DOMINION LENDING CENTRES INC (DLCG.CA) Stock Fundamental Analysis
TSX:DLCG - Toronto Stock Exchange - CA2574141024 - Common Stock - Currency: CAD
DLCG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Financial Services industry. DLCG has only an average score on both its financial health and profitability. DLCG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DLCG had positive earnings in the past year.
In the past year DLCG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: DLCG reported negative net income in multiple years.
In the past 5 years DLCG always reported a positive cash flow from operatings.
1.2 Ratios
DLCG's Return On Assets of -57.97% is on the low side compared to the rest of the industry. DLCG is outperformed by 96.43% of its industry peers.
DLCG's Return On Equity of -90.83% is on the low side compared to the rest of the industry. DLCG is outperformed by 92.86% of its industry peers.
The Return On Invested Capital of DLCG (13.07%) is better than 96.43% of its industry peers.
DLCG had an Average Return On Invested Capital over the past 3 years of 9.66%. This is above the industry average of 5.22%.
The 3 year average ROIC (9.66%) for DLCG is below the current ROIC(13.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -57.97% | ||
| ROE | -90.83% | ||
| ROIC | 13.07% |
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
Looking at the Operating Margin, with a value of 40.24%, DLCG is in line with its industry, outperforming 46.43% of the companies in the same industry.
DLCG's Operating Margin has improved in the last couple of years.
DLCG's Gross Margin of 86.58% is amongst the best of the industry. DLCG outperforms 100.00% of its industry peers.
DLCG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.24% | ||
| PM (TTM) | N/A | ||
| GM | 86.58% |
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
DLCG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DLCG has more shares outstanding than it did 1 year ago.
DLCG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DLCG has been reduced compared to a year ago.
2.2 Solvency
DLCG has an Altman-Z score of 4.48. This indicates that DLCG is financially healthy and has little risk of bankruptcy at the moment.
DLCG has a Altman-Z score of 4.48. This is comparable to the rest of the industry: DLCG outperforms 53.57% of its industry peers.
DLCG has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.88, DLCG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that DLCG is not too dependend on debt financing.
DLCG's Debt to Equity ratio of 0.19 is amongst the best of the industry. DLCG outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.84
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.60 indicates that DLCG may have some problems paying its short term obligations.
DLCG's Current ratio of 0.60 is fine compared to the rest of the industry. DLCG outperforms 67.86% of its industry peers.
A Quick Ratio of 0.60 indicates that DLCG may have some problems paying its short term obligations.
DLCG's Quick ratio of 0.60 is fine compared to the rest of the industry. DLCG outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
DLCG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -4358.26%.
Looking at the last year, DLCG shows a very strong growth in Revenue. The Revenue has grown by 26.87%.
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)-4358.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%44.87%
Revenue 1Y (TTM)26.87%
Revenue growth 3Y-0.88%
Revenue growth 5Y11.35%
Sales Q2Q%37.37%
3.2 Future
The Earnings Per Share is expected to grow by 39.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, DLCG will show a quite strong growth in Revenue. The Revenue will grow by 19.62% on average per year.
EPS Next Y57.14%
EPS Next 2Y39.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year21.88%
Revenue Next 2Y19.62%
Revenue Next 3YN/A
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 35.67 indicates a quite expensive valuation of DLCG.
DLCG's Price/Earnings ratio is a bit cheaper when compared to the industry. DLCG is cheaper than 60.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. DLCG is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 17.48, DLCG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, DLCG is valued a bit cheaper than 67.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, DLCG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.67 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLCG is valued cheaper than 92.86% of the companies in the same industry.
DLCG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLCG is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 16.8 |
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 39.97% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y39.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, DLCG has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.83, DLCG pays less dividend than the industry average, which is at 7.22. 85.71% of the companies listed in the same industry pay a better dividend than DLCG!
DLCG's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of DLCG grows each year by 48.77%, which is quite nice.
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
DLCG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DLCG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-5.43%
EPS Next 2Y39.97%
EPS Next 3YN/A
TSX:DLCG (7/4/2025, 7:00:00 PM)
8.56
-0.09 (-1.04%)
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 Cap673.84M
Analysts82.22
Price Target10.71 (25.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend0.09
Dividend Growth(5Y)48.77%
DP-5.43%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.68%
Min EPS beat(2)-38.73%
Max EPS beat(2)96.08%
EPS beat(4)1
Avg EPS beat(4)4.37%
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)1
Avg Revenue beat(2)9.86%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)21.72%
Revenue beat(4)2
Avg Revenue beat(4)3.39%
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)5.88%
PT rev (3m)10.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.67 | ||
| Fwd PE | 17.48 | ||
| P/S | 8.23 | ||
| P/FCF | 18.72 | ||
| P/OCF | 16.91 | ||
| P/B | 4.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.8 |
EPS(TTM)0.24
EY2.8%
EPS(NY)0.49
Fwd EY5.72%
FCF(TTM)0.46
FCFY5.34%
OCF(TTM)0.51
OCFY5.92%
SpS1.04
BVpS1.72
TBVpS-0.63
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -57.97% | ||
| ROE | -90.83% | ||
| ROCE | 18.28% | ||
| ROIC | 13.07% | ||
| ROICexc | 13.38% | ||
| ROICexgc | N/A | ||
| OM | 40.24% | ||
| PM (TTM) | N/A | ||
| GM | 86.58% | ||
| FCFM | 43.97% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.88 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 42.18% | ||
| Cap/Sales | 4.73% | ||
| Interest Coverage | 15.73 | ||
| Cash Conversion | 94.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 4.48 |
F-Score5
WACC7.1%
ROIC/WACC1.84
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)-4358.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%44.87%
EPS Next Y57.14%
EPS Next 2Y39.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)26.87%
Revenue growth 3Y-0.88%
Revenue growth 5Y11.35%
Sales Q2Q%37.37%
Revenue Next Year21.88%
Revenue Next 2Y19.62%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y61.05%
EBIT growth 3Y-7.58%
EBIT growth 5Y19.44%
EBIT Next Year49.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1893.91%
FCF growth 3Y-3.69%
FCF growth 5Y13.46%
OCF growth 1Y203.87%
OCF growth 3Y-1.61%
OCF growth 5Y6.25%