DOMINION LENDING CENTRES INC (DLCG.CA) Stock Fundamental Analysis
TSX:DLCG - Toronto Stock Exchange - CA2574141024 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to DLCG. DLCG was compared to 32 industry peers in the Financial Services industry. DLCG has a medium profitability rating, but doesn't score so well on its financial health evaluation. DLCG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DLCG was profitable.
DLCG had a positive operating cash flow in the past year.
In multiple years DLCG reported negative net income over the last 5 years.
Each year in the past 5 years DLCG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.45%, DLCG perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
DLCG has a better Return On Equity (30.99%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.80%, DLCG belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
DLCG had an Average Return On Invested Capital over the past 3 years of 10.53%. This is above the industry average of 5.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 30.99% | ||
| ROIC | 9.8% |
ROA(3y)1.08%
ROA(5y)1.77%
ROE(3y)6.88%
ROE(5y)10.4%
ROIC(3y)10.53%
ROIC(5y)8.15%
1.3 Margins
With a Profit Margin value of 14.21%, DLCG perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
In the last couple of years the Profit Margin of DLCG has declined.
The Operating Margin of DLCG (35.55%) is worse than 71.88% of its industry peers.
In the last couple of years the Operating Margin of DLCG has grown nicely.
Looking at the Gross Margin, with a value of 84.99%, DLCG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of DLCG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.55% | ||
| PM (TTM) | 14.21% | ||
| GM | 84.99% |
OM growth 3Y-5.6%
OM growth 5Y13.25%
PM growth 3Y-86.11%
PM growth 5YN/A
GM growth 3Y-1.57%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLCG is destroying value.
The number of shares outstanding for DLCG has been reduced compared to 1 year ago.
DLCG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DLCG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.86 indicates that DLCG is not a great score, but indicates only limited risk for bankruptcy at the moment.
DLCG has a worse Altman-Z score (1.86) than 62.50% of its industry peers.
DLCG has a debt to FCF ratio of 6.37. This is a slightly negative value and a sign of low solvency as DLCG would need 6.37 years to pay back of all of its debts.
DLCG has a Debt to FCF ratio (6.37) which is in line with its industry peers.
DLCG has a Debt/Equity ratio of 4.10. This is a high value indicating a heavy dependency on external financing.
DLCG has a Debt to Equity ratio of 4.10. This is amonst the worse of the industry: DLCG underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.1 | ||
| Debt/FCF | 6.37 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.8
WACC12.29%
2.3 Liquidity
DLCG has a Current Ratio of 0.68. This is a bad value and indicates that DLCG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.68, DLCG perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that DLCG may have some problems paying its short term obligations.
DLCG has a Quick ratio of 0.68. This is comparable to the rest of the industry: DLCG outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
DLCG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1423.53%, which is quite impressive.
DLCG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -86.43% yearly.
DLCG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.75%.
DLCG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.77% yearly.
EPS 1Y (TTM)1423.53%
EPS 3Y-86.43%
EPS 5YN/A
EPS Q2Q%-27.27%
Revenue 1Y (TTM)15.75%
Revenue growth 3Y6.05%
Revenue growth 5Y-4.77%
Sales Q2Q%12.74%
3.2 Future
The Earnings Per Share is expected to grow by 48.12% on average over the next years. This is a very strong growth
Based on estimates for the next years, DLCG will show a very strong growth in Revenue. The Revenue will grow by 20.14% on average per year.
EPS Next Y71.43%
EPS Next 2Y60.36%
EPS Next 3Y48.12%
EPS Next 5YN/A
Revenue Next Year22.74%
Revenue Next 2Y22.88%
Revenue Next 3Y20.14%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.00 indicates a quite expensive valuation of DLCG.
Based on the Price/Earnings ratio, DLCG is valued a bit cheaper than 65.63% of the companies in the same industry.
DLCG is valuated rather expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
DLCG is valuated rather expensively with a Price/Forward Earnings ratio of 21.73.
Based on the Price/Forward Earnings ratio, DLCG is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DLCG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLCG is valued cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DLCG is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.2 | ||
| EV/EBITDA | 22.56 |
4.3 Compensation for Growth
DLCG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DLCG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DLCG's earnings are expected to grow with 48.12% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y60.36%
EPS Next 3Y48.12%
5. Dividend
5.1 Amount
DLCG has a Yearly Dividend Yield of 1.49%.
DLCG's Dividend Yield is slightly below the industry average, which is at 8.05.
Compared to the average S&P500 Dividend Yield of 2.33, DLCG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
DLCG has been paying a dividend for over 5 years, so it has already some track record.
The dividend of DLCG decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
DLCG pays out 57.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.89%
EPS Next 2Y60.36%
EPS Next 3Y48.12%
TSX:DLCG (3/7/2025, 7:00:00 PM)
7.98
-0.1 (-1.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners21.11%
Inst Owner ChangeN/A
Ins Owners34.32%
Ins Owner ChangeN/A
Market Cap628.19M
Analysts82.22
Price Target9.61 (20.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP57.89%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.93%
Min EPS beat(2)-21.57%
Max EPS beat(2)-18.3%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)0.38%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)8.65%
PT rev (3m)47.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.13%
EPS NY rev (3m)9.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)5.14%
Revenue NY rev (3m)5.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38 | ||
| Fwd PE | 21.73 | ||
| P/S | 8.94 | ||
| P/FCF | 27.2 | ||
| P/OCF | 20.69 | ||
| P/B | 19.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.56 |
EPS(TTM)0.21
EY2.63%
EPS(NY)0.37
Fwd EY4.6%
FCF(TTM)0.29
FCFY3.68%
OCF(TTM)0.39
OCFY4.83%
SpS0.89
BVpS0.41
TBVpS-1.98
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 30.99% | ||
| ROCE | 13.62% | ||
| ROIC | 9.8% | ||
| ROICexc | 10.36% | ||
| ROICexgc | N/A | ||
| OM | 35.55% | ||
| PM (TTM) | 14.21% | ||
| GM | 84.99% | ||
| FCFM | 32.87% |
ROA(3y)1.08%
ROA(5y)1.77%
ROE(3y)6.88%
ROE(5y)10.4%
ROIC(3y)10.53%
ROIC(5y)8.15%
ROICexc(3y)11.37%
ROICexc(5y)8.72%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.62%
ROCE(5y)11.32%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y5.18%
ROICexc growth 5Y18.61%
OM growth 3Y-5.6%
OM growth 5Y13.25%
PM growth 3Y-86.11%
PM growth 5YN/A
GM growth 3Y-1.57%
GM growth 5Y0.22%
F-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.1 | ||
| Debt/FCF | 6.37 | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 81.18% | ||
| Cap/Sales | 10.35% | ||
| Interest Coverage | 9.47 | ||
| Cash Conversion | 89.48% | ||
| Profit Quality | 231.29% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.86 |
F-Score8
WACC12.29%
ROIC/WACC0.8
Cap/Depr(3y)103.24%
Cap/Depr(5y)84.14%
Cap/Sales(3y)11.83%
Cap/Sales(5y)15.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1423.53%
EPS 3Y-86.43%
EPS 5YN/A
EPS Q2Q%-27.27%
EPS Next Y71.43%
EPS Next 2Y60.36%
EPS Next 3Y48.12%
EPS Next 5YN/A
Revenue 1Y (TTM)15.75%
Revenue growth 3Y6.05%
Revenue growth 5Y-4.77%
Sales Q2Q%12.74%
Revenue Next Year22.74%
Revenue Next 2Y22.88%
Revenue Next 3Y20.14%
Revenue Next 5YN/A
EBIT growth 1Y56.59%
EBIT growth 3Y0.11%
EBIT growth 5Y7.85%
EBIT Next Year76.56%
EBIT Next 3Y37.99%
EBIT Next 5YN/A
FCF growth 1Y9.04%
FCF growth 3Y-40%
FCF growth 5Y23.72%
OCF growth 1Y13.97%
OCF growth 3Y-19.85%
OCF growth 5Y3.13%