DREAM UNLIMITED-CL A SUB VOT (DRM.CA) Stock Fundamental Analysis
TSX:DRM - Toronto Stock Exchange - CA26153M5072 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to DRM. DRM was compared to 31 industry peers in the Real Estate Management & Development industry. While DRM is still in line with the averages on profitability rating, there are concerns on its financial health. DRM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DRM was profitable.
DRM had a negative operating cash flow in the past year.
DRM had positive earnings in 4 of the past 5 years.
In the past 5 years DRM reported 4 times negative operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.79%, DRM belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
DRM has a Return On Equity of 12.51%. This is amongst the best in the industry. DRM outperforms 93.55% of its industry peers.
DRM has a Return On Invested Capital of 3.05%. This is comparable to the rest of the industry: DRM outperforms 51.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DRM is significantly below the industry average of 7.14%.
The last Return On Invested Capital (3.05%) for DRM is above the 3 year average (1.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 12.51% | ||
| ROIC | 3.05% |
ROA(3y)1.98%
ROA(5y)2.94%
ROE(3y)4.92%
ROE(5y)6.79%
ROIC(3y)1.83%
ROIC(5y)1.65%
1.3 Margins
DRM's Profit Margin of 30.08% is amongst the best of the industry. DRM outperforms 87.10% of its industry peers.
DRM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 21.66%, DRM perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
In the last couple of years the Operating Margin of DRM has declined.
DRM has a worse Gross Margin (32.29%) than 67.74% of its industry peers.
In the last couple of years the Gross Margin of DRM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.66% | ||
| PM (TTM) | 30.08% | ||
| GM | 32.29% |
OM growth 3Y18.53%
OM growth 5Y-16%
PM growth 3Y-3.77%
PM growth 5Y-12.07%
GM growth 3Y4.93%
GM growth 5Y-12.44%
2. Health
2.1 Basic Checks
DRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DRM has less shares outstanding
Compared to 5 years ago, DRM has less shares outstanding
The debt/assets ratio for DRM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that DRM is in the distress zone and has some risk of bankruptcy.
DRM has a Altman-Z score of 1.05. This is comparable to the rest of the industry: DRM outperforms 48.39% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that DRM has dependencies on debt financing.
DRM has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: DRM underperforms 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACC0.45
WACC6.8%
2.3 Liquidity
DRM has a Current Ratio of 1.71. This is a normal value and indicates that DRM is financially healthy and should not expect problems in meeting its short term obligations.
DRM has a better Current ratio (1.71) than 77.42% of its industry peers.
A Quick Ratio of 1.71 indicates that DRM should not have too much problems paying its short term obligations.
DRM has a better Quick ratio (1.71) than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 257.19% over the past year.
DRM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.61% yearly.
The Revenue has grown by 61.39% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 1.48% on average over the past years.
EPS 1Y (TTM)257.19%
EPS 3Y20.44%
EPS 5Y-6.61%
EPS Q2Q%253.02%
Revenue 1Y (TTM)61.39%
Revenue growth 3Y24.21%
Revenue growth 5Y1.48%
Sales Q2Q%78.25%
3.2 Future
DRM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -46.28% yearly.
DRM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.11% yearly.
EPS Next Y-72.73%
EPS Next 2Y-46.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.25%
Revenue Next 2Y-13.11%
Revenue Next 3YN/A
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 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
With a Price/Earnings ratio of 4.77, the valuation of DRM can be described as very cheap.
Based on the Price/Earnings ratio, DRM is valued cheaper than 100.00% of the companies in the same industry.
DRM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 16.82, which indicates a correct valuation of DRM.
DRM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRM is cheaper than 80.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, DRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
DRM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRM is cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.84 |
4.3 Compensation for Growth
A cheap valuation may be justified as DRM's earnings are expected to decrease with -46.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DRM has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.39, DRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, DRM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
On average, the dividend of DRM grows each year by 52.47%, which is quite nice.
DRM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)52.47%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DRM pays out 35.83% of its income as dividend. This is a sustainable payout ratio.
DP35.83%
EPS Next 2Y-46.28%
EPS Next 3YN/A
TSX:DRM (3/7/2025, 7:00:00 PM)
20.38
-0.06 (-0.29%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners21.47%
Inst Owner ChangeN/A
Ins Owners47.19%
Ins Owner ChangeN/A
Market Cap824.98M
Analysts80
Price Target37.23 (82.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend1.6
Dividend Growth(5Y)52.47%
DP35.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)2.44%
Min Revenue beat(2)-9.93%
Max Revenue beat(2)14.81%
Revenue beat(4)3
Avg Revenue beat(4)24.96%
Min Revenue beat(4)-9.93%
Max Revenue beat(4)47.57%
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)0%
PT rev (3m)4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.86%
Revenue NY rev (3m)3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 16.82 | ||
| P/S | 1.32 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.55 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 18.84 |
EPS(TTM)4.27
EY20.95%
EPS(NY)1.21
Fwd EY5.95%
FCF(TTM)-1.15
FCFYN/A
OCF(TTM)-0.99
OCFYN/A
SpS15.43
BVpS37.09
TBVpS36.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 12.51% | ||
| ROCE | 3.66% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.12% | ||
| ROICexgc | 4.08% | ||
| OM | 21.66% | ||
| PM (TTM) | 30.08% | ||
| GM | 32.29% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)2.94%
ROE(3y)4.92%
ROE(5y)6.79%
ROIC(3y)1.83%
ROIC(5y)1.65%
ROICexc(3y)1.86%
ROICexc(5y)1.7%
ROICexgc(3y)2.47%
ROICexgc(5y)2.32%
ROCE(3y)2.19%
ROCE(5y)1.98%
ROICexcg growth 3Y39.33%
ROICexcg growth 5Y-25.54%
ROICexc growth 3Y40.89%
ROICexc growth 5Y-22.13%
OM growth 3Y18.53%
OM growth 5Y-16%
PM growth 3Y-3.77%
PM growth 5Y-12.07%
GM growth 3Y4.93%
GM growth 5Y-12.44%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 13.5 | ||
| Cap/Depr | 191.85% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.05 |
F-Score5
WACC6.8%
ROIC/WACC0.45
Cap/Depr(3y)189.38%
Cap/Depr(5y)392.14%
Cap/Sales(3y)3.04%
Cap/Sales(5y)7.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)257.19%
EPS 3Y20.44%
EPS 5Y-6.61%
EPS Q2Q%253.02%
EPS Next Y-72.73%
EPS Next 2Y-46.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)61.39%
Revenue growth 3Y24.21%
Revenue growth 5Y1.48%
Sales Q2Q%78.25%
Revenue Next Year-23.25%
Revenue Next 2Y-13.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y147.2%
EBIT growth 3Y47.22%
EBIT growth 5Y-14.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y50.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.3%
OCF growth 3YN/A
OCF growth 5YN/A