DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DBM - CA25703L1004 - Common Stock
10.31 CAD
+0.13 (+1.28%)
We assign a fundamental rating of 5 out of 10 to DBM. DBM was compared to 12 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 is valued quite cheap, while showing a decent growth score. This is a good combination! DBM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- DBM had positive earnings in the past year.
- 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
- 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.
- The Return On Equity of DBM (11.88%) is better than 75.00% of its industry peers.
- DBM has a Return On Invested Capital of 10.37%. This is in the better half of the industry: DBM outperforms 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 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
- DBM's Profit Margin of 2.44% is in line compared to the rest of the industry. DBM outperforms 41.67% of its industry peers.
- In the last couple of years the Profit Margin of DBM has grown nicely.
- DBM has a Operating Margin (5.19%) which is comparable to the rest of the industry.
- DBM's Operating Margin has improved in the last couple of years.
- DBM's Gross Margin of 16.07% is on the low side compared to the rest of the industry. DBM is outperformed by 75.00% of its industry peers.
- DBM's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DBM is creating some value.
- DBM has more shares outstanding than it did 1 year ago.
- DBM has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DBM has a worse debt to assets ratio.
2.2 Solvency
- DBM has an Altman-Z score of 2.50. 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's Altman-Z score of 2.50 is on the low side compared to the rest of the industry. DBM is outperformed by 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 has a Debt to FCF ratio of 6.16. This is comparable to the rest of the industry: DBM outperforms 41.67% of its industry peers.
- DBM has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of DBM (1.09) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.16 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.2
WACC8.65%
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.
- The Quick ratio of DBM (0.65) is worse than 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.
- DBM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.06% yearly.
- 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
- 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 Y46.18%
EPS Next 2Y18.03%
EPS Next 3Y17.43%
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
- A Price/Earnings ratio of 11.58 indicates a reasonable 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 75.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. DBM is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.13, DBM is valued correctly.
- DBM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DBM is cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DBM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than DBM, based on the Enterprise Value to EBITDA ratio.
- 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 | 5.52 | ||
| EV/EBITDA | 7.1 |
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.
- A more expensive valuation may be justified as DBM's earnings are expected to grow with 17.43% in the coming years.
PEG (NY)0.25
PEG (5Y)0.64
EPS Next 2Y18.03%
EPS Next 3Y17.43%
5. Dividend
5.1 Amount
- DBM has a Yearly Dividend Yield of 5.68%, which is a nice return.
- DBM's Dividend Yield is rather good when compared to the industry average which is at 6.00. DBM pays more dividend than 91.67% of the companies 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 | 5.68% |
5.2 History
- The dividend of DBM has a limited annual growth rate of 0.01%.
- DBM has been paying a dividend for at least 10 years, so it has 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
- 63.08% of the earnings are spent on dividend by DBM. 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 2Y18.03%
EPS Next 3Y17.43%
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 7 / 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%.