DPM METALS INC (DPM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DPM - CA26139R1091 - Common Stock
50.29 CAD
+0.41 (+0.82%)
Overall DPM gets a fundamental rating of 8 out of 10. We evaluated DPM against 817 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making DPM a very profitable company, without any liquidiy or solvency issues. DPM is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make DPM suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- DPM had positive earnings in the past year.
- DPM had a positive operating cash flow in the past year.
- In the past 5 years DPM has always been profitable.
- DPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DPM's Return On Assets of 10.33% is amongst the best of the industry. DPM outperforms 93.27% of its industry peers.
- DPM has a better Return On Equity (12.52%) than 92.04% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.43%, DPM belongs to the top of the industry, outperforming 94.86% of the companies in the same industry.
- DPM had an Average Return On Invested Capital over the past 3 years of 16.22%. This is above the industry average of 11.97%.
- The 3 year average ROIC (16.22%) for DPM is well above the current ROIC(11.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 12.52% | ||
| ROIC | 11.43% |
ROA(3y)11.55%
ROA(5y)14.53%
ROE(3y)13.06%
ROE(5y)16.9%
ROIC(3y)16.22%
ROIC(5y)18.07%
1.3 Margins
- DPM has a better Profit Margin (39.03%) than 97.55% of its industry peers.
- DPM's Profit Margin has improved in the last couple of years.
- DPM's Operating Margin of 44.77% is amongst the best of the industry. DPM outperforms 98.29% of its industry peers.
- DPM's Operating Margin has improved in the last couple of years.
- The Gross Margin of DPM (60.18%) is better than 97.06% of its industry peers.
- DPM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.77% | ||
| PM (TTM) | 39.03% | ||
| GM | 60.18% |
OM growth 3Y1.56%
OM growth 5Y19.51%
PM growth 3Y5.86%
PM growth 5YN/A
GM growth 3Y9.14%
GM growth 5Y15.99%
2. Health
2.1 Basic Checks
- DPM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, DPM has less shares outstanding
- The number of shares outstanding for DPM has been reduced compared to 5 years ago.
- The debt/assets ratio for DPM has been reduced compared to a year ago.
2.2 Solvency
- DPM has an Altman-Z score of 10.60. This indicates that DPM is financially healthy and has little risk of bankruptcy at the moment.
- DPM's Altman-Z score of 10.60 is fine compared to the rest of the industry. DPM outperforms 62.79% of its industry peers.
- DPM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.6 |
ROIC/WACC1.19
WACC9.6%
2.3 Liquidity
- DPM has a Current Ratio of 2.77. This indicates that DPM is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.77, DPM is in the better half of the industry, outperforming 60.10% of the companies in the same industry.
- DPM has a Quick Ratio of 2.49. This indicates that DPM is financially healthy and has no problem in meeting its short term obligations.
- DPM has a Quick ratio of 2.49. This is comparable to the rest of the industry: DPM outperforms 59.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
- DPM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.00%, which is quite impressive.
- The Earnings Per Share has been growing by 46.29% on average over the past years. This is a very strong growth
- DPM shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.01%.
- DPM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.46% yearly.
EPS 1Y (TTM)75%
EPS 3Y7.13%
EPS 5Y46.29%
EPS Q2Q%180.77%
Revenue 1Y (TTM)37.01%
Revenue growth 3Y-1.82%
Revenue growth 5Y8.46%
Sales Q2Q%81.59%
3.2 Future
- The Earnings Per Share is expected to grow by 31.52% on average over the next years. This is a very strong growth
- Based on estimates for the next years, DPM will show a quite strong growth in Revenue. The Revenue will grow by 14.32% on average per year.
EPS Next Y71.85%
EPS Next 2Y33.76%
EPS Next 3Y20.2%
EPS Next 5Y31.52%
Revenue Next Year28.01%
Revenue Next 2Y17.79%
Revenue Next 3Y11.36%
Revenue Next 5Y14.32%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.96, which indicates a rather expensive current valuation of DPM.
- Compared to the rest of the industry, the Price/Earnings ratio of DPM indicates a rather cheap valuation: DPM is cheaper than 94.49% of the companies listed in the same industry.
- DPM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.18, the valuation of DPM can be described as correct.
- DPM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DPM is cheaper than 92.04% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DPM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DPM is valued cheaper than 92.66% of the companies in the same industry.
- DPM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DPM is cheaper than 97.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.53 | ||
| EV/EBITDA | 17.17 |
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 excellent profitability rating of DPM may justify a higher PE ratio.
- A more expensive valuation may be justified as DPM's earnings are expected to grow with 20.20% in the coming years.
PEG (NY)0.25
PEG (5Y)0.39
EPS Next 2Y33.76%
EPS Next 3Y20.2%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.49%, DPM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.64, DPM pays a better dividend. On top of this DPM pays more dividend than 95.96% of the companies listed in the same industry.
- With a Dividend Yield of 0.49, DPM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
- DPM has been paying a dividend for over 5 years, so it has already some track record.
- DPM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 9.14% of the earnings are spent on dividend by DPM. This is a low number and sustainable payout ratio.
DP9.14%
EPS Next 2Y33.76%
EPS Next 3Y20.2%
DPM METALS INC / DPM.CA FAQ
Can you provide the ChartMill fundamental rating for DPM METALS INC?
ChartMill assigns a fundamental rating of 8 / 10 to DPM.CA.
What is the valuation status for DPM stock?
ChartMill assigns a valuation rating of 8 / 10 to DPM METALS INC (DPM.CA). This can be considered as Undervalued.
How profitable is DPM METALS INC (DPM.CA) stock?
DPM METALS INC (DPM.CA) has a profitability rating of 9 / 10.
Can you provide the financial health for DPM stock?
The financial health rating of DPM METALS INC (DPM.CA) is 9 / 10.
Can you provide the dividend sustainability for DPM stock?
The dividend rating of DPM METALS INC (DPM.CA) is 4 / 10 and the dividend payout ratio is 9.14%.