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Doman Building Materials Group (TSE:DBM)
TSX:DBM
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Doman Building Materials Group
(TSX:DBM)
68Neutral
Doman Building Materials Group (DBM) vs. S&P 500 (SPY)
Market Cap
C$589.95M
Dividend Yield8.3%
Average Volume (3M)319.81K
Price to Earnings (P/E)10.9
Beta (1Y)0.74
Revenue Growth6.91%
EPS Growth-28.66%
CountryCA
Employees2,057
SectorIndustrials
Sector Strength65
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.62
Shares Outstanding87,399,445
10 Day Avg. Volume310,083
30 Day Avg. Volume319,815
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)-10.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.70Price Target Upside40.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Doman Building Materials Group Business Overview & Revenue Model
Company DescriptionDoman Building Materials Group Ltd. distributes building materials and related products in Canada, the United States, and Hawai. It distributes a range of building materials, lumber, renovation, and electrical products. The company owns approximately 117,000 acres of private timberlands, and strategic licenses and tenures. It is also involved in log harvesting and trucking, and post and pole peeling activities; and provision of pressure-treating services for specialty wood production plants. The company was formerly known as CanWel Building Materials Group Ltd. and changed its name to Doman Building Materials Group Ltd. in May 2021. Doman Building Materials Group Ltd. was founded in 1989 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyDBM generates revenue primarily through the sale and distribution of building materials across various channels. The company's revenue model is based on sourcing materials from manufacturers and suppliers, then distributing these products to its network of retail locations, contractors, and construction professionals. Key revenue streams include direct sales to contractors and builders, retail sales to do-it-yourself homeowners, and wholesale distribution to other retailers. Partnerships with leading manufacturers and a strong supply chain network enhance DBM's ability to offer competitive pricing and maintain product availability, contributing significantly to its earnings.
Doman Building Materials Group Financial Statement Overview
Summary
Doman Building Materials Group shows strong revenue growth and stable operational margins. However, high leverage and declining net income pose potential risks. The decrease in free cash flow growth may constrain future financial strategies.Income Statement
Doman Building Materials Group has demonstrated solid revenue growth over the years, with recent annual revenue increasing from $2,491 million in 2023 to $2,663 million in 2024. The gross profit margin was 15.95% in 2024, showing stability in profitability. However, net income has decreased, leading to a lower net profit margin of 2.03% in 2024. EBIT and EBITDA margins remain stable, suggesting operational efficiency.75
Positive
Balance Sheet
The company's balance sheet shows a debt-to-equity ratio of 1.78, indicating a high level of leverage which could pose risks in times of financial stress. However, the equity ratio is 32.51%, demonstrating a reasonable level of equity backing assets. Return on Equity (ROE) decreased to 8.26% in 2024, reflecting less efficient use of equity compared to previous years.70
Positive
Cash Flow
Free cash flow has decreased from $120.89 million in 2023 to $93.26 million in 2024, resulting in a negative growth rate. The operating cash flow to net income ratio is 1.98, suggesting robust cash flow generation relative to net income. However, the decline in free cash flow growth could impact future financial flexibility.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.66B | 2.49B | 3.04B | 2.54B | 1.61B | Gross Profit |
| 424.79M | 402.72M | 408.80M | 391.00M | 256.17M | EBIT |
| 118.31M | 127.98M | 136.22M | 171.87M | 98.36M | EBITDA |
| 191.12M | 195.94M | 203.06M | 220.52M | 142.28M | Net Income Common Stockholders |
| 54.19M | 75.79M | 78.74M | 106.51M | 59.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.50M | 40.21M | 1.40M | 2.33M | 1.97M | Total Assets |
| 2.02B | 1.43B | 1.45B | 1.54B | 867.22M | Total Debt |
| 1.17B | 698.92M | 706.11M | 841.90M | 366.51M | Net Debt |
| 1.16B | 658.71M | 704.71M | 839.57M | 364.54M | Total Liabilities |
| 1.36B | 844.23M | 876.71M | 1.04B | 526.64M | Stockholders Equity |
| 655.67M | 581.34M | 568.49M | 497.71M | 340.58M |
| Cash Flow | Free Cash Flow | |||
| 93.26M | 120.89M | 215.41M | 42.43M | 161.37M | Operating Cash Flow |
| 107.46M | 135.34M | 222.20M | 49.29M | 164.17M | Investing Cash Flow |
| -474.26M | -14.14M | -4.49M | -503.29M | -2.95M | Financing Cash Flow |
| 345.55M | -85.83M | -224.78M | 454.48M | -157.71M |
Doman Building Materials Group Technical Analysis
Neutral
6.92
Price Trends
7.22
Negative
7.94
Negative
7.53
Negative
Market Momentum
-0.11
Negative
42.40
Neutral
20.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DBM, the sentiment is Neutral. The current price of 6.92 is above the 20-day moving average (MA) of 6.73, below the 50-day MA of 7.22, and below the 200-day MA of 7.53, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DBM.
Doman Building Materials Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Performance Comparison
TSE:DBM
Doman Building Materials Group
6.92
-0.63
-8.34%
TSE:CFX
Canfor Pulp Products
0.70
-0.88
-55.70%
STLJF
Stella-Jones
47.94
-10.09
-17.39%
CADNF
Cascades
7.04
0.25
3.68%
IFSPF
Interfor
10.55
-4.01
-27.54%
CFPZF
Canfor
10.76
-1.25
-10.41%
Doman Building Materials Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -5.85% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook with strong financial results and strategic growth through acquisitions despite facing significant challenges such as decreased net earnings and increased expenses due to macroeconomic headwinds and weather impacts.Highlights
Strong Year-End Financial Performance
Annual revenues reached $2.7 billion with gross margin of $425 million, adjusted EBITDA of $196 million, and net earnings of $54 million for 2024.
Successful Strategic Acquisitions
Acquisition of CM Tucker Lumber and Southeast Forest Products, expanding footprint in the United States, and strengthening market position.
Revenue Growth
Sales for the year increased by $172.1 million or 6.9% from 2023, largely due to acquisitions.
Financial Flexibility
Renewed and increased credit facility to $580 million in 2025 and completed $365 million in senior unsecured note offerings.
Dividend Payout
Quarterly dividend of $0.14 per share, totaling $0.56 per share annually.
Lowlights
Decrease in Net Earnings
Net earnings for 2024 decreased by $21.6 million compared to 2023, with adjusted net earnings before acquisition costs decreasing by $19.2 million.
Increased Expenses
Expenses for the year were $306.5 million, an increase of $31.8 million or 11.6% over 2023, due to acquisitions and inflationary pressures.
Impact of Macroeconomic Headwinds
Challenging year due to lower pricing for construction materials and macroeconomic headwinds, particularly affecting the U.S. market.
Weather Impact on Q1 Performance
Severe winter weather in key regions impacting construction activities, leading to potential challenges in Q1 2025 performance.
Company Guidance
During the Doman Building Materials Group's fourth quarter and full-year 2024 financial results conference call, the company provided detailed metrics on their financial performance but did not offer future earnings guidance. The company reported annual revenues of $2.7 billion, a gross margin of $425 million, adjusted EBITDA of $196 million, and net earnings of $54 million for 2024. In the fourth quarter alone, revenues reached $708 million, with a gross margin of 16% or $113 million, adjusted EBITDA of $52 million, and net earnings slightly over $8 million. The company also highlighted the completion of strategic acquisitions, including CM Tucker Lumber and Southeast Forest Products, which contributed to their strong market position and financial performance. Despite the challenging pricing environment, Doman maintained stability through strategic growth and operational efficiencies, providing a quarterly dividend of $0.14 per share. Looking forward, the company remains focused on integrating recent acquisitions, paying down debt, and exploring organic growth opportunities.Doman Building Materials Group Corporate Events
Dividends
Doman Building Materials Declares 60th Consecutive Quarterly Dividend
Positive
Mar 14, 2025
Doman Building Materials Group Ltd. has announced a quarterly dividend of $0.14 per share, marking the 60th consecutive quarter of dividend payments. This consistent dividend declaration reflects the company’s stable financial performance and commitment to returning value to its shareholders, reinforcing its strong position in the building materials industry.
DividendsBusiness Operations and StrategyFinancial Disclosures
Doman Building Materials Group Reports Strong 2024 Financial Results Amid Strategic Growth
Positive
Feb 27, 2025
Doman Building Materials Group Ltd. reported its financial results for 2024, showing an increase in consolidated revenues to $2.7 billion, largely driven by acquisitions despite a slowing construction materials market. The company maintained a gross margin of 16% and declared dividends of $0.56 per share for the year. The fourth quarter saw revenues of $707.8 million and a gross margin increase to 16%, reflecting strategic growth and operational excellence. However, net earnings were impacted by non-recurring acquisition-related costs.
Private Placements and FinancingBusiness Operations and Strategy
Doman Building Materials Expands Revolving Credit Facility to Support Growth
Positive
Jan 31, 2025
Doman Building Materials Group Ltd. has announced an increase in its senior secured revolving credit facility from $500 million to $580 million, facilitated by Wells Fargo Capital Finance Corporation (Canada) and a group of syndicate lenders. This expansion in financial resources signifies the banking partners’ confidence in Doman’s growth strategies and provides the necessary capital to support its operational expansion plans across North America. The move is expected to strengthen Doman’s market positioning and enhance its capability to serve its stakeholders effectively.
Financial Disclosures
Doman Building Materials to Announce 2024 Financial Results
Neutral
Jan 30, 2025
Doman Building Materials Group Ltd. is set to release its fourth quarter and full year 2024 financial results on February 27, 2025. The company will hold an analyst call the following day, with key executives discussing the financial performance for the period ended December 31, 2024. This announcement reflects the company’s ongoing efforts to maintain transparency with stakeholders, potentially impacting its market perception and operational outlook.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.