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Investor Insights

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.

Consensus
concern
Valuation
Undervalued
Similar
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HOLD

One of his two choices in the space. Prefers the providers of building supplies rather than homebuilders themselves.

misc industrial products
BUY ON WEAKNESS

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.

misc industrial products
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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misc industrial products
BUY
Distribution company, not a manufacturer. Capital structure tends to carry more debt, so don't get too worked up about it. Great company. Choppy stock, as it gets lumped in with other forestry companies. Pays a good dividend. Undervalued.
misc industrial products
SELL
It changed names recently from Canwell Building Products. They run sawmills and distribute lumber wholesale across North America. This is closely tied to lumber prices; the lumber cycle is over. During the pandemic, lumber prices skyrocketed as people bought and renovated homes. Prices have now returned to Earth and he expects it to return to historic prices.
misc industrial products
BUY

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

misc industrial products
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Doman Building Materials Group Ltd.(DBM-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Doman Building Materials Group Ltd. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Doman Building Materials Group Ltd.(DBM-T) Frequently Asked Questions

What is Doman Building Materials Group Ltd. stock symbol?

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

Is Doman Building Materials Group Ltd. a buy or a sell?

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..

Is Doman Building Materials Group Ltd. a good investment or a top pick?

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..

Why is Doman Building Materials Group Ltd. stock dropping?

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.

Is Doman Building Materials Group Ltd. worth watching?

3 stock analysts on Stockchase covered Doman Building Materials Group Ltd. In the last year. It is a trending stock that is worth watching.

What is Doman Building Materials Group Ltd. stock price?

On 2024-06-14, Doman Building Materials Group Ltd. (DBM-T) stock closed at a price of $7.15.