DECISIVE DIVIDEND CORP (DE.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:DE - CA24345T1003 - Common Stock
7.04 CAD
-0.19 (-2.63%)
We assign a fundamental rating of 7 out of 10 to DE. DE was compared to 4 industry peers in the Industrial Conglomerates industry. While DE has a great profitability rating, there are some minor concerns on its financial health. DE is not priced too expensively while it is growing strongly. Keep and eye on this one! Finally DE also has an excellent dividend rating. This makes DE very considerable for dividend and growth investing!
1. Profitability
1.1 Basic Checks
- In the past year DE was profitable.
- In the past year DE had a positive cash flow from operations.
- Of the past 5 years DE 4 years were profitable.
- Each year in the past 5 years DE had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of DE (3.44%) is better than 100.00% of its industry peers.
- With an excellent Return On Equity value of 10.11%, DE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of DE (5.41%) is better than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DE is above the industry average of 3.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 10.11% | ||
| ROIC | 5.41% |
ROA(3y)3.61%
ROA(5y)2.66%
ROE(3y)9.98%
ROE(5y)7.35%
ROIC(3y)6.22%
ROIC(5y)5.84%
1.3 Margins
- The Profit Margin of DE (3.86%) is better than 100.00% of its industry peers.
- DE's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 7.75%, DE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of DE has remained more or less at the same level.
- DE has a Gross Margin of 38.32%. This is amongst the best in the industry. DE outperforms 100.00% of its industry peers.
- In the last couple of years the Gross Margin of DE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.75% | ||
| PM (TTM) | 3.86% | ||
| GM | 38.32% |
OM growth 3Y-5.56%
OM growth 5Y0.91%
PM growth 3Y-24.48%
PM growth 5Y-0.36%
GM growth 3Y3.06%
GM growth 5Y0.18%
2. Health
2.1 Basic Checks
- DE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for DE has been increased compared to 1 year ago.
- Compared to 5 years ago, DE has more shares outstanding
- DE has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.90 indicates that DE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DE has a Altman-Z score of 1.90. This is amongst the best in the industry. DE outperforms 100.00% of its industry peers.
- DE has a debt to FCF ratio of 5.32. This is a neutral value as DE would need 5.32 years to pay back of all of its debts.
- DE's Debt to FCF ratio of 5.32 is amongst the best of the industry. DE outperforms 100.00% of its industry peers.
- A Debt/Equity ratio of 1.29 is on the high side and indicates that DE has dependencies on debt financing.
- With a decent Debt to Equity ratio value of 1.29, DE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.75
WACC7.24%
2.3 Liquidity
- A Current Ratio of 2.19 indicates that DE has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.19, DE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- DE has a Quick Ratio of 1.08. This is a normal value and indicates that DE is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.08, DE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- DE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 115.38%, which is quite impressive.
- The Earnings Per Share has been growing by 9.12% on average over the past years. This is quite good.
- The Revenue has grown by 16.69% in the past year. This is quite good.
- Measured over the past years, DE shows a very strong growth in Revenue. The Revenue has been growing by 21.96% on average per year.
EPS 1Y (TTM)115.38%
EPS 3Y-17.64%
EPS 5Y9.12%
EPS Q2Q%-20%
Revenue 1Y (TTM)16.69%
Revenue growth 3Y26.95%
Revenue growth 5Y21.96%
Sales Q2Q%5.37%
3.2 Future
- Based on estimates for the next years, DE will show a very strong growth in Earnings Per Share. The EPS will grow by 57.08% on average per year.
- DE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.55% yearly.
EPS Next Y212.8%
EPS Next 2Y116.61%
EPS Next 3Y57.08%
EPS Next 5YN/A
Revenue Next Year19.4%
Revenue Next 2Y13.44%
Revenue Next 3Y10.07%
Revenue Next 5Y15.55%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.14, which means the current valuation is very expensive for DE.
- Based on the Price/Earnings ratio, DE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, DE is valued at the same level.
- The Price/Forward Earnings ratio is 15.00, which indicates a correct valuation of DE.
- 75.00% of the companies in the same industry are more expensive than DE, based on the Price/Forward Earnings ratio.
- DE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 15 |
4.2 Price Multiples
- DE's Enterprise Value to EBITDA ratio is in line with the industry average.
- 75.00% of the companies in the same industry are more expensive than DE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
- DE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of DE may justify a higher PE ratio.
- DE's earnings are expected to grow with 57.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)2.76
EPS Next 2Y116.61%
EPS Next 3Y57.08%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.68%, DE is a good candidate for dividend investing.
- DE's Dividend Yield is rather good when compared to the industry average which is at 2.45. DE pays more dividend than 100.00% of the companies in the same industry.
- DE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.68% |
5.2 History
- The dividend of DE has a limited annual growth rate of 4.79%.
- DE has been paying a dividend for at least 10 years, so it has a reliable track record.
- DE has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.79%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- DE pays out 162.82% of its income as dividend. This is not a sustainable payout ratio.
- DE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP162.82%
EPS Next 2Y116.61%
EPS Next 3Y57.08%
DECISIVE DIVIDEND CORP / DE.CA FAQ
What is the fundamental rating for DE stock?
ChartMill assigns a fundamental rating of 7 / 10 to DE.CA.
What is the valuation status of DECISIVE DIVIDEND CORP (DE.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to DECISIVE DIVIDEND CORP (DE.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for DECISIVE DIVIDEND CORP?
DECISIVE DIVIDEND CORP (DE.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of DECISIVE DIVIDEND CORP (DE.CA) stock?
The Price/Earnings (PE) ratio for DECISIVE DIVIDEND CORP (DE.CA) is 25.14 and the Price/Book (PB) ratio is 2.52.
What is the expected EPS growth for DECISIVE DIVIDEND CORP (DE.CA) stock?
The Earnings per Share (EPS) of DECISIVE DIVIDEND CORP (DE.CA) is expected to grow by 212.8% in the next year.