DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - TSX:DIV - CA2553311002 - Common Stock
3.55 CAD
+0.02 (+0.57%)
DIV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 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 is not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years DIV had a positive operating cash flow.
1.2 Ratios
DIV's Return On Assets of 4.55% is in line compared to the rest of the industry. DIV outperforms 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.67%, DIV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
DIV has a Return On Invested Capital (7.18%) which 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 9.28%.
The 3 year average ROIC (6.80%) for DIV is below the current ROIC(7.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 9.67% | ||
| ROIC | 7.18% |
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 41.90%, 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 (90.33%) 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 | 90.33% | ||
| PM (TTM) | 41.9% | ||
| 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.
The debt/assets ratio for DIV has been reduced compared to a year ago.
2.2 Solvency
DIV has an Altman-Z score of 1.35. This is a bad value and indicates that DIV is not financially healthy and even has some risk of bankruptcy.
DIV has a worse Altman-Z score (1.35) than 73.33% of its industry peers.
DIV has a Debt/Equity ratio of 0.99. This is a neutral value indicating DIV is somewhat dependend on debt financing.
DIV has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: DIV underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.9
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.95 indicates that DIV may have some problems paying its short term obligations.
DIV has a Current ratio of 0.95. This is amonst the worse of the industry: DIV underperforms 86.67% of its industry peers.
A Quick Ratio of 0.95 indicates that DIV may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, DIV is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for DIV have decreased strongly by -12.01% 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 quite strong growth in Revenue. The Revenue has grown by 15.04% in the last year.
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)-12.01%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%39.96%
Revenue 1Y (TTM)15.04%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%15.29%
3.2 Future
DIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.18% yearly.
The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y32.56%
EPS Next 2Y19.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y10.55%
Revenue Next 3Y2.43%
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
With a Price/Earnings ratio of 19.72, DIV is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as DIV.
DIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.07.
The Price/Forward Earnings ratio is 15.62, which indicates a correct valuation of DIV.
Based on the Price/Forward Earnings ratio, DIV is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, DIV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
DIV's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.81 |
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.
A more expensive valuation may be justified as DIV's earnings are expected to grow with 19.18% in the coming years.
PEG (NY)0.61
PEG (5Y)7.29
EPS Next 2Y19.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DIV has a Yearly Dividend Yield of 7.37%, which is a nice return.
DIV's Dividend Yield is rather good when compared to the industry average which is at 4.53. DIV pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, DIV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
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 129.62% 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.
DP129.62%
EPS Next 2Y19.18%
EPS Next 3YN/A
TSX:DIV (11/19/2025, 7:00:00 PM)
3.55
+0.02 (+0.57%)
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 Cap603.04M
Revenue(TTM)64.99M
Net Income(TTM)27.91M
Analysts77.78
Price Target4.09 (15.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
Yearly Dividend0.22
Dividend Growth(5Y)4.62%
DP129.62%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.39%
Min EPS beat(2)-0.99%
Max EPS beat(2)23.76%
EPS beat(4)1
Avg EPS beat(4)-12.4%
Min EPS beat(4)-60.4%
Max EPS beat(4)23.76%
EPS beat(8)4
Avg EPS beat(8)7.12%
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)-6.13%
Min Revenue beat(2)-8.41%
Max Revenue beat(2)-3.85%
Revenue beat(4)0
Avg Revenue beat(4)-5.41%
Min Revenue beat(4)-8.41%
Max Revenue beat(4)-3.52%
Revenue beat(8)0
Avg Revenue beat(8)-6.76%
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)3.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.72 | ||
| Fwd PE | 15.62 | ||
| P/S | 9.05 | ||
| P/FCF | N/A | ||
| P/OCF | 13.69 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.81 |
EPS(TTM)0.18
EY5.07%
EPS(NY)0.23
Fwd EY6.4%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY7.31%
SpS0.39
BVpS1.7
TBVpS-1.6
PEG (NY)0.61
PEG (5Y)7.29
Graham Number2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 9.67% | ||
| ROCE | 9.99% | ||
| ROIC | 7.18% | ||
| ROICexc | 7.23% | ||
| ROICexgc | 112.35% | ||
| OM | 90.33% | ||
| PM (TTM) | 41.9% | ||
| 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 | 0.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 49421% | ||
| Cap/Sales | 74.19% | ||
| Interest Coverage | 4.71 | ||
| Cash Conversion | 73.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.35 |
F-Score4
WACC7.96%
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)-12.01%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%39.96%
EPS Next Y32.56%
EPS Next 2Y19.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.04%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%15.29%
Revenue Next Year10.91%
Revenue Next 2Y10.55%
Revenue Next 3Y2.43%
Revenue Next 5Y2.94%
EBIT growth 1Y8.27%
EBIT growth 3Y20.82%
EBIT growth 5Y17.25%
EBIT Next Year23.58%
EBIT Next 3Y7.78%
EBIT Next 5Y10.57%
FCF growth 1Y90.01%
FCF growth 3Y62.36%
FCF growth 5YN/A
OCF growth 1Y44.93%
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 5 / 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 32.56% 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 129.62%.