DOMINION LENDING CENTRES INC (DLCG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DLCG - CA2574141024 - Common Stock
9.86 CAD
+0.09 (+0.92%)
Taking everything into account, DLCG scores 5 out of 10 in our fundamental rating. DLCG was compared to 28 industry peers in the Financial Services industry. DLCG has an average financial health and profitability rating. 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.
- Each year in the past 5 years DLCG had a positive operating cash flow.
1.2 Ratios
- DLCG has a worse Return On Assets (-52.22%) than 92.86% of its industry peers.
- The Return On Equity of DLCG (-85.05%) is worse than 92.86% of its industry peers.
- The Return On Invested Capital of DLCG (15.05%) is better than 89.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DLCG is in line with the industry average of 7.80%.
- The 3 year average ROIC (9.66%) for DLCG is below the current ROIC(15.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -52.22% | ||
| ROE | -85.05% | ||
| ROIC | 15.05% |
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
- The Operating Margin of DLCG (42.47%) is comparable to the rest of the industry.
- DLCG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 87.63%, DLCG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- DLCG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.47% | ||
| PM (TTM) | N/A | ||
| GM | 87.63% |
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 4.75. This indicates that DLCG is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.75, DLCG is doing good in the industry, outperforming 60.71% of the companies in the same industry.
- The Debt to FCF ratio of DLCG is 1.13, which is an excellent value as it means it would take DLCG, only 1.13 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.13, DLCG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- DLCG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- DLCG's Debt to Equity ratio of 0.22 is amongst the best of the industry. DLCG outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.75 |
ROIC/WACC2.05
WACC7.33%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that DLCG may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.63, DLCG is in line with its industry, outperforming 46.43% of the companies in the same industry.
- A Quick Ratio of 0.63 indicates that DLCG may have some problems paying its short term obligations.
- With a Quick ratio value of 0.63, DLCG perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The earnings per share for DLCG have decreased strongly by -1224.86% in the last year.
- The Revenue has grown by 30.92% in the past year. This is a very strong growth!
- 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)-1224.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%37.5%
Revenue 1Y (TTM)30.92%
Revenue growth 3Y-0.88%
Revenue growth 5Y11.35%
Sales Q2Q%19.52%
3.2 Future
- DLCG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.26% yearly.
- The Revenue is expected to grow by 13.10% on average over the next years. This is quite good.
EPS Next Y51.02%
EPS Next 2Y39.48%
EPS Next 3Y33.02%
EPS Next 5Y25.26%
Revenue Next Year24.21%
Revenue Next 2Y19.77%
Revenue Next 3Y16.1%
Revenue Next 5Y13.1%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.81, the valuation of DLCG can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of DLCG indicates a somewhat cheap valuation: DLCG is cheaper than 60.71% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of DLCG to the average of the S&P500 Index (28.87), we can say DLCG is valued inline with the index average.
- The Price/Forward Earnings ratio is 20.28, which indicates a rather expensive current valuation of DLCG.
- DLCG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DLCG is cheaper than 64.29% of the companies in the same industry.
- DLCG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
- 85.71% of the companies in the same industry are more expensive than DLCG, based on the Enterprise Value to EBITDA ratio.
- 71.43% of the companies in the same industry are more expensive than DLCG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.27 | ||
| EV/EBITDA | 16.37 |
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.
- DLCG's earnings are expected to grow with 33.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y39.48%
EPS Next 3Y33.02%
5. Dividend
5.1 Amount
- DLCG has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.64, DLCG is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, DLCG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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.
- The dividend of DLCG decreased in the last 3 years.
Dividend Growth(5Y)48.77%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- DLCG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of DLCG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-8.68%
EPS Next 2Y39.48%
EPS Next 3Y33.02%
DOMINION LENDING CENTRES INC / DLCG.CA FAQ
Can you provide the ChartMill fundamental rating for DOMINION LENDING CENTRES INC?
ChartMill assigns a fundamental rating of 5 / 10 to DLCG.CA.
What is the valuation status for DLCG stock?
ChartMill assigns a valuation rating of 6 / 10 to DOMINION LENDING CENTRES INC (DLCG.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for DOMINION LENDING CENTRES INC?
DOMINION LENDING CENTRES INC (DLCG.CA) has a profitability rating of 5 / 10.
What is the earnings growth outlook for DOMINION LENDING CENTRES INC?
The Earnings per Share (EPS) of DOMINION LENDING CENTRES INC (DLCG.CA) is expected to grow by 51.02% in the next year.
Is the dividend of DOMINION LENDING CENTRES INC sustainable?
The dividend rating of DOMINION LENDING CENTRES INC (DLCG.CA) is 3 / 10 and the dividend payout ratio is -8.68%.