D2L INC (DTOL.CA) Stock Fundamental Analysis
TSX:DTOL - Toronto Stock Exchange - CA23344V1085 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to DTOL. DTOL was compared to 3 industry peers in the Diversified Consumer Services industry. While DTOL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DTOL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DTOL was profitable.
DTOL had a positive operating cash flow in the past year.
DTOL had negative earnings in 4 of the past 5 years.
In the past 5 years DTOL always reported a positive cash flow from operatings.
1.2 Ratios
DTOL has a better Return On Assets (11.04%) than 100.00% of its industry peers.
DTOL's Return On Equity of 30.35% is amongst the best of the industry. DTOL outperforms 100.00% of its industry peers.
The Return On Invested Capital of DTOL (5.96%) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.04% | ||
| ROE | 30.35% | ||
| ROIC | 5.96% |
ROA(3y)-0.39%
ROA(5y)-20.82%
ROE(3y)-3.3%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DTOL has a better Profit Margin (12.53%) than 100.00% of its industry peers.
DTOL has a Operating Margin of 3.98%. This is amongst the best in the industry. DTOL outperforms 100.00% of its industry peers.
DTOL's Gross Margin of 68.18% is amongst the best of the industry. DTOL outperforms 100.00% of its industry peers.
DTOL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.98% | ||
| PM (TTM) | 12.53% | ||
| GM | 68.18% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.62%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DTOL is destroying value.
DTOL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DTOL has been increased compared to 5 years ago.
The debt/assets ratio for DTOL has been reduced compared to a year ago.
2.2 Solvency
DTOL has an Altman-Z score of 1.33. This is a bad value and indicates that DTOL is not financially healthy and even has some risk of bankruptcy.
DTOL's Altman-Z score of 1.33 is amongst the best of the industry. DTOL outperforms 100.00% of its industry peers.
DTOL has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
DTOL has a better Debt to FCF ratio (0.41) than 100.00% of its industry peers.
DTOL has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.12, DTOL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.78
WACC7.59%
2.3 Liquidity
A Current Ratio of 1.05 indicates that DTOL should not have too much problems paying its short term obligations.
DTOL has a Current ratio of 1.05. This is in the better half of the industry: DTOL outperforms 66.67% of its industry peers.
DTOL has a Quick Ratio of 1.05. This is a normal value and indicates that DTOL is financially healthy and should not expect problems in meeting its short term obligations.
DTOL's Quick ratio of 1.05 is fine compared to the rest of the industry. DTOL outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
DTOL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 757.14%, which is quite impressive.
DTOL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.55%.
Measured over the past years, DTOL shows a quite strong growth in Revenue. The Revenue has been growing by 13.39% on average per year.
EPS 1Y (TTM)757.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3400%
Revenue 1Y (TTM)12.55%
Revenue growth 3Y10.56%
Revenue growth 5Y13.39%
Sales Q2Q%12.08%
3.2 Future
The Earnings Per Share is expected to grow by 3.38% on average over the next years.
DTOL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.
EPS Next Y-24.17%
EPS Next 2Y3.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.46%
Revenue Next 2Y8.27%
Revenue Next 3Y8.3%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.86 indicates a rather expensive valuation of DTOL.
Compared to the rest of the industry, the Price/Earnings ratio of DTOL indicates a rather cheap valuation: DTOL is cheaper than 100.00% of the companies listed in the same industry.
DTOL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.01, which means the current valuation is very expensive for DTOL.
Based on the Price/Forward Earnings ratio, DTOL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, DTOL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 29.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DTOL is valued cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTOL indicates a rather cheap valuation: DTOL is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.48 | ||
| EV/EBITDA | 37.34 |
4.3 Compensation for Growth
The decent profitability rating of DTOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DTOL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:DTOL (5/29/2025, 7:00:00 PM)
13.99
-0.67 (-4.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners52.68%
Inst Owner ChangeN/A
Ins Owners4.15%
Ins Owner ChangeN/A
Market Cap763.71M
Analysts78.57
Price Target18.49 (32.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)210.46%
Min EPS beat(2)63.4%
Max EPS beat(2)357.52%
EPS beat(4)3
Avg EPS beat(4)113.4%
Min EPS beat(4)-67.32%
Max EPS beat(4)357.52%
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)1.6%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)4.18%
Revenue beat(4)1
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)4.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.27%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-12.12%
PT rev (3m)-13.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 29.01 | ||
| P/S | 2.69 | ||
| P/FCF | 20.48 | ||
| P/OCF | 19.8 | ||
| P/B | 6.52 | ||
| P/tB | 13.05 | ||
| EV/EBITDA | 37.34 |
EPS(TTM)0.64
EY4.57%
EPS(NY)0.48
Fwd EY3.45%
FCF(TTM)0.68
FCFY4.88%
OCF(TTM)0.71
OCFY5.05%
SpS5.2
BVpS2.15
TBVpS1.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.04% | ||
| ROE | 30.35% | ||
| ROCE | 8.27% | ||
| ROIC | 5.96% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 3.98% | ||
| PM (TTM) | 12.53% | ||
| GM | 68.18% | ||
| FCFM | 13.14% |
ROA(3y)-0.39%
ROA(5y)-20.82%
ROE(3y)-3.3%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.62%
GM growth 5Y1.5%
F-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 21.66% | ||
| Cap/Sales | 0.45% | ||
| Interest Coverage | 113.25 | ||
| Cash Conversion | 224.32% | ||
| Profit Quality | 104.89% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.33 |
F-Score7
WACC7.59%
ROIC/WACC0.78
Cap/Depr(3y)102.56%
Cap/Depr(5y)76.81%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)757.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3400%
EPS Next Y-24.17%
EPS Next 2Y3.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.55%
Revenue growth 3Y10.56%
Revenue growth 5Y13.39%
Sales Q2Q%12.08%
Revenue Next Year7.46%
Revenue Next 2Y8.27%
Revenue Next 3Y8.3%
Revenue Next 5YN/A
EBIT growth 1Y214.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year413.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y171.64%
FCF growth 3YN/A
FCF growth 5Y45.98%
OCF growth 1Y78.18%
OCF growth 3Y533.01%
OCF growth 5Y39.56%