Dominion Lending Centres Inc.
Dominion Lending Centres Inc. Fundamental Analysis
Dominion Lending Centres Inc. (DLCG.TO) shows strong financial fundamentals with a PE ratio of 29.75, profit margin of 25.51%, and ROE of 18.00%. The company generates $0.1B in annual revenue with strong year-over-year growth of 22.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze DLCG.TO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDLCG.TO demonstrates superior asset utilization.
Valuation Score
ModerateDLCG.TO shows balanced valuation metrics.
Growth Score
ModerateDLCG.TO shows steady but slowing expansion.
Financial Health Score
ExcellentDLCG.TO maintains a strong and stable balance sheet.
Profitability Score
ExcellentDLCG.TO achieves industry-leading margins.
Key Financial Metrics
Is DLCG.TO Expensive or Cheap?
P/E Ratio
DLCG.TO trades at 29.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DLCG.TO's PEG of 0.62 indicates potential undervaluation.
Price to Book
The market values Dominion Lending Centres Inc. at 5.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.49 times EBITDA. This signals the market has high growth expectations.
How Well Does DLCG.TO Make Money?
Net Profit Margin
For every $100 in sales, Dominion Lending Centres Inc. keeps $25.51 as profit after all expenses.
Operating Margin
Core operations generate 45.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.00 in profit for every $100 of shareholder equity.
ROA
Dominion Lending Centres Inc. generates $10.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Dominion Lending Centres Inc. generates strong operating cash flow of $32.01M, reflecting robust business health.
Free Cash Flow
Dominion Lending Centres Inc. generates strong free cash flow of $25.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
DLCG.TO converts 3.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How DLCG.TO Stacks Against Its Sector Peers
| Metric | DLCG.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.75 | 19.02 | Worse (Expensive) |
| ROE | 18.00% | 821.00% | Weak |
| Net Margin | 25.51% | 2043.00% | Weak |
| Debt/Equity | 0.27 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 661.52 | Neutral |
| ROA | 10.86% | -23813.00% (disorted) | Strong |
DLCG.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Dominion Lending Centres Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.40%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-1353.43%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
4.74%
Industry Style: Value, Dividend, Cyclical
Growing