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.

Diversified Royalty Corp.

Calian Group Ltd.

Galaxy Digital Holdings Ltd.

CCL Industries, Inc.

Information Services Corp.

CAE, Inc.

TECSYS, 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 18.69%

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 363.03
INTEREST(Q) Highest at CAD 3.96 MM
OPERATING PROFIT MARGIN(Q) Lowest at 82.34 %

With ROE of 12.15%, it has a very attractive valuation with a 2.78 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 55.21%, its profits have risen by 10.7% ; the PEG ratio of the company is 2.5

Market Beating performance in long term as well as near term

Along with generating 55.21% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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.

55.21%

3.93

20.25%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.69%

EBIT Growth (5y)

18.99%

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

121.35%

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

2.78

EV to EBIT

16.25

EV to EBITDA

16.23

EV to Capital Employed

1.95

EV to Sales

14.52

PEG Ratio

2.52

Dividend Yield

ROCE (Latest)

12.00%

ROE (Latest)

12.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

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

5What is working for the Company

ROCE(HY)

Highest at 12.56%

DIVIDEND PAYOUT RATIO(Y)

Highest at 160.84%

RAW MATERIAL COST(Y)

Fallen by -0.01% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 10.69

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 363.03

INTEREST(Q)

Highest at CAD 3.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 82.34 %

PRE-TAX PROFIT(Q)

Lowest at CAD 9.18 MM

NET PROFIT(Q)

Lowest at CAD 6.61 MM

EPS(Q)

Lowest at CAD 0.04

Here's what is working for Diversified Royalty Corp.

Dividend per share

Highest at CAD 10.69

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 160.84%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -0.01% (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 Coverage Ratio

Lowest at 363.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CAD 3.96 MM

in the last five periods and Increased by 8.87% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit Margin

Lowest at 82.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 9.18 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 6.61 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)