DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DIV - CA2553311002 - Common Stock
3.9 CAD
+0.03 (+0.78%)
DIV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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.
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 has a better Return On Assets (4.81%) than 62.50% of its industry peers.
With a decent Return On Equity value of 10.24%, DIV is doing good in the industry, outperforming 68.75% of the companies in the same industry.
DIV's Return On Invested Capital of 7.36% is fine compared to the rest of the industry. DIV outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DIV is in line with the industry average of 8.76%.
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 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.
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.
DIV has a better debt/assets ratio than last year.
2.2 Solvency
DIV has an Altman-Z score of 1.45. This is a bad value and indicates that DIV is not financially healthy and even 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/Equity ratio of 0.98. This is a neutral value indicating DIV is somewhat dependend on debt financing.
DIV has a Debt to Equity ratio (0.98) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC0.88
WACC8.34%
2.3 Liquidity
DIV has a Current 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 Current ratio, with a value of 0.79, DIV is doing worse than 81.25% of the companies in the same industry.
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.
With a decent Quick ratio value of 0.79, DIV is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
DIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.00%.
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%.
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
The Earnings Per Share is expected to grow by 13.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.94% on average over the next years.
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
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
Based on the Price/Earnings ratio of 22.94, the valuation of DIV can be described as rather expensive.
Based on the Price/Earnings ratio, DIV is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.00. DIV is around the same levels.
The Price/Forward Earnings ratio is 17.16, which indicates a rather expensive current valuation of DIV.
Based on the Price/Forward Earnings ratio, DIV is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DIV to the average of the S&P500 Index (23.70), we can say DIV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 17.16 |
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 | 15.41 |
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 13.23% in the coming years.
PEG (NY)0.78
PEG (5Y)8.48
EPS Next 2Y19.18%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.66%, DIV is a good candidate for dividend investing.
DIV's Dividend Yield is rather good when compared to the industry average which is at 1.63. 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
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.
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 (1/8/2026, 7:00:00 PM)
3.9
+0.03 (+0.78%)
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 Cap664.05M
Revenue(TTM)68.78M
Net Income(TTM)29.70M
Analysts77.78
Price Target4.44 (13.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
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)0%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 17.16 | ||
| P/S | 9.65 | ||
| P/FCF | N/A | ||
| P/OCF | 14.85 | ||
| P/B | 2.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.41 |
EPS(TTM)0.17
EY4.36%
EPS(NY)0.23
Fwd EY5.83%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY6.73%
SpS0.4
BVpS1.7
TBVpS-1.6
PEG (NY)0.78
PEG (5Y)8.48
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 | 1.45 |
F-Score4
WACC8.34%
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 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.
Can you provide the valuation status for DIVERSIFIED ROYALTY CORP?
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.
What is the financial health of DIVERSIFIED ROYALTY CORP (DIV.CA) stock?
The financial health rating of DIVERSIFIED ROYALTY CORP (DIV.CA) is 1 / 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%.