DREAM UNLIMITED-CL A SUB VOT (DRM.CA) Stock Fundamental Analysis
TSX:DRM - Toronto Stock Exchange - CA26153M5072 - Common Stock - Currency: CAD
DRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of DRM while its profitability can be described as average. DRM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DRM had positive earnings in the past year.
DRM had a negative operating cash flow in the past year.
Of the past 5 years DRM 4 years were profitable.
DRM had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
DRM has a better Return On Assets (4.79%) than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 12.51%, DRM belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
With a Return On Invested Capital value of 3.05%, DRM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DRM is significantly below the industry average of 11.02%.
The 3 year average ROIC (1.83%) for DRM is below the current ROIC(3.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 12.51% | ||
| ROIC | 3.05% |
ROA(3y)1.98%
ROA(5y)2.94%
ROE(3y)4.92%
ROE(5y)6.79%
ROIC(3y)1.83%
ROIC(5y)1.65%
1.3 Margins
With a decent Profit Margin value of 30.08%, DRM is doing good in the industry, outperforming 78.57% of the companies in the same industry.
DRM's Profit Margin has declined in the last couple of years.
The Operating Margin of DRM (21.66%) is comparable to the rest of the industry.
DRM's Operating Margin has declined in the last couple of years.
DRM has a Gross Margin of 32.29%. This is in the lower half of the industry: DRM underperforms 67.86% of its industry peers.
DRM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.66% | ||
| PM (TTM) | 30.08% | ||
| GM | 32.29% |
OM growth 3Y18.53%
OM growth 5Y-16%
PM growth 3Y-3.77%
PM growth 5Y-12.07%
GM growth 3Y4.93%
GM growth 5Y-12.44%
2. Health
2.1 Basic Checks
DRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DRM has less shares outstanding
DRM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DRM has a worse debt to assets ratio.
2.2 Solvency
DRM has an Altman-Z score of 1.04. This is a bad value and indicates that DRM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.04, DRM is in line with its industry, outperforming 50.00% of the companies in the same industry.
DRM has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
DRM has a Debt to Equity ratio of 1.25. This is in the lower half of the industry: DRM underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.43
WACC7.05%
2.3 Liquidity
A Current Ratio of 1.71 indicates that DRM should not have too much problems paying its short term obligations.
DRM has a better Current ratio (1.71) than 71.43% of its industry peers.
DRM has a Quick Ratio of 1.71. This is a normal value and indicates that DRM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.71, DRM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
DRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 249.10%, which is quite impressive.
DRM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.62% yearly.
DRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 61.39%.
Measured over the past years, DRM shows a small growth in Revenue. The Revenue has been growing by 1.48% on average per year.
EPS 1Y (TTM)249.1%
EPS 3Y18.69%
EPS 5Y-11.62%
EPS Q2Q%254.45%
Revenue 1Y (TTM)61.39%
Revenue growth 3Y24.21%
Revenue growth 5Y1.48%
Sales Q2Q%78.25%
3.2 Future
DRM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -42.54% yearly.
The Revenue is expected to decrease by -13.11% on average over the next years. This is quite bad
EPS Next Y-73.34%
EPS Next 2Y-42.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-23.25%
Revenue Next 2Y-13.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 4.55, the valuation of DRM can be described as very cheap.
Based on the Price/Earnings ratio, DRM is valued cheaper than 96.43% of the companies in the same industry.
DRM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 17.07 indicates a rather expensive valuation of DRM.
82.14% of the companies in the same industry are more expensive than DRM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, DRM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRM is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.43 |
4.3 Compensation for Growth
A cheap valuation may be justified as DRM's earnings are expected to decrease with -42.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, DRM has a reasonable but not impressive dividend return.
DRM's Dividend Yield is a higher than the industry average which is at 3.42.
DRM's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
On average, the dividend of DRM grows each year by 52.47%, which is quite nice.
DRM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)52.47%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
35.83% of the earnings are spent on dividend by DRM. This is a low number and sustainable payout ratio.
DP35.83%
EPS Next 2Y-42.54%
EPS Next 3YN/A
TSX:DRM (4/29/2025, 7:00:00 PM)
18.79
+0.21 (+1.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners21.47%
Inst Owner ChangeN/A
Ins Owners47.19%
Ins Owner ChangeN/A
Market Cap767.76M
Analysts80
Price Target34.68 (84.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend1.6
Dividend Growth(5Y)52.47%
DP35.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-121.89%
Min EPS beat(2)-237.09%
Max EPS beat(2)-6.68%
EPS beat(4)1
Avg EPS beat(4)-17.64%
Min EPS beat(4)-237.09%
Max EPS beat(4)218.76%
EPS beat(8)2
Avg EPS beat(8)-280.42%
EPS beat(12)5
Avg EPS beat(12)-100.21%
EPS beat(16)7
Avg EPS beat(16)-64.03%
Revenue beat(2)1
Avg Revenue beat(2)2.44%
Min Revenue beat(2)-9.93%
Max Revenue beat(2)14.81%
Revenue beat(4)3
Avg Revenue beat(4)24.96%
Min Revenue beat(4)-9.93%
Max Revenue beat(4)47.57%
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)-6.85%
PT rev (3m)-2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-122.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.55 | ||
| Fwd PE | 17.07 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.51 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 18.43 |
EPS(TTM)4.13
EY21.98%
EPS(NY)1.1
Fwd EY5.86%
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)-0.98
OCFYN/A
SpS15.28
BVpS36.75
TBVpS36.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 12.51% | ||
| ROCE | 3.66% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.12% | ||
| ROICexgc | 4.08% | ||
| OM | 21.66% | ||
| PM (TTM) | 30.08% | ||
| GM | 32.29% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)2.94%
ROE(3y)4.92%
ROE(5y)6.79%
ROIC(3y)1.83%
ROIC(5y)1.65%
ROICexc(3y)1.86%
ROICexc(5y)1.7%
ROICexgc(3y)2.47%
ROICexgc(5y)2.32%
ROCE(3y)2.19%
ROCE(5y)1.98%
ROICexcg growth 3Y39.33%
ROICexcg growth 5Y-25.54%
ROICexc growth 3Y40.89%
ROICexc growth 5Y-22.13%
OM growth 3Y18.53%
OM growth 5Y-16%
PM growth 3Y-3.77%
PM growth 5Y-12.07%
GM growth 3Y4.93%
GM growth 5Y-12.44%
F-Score5
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 13.5 | ||
| Cap/Depr | 191.85% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 1.04 |
F-Score5
WACC7.05%
ROIC/WACC0.43
Cap/Depr(3y)189.38%
Cap/Depr(5y)392.14%
Cap/Sales(3y)3.04%
Cap/Sales(5y)7.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)249.1%
EPS 3Y18.69%
EPS 5Y-11.62%
EPS Q2Q%254.45%
EPS Next Y-73.34%
EPS Next 2Y-42.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)61.39%
Revenue growth 3Y24.21%
Revenue growth 5Y1.48%
Sales Q2Q%78.25%
Revenue Next Year-23.25%
Revenue Next 2Y-13.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y147.2%
EBIT growth 3Y47.22%
EBIT growth 5Y-14.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y50.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.3%
OCF growth 3YN/A
OCF growth 5YN/A