Doman Building Materials Group (DBM) AI Stock Analysis

• Market Cap: C$834.24M
• Dividend Yield: 5.89%
• Average Volume (3M): 128.30K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.33
• Revenue Growth: 28.20%
• EPS Growth: 36.95%
• Country: CA
• Employees: 2,463
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 0.21
• Shares Outstanding: 87,630,090
• 10 Day Avg. Volume: 169,549
• 30 Day Avg. Volume: 128,299
• PEG Ratio: -0.47
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 7.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$11.00
• Price Target Upside: 15.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$10.50 ▲(10.53% Upside)

Doman Building Materials Group's overall stock score is driven by strong financial performance and attractive valuation metrics. The technical analysis supports a positive outlook, with the stock showing upward momentum. The earnings call provided a balanced view, highlighting both achievements and challenges. The absence of notable corporate events did not affect the score.

Positive Factors

Revenue Growth

The acquisition of Doman Tucker Lumber has significantly boosted revenue, indicating successful strategic expansion and increased market share.

Debt Reduction

Significant debt reduction enhances financial stability and flexibility, allowing for better capital allocation and reduced interest expenses.

Consistent Gross Margin

Stable gross margins reflect effective cost management and pricing strategies, supporting long-term profitability and competitive positioning.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic flexibility, potentially impacting the company's ability to invest in growth opportunities.

Increased Expenses

Rising expenses could pressure margins and profitability, necessitating improved cost control measures to sustain financial performance.

Higher Finance Costs

Increased finance costs reduce net income and cash flow, potentially affecting future investments and shareholder returns if not managed.

Doman Building Materials Group Business Overview & Revenue Model

Company Description

Doman 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 Money

Doman Building Materials Group generates revenue primarily through the sale of building materials to contractors, builders, and retail customers. Key revenue streams include the direct sale of lumber products, engineered wood products, and specialty materials, which are sourced from both domestic and international suppliers. The company benefits from strategic partnerships with manufacturers and distributors, allowing it to offer a wide range of high-quality products at competitive prices. Additionally, DBM may engage in value-added services such as delivery, custom cutting, and project consultations, further enhancing its revenue potential. The company's strong position in the market, along with a growing demand for construction materials, contributes significantly to its earnings.

Doman Building Materials Group Financial Statement Overview

Summary

Doman Building Materials Group exhibits solid financial performance with strong revenue growth and cash flow generation. While profitability margins are stable, there is potential for improvement in operational efficiency. The balance sheet shows high leverage, which could be a risk factor, but the company manages its cash flows effectively, supporting its financial stability.

Income Statement

Doman Building Materials Group shows a strong revenue growth rate of 6.9% in the TTM, indicating positive momentum. The gross profit margin is stable at 16%, and the net profit margin has improved slightly to 2.22%. However, the EBIT and EBITDA margins are relatively modest at 4.63% and 7.59%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company has a high debt-to-equity ratio of 1.97, indicating significant leverage, which could pose financial risks. Return on equity is moderate at 9.99%, reflecting decent profitability. The equity ratio stands at 30.56%, suggesting a balanced capital structure but with a reliance on debt financing.

Cash Flow

Free cash flow growth is robust at 28.99%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.48, indicating that cash flow from operations adequately supports net income. The free cash flow to net income ratio is impressive at 1.31, demonstrating effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.18B	2.66B	2.49B	3.04B	2.54B	1.61B
Gross Profit	486.57M	424.79M	402.72M	408.80M	391.00M	256.17M
EBITDA	262.66M	192.07M	193.48M	200.82M	218.57M	141.29M
Net Income	77.56M	54.19M	75.79M	78.74M	106.51M	59.59M
Balance Sheet
Total Assets	1.90B	2.02B	1.43B	1.45B	1.54B	867.22M
Cash, Cash Equivalents and Short-Term Investments	15.30M	13.50M	40.21M	1.40M	2.33M	1.97M
Total Debt	736.43M	1.17B	698.92M	706.11M	841.90M	366.51M
Total Liabilities	1.25B	1.36B	844.23M	876.71M	1.04B	526.64M
Stockholders Equity	653.11M	655.67M	581.34M	568.49M	497.71M	340.58M
Cash Flow
Free Cash Flow	163.61M	93.26M	120.89M	215.41M	42.43M	161.37M
Operating Cash Flow	133.31M	107.46M	135.34M	222.20M	49.29M	164.17M
Investing Cash Flow	-342.96M	-474.26M	-14.14M	-4.49M	-503.29M	-2.95M
Financing Cash Flow	192.20M	345.55M	-85.83M	-224.78M	454.48M	-157.71M

Doman Building Materials Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DBM, the sentiment is Positive. The current price of 9.5 is above the 20-day moving average (MA) of 9.38, above the 50-day MA of 9.02, and above the 200-day MA of 8.39, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DBM.

Doman Building Materials Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBM	76 Outperform	C$834.24M	10.73	12.33%	5.89%	28.20%	36.95%
CEMX	73 Outperform	C$51.82M	16.26	8.30%	―	-3.69%	85.59%
ADEN	66 Neutral	C$811.89M	13.35	6.99%	1.76%	7.18%	-9.38%
TBL	64 Neutral	C$367.01M	8.53	11.85%	―	2.99%	-12.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AEP	50 Neutral	C$42.64M	-73.56	-1.07%	―	9.30%	-151.79%

Doman Building Materials Group Corporate Events

Doman Building Materials Completes $170 Million Note Offering to Redeem 2026 Notes

Doman Building Materials Group Ltd. has successfully closed a $170 million senior unsecured note offering, with the notes due in 2029. The proceeds, along with additional funds from its credit facility, will be used to redeem its outstanding 5.25% senior unsecured notes due in 2026. This financial maneuver is expected to optimize Doman’s debt structure and potentially enhance its financial flexibility, impacting its operations and market positioning positively.

Doman Building Materials Announces $170 Million Senior Notes Offering

Doman Building Materials Group Ltd. announced the reopening and pricing of $170 million Senior Unsecured Notes due 2029, with a yield to maturity of 7.000%. The proceeds will be used to repurchase and redeem outstanding senior unsecured subordinated notes due in 2026, enhancing the company’s financial structure. This strategic financial move is expected to close by December 2, 2025, and positions Doman to strengthen its market presence and operational efficiency.

Doman Building Materials Reports Strong Q3 2025 Results Amid Market Challenges

Doman Building Materials Group Ltd. reported a significant increase in its third quarter 2025 financial results, with revenues rising to $795.1 million, largely due to the Doman Tucker Lumber Acquisition. Despite challenges in the US market, such as a decline in Southern Yellow Pine pricing, the company maintained a gross margin of 15.5% and declared a quarterly dividend of $0.14 per share. The company continues to focus on debt reduction strategies and anticipates modest gains if housing activity rebounds and policy conditions stabilize.

Doman Building Materials to Announce Q3 2025 Financial Results

Doman Building Materials Group Ltd. announced it will release its third quarter 2025 financial results on November 6, 2025, after market hours. The announcement includes a scheduled analyst call on November 7, 2025, where the company’s financial performance will be discussed by key executives. This release is significant as it provides insights into the company’s operational performance and strategic positioning in the building materials industry, potentially impacting stakeholders’ perceptions and investment decisions.

Doman Building Materials Exits Timberland Holdings with Sale to Nature Conservancy

Doman Building Materials Group Ltd. has sold its remaining private timberland holdings in southeast British Columbia to the Nature Conservancy of Canada. This strategic move marks Doman’s exit from the timberland harvesting business, allowing the company to focus on strengthening its balance sheet and enhancing its core operations in building materials distribution. The sale underscores Doman’s commitment to sustainable forest management and positions the Nature Conservancy as a long-term steward of these lands, ensuring their preservation for future generations.

Doman Building Materials Declares 62nd Consecutive Quarterly Dividend

Doman Building Materials Group Ltd. has announced a quarterly dividend of $0.14 per share, marking the 62nd consecutive quarter of dividend payments. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, reinforcing its strong position in the building materials industry.