DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV - CA2553311002 - Common Stock
3.72 CAD
+0.03 (+0.81%)
Overall DIV gets a fundamental rating of 4 out of 10. We evaluated DIV against 16 industry peers in the Specialty Retail industry. While DIV is still in line with the averages on profitability rating, there are concerns on its financial health. DIV has a correct valuation and a medium growth rate. Finally DIV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DIV had positive earnings in the past year.
DIV had a positive operating cash flow in the past year.
DIV had positive earnings in 4 of the past 5 years.
DIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DIV has a better Return On Assets (4.81%) than 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 10.24%, DIV is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
DIV has a better Return On Invested Capital (7.36%) than 62.50% of its industry peers.
DIV had an Average Return On Invested Capital over the past 3 years of 6.80%. This is below the industry average of 9.32%.
The 3 year average ROIC (6.80%) for DIV is below the current ROIC(7.36%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 89.81%, DIV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIV is destroying value.
DIV has more shares outstanding than it did 1 year ago.
DIV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DIV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that DIV is in the distress zone and has some risk of bankruptcy.
DIV has a Altman-Z score of 1.40. This is in the lower half of the industry: DIV underperforms 62.50% of its industry peers.
DIV has a Debt/Equity ratio of 0.98. This is a neutral value indicating 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 | 1.4 |
ROIC/WACC0.9
WACC8.22%
2.3 Liquidity
DIV has a Current Ratio of 0.79. This is a bad value and indicates that DIV is not financially healthy enough and could expect problems in meeting its short term obligations.
DIV has a worse Current ratio (0.79) than 81.25% of its industry peers.
DIV has a Quick Ratio of 0.79. This is a bad value and indicates that DIV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.79, DIV is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for DIV have decreased strongly by -15.00% in the last year.
The Earnings Per Share has been growing slightly by 2.71% on average over the past years.
DIV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.88%.
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
The Earnings Per Share is expected to grow by 13.23% on average over the next years. This is quite good.
DIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y29.41%
EPS Next 2Y19.18%
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
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
The Price/Earnings ratio is 21.88, which indicates a rather expensive current valuation of DIV.
Compared to the rest of the industry, the Price/Earnings ratio of DIV indicates a somewhat cheap valuation: DIV is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, DIV is valued at the same level.
With a Price/Forward Earnings ratio of 16.37, DIV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DIV indicates a somewhat cheap valuation: DIV is cheaper than 75.00% of the companies listed in the same industry.
DIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 16.37 |
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 | 14.91 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DIV's earnings are expected to grow with 13.23% in the coming years.
PEG (NY)0.74
PEG (5Y)8.08
EPS Next 2Y19.18%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.70%, DIV is a good candidate for dividend investing.
DIV's Dividend Yield is rather good when compared to the industry average which is at 1.63. DIV pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, DIV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.7% |
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
DIV pays out 125.97% of its income as dividend. This is not a sustainable payout ratio.
DIV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP125.97%
EPS Next 2Y19.18%
EPS Next 3Y13.23%
TSX:DIV (12/24/2025, 7:00:00 PM)
3.72
+0.03 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.82%
Inst Owner ChangeN/A
Ins Owners2.23%
Ins Owner ChangeN/A
Market Cap633.40M
Revenue(TTM)68.78M
Net Income(TTM)29.70M
Analysts77.78
Price Target4.44 (19.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.7% |
Yearly Dividend0.22
Dividend Growth(5Y)4.62%
DP125.97%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.99%
Min EPS beat(2)-0.99%
Max EPS beat(2)-0.99%
EPS beat(4)1
Avg EPS beat(4)-9.65%
Min EPS beat(4)-60.4%
Max EPS beat(4)23.76%
EPS beat(8)3
Avg EPS beat(8)4.03%
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)-4.53%
Min Revenue beat(2)-5.22%
Max Revenue beat(2)-3.85%
Revenue beat(4)0
Avg Revenue beat(4)-5.25%
Min Revenue beat(4)-8.41%
Max Revenue beat(4)-3.52%
Revenue beat(8)0
Avg Revenue beat(8)-6.11%
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)8.48%
PT rev (3m)8.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.88 | ||
| Fwd PE | 16.37 | ||
| P/S | 9.21 | ||
| P/FCF | N/A | ||
| P/OCF | 14.16 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.91 |
EPS(TTM)0.17
EY4.57%
EPS(NY)0.23
Fwd EY6.11%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY7.06%
SpS0.4
BVpS1.7
TBVpS-1.6
PEG (NY)0.74
PEG (5Y)8.08
Graham Number2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 10.24% | ||
| ROCE | 10.24% | ||
| ROIC | 7.36% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 123.4% | ||
| OM | 89.81% | ||
| PM (TTM) | 43.18% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)4.53%
ROA(5y)3.46%
ROE(3y)9.75%
ROE(5y)7.37%
ROIC(3y)6.8%
ROIC(5y)6.65%
ROICexc(3y)6.83%
ROICexc(5y)6.74%
ROICexgc(3y)76.13%
ROICexgc(5y)N/A
ROCE(3y)9.46%
ROCE(5y)9.25%
ROICexgc growth 3YN/A
ROICexgc growth 5Y15.24%
ROICexc growth 3Y-1.54%
ROICexc growth 5Y5.61%
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
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 50010.1% | ||
| Cap/Sales | 71.98% | ||
| Interest Coverage | 4.73 | ||
| Cash Conversion | 72.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.4 |
F-Score4
WACC8.22%
ROIC/WACC0.9
Cap/Depr(3y)52180.9%
Cap/Depr(5y)N/A
Cap/Sales(3y)104.08%
Cap/Sales(5y)100.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%25%
EPS Next Y29.41%
EPS Next 2Y19.18%
EPS Next 3Y13.23%
EPS Next 5YN/A
Revenue 1Y (TTM)6.88%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%13.44%
Revenue Next Year11.28%
Revenue Next 2Y10.68%
Revenue Next 3Y8.28%
Revenue Next 5Y2.94%
EBIT growth 1Y7.08%
EBIT growth 3Y20.82%
EBIT growth 5Y17.25%
EBIT Next Year23.74%
EBIT Next 3Y12.04%
EBIT Next 5Y9.76%
FCF growth 1Y90.88%
FCF growth 3Y62.36%
FCF growth 5YN/A
OCF growth 1Y41.65%
OCF growth 3Y18.67%
OCF growth 5Y15.15%
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.
What is the valuation status of DIVERSIFIED ROYALTY CORP (DIV.CA) stock?
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 6 / 10.
Can you provide the expected EPS growth for DIV stock?
The Earnings per Share (EPS) of DIVERSIFIED ROYALTY CORP (DIV.CA) is expected to grow by 29.41% in the next year.
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%.