DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
TSX:DIV - Toronto Stock Exchange - CA2553311002 - Common Stock - Currency: CAD
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. DIV has a medium profitability rating, but doesn't score so well on its financial health evaluation. DIV has a correct valuation and a medium growth rate.
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.
DIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DIV's Return On Assets of 5.56% is fine compared to the rest of the industry. DIV outperforms 78.57% of its industry peers.
The Return On Equity of DIV (10.91%) is better than 78.57% of its industry peers.
DIV's Return On Invested Capital of 7.25% is fine compared to the rest of the industry. DIV outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.56% | ||
| ROE | 10.91% | ||
| ROIC | 7.25% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 49.25%, 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 grown nicely.
The Operating Margin of DIV (89.64%) is better 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 | 89.64% | ||
| PM (TTM) | 49.25% | ||
| GM | N/A |
OM growth 3Y1%
OM growth 5Y0.93%
PM growth 3YN/A
PM growth 5Y8.19%
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.
DIV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that DIV is in the distress zone and has some risk of bankruptcy.
DIV has a worse Altman-Z score (1.28) than 71.43% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that DIV is somewhat dependend on debt financing.
DIV's Debt to Equity ratio of 0.82 is in line compared to the rest of the industry. DIV outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.74
WACC9.74%
2.3 Liquidity
DIV has a Current Ratio of 0.81. This is a bad value and indicates that DIV is not financially healthy enough and could expect problems in meeting its short term obligations.
DIV has a Current ratio of 0.81. This is amonst the worse of the industry: DIV underperforms 85.71% of its industry peers.
A Quick Ratio of 0.81 indicates that DIV may have some problems paying its short term obligations.
DIV has a Quick ratio of 0.81. This is in the better half of the industry: DIV outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 55.47% over the past year.
Measured over the past years, DIV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.51% on average per year.
DIV shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.83%.
DIV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.16% yearly.
EPS 1Y (TTM)55.47%
EPS 3Y11.89%
EPS 5Y17.51%
EPS Q2Q%-20%
Revenue 1Y (TTM)21.83%
Revenue growth 3Y22.81%
Revenue growth 5Y16.16%
Sales Q2Q%18.26%
3.2 Future
The Earnings Per Share is expected to decrease by -1.82% on average over the next years.
Based on estimates for the next years, DIV will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.
EPS Next Y-14.37%
EPS Next 2Y-6.66%
EPS Next 3Y-1.82%
EPS Next 5YN/A
Revenue Next Year16.44%
Revenue Next 2Y10.57%
Revenue Next 3Y8.91%
Revenue Next 5Y5.4%
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 decreasing.
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
A Price/Earnings ratio of 14.10 indicates a correct valuation of DIV.
Compared to the rest of the industry, the Price/Earnings ratio of DIV indicates a somewhat cheap valuation: DIV is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. DIV is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.44 indicates a correct valuation of DIV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DIV indicates a somewhat cheap valuation: DIV is cheaper than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, DIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 14.44 |
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 | 12.46 |
4.3 Compensation for Growth
DIV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-6.66%
EPS Next 3Y-1.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.77%, DIV is a good candidate for dividend investing.
DIV's Dividend Yield is rather good when compared to the industry average which is at 6.78. DIV pays more dividend than 92.86% of the companies in the same industry.
DIV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
5.2 History
The dividend of DIV decreases each year by -1.62%.
DIV has been paying a dividend for at least 10 years, so it has a reliable track record.
DIV has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.62%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DIV pays out 105.26% of its income as dividend. This is not a sustainable payout ratio.
DIV's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP105.26%
EPS Next 2Y-6.66%
EPS Next 3Y-1.82%
TSX:DIV (2/21/2025, 7:00:00 PM)
2.82
-0.03 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.45%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap471.25M
Analysts77.78
Price Target3.95 (40.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.77% |
Yearly Dividend0.19
Dividend Growth(5Y)-1.62%
DP105.26%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.49%
Min EPS beat(2)-11.99%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)17.71%
Min EPS beat(4)-11.99%
Max EPS beat(4)65.02%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-7.25%
Min Revenue beat(2)-8.65%
Max Revenue beat(2)-5.85%
Revenue beat(4)0
Avg Revenue beat(4)-6.96%
Min Revenue beat(4)-9.73%
Max Revenue beat(4)-3.61%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)2.51%
PT rev (3m)-0.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 14.44 | ||
| P/S | 7.32 | ||
| P/FCF | N/A | ||
| P/OCF | 11.18 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.46 |
EPS(TTM)0.2
EY7.09%
EPS(NY)0.2
Fwd EY6.92%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)0.25
OCFY8.95%
SpS0.39
BVpS1.74
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.56% | ||
| ROE | 10.91% | ||
| ROCE | 10.43% | ||
| ROIC | 7.25% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 114.65% | ||
| OM | 89.64% | ||
| PM (TTM) | 49.25% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1%
OM growth 5Y0.93%
PM growth 3YN/A
PM growth 5Y8.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.14 | ||
| Cap/Depr | 73952% | ||
| Cap/Sales | 112.62% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 72.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.28 |
F-Score6
WACC9.74%
ROIC/WACC0.74
Cap/Depr(3y)58459.8%
Cap/Depr(5y)N/A
Cap/Sales(3y)119.24%
Cap/Sales(5y)127.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)55.47%
EPS 3Y11.89%
EPS 5Y17.51%
EPS Q2Q%-20%
EPS Next Y-14.37%
EPS Next 2Y-6.66%
EPS Next 3Y-1.82%
EPS Next 5YN/A
Revenue 1Y (TTM)21.83%
Revenue growth 3Y22.81%
Revenue growth 5Y16.16%
Sales Q2Q%18.26%
Revenue Next Year16.44%
Revenue Next 2Y10.57%
Revenue Next 3Y8.91%
Revenue Next 5Y5.4%
EBIT growth 1Y21.65%
EBIT growth 3Y24.04%
EBIT growth 5Y17.24%
EBIT Next Year28.23%
EBIT Next 3Y11.83%
EBIT Next 5Y9.14%
FCF growth 1Y-208.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.23%
OCF growth 3Y11.72%
OCF growth 5Y13.01%