DOMAN BUILDING MATERIALS GRO (DBM.CA) Stock Fundamental Analysis
TSX:DBM - Toronto Stock Exchange - CA25703L1004 - Common Stock - Currency: CAD
Taking everything into account, DBM scores 5 out of 10 in our fundamental rating. DBM was compared to 13 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of DBM while its profitability can be described as average. DBM is not valued too expensively and it also shows a decent growth rate. Finally DBM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DBM was profitable.
In the past year DBM had a positive cash flow from operations.
DBM had positive earnings in each of the past 5 years.
In the past 5 years DBM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.69%, DBM is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
DBM's Return On Equity of 8.26% is fine compared to the rest of the industry. DBM outperforms 61.54% of its industry peers.
DBM's Return On Invested Capital of 5.71% is in line compared 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 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 8.26% | ||
| ROIC | 5.71% |
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
DBM has a Profit Margin (2.03%) which is in line with its industry peers.
DBM's Profit Margin has improved in the last couple of years.
The Operating Margin of DBM (4.44%) is comparable to the rest of the industry.
DBM's Operating Margin has improved in the last couple of years.
DBM's Gross Margin of 15.95% is on the low side compared to the rest of the industry. DBM is outperformed by 76.92% of its industry peers.
In the last couple of years the Gross Margin of DBM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.44% | ||
| PM (TTM) | 2.03% | ||
| GM | 15.95% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DBM is still creating some value.
Compared to 1 year ago, DBM has more shares outstanding
Compared to 5 years ago, DBM has more shares outstanding
DBM has a worse debt/assets ratio than last year.
2.2 Solvency
DBM has an Altman-Z score of 2.10. This is not the best score and indicates that DBM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.10, DBM is doing worse than 76.92% of the companies in the same industry.
DBM has a debt to FCF ratio of 12.25. This is a negative value and a sign of low solvency as DBM would need 12.25 years to pay back of all of its debts.
The Debt to FCF ratio of DBM (12.25) is worse than 69.23% of its industry peers.
A Debt/Equity ratio of 1.71 is on the high side and indicates that DBM has dependencies on debt financing.
With a Debt to Equity ratio value of 1.71, DBM is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.25 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.68
WACC8.44%
2.3 Liquidity
A Current Ratio of 3.41 indicates that DBM has no problem at all paying its short term obligations.
DBM has a better Current ratio (3.41) than 84.62% of its industry peers.
DBM has a Quick Ratio of 1.15. This is a normal value and indicates that DBM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.15, DBM is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for DBM have decreased strongly by -29.89% in the last year.
The Earnings Per Share has been growing by 18.06% on average over the past years. This is quite good.
DBM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.91%.
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)-29.89%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%-25%
Revenue 1Y (TTM)6.91%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%34.22%
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 8.82% yearly.
The Revenue is expected to grow by 10.88% on average over the next years. This is quite good.
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y8.82%
Revenue Next Year17.94%
Revenue Next 2Y10.88%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
DBM is valuated correctly with a Price/Earnings ratio of 13.61.
DBM's Price/Earnings ratio is a bit cheaper when compared to the industry. DBM is cheaper than 61.54% of the companies in the same industry.
DBM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
With a Price/Forward Earnings ratio of 11.32, the valuation of DBM can be described as very reasonable.
69.23% of the companies in the same industry are more expensive than DBM, based on the Price/Forward Earnings ratio.
DBM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
DBM's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBM indicates a somewhat cheap valuation: DBM is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 9.44 |
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.
A more expensive valuation may be justified as DBM's earnings are expected to grow with 13.51% in the coming years.
PEG (NY)0.67
PEG (5Y)0.75
EPS Next 2Y20.12%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.82%, DBM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, DBM pays a better dividend. On top of this DBM pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DBM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
5.2 History
The dividend of DBM has a limited annual growth rate of 0.01%.
DBM has paid a dividend for at least 10 years, which is 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 Years3
5.3 Sustainability
90.07% of the earnings are spent on dividend by DBM. This is not a sustainable payout ratio.
The dividend of DBM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP90.07%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
TSX:DBM (5/23/2025, 7:00:00 PM)
8.3
+0.05 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners3.79%
Inst Owner ChangeN/A
Ins Owners20.04%
Ins Owner ChangeN/A
Market Cap725.75M
Analysts80
Price Target9.4 (13.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.82% |
Yearly Dividend0.56
Dividend Growth(5Y)0.01%
DP90.07%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.54%
Min EPS beat(2)8.01%
Max EPS beat(2)29.08%
EPS beat(4)3
Avg EPS beat(4)7.5%
Min EPS beat(4)-14.49%
Max EPS beat(4)29.08%
EPS beat(8)7
Avg EPS beat(8)31.17%
EPS beat(12)10
Avg EPS beat(12)29.7%
EPS beat(16)11
Avg EPS beat(16)21.56%
Revenue beat(2)1
Avg Revenue beat(2)0.82%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)3.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)3.79%
Revenue beat(8)1
Avg Revenue beat(8)-2.99%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)-10.42%
PT rev (3m)-20.45%
EPS NQ rev (1m)-13.04%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.97%
Revenue NQ rev (1m)-2.51%
Revenue NQ rev (3m)-14.25%
Revenue NY rev (1m)-6.78%
Revenue NY rev (3m)-7.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 11.32 | ||
| P/S | 0.27 | ||
| P/FCF | 7.78 | ||
| P/OCF | 6.75 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.44 |
EPS(TTM)0.61
EY7.35%
EPS(NY)0.73
Fwd EY8.83%
FCF(TTM)1.07
FCFY12.86%
OCF(TTM)1.23
OCFY14.81%
SpS30.47
BVpS7.5
TBVpS-2.08
PEG (NY)0.67
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 8.26% | ||
| ROCE | 6.54% | ||
| ROIC | 5.71% | ||
| ROICexc | 5.76% | ||
| ROICexgc | 10.77% | ||
| OM | 4.44% | ||
| PM (TTM) | 2.03% | ||
| GM | 15.95% | ||
| FCFM | 3.5% |
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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 12.25 | ||
| Debt/EBITDA | 5.72 | ||
| Cap/Depr | 18.39% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | 3.28 | ||
| Cash Conversion | 54.95% | ||
| Profit Quality | 172.11% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.1 |
F-Score4
WACC8.44%
ROIC/WACC0.68
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)-29.89%
EPS 3Y-22.88%
EPS 5Y18.06%
EPS Q2Q%-25%
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y8.82%
Revenue 1Y (TTM)6.91%
Revenue growth 3Y1.54%
Revenue growth 5Y14.83%
Sales Q2Q%34.22%
Revenue Next Year17.94%
Revenue Next 2Y10.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.56%
EBIT growth 3Y-11.71%
EBIT growth 5Y21.71%
EBIT Next Year107.07%
EBIT Next 3Y21.55%
EBIT Next 5Y20.64%
FCF growth 1Y-22.86%
FCF growth 3Y30.02%
FCF growth 5Y9%
OCF growth 1Y-20.6%
OCF growth 3Y29.67%
OCF growth 5Y9.62%