DREAM UNLIMITED-CL A SUB VOT (DRM.CA) Stock Fundamental Analysis
TSX:DRM - Toronto Stock Exchange - CA26153M5072 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to DRM. DRM was compared to 31 industry peers in the Real Estate Management & Development industry. While DRM is still in line with the averages on profitability rating, there are concerns on its financial health. DRM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
DRM had positive earnings in the past year.
In the past year DRM had a positive cash flow from operations.
DRM had positive earnings in 4 of the past 5 years.
In the past 5 years DRM reported 4 times negative operating cash flow.
1.2 Ratios
DRM has a better Return On Assets (4.43%) than 80.65% of its industry peers.
DRM has a Return On Equity of 11.46%. This is in the better half of the industry: DRM outperforms 74.19% of its industry peers.
DRM's Return On Invested Capital of 2.84% is in line compared to the rest of the industry. DRM outperforms 48.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DRM is significantly below the industry average of 11.18%.
The last Return On Invested Capital (2.84%) for DRM is above the 3 year average (1.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 11.46% | ||
| ROIC | 2.84% |
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
DRM's Profit Margin of 31.84% is amongst the best of the industry. DRM outperforms 83.87% of its industry peers.
DRM's Profit Margin has declined in the last couple of years.
DRM's Operating Margin of 23.28% is fine compared to the rest of the industry. DRM outperforms 64.52% of its industry peers.
DRM's Operating Margin has declined in the last couple of years.
The Gross Margin of DRM (35.21%) is worse than 61.29% of its industry peers.
In the last couple of years the Gross Margin of DRM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.28% | ||
| PM (TTM) | 31.84% | ||
| GM | 35.21% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRM is destroying value.
The number of shares outstanding for DRM has been reduced compared to 1 year ago.
The number of shares outstanding for DRM has been reduced compared to 5 years ago.
DRM has a worse debt/assets ratio than last year.
2.2 Solvency
DRM has an Altman-Z score of 1.03. This is a bad value and indicates that DRM is not financially healthy and even has some risk of bankruptcy.
DRM has a Altman-Z score (1.03) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that DRM has dependencies on debt financing.
DRM's Debt to Equity ratio of 1.26 is on the low side compared to the rest of the industry. DRM is outperformed by 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.4
WACC7.15%
2.3 Liquidity
DRM has a Current Ratio of 1.78. 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 Current ratio, with a value of 1.78, DRM is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
DRM has a Quick Ratio of 1.78. This is a normal value and indicates that DRM is financially healthy and should not expect problems in meeting its short term obligations.
DRM's Quick ratio of 1.78 is fine compared to the rest of the industry. DRM outperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 211.71% over the past year.
DRM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.62% yearly.
The Revenue has grown by 13.04% in the past year. This is quite good.
The Revenue has been growing slightly by 1.48% on average over the past years.
EPS 1Y (TTM)211.71%
EPS 3Y18.69%
EPS 5Y-11.62%
EPS Q2Q%-186.36%
Revenue 1Y (TTM)13.04%
Revenue growth 3Y24.21%
Revenue growth 5Y1.48%
Sales Q2Q%-56.76%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
DRM is valuated cheaply with a Price/Earnings ratio of 5.27.
Compared to the rest of the industry, the Price/Earnings ratio of DRM indicates a rather cheap valuation: DRM is cheaper than 87.10% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DRM to the average of the S&P500 Index (26.32), we can say DRM is valued rather cheaply.
The Price/Forward Earnings ratio is 14.38, which indicates a correct valuation of DRM.
Based on the Price/Forward Earnings ratio, DRM is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. DRM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
64.52% of the companies in the same industry are more expensive than DRM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.4 |
4.3 Compensation for Growth
DRM's earnings are expected to decrease with -42.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DRM has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
DRM's Dividend Yield is rather good when compared to the industry average which is at 3.24. DRM pays more dividend than 80.65% of the companies in the same industry.
DRM's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of DRM is nicely growing with an annual growth rate of 52.47%!
DRM has been paying a dividend for over 5 years, so it has already some track record.
DRM has decreased its dividend recently.
Dividend Growth(5Y)52.47%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DRM pays out 39.87% of its income as dividend. This is a sustainable payout ratio.
DP39.87%
EPS Next 2Y-42.54%
EPS Next 3YN/A
TSX:DRM (6/17/2025, 7:00:00 PM)
19.61
-0.55 (-2.73%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners21.34%
Inst Owner ChangeN/A
Ins Owners40.76%
Ins Owner ChangeN/A
Market Cap801.26M
Analysts80
Price Target34.17 (74.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend1.6
Dividend Growth(5Y)52.47%
DP39.87%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-423.64%
Min EPS beat(2)-840.59%
Max EPS beat(2)-6.68%
EPS beat(4)1
Avg EPS beat(4)-216.4%
Min EPS beat(4)-840.59%
Max EPS beat(4)218.76%
EPS beat(8)1
Avg EPS beat(8)-401.39%
EPS beat(12)4
Avg EPS beat(12)-176.87%
EPS beat(16)7
Avg EPS beat(16)-107.81%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-1.47%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
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)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 14.38 | ||
| P/S | 1.5 | ||
| P/FCF | N/A | ||
| P/OCF | 148.52 | ||
| P/B | 0.54 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 20.4 |
EPS(TTM)3.72
EY18.97%
EPS(NY)1.36
Fwd EY6.95%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)0.13
OCFY0.67%
SpS13.09
BVpS36.34
TBVpS36.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.43% | ||
| ROE | 11.46% | ||
| ROCE | 3.4% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 3.79% | ||
| OM | 23.28% | ||
| PM (TTM) | 31.84% | ||
| GM | 35.21% | ||
| 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-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.53 | ||
| Cap/Depr | 137.34% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 4.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 1.03 |
F-Score7
WACC7.15%
ROIC/WACC0.4
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)211.71%
EPS 3Y18.69%
EPS 5Y-11.62%
EPS Q2Q%-186.36%
EPS Next Y-73.34%
EPS Next 2Y-42.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.04%
Revenue growth 3Y24.21%
Revenue growth 5Y1.48%
Sales Q2Q%-56.76%
Revenue Next Year-23.25%
Revenue Next 2Y-13.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y120.66%
EBIT growth 3Y47.22%
EBIT growth 5Y-14.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y92.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.28%
OCF growth 3YN/A
OCF growth 5YN/A