DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV - CA2553311002 - Common Stock
3.7 CAD
+0.04 (+1.09%)
We assign a fundamental rating of 4 out of 10 to DIV. DIV was compared to 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 decent growth rate and is not valued too expensively. 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.
DIV had positive earnings in 4 of the past 5 years.
In the past 5 years DIV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DIV (4.81%) is better than 62.50% of its industry peers.
DIV has a better Return On Equity (10.24%) than 68.75% of its industry peers.
DIV has a better Return On Invested Capital (7.36%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIV is below the industry average of 9.26%.
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
DIV has a Profit Margin of 43.18%. This is amongst the best in the industry. DIV outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of DIV has declined.
The Operating Margin of DIV (89.81%) is better 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIV is destroying value.
Compared to 1 year ago, DIV has more shares outstanding
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 1.38, we must say that DIV is in the distress zone and has some risk of bankruptcy.
DIV has a worse Altman-Z score (1.38) than 68.75% 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 | 1.38 |
ROIC/WACC0.91
WACC8.11%
2.3 Liquidity
A Current Ratio of 0.79 indicates that DIV may have some problems paying its short term obligations.
DIV has a worse Current ratio (0.79) than 81.25% of its industry peers.
A Quick Ratio of 0.79 indicates that DIV may have some problems paying its short term obligations.
DIV has a better Quick ratio (0.79) than 68.75% 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 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.
Looking at the last year, DIV shows a small growth in Revenue. The Revenue has grown by 6.88% in the last 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 13.43% 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 Y29.6%
EPS Next 2Y19.44%
EPS Next 3Y13.43%
EPS Next 5YN/A
Revenue Next Year13.03%
Revenue Next 2Y11.03%
Revenue Next 3Y9.45%
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 is valuated rather expensively with a Price/Earnings ratio of 21.76.
DIV's Price/Earnings ratio is a bit cheaper when compared to the industry. DIV is cheaper than 62.50% of the companies in the same industry.
DIV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
DIV is valuated correctly with a Price/Forward Earnings ratio of 16.21.
DIV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DIV is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, DIV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 16.21 |
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 | 14.75 |
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.
The decent profitability rating of DIV may justify a higher PE ratio.
A more expensive valuation may be justified as DIV's earnings are expected to grow with 13.43% in the coming years.
PEG (NY)0.74
PEG (5Y)8.04
EPS Next 2Y19.44%
EPS Next 3Y13.43%
5. Dividend
5.1 Amount
DIV has a Yearly Dividend Yield of 7.77%, which is a nice return.
Compared to an average industry Dividend Yield of 4.70, DIV pays a better dividend. On top of this DIV pays more dividend than 93.75% of the companies listed in the same industry.
DIV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
5.2 History
The dividend of DIV has a limited annual growth rate of 4.62%.
DIV has paid a dividend for at least 10 years, which is 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.
The dividend of DIV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP125.97%
EPS Next 2Y19.44%
EPS Next 3Y13.43%
TSX:DIV (11/28/2025, 7:00:00 PM)
3.7
+0.04 (+1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners13.19%
Inst Owner ChangeN/A
Ins Owners2.23%
Ins Owner ChangeN/A
Market Cap630.00M
Revenue(TTM)68.78M
Net Income(TTM)29.70M
Analysts77.78
Price Target4.44 (20%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
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)-2.24%
EPS NY rev (3m)-2.24%
Revenue NQ rev (1m)2.41%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 16.21 | ||
| P/S | 9.16 | ||
| P/FCF | N/A | ||
| P/OCF | 14.09 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.75 |
EPS(TTM)0.17
EY4.59%
EPS(NY)0.23
Fwd EY6.17%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY7.1%
SpS0.4
BVpS1.7
TBVpS-1.6
PEG (NY)0.74
PEG (5Y)8.04
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 | 1.38 |
F-Score4
WACC8.11%
ROIC/WACC0.91
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 Y29.6%
EPS Next 2Y19.44%
EPS Next 3Y13.43%
EPS Next 5YN/A
Revenue 1Y (TTM)6.88%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%13.44%
Revenue Next Year13.03%
Revenue Next 2Y11.03%
Revenue Next 3Y9.45%
Revenue Next 5Y2.94%
EBIT growth 1Y7.08%
EBIT growth 3Y20.82%
EBIT growth 5Y17.25%
EBIT Next Year22.5%
EBIT Next 3Y11.61%
EBIT Next 5Y9.3%
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 5 / 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 29.6% 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%.