D2L Inc. Fundamental Analysis (TSX: DTOL.TO)
D2L Inc. (TSX: DTOL.TO) shows weak financial fundamentals with a PE ratio of 250.06, profit margin of 0.74%, and ROE of 2.01%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 8.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DTOL.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakDTOL.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateDTOL.TO shows balanced valuation metrics.
Growth Score
ModerateDTOL.TO shows steady but slowing expansion.
Financial Health Score
ModerateDTOL.TO shows balanced financial health with some risks.
Profitability Score
ModerateDTOL.TO maintains healthy but balanced margins.
Key Financial Metrics
Is DTOL.TO Expensive or Cheap?
P/E Ratio
DTOL.TO trades at 250.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DTOL.TO's PEG of -3.69 indicates potential undervaluation.
Price to Book
The market values D2L Inc. at 5.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.84 times EBITDA. This signals the market has high growth expectations.
How Well Does DTOL.TO Make Money?
Net Profit Margin
For every $100 in sales, D2L Inc. keeps $0.74 as profit after all expenses.
Operating Margin
Core operations generate 5.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.01 in profit for every $100 of shareholder equity.
ROA
D2L Inc. generates $0.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
D2L Inc. produces operating cash flow of $48.09M, showing steady but balanced cash generation.
Free Cash Flow
D2L Inc. generates strong free cash flow of $47.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.86 in free cash annually.
FCF Yield
DTOL.TO converts 11.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
250.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How DTOL.TO Stacks Against Its Sector Peers
| Metric | DTOL.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 250.06 | 34.00 | Worse (Expensive) |
| ROE | 2.01% | 783.00% | Weak |
| Net Margin | 0.74% | -3153.00% (disorted) | Weak |
| Debt/Equity | 0.15 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 12.44 | Weak Liquidity |
| ROA | 0.72% | 336.00% | Weak |
DTOL.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews D2L Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
121.27%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
155.08%
Industry Style: Growth, Innovation, High Beta
High Growth