% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 12.38% | ||
| OM | 4.3% | ||
| PM (TTM) | 2.27% | ||
| GM | 15.79% | ||
| FCFM | 2.6% |
ROA(3y)5.9%
ROA(5y)5.3%
ROE(3y)16.1%
ROE(5y)14.21%
ROIC(3y)10.1%
ROIC(5y)9.39%
ROICexc(3y)10.24%
ROICexc(5y)9.48%
ROICexgc(3y)19.14%
ROICexgc(5y)16.34%
ROCE(3y)12.2%
ROCE(5y)11.37%
ROICexcg growth 3Y7.34%
ROICexcg growth 5Y17.03%
ROICexc growth 3Y-4.03%
ROICexc growth 5Y9.99%
OM growth 3Y-5.52%
OM growth 5Y4.36%
PM growth 3Y-6.26%
PM growth 5Y5.54%
GM growth 3Y0.61%
GM growth 5Y1.59%
F-Score4
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 10.57 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 91.56% | ||
| Cap/Sales | 2.58% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 114.55% | ||
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.6 |
F-Score4
WACC9.17%
ROIC/WACC0.75
Cap/Depr(3y)14.61%
Cap/Depr(5y)13.52%
Cap/Sales(3y)0.36%
Cap/Sales(5y)0.36%
Profit Quality(3y)157.64%
Profit Quality(5y)219.21%
High Growth Momentum
Growth
EPS 1Y (TTM)-20%
EPS 3Y4.61%
EPS 5Y17.41%
EPS Q2Q%-29.17%
EPS Next Y-23.57%
EPS Next 2Y4%
EPS Next 3Y6.65%
EPS Next 5Y3.08%
Revenue 1Y (TTM)-2.12%
Revenue growth 3Y15.57%
Revenue growth 5Y14.04%
Sales Q2Q%2.98%
Revenue Next Year6.11%
Revenue Next 2Y15.86%
Revenue Next 3Y12.08%
Revenue Next 5YN/A
EBIT growth 1Y-15.96%
EBIT growth 3Y9.19%
EBIT growth 5Y19.01%
EBIT Next Year47.11%
EBIT Next 3Y29.14%
EBIT Next 5Y16.3%
FCF growth 1Y-64.04%
FCF growth 3Y-9.18%
FCF growth 5YN/A
OCF growth 1Y-31.31%
OCF growth 3Y-6.24%
OCF growth 5YN/A