DIVERSIFIED ROYALTY CORP(TSX:DIV-DB-A) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to DIV-DB-A. DIV-DB-A was compared to 16 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. While showing a medium growth rate, DIV-DB-A is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

DIV-DB-A had positive earnings in the past year.

DIV-DB-A had a positive operating cash flow in the past year.

DIV-DB-A had positive earnings in 4 of the past 5 years.

Each year in the past 5 years DIV-DB-A had a positive operating cash flow.

1.2 Ratios

DIV-DB-A's Return On Assets of 5.56% is fine compared to the rest of the industry. DIV-DB-A outperforms 71.43% of its industry peers.

DIV-DB-A has a Return On Equity of 10.91%. This is in the better half of the industry: DIV-DB-A outperforms 71.43% of its industry peers.

DIV-DB-A has a Return On Invested Capital of 7.25%. This is in the better half of the industry: DIV-DB-A outperforms 64.29% of its industry peers.

		Industry Rank	Sector Rank
ROA	5.56%
ROE	10.91%
ROIC	7.25%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

DIV-DB-A has a better Profit Margin (49.25%) than 92.86% of its industry peers.

DIV-DB-A's Profit Margin has improved in the last couple of years.

DIV-DB-A has a better Operating Margin (89.64%) than 92.86% of its industry peers.

DIV-DB-A's Operating Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	89.64%
PM (TTM)	49.25%
GM	N/A

OM growth 3Y1%

OM growth 5Y0.93%

PM growth 3YN/A

PM growth 5Y8.19%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIV-DB-A is destroying value.

There is no outstanding debt for DIV-DB-A. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 36.72 indicates that DIV-DB-A is not in any danger for bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 36.72, DIV-DB-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.

A Debt/Equity ratio of 0.82 indicates that DIV-DB-A is somewhat dependend on debt financing.

With a Debt to Equity ratio value of 0.82, DIV-DB-A is not doing good in the industry: 64.29% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.82
Debt/FCF	N/A
Altman-Z	36.72

ROIC/WACC0.8

WACC9.03%

2.3 Liquidity

DIV-DB-A has a Current Ratio of 0.81. 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 Current ratio of 0.81 is on the low side compared to the rest of the industry. DIV-DB-A is outperformed by 92.86% of its industry peers.

A Quick Ratio of 0.81 indicates that DIV-DB-A may have some problems paying its short term obligations.

DIV-DB-A has a better Quick ratio (0.81) than 71.43% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.81
Quick Ratio	0.81

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 55.47% over the past year.

The Earnings Per Share has been growing by 17.51% on average over the past years. This is quite good.

The Revenue has grown by 21.83% in the past year. This is a very strong growth!

DIV-DB-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.16% yearly.

EPS 1Y (TTM)55.47%

EPS 3Y11.89%

EPS 5Y17.51%

EPS Q2Q%-20%

Revenue 1Y (TTM)21.83%

Revenue growth 3Y22.81%

Revenue growth 5Y16.16%

Sales Q2Q%18.26%

3.2 Future

DIV-DB-A is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.82% yearly.

Based on estimates for the next years, DIV-DB-A will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.

EPS Next Y-14.37%

EPS Next 2Y-6.66%

EPS Next 3Y-1.82%

EPS Next 5YN/A

Revenue Next Year16.44%

Revenue Next 2Y10.57%

Revenue Next 3Y8.91%

Revenue Next 5Y5.4%

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.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 507.65, the valuation of DIV-DB-A can be described as expensive.

The rest of the industry has a similar Price/Earnings ratio as DIV-DB-A.

The average S&P500 Price/Earnings ratio is at 29.62. DIV-DB-A is valued rather expensively when compared to this.

DIV-DB-A is valuated quite expensively with a Price/Forward Earnings ratio of 519.96.

The rest of the industry has a similar Price/Forward Earnings ratio as DIV-DB-A.

DIV-DB-A's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.

		Industry Rank	Sector Rank
PE	507.65
Fwd PE	519.96

4.2 Price Multiples

DIV-DB-A's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. DIV-DB-A is more expensive than 85.71% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	297.92

4.3 Compensation for Growth

DIV-DB-A has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)28.98

EPS Next 2Y-6.66%

EPS Next 3Y-1.82%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.77%, DIV-DB-A is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 6.78, DIV-DB-A pays a better dividend. On top of this DIV-DB-A pays more dividend than 100.00% of the companies listed in the same industry.

DIV-DB-A's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.

		Industry Rank	Sector Rank
Dividend Yield	8.77%

5.2 History

The dividend of DIV-DB-A decreases each year by -1.62%.

DIV-DB-A is new to the dividend game and has less than 3 years of track record.

Dividend Growth(5Y)-1.62%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DIV-DB-A pays out 105.26% of its income as dividend. This is not a sustainable payout ratio.

DIV-DB-A's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.

DP105.26%

EPS Next 2Y-6.66%

EPS Next 3Y-1.82%

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DIVERSIFIED ROYALTY CORP

TSX:DIV-DB-A (2/20/2025, 7:00:00 PM)

101.53

-0.47 (-0.46%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupConsumer Discretionary Distribution & Retail

GICS IndustrySpecialty Retail

Earnings (Last)11-06 2024-11-06/amc

Earnings (Next)03-07 2025-03-07/amc

Inst Owners14.45%

Inst Owner ChangeN/A

Ins Owners0.67%

Ins Owner ChangeN/A

Market Cap16.97B

Analysts77.78

Price Target138.09 (36.01%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	8.77%

Yearly Dividend0.19

Dividend Growth(5Y)-1.62%

DP105.26%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-6.49%

Min EPS beat(2)-11.99%

Max EPS beat(2)-0.99%

EPS beat(4)2

Avg EPS beat(4)17.71%

Min EPS beat(4)-11.99%

Max EPS beat(4)65.02%

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)0

Avg Revenue beat(2)-7.25%

Min Revenue beat(2)-8.65%

Max Revenue beat(2)-5.85%

Revenue beat(4)0

Avg Revenue beat(4)-6.96%

Min Revenue beat(4)-9.73%

Max Revenue beat(4)-3.61%

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)3.96%

PT rev (3m)2.15%

EPS NQ rev (1m)0%

EPS NQ rev (3m)0%

EPS NY rev (1m)0%

EPS NY rev (3m)-3.39%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-4.79%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.53%

Valuation

		Industry Rank	Sector Rank
PE	507.65
Fwd PE	519.96
P/S	263.66
P/FCF	N/A
P/OCF	402.41
P/B	58.41
P/tB	N/A
EV/EBITDA	297.92

EPS(TTM)0.2

EY0.2%

EPS(NY)0.2

Fwd EY0.19%

FCF(TTM)-0.18

FCFYN/A

OCF(TTM)0.25

OCFY0.25%

SpS0.39

BVpS1.74

TBVpS-1.33

PEG (NY)N/A

PEG (5Y)28.98

Profitability

		Industry Rank	Sector Rank
ROA	5.56%
ROE	10.91%
ROCE	10.43%
ROIC	7.25%
ROICexc	7.31%
ROICexgc	114.65%
OM	89.64%
PM (TTM)	49.25%
GM	N/A
FCFM	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3Y1%

OM growth 5Y0.93%

PM growth 3YN/A

PM growth 5Y8.19%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.11

Health

		Industry Rank	Sector Rank
Debt/Equity	0.82
Debt/FCF	N/A
Debt/EBITDA	4.14
Cap/Depr	73952%
Cap/Sales	112.62%
Interest Coverage	3.8
Cash Conversion	72.97%
Profit Quality	N/A
Current Ratio	0.81
Quick Ratio	0.81
Altman-Z	36.72

F-Score6

WACC9.03%

ROIC/WACC0.8

Cap/Depr(3y)58459.8%

Cap/Depr(5y)N/A

Cap/Sales(3y)119.24%

Cap/Sales(5y)127.04%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)55.47%

EPS 3Y11.89%

EPS 5Y17.51%

EPS Q2Q%-20%

EPS Next Y-14.37%

EPS Next 2Y-6.66%

EPS Next 3Y-1.82%

EPS Next 5YN/A

Revenue 1Y (TTM)21.83%

Revenue growth 3Y22.81%

Revenue growth 5Y16.16%

Sales Q2Q%18.26%

Revenue Next Year16.44%

Revenue Next 2Y10.57%

Revenue Next 3Y8.91%

Revenue Next 5Y5.4%

EBIT growth 1Y21.65%

EBIT growth 3Y24.04%

EBIT growth 5Y17.24%

EBIT Next Year28.23%

EBIT Next 3Y11.83%

EBIT Next 5Y9.14%

FCF growth 1Y-208.75%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y51.23%

OCF growth 3Y11.72%

OCF growth 5Y13.01%

DIVERSIFIED ROYALTY CORP (DIV-DB-A.CA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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