DIVERSIFIED ROYALTY CORP (DIV.CA) Stock Fundamental Analysis
TSX:DIV - Toronto Stock Exchange - CA2553311002 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to DIV. DIV was compared to 16 industry peers in the Specialty Retail industry. Both the profitability and the financial health of DIV get a neutral evaluation. Nothing too spectacular is happening here. DIV has a decent growth rate and is not valued too expensively. DIV also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DIV had positive earnings in the past year.
In the past year DIV had a positive cash flow from operations.
Of the past 5 years DIV 4 years were profitable.
DIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.72%, DIV is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
With a decent Return On Equity value of 9.42%, DIV is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of DIV (7.53%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DIV is in line with the industry average of 8.34%.
The 3 year average ROIC (6.80%) for DIV is below the current ROIC(7.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.42% | ||
| ROIC | 7.53% |
ROA(3y)4.53%
ROA(5y)3.46%
ROE(3y)9.75%
ROE(5y)7.37%
ROIC(3y)6.8%
ROIC(5y)6.65%
1.3 Margins
The Profit Margin of DIV (41.35%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of DIV has declined.
Looking at the Operating Margin, with a value of 89.93%, DIV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of DIV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 89.93% | ||
| PM (TTM) | 41.35% | ||
| GM | N/A |
OM growth 3Y0.39%
OM growth 5Y0.76%
PM growth 3Y-13.41%
PM growth 5Y-2.33%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DIV is destroying value.
DIV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DIV has more shares outstanding
DIV has a better debt/assets ratio than last year.
2.2 Solvency
DIV has an Altman-Z score of 1.32. This is a bad value and indicates that DIV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DIV (1.32) is worse than 68.75% of its industry peers.
The Debt to FCF ratio of DIV is 5.59, which is a neutral value as it means it would take DIV, 5.59 years of fcf income to pay off all of its debts.
DIV's Debt to FCF ratio of 5.59 is in line compared to the rest of the industry. DIV outperforms 43.75% of its industry peers.
DIV has a Debt/Equity ratio of 0.87. This is a neutral value indicating DIV is somewhat dependend on debt financing.
DIV's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. DIV outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.96
WACC7.84%
2.3 Liquidity
DIV has a Current Ratio of 1.76. This is a normal value and indicates that DIV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.76, DIV belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
DIV has a Quick Ratio of 1.76. This is a normal value and indicates that DIV is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.76, DIV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
DIV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.27%.
DIV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.71% yearly.
Looking at the last year, DIV shows a quite strong growth in Revenue. The Revenue has grown by 10.66% in the last year.
Measured over the past years, DIV shows a quite strong growth in Revenue. The Revenue has been growing by 16.37% on average per year.
EPS 1Y (TTM)-27.27%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%0%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%3.71%
3.2 Future
DIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.84% yearly.
Based on estimates for the next years, DIV will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y35.72%
EPS Next 2Y19.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.37%
Revenue Next 2Y6.4%
Revenue Next 3Y2.43%
Revenue Next 5Y2.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.31 indicates a rather expensive valuation of DIV.
DIV's Price/Earnings ratio is a bit cheaper when compared to the industry. DIV is cheaper than 68.75% of the companies in the same industry.
DIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 12.75 indicates a correct valuation of DIV.
Based on the Price/Forward Earnings ratio, DIV is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DIV to the average of the S&P500 Index (22.13), we can say DIV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DIV is on the same level as its industry peers.
DIV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 12.58 |
4.3 Compensation for Growth
DIV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DIV has a very decent profitability rating, which may justify a higher PE ratio.
DIV's earnings are expected to grow with 19.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)6.77
EPS Next 2Y19.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DIV has a Yearly Dividend Yield of 8.39%, which is a nice return.
Compared to an average industry Dividend Yield of 4.78, DIV pays a better dividend. On top of this DIV pays more dividend than 93.75% of the companies listed in the same industry.
DIV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
5.2 History
The dividend of DIV has a limited annual growth rate of 4.62%.
DIV has been paying a dividend for at least 10 years, so it has a reliable track record.
DIV has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.62%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
132.30% of the earnings are spent on dividend by DIV. This is not a sustainable payout ratio.
DIV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP132.3%
EPS Next 2Y19.84%
EPS Next 3YN/A
TSX:DIV (6/13/2025, 7:00:00 PM)
2.93
-0.04 (-1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners14.45%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap495.26M
Analysts78
Price Target3.84 (31.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.39% |
Yearly Dividend0.22
Dividend Growth(5Y)4.62%
DP132.3%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.32%
Min EPS beat(2)-60.4%
Max EPS beat(2)23.76%
EPS beat(4)1
Avg EPS beat(4)-12.4%
Min EPS beat(4)-60.4%
Max EPS beat(4)23.76%
EPS beat(8)5
Avg EPS beat(8)9.6%
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)-5.96%
Min Revenue beat(2)-8.41%
Max Revenue beat(2)-3.52%
Revenue beat(4)0
Avg Revenue beat(4)-6.61%
Min Revenue beat(4)-8.65%
Max Revenue beat(4)-3.52%
Revenue beat(8)0
Avg Revenue beat(8)-7.09%
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)0.45%
PT rev (3m)-2.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)11.21%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 12.75 | ||
| P/S | 7.56 | ||
| P/FCF | 10.82 | ||
| P/OCF | 10.81 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.58 |
EPS(TTM)0.16
EY5.46%
EPS(NY)0.23
Fwd EY7.84%
FCF(TTM)0.27
FCFY9.25%
OCF(TTM)0.27
OCFY9.25%
SpS0.39
BVpS1.7
TBVpS-1.32
PEG (NY)0.51
PEG (5Y)6.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.42% | ||
| ROCE | 10.48% | ||
| ROIC | 7.53% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 114.38% | ||
| OM | 89.93% | ||
| PM (TTM) | 41.35% | ||
| GM | N/A | ||
| FCFM | 69.86% |
ROA(3y)4.53%
ROA(5y)3.46%
ROE(3y)9.75%
ROE(5y)7.37%
ROIC(3y)6.8%
ROIC(5y)6.65%
ROICexc(3y)6.83%
ROICexc(5y)6.74%
ROICexgc(3y)76.13%
ROICexgc(5y)N/A
ROCE(3y)9.46%
ROCE(5y)9.25%
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.24%
ROICexc growth 3Y-1.54%
ROICexc growth 5Y5.61%
OM growth 3Y0.39%
OM growth 5Y0.76%
PM growth 3Y-13.41%
PM growth 5Y-2.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 4.7 | ||
| Cash Conversion | 77.56% | ||
| Profit Quality | 168.93% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.32 |
F-Score5
WACC7.84%
ROIC/WACC0.96
Cap/Depr(3y)52180.9%
Cap/Depr(5y)N/A
Cap/Sales(3y)104.08%
Cap/Sales(5y)100.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.27%
EPS 3Y-3.85%
EPS 5Y2.71%
EPS Q2Q%0%
EPS Next Y35.72%
EPS Next 2Y19.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.66%
Revenue growth 3Y20.35%
Revenue growth 5Y16.37%
Sales Q2Q%3.71%
Revenue Next Year7.37%
Revenue Next 2Y6.4%
Revenue Next 3Y2.43%
Revenue Next 5Y2.94%
EBIT growth 1Y10.63%
EBIT growth 3Y20.82%
EBIT growth 5Y17.25%
EBIT Next Year17.97%
EBIT Next 3Y7.78%
EBIT Next 5Y7.9%
FCF growth 1Y190.95%
FCF growth 3Y62.36%
FCF growth 5YN/A
OCF growth 1Y58.15%
OCF growth 3Y18.67%
OCF growth 5Y15.15%