DOMINION LENDING CENTRES INC (DLCG.CA) Stock Fundamental Analysis
TSX:DLCG - CA2574141024 - Common Stock
9 CAD
+0.16 (+1.81%)
We assign a fundamental rating of 5 out of 10 to DLCG. DLCG was compared to 29 industry peers in the Financial Services industry. Both the profitability and the financial health of DLCG get a neutral evaluation. Nothing too spectacular is happening here. DLCG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DLCG was profitable.
In the past year DLCG had a positive cash flow from operations.
In multiple years DLCG reported negative net income over the last 5 years.
DLCG 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 -54.73%, DLCG is doing worse than 96.55% of the companies in the same industry.
The Return On Equity of DLCG (-86.11%) is worse than 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.41%, DLCG belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DLCG is above the industry average of 5.62%.
The last Return On Invested Capital (14.41%) for DLCG is above the 3 year average (9.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -54.73% | ||
| ROE | -86.11% | ||
| ROIC | 14.41% |
ROA(3y)-17.5%
ROA(5y)-9.39%
ROE(3y)-19.32%
ROE(5y)-6.96%
ROIC(3y)9.66%
ROIC(5y)9.84%
1.3 Margins
With a Operating Margin value of 41.74%, DLCG perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
DLCG's Operating Margin has improved in the last couple of years.
DLCG has a Gross Margin of 86.83%. This is amongst the best in the industry. DLCG outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of DLCG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.74% | ||
| PM (TTM) | N/A | ||
| GM | 86.83% |
OM growth 3Y-6.76%
OM growth 5Y7.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.62%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DLCG is creating value.
Compared to 1 year ago, DLCG has more shares outstanding
DLCG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DLCG has an improved debt to assets ratio.
2.2 Solvency
DLCG has an Altman-Z score of 4.54. This indicates that DLCG is financially healthy and has little risk of bankruptcy at the moment.
DLCG has a Altman-Z score (4.54) which is comparable to the rest of the industry.
DLCG has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
DLCG has a Debt to FCF ratio of 0.84. This is amongst the best in the industry. DLCG outperforms 93.10% of its industry peers.
DLCG has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
DLCG has a better Debt to Equity ratio (0.17) than 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.96
WACC7.36%
2.3 Liquidity
DLCG has a Current Ratio of 0.66. This is a bad value and indicates that DLCG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.66, DLCG is doing good in the industry, outperforming 65.52% of the companies in the same industry.
DLCG has a Quick Ratio of 0.66. This is a bad value and indicates that DLCG is not financially healthy enough and could expect problems in meeting its short term obligations.
DLCG's Quick ratio of 0.66 is fine compared to the rest of the industry. DLCG outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
DLCG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1233.06%.
DLCG shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.38%.
Measured over the past years, DLCG shows a quite strong growth in Revenue. The Revenue has been growing by 11.35% on average per year.
EPS 1Y (TTM)-1233.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)29.38%
Revenue growth 3Y-0.88%
Revenue growth 5Y11.35%
Sales Q2Q%30.98%
3.2 Future
The Earnings Per Share is expected to grow by 39.24% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 16.40% on average over the next years. This is quite good.
EPS Next Y59.18%
EPS Next 2Y39.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year24.62%
Revenue Next 2Y20.41%
Revenue Next 3Y16.4%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.03 indicates a quite expensive valuation of DLCG.
Compared to the rest of the industry, the Price/Earnings ratio of DLCG indicates a somewhat cheap valuation: DLCG is cheaper than 62.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DLCG to the average of the S&P500 Index (26.84), we can say DLCG is valued inline with the index average.
The Price/Forward Earnings ratio is 18.58, which indicates a rather expensive current valuation of DLCG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DLCG indicates a somewhat cheap valuation: DLCG is cheaper than 68.97% of the companies listed in the same industry.
DLCG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLCG indicates a rather cheap valuation: DLCG is cheaper than 93.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DLCG is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.81 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
DLCG'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 DLCG's earnings are expected to grow with 39.24% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y39.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, DLCG has a reasonable but not impressive dividend return.
DLCG's Dividend Yield is slightly below the industry average, which is at 6.12.
DLCG's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of DLCG is nicely growing with an annual growth rate of 48.77%!
DLCG has been paying a dividend for over 5 years, so it has already some track record.
DLCG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)48.77%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of DLCG are negative and hence is the payout ratio. DLCG will probably not be able to sustain this dividend level.
The dividend of DLCG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-7.01%
EPS Next 2Y39.24%
EPS Next 3YN/A
TSX:DLCG (9/3/2025, 7:00:00 PM)
9
+0.16 (+1.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners21.82%
Inst Owner ChangeN/A
Ins Owners27.27%
Ins Owner ChangeN/A
Market Cap707.40M
Analysts82.22
Price Target11.31 (25.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.09
Dividend Growth(5Y)48.77%
DP-7.01%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.64%
Min EPS beat(2)3.2%
Max EPS beat(2)96.08%
EPS beat(4)2
Avg EPS beat(4)9.75%
Min EPS beat(4)-38.73%
Max EPS beat(4)96.08%
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)2
Avg Revenue beat(2)13.93%
Min Revenue beat(2)6.13%
Max Revenue beat(2)21.72%
Revenue beat(4)2
Avg Revenue beat(4)4.83%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)21.72%
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)5.56%
PT rev (3m)11.76%
EPS NQ rev (1m)-7.14%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 18.58 | ||
| P/S | 8.07 | ||
| P/FCF | 19.81 | ||
| P/OCF | 17.65 | ||
| P/B | 5.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.7 |
EPS(TTM)0.29
EY3.22%
EPS(NY)0.48
Fwd EY5.38%
FCF(TTM)0.45
FCFY5.05%
OCF(TTM)0.51
OCFY5.67%
SpS1.12
BVpS1.77
TBVpS-0.58
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -54.73% | ||
| ROE | -86.11% | ||
| ROCE | 20.07% | ||
| ROIC | 14.41% | ||
| ROICexc | 14.71% | ||
| ROICexgc | N/A | ||
| OM | 41.74% | ||
| PM (TTM) | N/A | ||
| GM | 86.83% | ||
| FCFM | 40.72% |
ROA(3y)-17.5%
ROA(5y)-9.39%
ROE(3y)-19.32%
ROE(5y)-6.96%
ROIC(3y)9.66%
ROIC(5y)9.84%
ROICexc(3y)10.01%
ROICexc(5y)10.47%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.57%
ROCE(5y)13.76%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-9.35%
ROICexc growth 5Y30.12%
OM growth 3Y-6.76%
OM growth 5Y7.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.62%
GM growth 5Y-0.31%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 47.1% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 19.85 | ||
| Cash Conversion | 87.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 4.54 |
F-Score7
WACC7.36%
ROIC/WACC1.96
Cap/Depr(3y)103.55%
Cap/Depr(5y)87.5%
Cap/Sales(3y)12.66%
Cap/Sales(5y)12.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1233.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y59.18%
EPS Next 2Y39.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)29.38%
Revenue growth 3Y-0.88%
Revenue growth 5Y11.35%
Sales Q2Q%30.98%
Revenue Next Year24.62%
Revenue Next 2Y20.41%
Revenue Next 3Y16.4%
Revenue Next 5YN/A
EBIT growth 1Y54.78%
EBIT growth 3Y-7.58%
EBIT growth 5Y19.44%
EBIT Next Year49.32%
EBIT Next 3Y30.62%
EBIT Next 5YN/A
FCF growth 1Y864.17%
FCF growth 3Y-3.69%
FCF growth 5Y13.46%
OCF growth 1Y487.89%
OCF growth 3Y-1.61%
OCF growth 5Y6.25%