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Weekly 52-Week Low (or 52-Week High): BAM-T, IAG-T, ONC-T, CCB-X and More 52-Week Highs and Lows (Oct 02-08)Most Anticipated Earnings: MRE-T, PSI-T and more Canadian Companies Reporting Earnings this Week (Aug 05-09).Most Anticipated Earnings: BLDP-T, BOS-T and more Canadian Companies Reporting Earnings this Week (May 06-10)This summary was created by AI, based on 1 opinions in the last 12 months.
DBM-T, a wholesale distributor of building materials and home renovation products, is trading at a low Forward P/E multiple of 8.9x. Despite solid growth over the last five years, a recent revenue decline and high leverage raise concerns. The stock is considered very cheap, but the leverage profile and small size add risk. Consensus earnings are expected to be flat next year, and experts advise waiting for the leverage level to become more sustainable before considering investment.
Sawmills and other building material sites in Canada and US. Building out larger US presence through acquisition. Earnings were fine, but stock dropped. Revenue far below expectations, but cashflow in line. Great job managing inventory and cash to pay dividend. Homebuilding should remain strong. He's looking to top up his position.
DBM operates as a wholesale distributor of building materials and home renovation products, and is now trading at 8.9x times' Forward P/E. In the last five years, growth was solid around 16% (one large acquisition in 2021), DBM recently experienced a revenue decline for the first time in many years; trailing twelve-month revenue declined around -13% compared to FY2022. The balance sheet is leveraged with net debt of $725M, and net debt/EBITDA is around 4.2x. Overall, a very cheap stock, but the leverage profile is still a possible concern, especially for a cyclical downturn (if interest rates and inflation remain challenging). For a cyclical name, we would be more comfortable waiting till the leverage level get down to a more sustainable level. Its small size also adds some risk, and based on consensus earnings are expected to be flat next year.
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Recent reported EPS and revenues missed estimates. A sharp rise in materials prices were pointed as reasons. Sales increased by 83.3%, partially due to acquisitions and the rest due to materials pricing. The equity position has increased significantly. The company’s financials are in pretty good shape and continue to grow top and bottom lines. Unlock Premium - Try 5i Free
Doman Building Materials Group Ltd. is a Canadian stock, trading under the symbol DBM-T on the Toronto Stock Exchange (DBM-CT). It is usually referred to as TSX:DBM or DBM-T
In the last year, 3 stock analysts published opinions about DBM-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Doman Building Materials Group Ltd..
Doman Building Materials Group Ltd. was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Doman Building Materials Group Ltd..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Doman Building Materials Group Ltd. In the last year. It is a trending stock that is worth watching.
On 2024-10-11, Doman Building Materials Group Ltd. (DBM-T) stock closed at a price of $9.11.
One of his two choices in the space. Prefers the providers of building supplies rather than homebuilders themselves.