DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV - CA2553311002 - Common Stock
3.89 CAD
0 (0%)
Overall DIV gets a fundamental rating of 4 out of 10. We evaluated DIV against 19 industry peers in the Specialty Retail industry. DIV has a medium profitability rating, but doesn't score so well on its financial health evaluation. DIV has a decent growth rate and is not valued too expensively. DIV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- DIV had positive earnings in the past year.
- In the past year DIV had a positive cash flow from operations.
- Of the past 5 years DIV 4 years were profitable.
- Each year in the past 5 years DIV had a positive operating cash flow.
1.2 Ratios
- DIV has a Return On Assets (4.81%) which is in line with its industry peers.
- DIV has a better Return On Equity (10.24%) than 63.16% of its industry peers.
- The Return On Invested Capital of DIV (7.36%) is comparable to the rest of the industry.
- DIV had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 11.04%.
- The last Return On Invested Capital (7.36%) for DIV 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
- The Profit Margin of DIV (43.18%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of DIV has declined.
- DIV has a better Operating Margin (89.81%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of DIV has remained more or less at the same level.
| 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 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, DIV has more shares outstanding
- The number of shares outstanding for DIV has been increased compared to 5 years ago.
- The debt/assets ratio for DIV has been reduced compared to a year ago.
2.2 Solvency
- DIV has an Altman-Z score of 1.45. This is a bad value and indicates that DIV is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of DIV (1.45) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.98 indicates that DIV is somewhat dependend on debt financing.
- The Debt to Equity ratio of DIV (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC0.87
WACC8.42%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that DIV may have some problems paying its short term obligations.
- With a Current ratio value of 0.79, DIV is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
- A Quick Ratio of 0.79 indicates that DIV may have some problems paying its short term obligations.
- The Quick ratio of DIV (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- DIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.00%.
- Measured over the past 5 years, DIV shows a small growth in Earnings Per Share. The EPS has been growing by 2.71% on average per year.
- The Revenue has been growing slightly by 6.88% in the past year.
- DIV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.37% yearly.
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
- Based on estimates for the next years, DIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.23% on average per year.
- The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y30.46%
EPS Next 2Y19.62%
EPS Next 3Y13.23%
EPS Next 5YN/A
Revenue Next Year11.28%
Revenue Next 2Y10.68%
Revenue Next 3Y8.28%
Revenue Next 5Y2.94%
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 accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.88, the valuation of DIV can be described as rather expensive.
- Based on the Price/Earnings ratio, DIV is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
- DIV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- DIV is valuated correctly with a Price/Forward Earnings ratio of 16.99.
- Based on the Price/Forward Earnings ratio, DIV is valued a bit cheaper than 68.42% of the companies in the same industry.
- DIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DIV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.38 |
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.
- DIV's earnings are expected to grow with 13.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)8.45
EPS Next 2Y19.62%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.33%, DIV is a good candidate for dividend investing.
- DIV's Dividend Yield is rather good when compared to the industry average which is at 2.62. DIV pays more dividend than 89.47% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DIV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.33% |
5.2 History
- The dividend of DIV has a limited annual growth rate of 4.62%.
- DIV has been paying a dividend for at least 10 years, so it has a reliable track record.
- DIV has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.62%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 125.97% of the earnings are spent on dividend by DIV. This is not a sustainable payout ratio.
- The dividend of DIV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP125.97%
EPS Next 2Y19.62%
EPS Next 3Y13.23%
DIVERSIFIED ROYALTY CORP / DIV.CA FAQ
What is the fundamental rating for DIV stock?
ChartMill assigns a fundamental rating of 4 / 10 to DIV.CA.
Can you provide the valuation status for DIVERSIFIED ROYALTY CORP?
ChartMill assigns a valuation rating of 4 / 10 to DIVERSIFIED ROYALTY CORP (DIV.CA). This can be considered as Fairly Valued.
How profitable is DIVERSIFIED ROYALTY CORP (DIV.CA) stock?
DIVERSIFIED ROYALTY CORP (DIV.CA) has a profitability rating of 5 / 10.
What is the financial health of DIVERSIFIED ROYALTY CORP (DIV.CA) stock?
The financial health rating of DIVERSIFIED ROYALTY CORP (DIV.CA) is 1 / 10.
Can you provide the dividend sustainability for DIV stock?
The dividend rating of DIVERSIFIED ROYALTY CORP (DIV.CA) is 7 / 10 and the dividend payout ratio is 125.97%.