Diversified Royalty Corp.
Diversified Royalty Corp. Fundamental Analysis
Diversified Royalty Corp. (DIV.TO) shows strong financial fundamentals with a PE ratio of 19.53, profit margin of 51.82%, and ROE of 12.71%. The company generates $0.1B in annual revenue with strong year-over-year growth of 15.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DIV.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakDIV.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDIV.TO trades at attractive valuation levels.
Growth Score
ModerateDIV.TO shows steady but slowing expansion.
Financial Health Score
ModerateDIV.TO shows balanced financial health with some risks.
Profitability Score
WeakDIV.TO struggles to sustain strong margins.
Key Financial Metrics
Is DIV.TO Expensive or Cheap?
P/E Ratio
DIV.TO trades at 19.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DIV.TO's PEG of 0.88 indicates potential undervaluation.
Price to Book
The market values Diversified Royalty Corp. at 2.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.31 times EBITDA. This is generally considered low.
How Well Does DIV.TO Make Money?
Net Profit Margin
For every $100 in sales, Diversified Royalty Corp. keeps $51.82 as profit after all expenses.
Operating Margin
Core operations generate 91.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.71 in profit for every $100 of shareholder equity.
ROA
Diversified Royalty Corp. generates $5.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Diversified Royalty Corp. generates strong operating cash flow of $45.65M, reflecting robust business health.
Free Cash Flow
Diversified Royalty Corp. generates weak or negative free cash flow of $-4.11M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
DIV.TO converts -0.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DIV.TO Stacks Against Its Sector Peers
| Metric | DIV.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.53 | 25.96 | Better (Cheaper) |
| ROE | 12.71% | 1263.00% | Weak |
| Net Margin | 51.82% | -41827.00% (disorted) | Strong |
| Debt/Equity | 0.89 | 0.79 | Neutral |
| Current Ratio | 0.68 | 10.05 | Weak Liquidity |
| ROA | 5.99% | -1497918.00% (disorted) | Weak |
DIV.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Diversified Royalty Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.76%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
26.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
35.50%
Industry Style: Cyclical, Value, Infrastructure
High Growth