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 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Trading Companies & Distributors industry. While DBM is still in line with the averages on profitability rating, there are concerns on its financial health. 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
DBM had positive earnings in the past year.
In the past year DBM had a positive cash flow from operations.
Each year in the past 5 years DBM has been profitable.
In the past 5 years DBM always reported a positive cash flow from operatings.
1.2 Ratios
DBM has a worse Return On Assets (2.69%) than 69.23% of its industry peers.
DBM's Return On Equity of 8.26% is in line compared to the rest of the industry. DBM outperforms 53.85% of its industry peers.
The Return On Invested Capital of DBM (5.71%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DBM is in line with the industry average of 7.58%.
| 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
The Profit Margin of DBM (2.03%) is worse than 69.23% of its industry peers.
DBM's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 4.44%, DBM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
In the last couple of years the Operating Margin of DBM has grown nicely.
With a Gross Margin value of 15.95%, 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 | 4.44% | ||
| 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.
DBM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DBM has been increased compared to 5 years ago.
Compared to 1 year ago, DBM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 indicates that DBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
DBM has a Altman-Z score of 2.05. This is in the lower half of the industry: DBM underperforms 76.92% of its industry peers.
The Debt to FCF ratio of DBM is 12.25, which is on the high side as it means it would take DBM, 12.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.25, DBM is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
DBM has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external 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 | 2.05 |
ROIC/WACC0.72
WACC7.98%
2.3 Liquidity
A Current Ratio of 3.41 indicates that DBM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.41, DBM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
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.
DBM has a better Quick ratio (1.15) than 61.54% of its industry peers.
| 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.
DBM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.06% yearly.
Looking at the last year, DBM shows a small growth in Revenue. The Revenue has grown by 6.91% in the last year.
DBM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.83% yearly.
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
Based on estimates for the next years, DBM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.82% on average per year.
Based on estimates for the next years, DBM will show a quite strong growth in Revenue. The Revenue will grow by 13.01% on average per year.
EPS Next Y20.16%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
EPS Next 5Y8.82%
Revenue Next Year22.06%
Revenue Next 2Y13.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.61, the valuation of DBM can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as DBM.
When comparing the Price/Earnings ratio of DBM to the average of the S&P500 Index (28.22), we can say DBM is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.66, the valuation of DBM can be described as very reasonable.
76.92% of the companies in the same industry are more expensive than DBM, based on the Price/Forward Earnings ratio.
DBM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
DBM's Enterprise Value to EBITDA is on the same level as the industry average.
DBM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DBM is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.64 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DBM's earnings are expected to grow with 13.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)0.64
EPS Next 2Y20.12%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
DBM has a Yearly Dividend Yield of 8.02%, which is a nice return.
DBM's Dividend Yield is rather good when compared to the industry average which is at 4.22. DBM pays more dividend than 100.00% of the companies in the same industry.
DBM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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
DBM pays out 90.07% of its income as dividend. This is not a sustainable payout ratio.
DBM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.07%
EPS Next 2Y20.12%
EPS Next 3Y13.51%
TSX:DBM (5/2/2025, 7:00:00 PM)
7.08
+0.1 (+1.43%)
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 Cap618.79M
Analysts80
Price Target10.2 (44.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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)-9.77%
PT rev (3m)-14.89%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-40.1%
EPS NY rev (1m)-8.52%
EPS NY rev (3m)-19.22%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-5.77%
Revenue NY rev (1m)-3.52%
Revenue NY rev (3m)-4.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.23 | ||
| P/FCF | 6.64 | ||
| P/OCF | 5.76 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.87 |
EPS(TTM)0.61
EY8.62%
EPS(NY)0.73
Fwd EY10.35%
FCF(TTM)1.07
FCFY15.07%
OCF(TTM)1.23
OCFY17.37%
SpS30.47
BVpS7.5
TBVpS-2.08
PEG (NY)0.58
PEG (5Y)0.64
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 | 2.05 |
F-Score4
WACC7.98%
ROIC/WACC0.72
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 Year22.06%
Revenue Next 2Y13.01%
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%