DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV-DB-A - CA255331AB66
103 CAD
+0.23 (+0.22%)
We assign a fundamental rating of 4 out of 10 to DIV-DB-A. DIV-DB-A was compared to 19 industry peers in the Specialty Retail industry. While DIV-DB-A is still in line with the averages on profitability rating, there are concerns on its financial health. DIV-DB-A is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DIV-DB-A was profitable.
- In the past year DIV-DB-A had a positive cash flow from operations.
- DIV-DB-A had positive earnings in 4 of the past 5 years.
- In the past 5 years DIV-DB-A always reported a positive cash flow from operatings.
1.2 Ratios
- DIV-DB-A has a Return On Assets (4.81%) which is in line with its industry peers.
- The Return On Equity of DIV-DB-A (10.24%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 7.36%, DIV-DB-A is in line with its industry, outperforming 52.63% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DIV-DB-A is below the industry average of 11.04%.
- The last Return On Invested Capital (7.36%) for DIV-DB-A is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 10.24% | ||
| ROIC | 7.36% |
ROA(3y)4.53%
ROA(5y)3.46%
ROE(3y)9.75%
ROE(5y)7.37%
ROIC(3y)6.8%
ROIC(5y)6.65%
1.3 Margins
- With an excellent Profit Margin value of 43.18%, DIV-DB-A belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- DIV-DB-A's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 89.81%, DIV-DB-A belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- DIV-DB-A's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 89.81% | ||
| PM (TTM) | 43.18% | ||
| GM | N/A |
OM growth 3Y0.39%
OM growth 5Y0.76%
PM growth 3Y-13.41%
PM growth 5Y-2.33%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- DIV-DB-A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- DIV-DB-A has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for DIV-DB-A has been increased compared to 5 years ago.
- Compared to 1 year ago, DIV-DB-A has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 32.42 indicates that DIV-DB-A is not in any danger for bankruptcy at the moment.
- DIV-DB-A has a Altman-Z score of 32.42. This is amongst the best in the industry. DIV-DB-A outperforms 100.00% of its industry peers.
- DIV-DB-A has a Debt/Equity ratio of 0.98. This is a neutral value indicating DIV-DB-A is somewhat dependend on debt financing.
- DIV-DB-A's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. DIV-DB-A is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 32.42 |
ROIC/WACC0.83
WACC8.87%
2.3 Liquidity
- DIV-DB-A has a Current Ratio of 0.79. This is a bad value and indicates that DIV-DB-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of DIV-DB-A (0.79) is worse than 89.47% of its industry peers.
- DIV-DB-A has a Quick Ratio of 0.79. This is a bad value and indicates that DIV-DB-A is not financially healthy enough and could expect problems in meeting its short term obligations.
- DIV-DB-A's Quick ratio of 0.79 is in line compared to the rest of the industry. DIV-DB-A outperforms 52.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for DIV-DB-A have decreased strongly by -15.00% in the last year.
- DIV-DB-A shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.71% yearly.
- Looking at the last year, DIV-DB-A shows a small growth in Revenue. The Revenue has grown by 6.88% in the last year.
- The Revenue has been growing by 16.37% on average over the past years. This is quite good.
EPS 1Y (TTM)-15%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%25%
Revenue 1Y (TTM)6.88%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%13.44%
3.2 Future
- DIV-DB-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.54% yearly.
- The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y26.57%
EPS Next 2Y18.03%
EPS Next 3Y12.54%
EPS Next 5YN/A
Revenue Next Year10.39%
Revenue Next 2Y9.72%
Revenue Next 3Y8.59%
Revenue Next 5Y2.94%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- DIV-DB-A is valuated quite expensively with a Price/Earnings ratio of 605.88.
- 73.68% of the companies in the same industry are cheaper than DIV-DB-A, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. DIV-DB-A is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 462.08, DIV-DB-A can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DIV-DB-A is on the same level as its industry peers.
- DIV-DB-A is valuated expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 605.88 | ||
| Fwd PE | 462.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DIV-DB-A is valued expensively inside the industry as 89.47% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 288.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DIV-DB-A does not grow enough to justify the current Price/Earnings ratio.
- DIV-DB-A's earnings are expected to grow with 12.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)22.81
PEG (5Y)223.85
EPS Next 2Y18.03%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
- DIV-DB-A has a Yearly Dividend Yield of 7.44%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.33, DIV-DB-A pays a better dividend. On top of this DIV-DB-A pays more dividend than 94.74% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, DIV-DB-A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.44% |
5.2 History
- The dividend of DIV-DB-A has a limited annual growth rate of 4.62%.
- DIV-DB-A does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)4.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 125.97% of the earnings are spent on dividend by DIV-DB-A. This is not a sustainable payout ratio.
- The dividend of DIV-DB-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP125.97%
EPS Next 2Y18.03%
EPS Next 3Y12.54%
DIVERSIFIED ROYALTY CORP / DIV-DB-A.CA FAQ
What is the fundamental rating for DIV-DB-A stock?
ChartMill assigns a fundamental rating of 4 / 10 to DIV-DB-A.CA.
Can you provide the valuation status for DIVERSIFIED ROYALTY CORP?
ChartMill assigns a valuation rating of 1 / 10 to DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA). This can be considered as Overvalued.
How profitable is DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA) stock?
DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA) has a profitability rating of 5 / 10.
What is the valuation of DIVERSIFIED ROYALTY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA) is 605.88 and the Price/Book (PB) ratio is 60.48.
Can you provide the expected EPS growth for DIV-DB-A stock?
The Earnings per Share (EPS) of DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA) is expected to grow by 26.57% in the next year.