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DREAM UNLIMITED-CL A SUB VOT (DRM.CA) Stock Fundamental Analysis

TSX:DRM - Toronto Stock Exchange - CA26153M5072 - Common Stock - Currency: CAD

22.35  -0.2 (-0.89%)

Fundamental Rating

3

Overall DRM gets a fundamental rating of 3 out of 10. We evaluated DRM against 31 industry peers in the Real Estate Management & Development industry. DRM may be in some trouble as it scores bad on both profitability and health. DRM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

In the past year DRM has reported negative net income.
In the past year DRM had a positive cash flow from operations.
Of the past 5 years DRM 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: DRM reported negative operating cash flow in multiple years.
DRM.CA Yearly Net Income VS EBIT VS OCF VS FCFDRM.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M

1.2 Ratios

With a Return On Assets value of -0.59%, DRM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
DRM's Return On Equity of -1.59% is in line compared to the rest of the industry. DRM outperforms 50.00% of its industry peers.
DRM's Return On Invested Capital of 2.11% is on the low side compared to the rest of the industry. DRM is outperformed by 76.67% of its industry peers.
DRM had an Average Return On Invested Capital over the past 3 years of 1.18%. This is significantly below the industry average of 6.96%.
The last Return On Invested Capital (2.11%) for DRM is above the 3 year average (1.18%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.59%
ROE -1.59%
ROIC 2.11%
ROA(3y)1.43%
ROA(5y)4.17%
ROE(3y)3.33%
ROE(5y)8.99%
ROIC(3y)1.18%
ROIC(5y)2.9%
DRM.CA Yearly ROA, ROE, ROICDRM.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

1.3 Margins

DRM has a worse Operating Margin (17.04%) than 63.33% of its industry peers.
In the last couple of years the Operating Margin of DRM has declined.
The Gross Margin of DRM (30.51%) is worse than 73.33% of its industry peers.
DRM's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 17.04%
PM (TTM) N/A
GM 30.51%
OM growth 3Y1.31%
OM growth 5Y-4.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y-3.99%
DRM.CA Yearly Profit, Operating, Gross MarginsDRM.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRM is destroying value.
Compared to 1 year ago, DRM has less shares outstanding
The number of shares outstanding for DRM has been reduced compared to 5 years ago.
Compared to 1 year ago, DRM has a worse debt to assets ratio.
DRM.CA Yearly Shares OutstandingDRM.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
DRM.CA Yearly Total Debt VS Total AssetsDRM.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

DRM has an Altman-Z score of 0.99. 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 (0.99) which is comparable to the rest of the industry.
The Debt to FCF ratio of DRM is 16.72, which is on the high side as it means it would take DRM, 16.72 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.72, DRM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that DRM has dependencies on debt financing.
The Debt to Equity ratio of DRM (1.35) is worse than 63.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 16.72
Altman-Z 0.99
ROIC/WACC0.31
WACC6.87%
DRM.CA Yearly LT Debt VS Equity VS FCFDRM.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

DRM has a Current Ratio of 1.69. 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 Current ratio of 1.69 is fine compared to the rest of the industry. DRM outperforms 76.67% of its industry peers.
A Quick Ratio of 1.69 indicates that DRM should not have too much problems paying its short term obligations.
DRM has a Quick ratio of 1.69. This is in the better half of the industry: DRM outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.69
DRM.CA Yearly Current Assets VS Current LiabilitesDRM.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

4

3. Growth

3.1 Past

DRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.56%, which is quite impressive.
DRM shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.88%.
DRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.63% yearly.
EPS 1Y (TTM)64.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-500%
Revenue 1Y (TTM)20.88%
Revenue growth 3Y3.64%
Revenue growth 5Y2.63%
Sales Q2Q%-27.76%

3.2 Future

Based on estimates for the next years, DRM will show a very strong growth in Earnings Per Share. The EPS will grow by 35.05% on average per year.
DRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y260.43%
EPS Next 2Y56.13%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue Next Year46.19%
Revenue Next 2Y3.94%
Revenue Next 3Y2.57%
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 stable.
DRM.CA Yearly Revenue VS EstimatesDRM.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M 500M
DRM.CA Yearly EPS VS EstimatesDRM.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DRM. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 18.44, the valuation of DRM can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DRM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
DRM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE N/A
Fwd PE 18.44
DRM.CA Price Earnings VS Forward Price EarningsDRM.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as DRM.
DRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRM is cheaper than 73.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.9
EV/EBITDA 28.53
DRM.CA Per share dataDRM.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

DRM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DRM's earnings are expected to grow with 35.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.13%
EPS Next 3Y35.05%

4

5. Dividend

5.1 Amount

DRM has a Yearly Dividend Yield of 2.71%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of DRM has falen by -21.74%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.17, DRM pays a bit more dividend than its industry peers.
DRM's Dividend Yield is comparable with the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 2.71%

5.2 History

On average, the dividend of DRM grows each year by 25.99%, which is quite nice.
DRM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)25.99%
Div Incr Years0
Div Non Decr Years0
DRM.CA Yearly Dividends per shareDRM.CA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

The earnings of DRM are negative and hence is the payout ratio. DRM will probably not be able to sustain this dividend level.
The dividend of DRM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-107.44%
EPS Next 2Y56.13%
EPS Next 3Y35.05%
DRM.CA Yearly Income VS Free CF VS DividendDRM.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M

DREAM UNLIMITED-CL A SUB VOT

TSX:DRM (2/7/2025, 7:00:00 PM)

22.35

-0.2 (-0.89%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)02-25 2025-02-25/amc
Inst Owners21.33%
Inst Owner ChangeN/A
Ins Owners47.21%
Ins Owner ChangeN/A
Market Cap905.17M
Analysts80
Price Target37.23 (66.58%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.71%
Yearly Dividend0.5
Dividend Growth(5Y)25.99%
DP-107.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.16%
Min EPS beat(2)-237.09%
Max EPS beat(2)218.76%
EPS beat(4)1
Avg EPS beat(4)-419.19%
Min EPS beat(4)-1612.87%
Max EPS beat(4)218.76%
EPS beat(8)2
Avg EPS beat(8)-307.09%
EPS beat(12)6
Avg EPS beat(12)-72.71%
EPS beat(16)8
Avg EPS beat(16)-56.6%
Revenue beat(2)1
Avg Revenue beat(2)18.82%
Min Revenue beat(2)-9.93%
Max Revenue beat(2)47.57%
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)4.29%
PT rev (3m)-2.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)943.33%
EPS NY rev (1m)-4.97%
EPS NY rev (3m)-4.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.18%
Revenue NY rev (3m)4.18%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 18.44
P/S 1.68
P/FCF 7.9
P/OCF 85.13
P/B 0.64
P/tB 0.64
EV/EBITDA 28.53
EPS(TTM)-0.73
EYN/A
EPS(NY)1.21
Fwd EY5.42%
FCF(TTM)2.83
FCFY12.66%
OCF(TTM)0.26
OCFY1.17%
SpS13.34
BVpS35.06
TBVpS34.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.59%
ROE -1.59%
ROCE 2.53%
ROIC 2.11%
ROICexc 2.15%
ROICexgc 2.81%
OM 17.04%
PM (TTM) N/A
GM 30.51%
FCFM 21.21%
ROA(3y)1.43%
ROA(5y)4.17%
ROE(3y)3.33%
ROE(5y)8.99%
ROIC(3y)1.18%
ROIC(5y)2.9%
ROICexc(3y)1.2%
ROICexc(5y)3.26%
ROICexgc(3y)1.62%
ROICexgc(5y)5.07%
ROCE(3y)1.41%
ROCE(5y)3.48%
ROICexcg growth 3Y-9.93%
ROICexcg growth 5Y-11.27%
ROICexc growth 3Y-7.3%
ROICexc growth 5Y-8.74%
OM growth 3Y1.31%
OM growth 5Y-4.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y-3.99%
F-Score6
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 16.72
Debt/EBITDA 19.82
Cap/Depr 2276.65%
Cap/Sales 19.24%
Interest Coverage 250
Cash Conversion 11.01%
Profit Quality N/A
Current Ratio 1.69
Quick Ratio 1.69
Altman-Z 0.99
F-Score6
WACC6.87%
ROIC/WACC0.31
Cap/Depr(3y)171.78%
Cap/Depr(5y)473.56%
Cap/Sales(3y)3.61%
Cap/Sales(5y)9.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-500%
EPS Next Y260.43%
EPS Next 2Y56.13%
EPS Next 3Y35.05%
EPS Next 5YN/A
Revenue 1Y (TTM)20.88%
Revenue growth 3Y3.64%
Revenue growth 5Y2.63%
Sales Q2Q%-27.76%
Revenue Next Year46.19%
Revenue Next 2Y3.94%
Revenue Next 3Y2.57%
Revenue Next 5YN/A
EBIT growth 1Y42.46%
EBIT growth 3Y5%
EBIT growth 5Y-2.21%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.78%
OCF growth 3YN/A
OCF growth 5YN/A