DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV - CA2553311002 - Common Stock
3.74 CAD
-0.01 (-0.27%)
Taking everything into account, DIV scores 4 out of 10 in our fundamental rating. DIV was compared to 16 industry peers in the Specialty Retail industry. There are concerns on the financial health of DIV while its profitability can be described as average. 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.
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
DIV has a Return On Assets of 4.81%. This is in the better half of the industry: DIV outperforms 62.50% of its industry peers.
DIV has a better Return On Equity (10.24%) than 68.75% of its industry peers.
With a decent Return On Invested Capital value of 7.36%, DIV is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DIV is below the industry average of 9.19%.
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
DIV has a better Profit Margin (43.18%) than 100.00% of its industry peers.
DIV's Profit Margin has declined in the last couple of years.
DIV has a Operating Margin of 89.81%. This is amongst the best in the industry. DIV outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DIV is destroying value.
DIV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DIV has been increased compared to 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 1.41, we must say that DIV is in the distress zone and has some risk of bankruptcy.
DIV's Altman-Z score of 1.41 is on the low side compared to the rest of the industry. DIV is outperformed by 68.75% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that DIV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, DIV perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC0.9
WACC8.22%
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 81.25% of its industry peers.
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 better 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.
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.
DIV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.88%.
Measured over the past years, DIV shows a quite strong growth in Revenue. The Revenue has been growing by 16.37% on average per year.
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.
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 Y29.41%
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.
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 22.00, the valuation of DIV can be described as rather expensive.
62.50% of the companies in the same industry are more expensive than DIV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. DIV is around the same levels.
Based on the Price/Forward Earnings ratio of 16.46, the valuation of DIV can be described as correct.
Based on the Price/Forward Earnings ratio, DIV is valued a bit cheaper than 75.00% of the companies in the same industry.
DIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 16.46 |
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 | 14.99 |
4.3 Compensation for Growth
DIV's 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)0.75
PEG (5Y)8.13
EPS Next 2Y19.18%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.64%, DIV is a good candidate for dividend investing.
DIV's Dividend Yield is rather good when compared to the industry average which is at 4.62. DIV pays more dividend than 93.75% of the companies in the same industry.
DIV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.64% |
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 (12/8/2025, 7:00:00 PM)
3.74
-0.01 (-0.27%)
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 Cap636.81M
Revenue(TTM)68.78M
Net Income(TTM)29.70M
Analysts77.78
Price Target4.44 (18.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.64% |
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)-7.95%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)2.41%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)-2.83%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 16.46 | ||
| P/S | 9.26 | ||
| P/FCF | N/A | ||
| P/OCF | 14.24 | ||
| P/B | 2.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.99 |
EPS(TTM)0.17
EY4.55%
EPS(NY)0.23
Fwd EY6.08%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY7.02%
SpS0.4
BVpS1.7
TBVpS-1.6
PEG (NY)0.75
PEG (5Y)8.13
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 | 1.41 |
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%.