Diversified Royalty Corp. (DIV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

GDI Integrated Facility Services, Inc.

Information Services Corp.

Diversified Royalty Corp.

Galaxy Digital Holdings Ltd.

Calian Group Ltd.

TECSYS, Inc.

CAE, Inc.

CCL Industries, Inc.

CGI, Inc.

K-Bro Linen, Inc.

Brookfield Business Partners LP

Why is Diversified Royalty Corp. ?

Healthy long term growth as Net Sales has grown by an annual rate of 17.24%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CAD 44.05 MM
INTEREST COVERAGE RATIO(Q) Highest at 490.17
RAW MATERIAL COST(Y) Fallen by -0.02% (YoY)

With ROE of 11.26%, it has a very attractive valuation with a 2.13 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.37%, its profits have risen by 19.5% ; the PEG ratio of the company is 1.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Diversified Royalty Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Diversified Royalty Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Diversified Royalty Corp.

-100.0%

2.11

16.47%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.06%

EBIT Growth (5y)

19.04%

EBIT to Interest (avg)

3.67

Debt to EBITDA (avg)

4.59

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

0.12

Tax Ratio

28.72%

Dividend Payout Ratio

151.82%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.85%

ROE (avg)

9.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.37

EV to EBIT

15.22

EV to EBITDA

15.20

EV to Capital Employed

1.73

EV to Sales

13.67

PEG Ratio

1.16

Dividend Yield

ROCE (Latest)

11.38%

ROE (Latest)

11.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 44.71 MM

RAW MATERIAL COST(Y)

Fallen by -0.03% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 11.13

NET SALES(Q)

Highest at CAD 18.26 MM

-4What is not working for the Company

CASH AND EQV(HY)

Lowest at CAD 7.86 MM

DEBT-EQUITY RATIO (HY)

Highest at 87.3 %

INTEREST(Q)

Highest at CAD 3.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 88.32 %

Here's what is working for Diversified Royalty Corp.

Operating Cash Flow

Highest at CAD 44.71 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 18.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Dividend per share

Highest at CAD 11.13

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -0.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Diversified Royalty Corp.

Interest

Highest at CAD 3.65 MM

in the last five periods and Increased by 9.95% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin

Lowest at 88.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CAD 7.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 87.3 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio