DOMINION LENDING CENTRES INC (DLCG.CA) Stock Fundamental Analysis
TSX:DLCG - Toronto Stock Exchange - CA2574141024 - Common Stock - Currency: CAD
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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
DLCG had positive earnings in the past year.
DLCG had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -57.97%, DLCG is doing worse than 96.55% of the companies in the same industry.
DLCG's Return On Equity of -90.83% is on the low side compared to the rest of the industry. DLCG is outperformed by 93.10% of its industry peers.
The Return On Invested Capital of DLCG (13.07%) is better than 93.10% 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 5.87%.
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
DLCG has a Operating Margin (40.24%) which is in line with its industry peers.
DLCG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 86.58%, DLCG belongs to the best 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DLCG is creating value.
Compared to 1 year ago, DLCG has more shares outstanding
The number of shares outstanding for DLCG has been increased compared to 5 years ago.
Compared to 1 year ago, DLCG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.01 indicates that DLCG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.01, DLCG is in line with its industry, outperforming 58.62% of the companies in the same industry.
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.
The Debt to FCF ratio of DLCG (0.88) is better than 96.55% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that DLCG is not too dependend on debt financing.
DLCG has a Debt to Equity ratio of 0.19. This is amongst the best in the industry. DLCG outperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | 5.01 |
ROIC/WACC1.85
WACC7.07%
2.3 Liquidity
A Current Ratio of 0.60 indicates that DLCG may have some problems paying its short term obligations.
DLCG has a better Current ratio (0.60) than 65.52% 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 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for DLCG have decreased strongly by -4358.26% in the last year.
The Revenue has grown by 26.87% in the past year. This is a very strong growth!
DLCG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.35% yearly.
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
DLCG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.62% yearly.
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 39.63 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.
Compared to an average S&P500 Price/Earnings ratio of 26.59, DLCG is valued a bit more expensive.
A Price/Forward Earnings ratio of 19.42 indicates a rather expensive valuation of DLCG.
Based on the Price/Forward Earnings ratio, DLCG is valued a bit cheaper than 68.97% of the companies in the same industry.
DLCG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.63 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLCG is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
86.21% 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 | 20.8 | ||
| EV/EBITDA | 18.4 |
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)0.69
PEG (5Y)N/A
EPS Next 2Y39.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLCG has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.44, DLCG is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.39, DLCG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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.
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.
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 (6/6/2025, 7:00:00 PM)
9.51
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners21.11%
Inst Owner ChangeN/A
Ins Owners34.32%
Ins Owner ChangeN/A
Market Cap748.63M
Analysts82.22
Price Target10.71 (12.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)11.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.94%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.63 | ||
| Fwd PE | 19.42 | ||
| P/S | 9.15 | ||
| P/FCF | 20.8 | ||
| P/OCF | 18.78 | ||
| P/B | 5.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.4 |
EPS(TTM)0.24
EY2.52%
EPS(NY)0.49
Fwd EY5.15%
FCF(TTM)0.46
FCFY4.81%
OCF(TTM)0.51
OCFY5.32%
SpS1.04
BVpS1.72
TBVpS-0.63
PEG (NY)0.69
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 | 5.01 |
F-Score5
WACC7.07%
ROIC/WACC1.85
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%