Doman Building Materials Group Ltd (DBM-NT.CA) Stock Fundamental Analysis
TSX:DBM-NT - Toronto Stock Exchange - - Currency: CAD
DBM-NT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Trading Companies & Distributors industry. DBM-NT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. DBM-NT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
DBM-NT had positive earnings in the past year.
In the past year DBM-NT had a positive cash flow from operations.
DBM-NT had positive earnings in each of the past 5 years.
DBM-NT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.31%, DBM-NT is doing worse than 71.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.03%, DBM-NT is doing worse than 71.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.15%, DBM-NT is doing worse than 78.57% of the companies in the same industry.
DBM-NT had an Average Return On Invested Capital over the past 3 years of 10.05%. This is above the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 9.03% | ||
| ROIC | 6.15% |
ROA(3y)6.42%
ROA(5y)4.98%
ROE(3y)17.58%
ROE(5y)13.25%
ROIC(3y)10.05%
ROIC(5y)8.17%
1.3 Margins
DBM-NT's Profit Margin of 1.85% is on the low side compared to the rest of the industry. DBM-NT is outperformed by 85.71% of its industry peers.
DBM-NT's Profit Margin has been stable in the last couple of years.
DBM-NT has a Operating Margin of 3.65%. This is amonst the worse of the industry: DBM-NT underperforms 92.86% of its industry peers.
DBM-NT's Operating Margin has improved in the last couple of years.
DBM-NT's Gross Margin of 13.39% is on the low side compared to the rest of the industry. DBM-NT is outperformed by 85.71% of its industry peers.
DBM-NT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | 1.85% | ||
| GM | 13.39% |
OM growth 3Y10.52%
OM growth 5Y1.53%
PM growth 3Y26.2%
PM growth 5Y0.44%
GM growth 3Y-2.21%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
DBM-NT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DBM-NT has been increased compared to 1 year ago.
DBM-NT has a better debt/assets ratio than last year.
2.2 Solvency
DBM-NT has an Altman-Z score of 7.52. This indicates that DBM-NT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of DBM-NT (7.52) is better than 100.00% of its industry peers.
The Debt to FCF ratio of DBM-NT is 2.99, which is a good value as it means it would take DBM-NT, 2.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.99, DBM-NT is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
DBM-NT has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
DBM-NT has a worse Debt to Equity ratio (1.23) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 2.99 | ||
| Altman-Z | 7.52 |
ROIC/WACC0.75
WACC8.17%
2.3 Liquidity
A Current Ratio of 2.55 indicates that DBM-NT has no problem at all paying its short term obligations.
DBM-NT has a Current ratio of 2.55. This is comparable to the rest of the industry: DBM-NT outperforms 50.00% of its industry peers.
A Quick Ratio of 1.11 indicates that DBM-NT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, DBM-NT is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
DBM-NT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.93%.
Measured over the past years, DBM-NT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.46% on average per year.
The Revenue has decreased by -2.72% in the past year.
Measured over the past years, DBM-NT shows a very strong growth in Revenue. The Revenue has been growing by 21.75% on average per year.
EPS 1Y (TTM)-56.93%
EPS 3Y50.13%
EPS 5Y19.46%
EPS Q2Q%-64.58%
Revenue 1Y (TTM)-2.72%
Revenue growth 3Y31.57%
Revenue growth 5Y21.75%
Sales Q2Q%-28.45%
3.2 Future
DBM-NT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.73% yearly.
The Revenue is expected to decrease by -9.53% on average over the next years.
EPS Next Y-48.38%
EPS Next 2Y-20.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.89%
Revenue Next 2Y-9.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 169.31, DBM-NT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DBM-NT indicates a rather expensive valuation: DBM-NT more expensive than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 23.99, DBM-NT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 176.61, the valuation of DBM-NT can be described as expensive.
71.43% of the companies in the same industry are cheaper than DBM-NT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, DBM-NT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.31 | ||
| Fwd PE | 176.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DBM-NT is valued expensively inside the industry as 92.86% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBM-NT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.72 | ||
| EV/EBITDA | 55.72 |
4.3 Compensation for Growth
DBM-NT's earnings are expected to decrease with -20.73% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)8.7
EPS Next 2Y-20.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.86%, DBM-NT is a good candidate for dividend investing.
DBM-NT's Dividend Yield is rather good when compared to the industry average which is at 4.13. DBM-NT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, DBM-NT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
5.2 History
The dividend of DBM-NT has a limited annual growth rate of 1.50%.
DBM-NT does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
94.27% of the earnings are spent on dividend by DBM-NT. This is not a sustainable payout ratio.
DBM-NT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP94.27%
EPS Next 2Y-20.73%
EPS Next 3YN/A
Doman Building Materials Group Ltd
TSX:DBM-NT (6/29/2023, 7:00:00 PM)
99.89
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.68B
Analysts72
Price Target117.33 (17.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.86% |
Yearly Dividend0.56
Dividend Growth(5Y)1.5%
DP94.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)73.53%
Min EPS beat(2)54.7%
Max EPS beat(2)92.36%
EPS beat(4)3
Avg EPS beat(4)41.84%
Min EPS beat(4)-40.59%
Max EPS beat(4)92.36%
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)-6.37%
Min Revenue beat(2)-9.29%
Max Revenue beat(2)-3.44%
Revenue beat(4)2
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-9.29%
Max Revenue beat(4)12.26%
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)2.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.31 | ||
| Fwd PE | 176.61 | ||
| P/S | 3.1 | ||
| P/FCF | 32.72 | ||
| P/OCF | 32.04 | ||
| P/B | 15.19 | ||
| P/tB | 370.46 | ||
| EV/EBITDA | 55.72 |
EPS(TTM)0.59
EY0.59%
EPS(NY)0.57
Fwd EY0.57%
FCF(TTM)3.05
FCFY3.06%
OCF(TTM)3.12
OCFY3.12%
SpS32.19
BVpS6.58
TBVpS0.27
PEG (NY)N/A
PEG (5Y)8.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 9.03% | ||
| ROCE | N/A | ||
| ROIC | 6.15% | ||
| ROICexc | 6.16% | ||
| ROICexgc | 10.66% | ||
| OM | 3.65% | ||
| PM (TTM) | 1.85% | ||
| GM | 13.39% | ||
| FCFM | N/A |
ROA(3y)6.42%
ROA(5y)4.98%
ROE(3y)17.58%
ROE(5y)13.25%
ROIC(3y)10.05%
ROIC(5y)8.17%
ROICexc(3y)10.07%
ROICexc(5y)8.18%
ROICexgc(3y)16.73%
ROICexgc(5y)13.18%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y36.41%
ROICexcg growth 5Y11.27%
ROICexc growth 3Y24.8%
ROICexc growth 5Y7.47%
OM growth 3Y10.52%
OM growth 5Y1.53%
PM growth 3Y26.2%
PM growth 5Y0.44%
GM growth 3Y-2.21%
GM growth 5Y0.08%
F-Score5
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 2.99 | ||
| Debt/EBITDA | 4.66 | ||
| Cap/Depr | 8.32% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 513.85% | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 7.52 |
F-Score5
WACC8.17%
ROIC/WACC0.75
Cap/Depr(3y)9.63%
Cap/Depr(5y)20.36%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)194.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56.93%
EPS 3Y50.13%
EPS 5Y19.46%
EPS Q2Q%-64.58%
EPS Next Y-48.38%
EPS Next 2Y-20.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.72%
Revenue growth 3Y31.57%
Revenue growth 5Y21.75%
Sales Q2Q%-28.45%
Revenue Next Year-19.89%
Revenue Next 2Y-9.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-44.55%
EBIT growth 3Y45.42%
EBIT growth 5Y23.61%
EBIT Next Year18.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y294.74%
FCF growth 3Y52.62%
FCF growth 5Y54.84%
OCF growth 1Y284.26%
OCF growth 3Y48.47%
OCF growth 5Y48.57%