DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
TSX:DIV - Toronto Stock Exchange - CA2553311002 - Common Stock - Currency: CAD
Taking everything into account, DIV scores 5 out of 10 in our fundamental rating. DIV was compared to 16 industry peers in the Specialty Retail industry. DIV has an average financial health and profitability rating. 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
In the past year DIV was profitable.
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
Looking at the Return On Assets, with a value of 4.72%, DIV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DIV's Return On Equity of 9.42% is fine compared to the rest of the industry. DIV outperforms 75.00% of its industry peers.
DIV's Return On Invested Capital of 7.53% is fine compared to the rest of the industry. DIV outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIV is in line with the industry average of 8.05%.
The 3 year average ROIC (6.80%) for DIV is below the current ROIC(7.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.42% | ||
| ROIC | 7.53% |
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
With an excellent Profit Margin value of 41.35%, DIV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DIV has declined.
Looking at the Operating Margin, with a value of 89.93%, 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 | 89.93% | ||
| PM (TTM) | 41.35% | ||
| 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
DIV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DIV has more shares outstanding
The number of shares outstanding for DIV has been increased compared to 5 years ago.
DIV has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that DIV is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.45, DIV is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
DIV has a debt to FCF ratio of 5.59. This is a neutral value as DIV would need 5.59 years to pay back of all of its debts.
DIV has a Debt to FCF ratio of 5.59. This is comparable to the rest of the industry: DIV outperforms 56.25% of its industry peers.
DIV has a Debt/Equity ratio of 0.87. This is a neutral value indicating DIV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, DIV is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.94
WACC8%
2.3 Liquidity
DIV has a Current Ratio of 1.76. This is a normal value and indicates that DIV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.76, DIV belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that DIV should not have too much problems paying its short term obligations.
The Quick ratio of DIV (1.76) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The earnings per share for DIV have decreased strongly by -27.27% in the last year.
DIV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.71% yearly.
Looking at the last year, DIV shows a quite strong growth in Revenue. The Revenue has grown by 10.66% 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)-27.27%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%0%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%3.71%
3.2 Future
The Earnings Per Share is expected to grow by 19.84% 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 Y35.72%
EPS Next 2Y19.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.37%
Revenue Next 2Y6.4%
Revenue Next 3Y2.43%
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 20.56, the valuation of DIV can be described as rather expensive.
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 27.18, DIV is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.32 indicates a correct valuation of DIV.
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.
DIV is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DIV.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DIV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 13.69 |
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.
DIV's earnings are expected to grow with 19.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)7.6
EPS Next 2Y19.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DIV has a Yearly Dividend Yield of 8.33%, which is a nice return.
DIV's Dividend Yield is rather good when compared to the industry average which is at 4.70. 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.33% |
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
132.30% 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.
DP132.3%
EPS Next 2Y19.84%
EPS Next 3YN/A
TSX:DIV (7/15/2025, 7:00:00 PM)
3.29
-0.02 (-0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners13%
Inst Owner ChangeN/A
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap557.19M
Analysts78
Price Target3.96 (20.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.33% |
Yearly Dividend0.22
Dividend Growth(5Y)4.62%
DP132.3%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.32%
Min EPS beat(2)-60.4%
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)5
Avg EPS beat(8)9.6%
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)-5.96%
Min Revenue beat(2)-8.41%
Max Revenue beat(2)-3.52%
Revenue beat(4)0
Avg Revenue beat(4)-6.61%
Min Revenue beat(4)-8.65%
Max Revenue beat(4)-3.52%
Revenue beat(8)0
Avg Revenue beat(8)-7.09%
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)3.1%
PT rev (3m)3.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)11.21%
Revenue NQ rev (1m)-2.16%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 14.32 | ||
| P/S | 8.5 | ||
| P/FCF | 12.17 | ||
| P/OCF | 12.17 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)0.16
EY4.86%
EPS(NY)0.23
Fwd EY6.98%
FCF(TTM)0.27
FCFY8.22%
OCF(TTM)0.27
OCFY8.22%
SpS0.39
BVpS1.7
TBVpS-1.31
PEG (NY)0.58
PEG (5Y)7.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.42% | ||
| ROCE | 10.48% | ||
| ROIC | 7.53% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 114.38% | ||
| OM | 89.93% | ||
| PM (TTM) | 41.35% | ||
| GM | N/A | ||
| FCFM | 69.86% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 4.7 | ||
| Cash Conversion | 77.56% | ||
| Profit Quality | 168.93% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.45 |
F-Score5
WACC8%
ROIC/WACC0.94
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)-27.27%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%0%
EPS Next Y35.72%
EPS Next 2Y19.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.66%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%3.71%
Revenue Next Year7.37%
Revenue Next 2Y6.4%
Revenue Next 3Y2.43%
Revenue Next 5Y2.94%
EBIT growth 1Y10.63%
EBIT growth 3Y20.82%
EBIT growth 5Y17.25%
EBIT Next Year17.97%
EBIT Next 3Y7.78%
EBIT Next 5Y7.9%
FCF growth 1Y190.95%
FCF growth 3Y62.36%
FCF growth 5YN/A
OCF growth 1Y58.15%
OCF growth 3Y18.67%
OCF growth 5Y15.15%