D2L INC (DTOL.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:DTOL - CA23344V1085 - Common Stock

11.5 CAD

-0.07 (-0.61%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

Taking everything into account, DTOL scores 5 out of 10 in our fundamental rating. DTOL was compared to 3 industry peers in the Diversified Consumer Services industry. While DTOL has a great profitability rating, there are some minor concerns on its financial health. DTOL has a decent growth rate and is not valued too expensively.

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1. Profitability

1.1 Basic Checks

In the past year DTOL was profitable.
In the past year DTOL had a positive cash flow from operations.
DTOL had negative earnings in 4 of the past 5 years.
DTOL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 12.70%, DTOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of DTOL (34.51%) is better than 100.00% of its industry peers.
The Return On Invested Capital of DTOL (10.12%) is better than 100.00% of its industry peers.

		Industry Rank	Sector Rank
ROA	12.7%
ROE	34.51%
ROIC	10.12%

ROA(3y)-0.39%

ROA(5y)-20.82%

ROE(3y)-3.3%

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Profit Margin of DTOL (14.05%) is better than 100.00% of its industry peers.
DTOL has a better Operating Margin (6.58%) than 100.00% of its industry peers.
With an excellent Gross Margin value of 68.71%, DTOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
DTOL's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	6.58%
PM (TTM)	14.05%
GM	68.71%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y5.62%

GM growth 5Y1.5%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DTOL is creating some value.
DTOL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DTOL has been increased compared to 5 years ago.
The debt/assets ratio for DTOL has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.11, we must say that DTOL is in the distress zone and has some risk of bankruptcy.
DTOL has a Altman-Z score (1.11) which is in line with its industry peers.
DTOL has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
DTOL has a Debt to FCF ratio of 0.37. This is amongst the best in the industry. DTOL outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that DTOL is not too dependend on debt financing.
DTOL's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. DTOL outperforms 50.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	0.37
Altman-Z	1.11

ROIC/WACC1.28

WACC7.89%

2.3 Liquidity

DTOL has a Current Ratio of 1.08. This is a normal value and indicates that DTOL is financially healthy and should not expect problems in meeting its short term obligations.
DTOL's Current ratio of 1.08 is in line compared to the rest of the industry. DTOL outperforms 50.00% of its industry peers.
DTOL has a Quick Ratio of 1.08. This is a normal value and indicates that DTOL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.08, DTOL is in line with its industry, outperforming 50.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.08
Quick Ratio	1.08

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 350.00% over the past year.
Looking at the last year, DTOL shows a small growth in Revenue. The Revenue has grown by 7.75% in the last year.
DTOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.39% yearly.

EPS 1Y (TTM)350%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-20%

Revenue 1Y (TTM)7.75%

Revenue growth 3Y10.56%

Revenue growth 5Y13.39%

Sales Q2Q%-0.43%

3.2 Future

Based on estimates for the next years, DTOL will show a small growth in Earnings Per Share. The EPS will grow by 4.41% on average per year.
Based on estimates for the next years, DTOL will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.

EPS Next Y-30.15%

EPS Next 2Y-1.41%

EPS Next 3Y4.41%

EPS Next 5YN/A

Revenue Next Year6.17%

Revenue Next 2Y6.92%

Revenue Next 3Y7.57%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.54, DTOL is valued correctly.
Based on the Price/Earnings ratio, DTOL is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of DTOL to the average of the S&P500 Index (27.21), we can say DTOL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.69, the valuation of DTOL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DTOL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, DTOL is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	15.54
Fwd PE	18.69

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DTOL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DTOL is valued cheaper than 100.00% of the companies in the same industry.