DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
TSX:DBM - Toronto Stock Exchange - CA25703L1004 - Common Stock - Currency: CAD
DBM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Trading Companies & Distributors industry. DBM has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on DBM. Finally DBM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DBM had positive earnings in the past year.
DBM had a positive operating cash flow in the past year.
DBM had positive earnings in each of the past 5 years.
DBM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.89%, DBM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.52%, DBM is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
DBM has a Return On Invested Capital of 6.05%. This is comparable to the rest of the industry: DBM outperforms 46.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DBM is in line with the industry average of 7.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 9.52% | ||
| ROIC | 6.05% |
ROA(3y)4.48%
ROA(5y)5.45%
ROE(3y)11.72%
ROE(5y)14.81%
ROIC(3y)8.74%
ROIC(5y)10%
1.3 Margins
The Profit Margin of DBM (2.22%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DBM has grown nicely.
The Operating Margin of DBM (4.76%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DBM has grown nicely.
With a Gross Margin value of 16.01%, DBM is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
DBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.76% | ||
| PM (TTM) | 2.22% | ||
| GM | 16.01% |
OM growth 3Y-13.05%
OM growth 5Y5.99%
PM growth 3Y-21.38%
PM growth 5Y9.56%
GM growth 3Y1.24%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DBM is creating some value.
The number of shares outstanding for DBM has been increased compared to 1 year ago.
DBM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DBM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.15 indicates that DBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DBM (2.15) is worse than 76.92% of its industry peers.
The Debt to FCF ratio of DBM is 8.80, which is on the high side as it means it would take DBM, 8.80 years of fcf income to pay off all of its debts.
DBM has a worse Debt to FCF ratio (8.80) than 69.23% of its industry peers.
DBM has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.89, DBM is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.71
WACC8.5%
2.3 Liquidity
A Current Ratio of 3.89 indicates that DBM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.89, DBM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that DBM should not have too much problems paying its short term obligations.
DBM has a Quick ratio of 1.70. This is in the better half of the industry: DBM outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.89 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The earnings per share for DBM have decreased strongly by -16.28% in the last year.
The Earnings Per Share has been growing by 18.06% on average over the past years. This is quite good.
Looking at the last year, DBM shows a quite strong growth in Revenue. The Revenue has grown by 14.87% in the last year.
Measured over the past years, DBM shows a quite strong growth in Revenue. The Revenue has been growing by 14.83% on average per year.
EPS 1Y (TTM)-16.28%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%68.75%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%31.66%
3.2 Future
DBM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.47% yearly.
Based on estimates for the next years, DBM will show a quite strong growth in Revenue. The Revenue will grow by 10.25% on average per year.
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y11.47%
Revenue Next Year22.02%
Revenue Next 2Y12.84%
Revenue Next 3Y10.25%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.06 indicates a correct valuation of DBM.
Based on the Price/Earnings ratio, DBM is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, DBM is valued rather cheaply.
DBM is valuated reasonably with a Price/Forward Earnings ratio of 9.86.
Based on the Price/Forward Earnings ratio, DBM is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
DBM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DBM is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 9.19 |
4.3 Compensation for Growth
DBM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DBM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DBM's earnings are expected to grow with 13.51% in the coming years.
PEG (NY)0.6
PEG (5Y)0.67
EPS Next 2Y20.12%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
DBM has a Yearly Dividend Yield of 6.55%, which is a nice return.
Compared to an average industry Dividend Yield of 8.96, DBM pays a better dividend. On top of this DBM pays more dividend than 92.31% of the companies listed in the same industry.
DBM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
5.2 History
The dividend of DBM has a limited annual growth rate of 0.01%.
DBM has been paying a dividend for at least 10 years, so it has a reliable track record.
DBM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
77.07% of the earnings are spent on dividend by DBM. This is not a sustainable payout ratio.
DBM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.07%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
TSX:DBM (8/6/2025, 7:00:00 PM)
8.68
+0.06 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners3.29%
Inst Owner ChangeN/A
Ins Owners20.69%
Ins Owner ChangeN/A
Market Cap759.41M
Analysts80
Price Target9.91 (14.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
Yearly Dividend0.56
Dividend Growth(5Y)0.01%
DP77.07%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)99.29%
Min EPS beat(2)8.01%
Max EPS beat(2)190.57%
EPS beat(4)3
Avg EPS beat(4)53.29%
Min EPS beat(4)-14.49%
Max EPS beat(4)190.57%
EPS beat(8)7
Avg EPS beat(8)43.45%
EPS beat(12)10
Avg EPS beat(12)42.91%
EPS beat(16)11
Avg EPS beat(16)31.12%
Revenue beat(2)1
Avg Revenue beat(2)3.04%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)8.24%
Revenue beat(4)2
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)8.24%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-0.92%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)0%
PT rev (3m)-2.86%
EPS NQ rev (1m)-5.92%
EPS NQ rev (3m)-7.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)3.46%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.27 | ||
| P/FCF | 5.2 | ||
| P/OCF | 6.83 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.19 |
EPS(TTM)0.72
EY8.29%
EPS(NY)0.88
Fwd EY10.14%
FCF(TTM)1.67
FCFY19.21%
OCF(TTM)1.27
OCFY14.64%
SpS32.62
BVpS7.6
TBVpS-1.84
PEG (NY)0.6
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 9.52% | ||
| ROCE | 6.92% | ||
| ROIC | 6.05% | ||
| ROICexc | 6.11% | ||
| ROICexgc | 10.61% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.22% | ||
| GM | 16.01% | ||
| FCFM | 5.11% |
ROA(3y)4.48%
ROA(5y)5.45%
ROE(3y)11.72%
ROE(5y)14.81%
ROIC(3y)8.74%
ROIC(5y)10%
ROICexc(3y)8.9%
ROICexc(5y)10.11%
ROICexgc(3y)17.27%
ROICexgc(5y)17.89%
ROCE(3y)10.04%
ROCE(5y)11.49%
ROICexcg growth 3Y-17.81%
ROICexcg growth 5Y8.16%
ROICexc growth 3Y-20.36%
ROICexc growth 5Y2.39%
OM growth 3Y-13.05%
OM growth 5Y5.99%
PM growth 3Y-21.38%
PM growth 5Y9.56%
GM growth 3Y1.24%
GM growth 5Y2.09%
F-Score4
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 8.8 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 41.29% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 2.67 | ||
| Cash Conversion | 50.52% | ||
| Profit Quality | 230.25% | ||
| Current Ratio | 3.89 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 2.15 |
F-Score4
WACC8.5%
ROIC/WACC0.71
Cap/Depr(3y)16.58%
Cap/Depr(5y)13.7%
Cap/Sales(3y)0.45%
Cap/Sales(5y)0.36%
Profit Quality(3y)201.73%
Profit Quality(5y)183.17%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.28%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%68.75%
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y11.47%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%31.66%
Revenue Next Year22.02%
Revenue Next 2Y12.84%
Revenue Next 3Y10.25%
Revenue Next 5YN/A
EBIT growth 1Y5.8%
EBIT growth 3Y-11.71%
EBIT growth 5Y21.71%
EBIT Next Year115.09%
EBIT Next 3Y21.55%
EBIT Next 5Y22.36%
FCF growth 1Y-44.99%
FCF growth 3Y30.02%
FCF growth 5Y9%
OCF growth 1Y-58.97%
OCF growth 3Y29.67%
OCF growth 5Y9.62%