DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
Canada - TSX:DIV - CA2553311002 - Common Stock
3.48 CAD
+0.01 (+0.29%)
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 correct valuation and a medium growth rate. Finally 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.
Of the past 5 years DIV 4 years were profitable.
DIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DIV has a Return On Assets of 4.55%. This is in the better half of the industry: DIV outperforms 68.75% 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 68.75% of the companies in the same industry.
DIV has a Return On Invested Capital of 7.18%. This is in the better half 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 below the industry average of 9.22%.
The last Return On Invested Capital (7.18%) for DIV is above the 3 year average (6.80%), which is a sign of increasing profitability.
| 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
The Profit Margin of DIV (41.90%) is better than 100.00% of its industry peers.
DIV's Profit Margin has declined in the last couple of years.
The Operating Margin of DIV (90.33%) is better than 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIV is destroying value.
Compared to 1 year ago, DIV has more shares outstanding
Compared to 5 years ago, DIV has more shares outstanding
DIV has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that DIV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DIV (1.33) is worse than 75.00% 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 (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.87
WACC8.24%
2.3 Liquidity
DIV has a Current Ratio of 0.95. 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's Current ratio of 0.95 is on the low side compared to the rest of the industry. DIV is outperformed by 81.25% 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 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
DIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.81%.
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.
Looking at the last year, DIV shows a small growth in Revenue. The Revenue has grown by 7.68% 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)-23.81%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%0%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%6.36%
3.2 Future
Based on estimates for the next years, DIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.18% on average per year.
DIV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DIV is valuated rather expensively with a Price/Earnings ratio of 21.75.
DIV's Price/Earnings ratio is a bit cheaper when compared to the industry. DIV is cheaper than 68.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of DIV to the average of the S&P500 Index (27.69), we can say DIV is valued slightly cheaper.
DIV is valuated correctly with a Price/Forward Earnings ratio of 15.31.
Based on the Price/Forward Earnings ratio, DIV is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, DIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
DIV's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.62 |
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.
A more expensive valuation may be justified as DIV's earnings are expected to grow with 19.18% in the coming years.
PEG (NY)0.67
PEG (5Y)8.04
EPS Next 2Y19.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DIV has a Yearly Dividend Yield of 7.88%, which is a nice return.
DIV's Dividend Yield is rather good when compared to the industry average which is at 4.67. 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 | 7.88% |
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
129.62% 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.
DP129.62%
EPS Next 2Y19.18%
EPS Next 3YN/A
TSX:DIV (10/20/2025, 7:00:00 PM)
3.48
+0.01 (+0.29%)
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 Cap591.15M
Analysts77.78
Price Target4.09 (17.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.88% |
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)3.26%
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)7.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 15.31 | ||
| P/S | 8.87 | ||
| P/FCF | N/A | ||
| P/OCF | 13.42 | ||
| P/B | 2.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.62 |
EPS(TTM)0.16
EY4.6%
EPS(NY)0.23
Fwd EY6.53%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.26
OCFY7.45%
SpS0.39
BVpS1.7
TBVpS-1.6
PEG (NY)0.67
PEG (5Y)8.04
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%
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-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 | 1.33 |
F-Score4
WACC8.24%
ROIC/WACC0.87
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)-23.81%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%0%
EPS Next Y32.56%
EPS Next 2Y19.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.68%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%6.36%
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%