D2L INC (DTOL.CA) Stock Fundamental Analysis
TSX:DTOL - Toronto Stock Exchange - CA23344V1085 - Common Stock - Currency: CAD
DTOL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DTOL was profitable.
DTOL had a positive operating cash flow in the past year.
DTOL had negative earnings in 4 of the past 5 years.
In the past 5 years DTOL always reported a positive cash flow from operatings.
1.2 Ratios
DTOL has a Return On Assets of 12.60%. This is amongst the best in the industry. DTOL outperforms 100.00% of its industry peers.
The Return On Equity of DTOL (33.92%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.36%, DTOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.6% | ||
| ROE | 33.92% | ||
| ROIC | 9.36% |
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
DTOL's Profit Margin of 13.56% is amongst the best of the industry. DTOL outperforms 100.00% of its industry peers.
DTOL's Operating Margin of 6.09% is amongst the best of the industry. DTOL outperforms 100.00% of its industry peers.
DTOL has a Gross Margin of 68.85%. This is amongst the best in the industry. DTOL outperforms 100.00% of its industry peers.
DTOL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 13.56% | ||
| GM | 68.85% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.62%
GM growth 5Y1.5%
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.
Compared to 1 year ago, DTOL has more shares outstanding
Compared to 5 years ago, DTOL has more shares outstanding
DTOL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that DTOL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DTOL (1.67) is better than 100.00% of its industry peers.
The Debt to FCF ratio of DTOL is 0.30, which is an excellent value as it means it would take DTOL, only 0.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DTOL (0.30) is better than 100.00% of its industry peers.
DTOL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, DTOL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.21
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.04 indicates that DTOL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, DTOL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 1.04 indicates that DTOL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, DTOL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DTOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 737.50%, which is quite impressive.
Looking at the last year, DTOL shows a quite strong growth in Revenue. The Revenue has grown by 12.31% in the last year.
Measured over the past years, DTOL shows a quite strong growth in Revenue. The Revenue has been growing by 13.39% on average per year.
EPS 1Y (TTM)737.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
Revenue 1Y (TTM)12.31%
Revenue growth 3Y10.56%
Revenue growth 5Y13.39%
Sales Q2Q%8.95%
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 3.38% on average per year.
Based on estimates for the next years, DTOL will show a quite strong growth in Revenue. The Revenue will grow by 8.55% on average per year.
EPS Next Y-24.17%
EPS Next 2Y3.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y8.27%
Revenue Next 3Y8.55%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.37 indicates a rather expensive valuation of DTOL.
Compared to the rest of the industry, the Price/Earnings ratio of DTOL indicates a rather cheap valuation: DTOL is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. DTOL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 22.25, DTOL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DTOL indicates a rather cheap valuation: DTOL is cheaper than 100.00% of the companies listed in the same industry.
DTOL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 22.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DTOL indicates a rather cheap valuation: DTOL is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTOL indicates a rather cheap valuation: DTOL is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.94 | ||
| EV/EBITDA | 29.53 |
4.3 Compensation for Growth
DTOL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DTOL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DTOL (7/14/2025, 7:00:00 PM)
14.96
+0.25 (+1.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners51.09%
Inst Owner ChangeN/A
Ins Owners4.77%
Ins Owner ChangeN/A
Market Cap819.51M
Analysts80
Price Target18.59 (24.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)177.78%
Min EPS beat(2)-1.96%
Max EPS beat(2)357.52%
EPS beat(4)3
Avg EPS beat(4)129.74%
Min EPS beat(4)-1.96%
Max EPS beat(4)357.52%
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)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)-0.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)4.18%
Revenue beat(8)1
Avg Revenue beat(8)-0.72%
Revenue beat(12)2
Avg Revenue beat(12)-1.25%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.61%
PT rev (3m)-11.65%
EPS NQ rev (1m)-24.24%
EPS NQ rev (3m)-24.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 22.25 | ||
| P/S | 2.86 | ||
| P/FCF | 14.94 | ||
| P/OCF | 14.66 | ||
| P/B | 7.15 | ||
| P/tB | 15.4 | ||
| EV/EBITDA | 29.53 |
EPS(TTM)0.7
EY4.68%
EPS(NY)0.67
Fwd EY4.49%
FCF(TTM)1
FCFY6.69%
OCF(TTM)1.02
OCFY6.82%
SpS5.23
BVpS2.09
TBVpS0.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.6% | ||
| ROE | 33.92% | ||
| ROCE | 13% | ||
| ROIC | 9.36% | ||
| ROICexc | 161.88% | ||
| ROICexgc | N/A | ||
| OM | 6.09% | ||
| PM (TTM) | 13.56% | ||
| GM | 68.85% | ||
| FCFM | 19.14% |
ROA(3y)-0.39%
ROA(5y)-20.82%
ROE(3y)-3.3%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.62%
GM growth 5Y1.5%
F-Score7
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.3 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 15.66% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | 208.52 | ||
| Cash Conversion | 232.63% | ||
| Profit Quality | 141.18% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.67 |
F-Score7
WACC7.75%
ROIC/WACC1.21
Cap/Depr(3y)102.56%
Cap/Depr(5y)76.81%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)737.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%500%
EPS Next Y-24.17%
EPS Next 2Y3.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.31%
Revenue growth 3Y10.56%
Revenue growth 5Y13.39%
Sales Q2Q%8.95%
Revenue Next Year7.46%
Revenue Next 2Y8.27%
Revenue Next 3Y8.55%
Revenue Next 5YN/A
EBIT growth 1Y262.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year413.69%
EBIT Next 3Y100.47%
EBIT Next 5YN/A
FCF growth 1Y1785.66%
FCF growth 3YN/A
FCF growth 5Y45.98%
OCF growth 1Y1893.75%
OCF growth 3Y533.01%
OCF growth 5Y39.56%