DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV - CA2553311002 - Common Stock
3.92 CAD
+0.02 (+0.51%)
Overall DIV gets a fundamental rating of 4 out of 10. We evaluated DIV against 18 industry peers in the Specialty Retail industry. DIV has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, DIV is valued expensive at the moment. Finally 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.
DIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DIV (4.81%) is comparable to the rest of the industry.
The Return On Equity of DIV (10.24%) is better than 61.11% 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 10.62%.
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
Looking at the Profit Margin, with a value of 43.18%, DIV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
DIV's Profit Margin has declined in the last couple of years.
DIV has a better Operating Margin (89.81%) than 100.00% of its industry peers.
DIV'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIV is destroying value.
The number of shares outstanding for DIV has been increased compared to 1 year ago.
Compared to 5 years ago, DIV has more shares outstanding
The debt/assets ratio for DIV has been reduced compared to a year ago.
2.2 Solvency
DIV has an Altman-Z score of 1.46. This is a bad value and indicates that DIV is not financially healthy and even has some risk of bankruptcy.
DIV has a Altman-Z score (1.46) which is in line with its industry peers.
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 | 1.46 |
ROIC/WACC0.88
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.79 indicates that DIV may have some problems paying its short term obligations.
DIV has a Current ratio of 0.79. This is amonst the worse of the industry: DIV underperforms 83.33% 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 66.67% 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.
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 12.54% on average per year.
Based on estimates for the next years, DIV will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
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
A Price/Earnings ratio of 23.06 indicates a rather expensive valuation of DIV.
Based on the Price/Earnings ratio, DIV is valued a bit cheaper than 61.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. DIV is around the same levels.
With a Price/Forward Earnings ratio of 17.59, DIV is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DIV is valued a bit cheaper than 66.67% of the companies in the same industry.
DIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 17.59 |
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 | 15.46 |
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.
A more expensive valuation may be justified as DIV's earnings are expected to grow with 12.54% in the coming years.
PEG (NY)0.87
PEG (5Y)8.52
EPS Next 2Y18.03%
EPS Next 3Y12.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.31%, DIV is a good candidate for dividend investing.
DIV's Dividend Yield is rather good when compared to the industry average which is at 1.59. DIV pays more dividend than 94.44% of the companies in the same industry.
DIV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
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 2Y18.03%
EPS Next 3Y12.54%
TSX:DIV (1/12/2026, 7:00:00 PM)
3.92
+0.02 (+0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners12.95%
Inst Owner ChangeN/A
Ins Owners2.25%
Ins Owner ChangeN/A
Market Cap667.46M
Revenue(TTM)68.78M
Net Income(TTM)29.70M
Analysts77.78
Price Target4.44 (13.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
Yearly Dividend0.22
Dividend Growth(5Y)4.62%
DP125.97%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)0%
PT rev (3m)8.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.2%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.06 | ||
| Fwd PE | 17.59 | ||
| P/S | 9.7 | ||
| P/FCF | N/A | ||
| P/OCF | 14.93 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.46 |
EPS(TTM)0.17
EY4.34%
EPS(NY)0.22
Fwd EY5.69%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY6.7%
SpS0.4
BVpS1.7
TBVpS-1.6
PEG (NY)0.87
PEG (5Y)8.52
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 | 1.46 |
F-Score4
WACC8.33%
ROIC/WACC0.88
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 Y26.57%
EPS Next 2Y18.03%
EPS Next 3Y12.54%
EPS Next 5YN/A
Revenue 1Y (TTM)6.88%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%13.44%
Revenue Next Year10.39%
Revenue Next 2Y9.72%
Revenue Next 3Y8.59%
Revenue Next 5Y2.94%
EBIT growth 1Y7.08%
EBIT growth 3Y20.82%
EBIT growth 5Y17.25%
EBIT Next Year21.68%
EBIT Next 3Y11.36%
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.
Can you provide the valuation status for DIVERSIFIED ROYALTY CORP?
ChartMill assigns a valuation rating of 3 / 10 to DIVERSIFIED ROYALTY CORP (DIV.CA). This can be considered as Overvalued.
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 2 / 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%.