Doman Building Materials Group (DBM) AI Stock Analysis

• Market Cap: C$836.00M
• Dividend Yield: 5.73%
• Average Volume (3M): 116.28K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.05
• Revenue Growth: 23.84%
• EPS Growth: 17.05%
• Country: CA
• Employees: 2,463
• Sector: Industrials
• Sector Strength: 83
• Industry: Construction Materials
• EPS (TTM): 0.32
• Shares Outstanding: 87,630,880
• 10 Day Avg. Volume: 169,527
• 30 Day Avg. Volume: 116,279
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$10.92
• Price Target Upside: 11.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: C$10.50 ▲(7.25% Upside)

Doman Building Materials Group's strong financial performance and technical indicators are the primary drivers of its score. The company's robust revenue growth and strategic acquisitions are significant strengths. However, high leverage and macroeconomic challenges, such as trade policy uncertainties and interest rate concerns, present notable risks.

Doman Building Materials Group Business Overview & Revenue Model

Company Description

Doman Building Materials Group (DBM) is a leading distributor of building materials and related products primarily serving the construction and home improvement sectors. The company offers a wide range of products, including lumber, roofing materials, drywall, and hardware supplies. With a strong presence in North America, DBM caters to both professional contractors and DIY enthusiasts, ensuring high-quality products and reliable service.

How the Company Makes Money

Doman Building Materials Group generates revenue through the sale of building materials and related products. The company's key revenue streams include supplying lumber, roofing materials, and other construction supplies to contractors, homebuilders, and retail outlets. DBM benefits from economies of scale and strategic partnerships with manufacturers, allowing them to offer competitive pricing and a broad product portfolio. Additionally, the company leverages its distribution network to efficiently manage logistics and inventory, further enhancing its profitability.

Doman Building Materials Group Financial Statement Overview

Summary

Doman Building Materials Group shows robust revenue growth and operational efficiency, evidenced by a 7.16% revenue increase and stable EBIT and EBITDA margins. However, the net profit margin is low at 2.22%, and the high debt-to-equity ratio of 1.97 poses a risk, despite strong cash flow indicators.

Income Statement

Doman Building Materials Group demonstrates solid financial performance with a consistent increase in revenue, reflected by a 7.16% revenue growth in the TTM compared to the previous year. The gross profit margin stands at 16.0% for TTM, indicating efficient cost management. However, the net profit margin of 2.22% suggests room for improvement in controlling non-operating costs and taxes. The EBIT and EBITDA margins are stable at 4.76% and 7.59% respectively, showing operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.97, indicating significant leverage, which could pose financial risks if not managed properly. The return on equity is moderate at 9.52% for TTM, reflecting decent profitability. The equity ratio of 30.3% suggests a lower proportion of equity financing, highlighting potential vulnerability to economic fluctuations.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio of 1.75 for TTM, indicating good cash generation from operations. The free cash flow growth rate is positive at 56.44%, which is a strong indicator of potential for reinvestment and debt reduction. However, the free cash flow to net income ratio of 2.3 suggests that a significant portion of net income is being converted into free cash flow, which is beneficial for financial flexibility.

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
EBITDA	192.07M	195.94M	203.06M	220.52M	142.28M
Net Income	54.19M	75.79M	78.74M	106.51M	59.59M
Balance Sheet
Total Assets	2.02B	1.43B	1.45B	1.54B	867.22M
Cash, Cash Equivalents and Short-Term Investments	13.50M	40.21M	1.40M	2.33M	1.97M
Total Debt	1.17B	698.92M	706.11M	841.90M	366.51M
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

• Technical Analysis Sentiment: Positive
• Last Price: 9.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.79 is above the 20-day moving average (MA) of 8.92, above the 50-day MA of 8.71, and above the 200-day MA of 7.94, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 79.34 is Negative, neither overbought nor oversold. The STOCH value of 96.55 is Negative, 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
TBL	75 Outperform	C$365.93M	8.01	12.74%	―	0.49%	-20.30%
DBM	75 Outperform	C$836.00M	11.25	11.99%	5.73%	23.84%	17.05%
WJX	73 Outperform	C$494.39M	13.80	6.93%	6.13%	2.19%	-48.80%
ADEN	72 Outperform	C$850.91M	13.92	7.08%	1.70%	6.80%	-6.80%
FBF	68 Neutral	C$11.56M	17.41	12.06%	―	-1.16%	-28.41%
Sector *	63 Neutral	$10.80B	16.55	6.58%	2.06%	2.37%	-15.86%
AFN	55 Neutral	C$792.80M	26.96	-2.30%	1.42%	-5.64%	-121.91%

Doman Building Materials Group Corporate Events

Doman Building Materials Reports Record Q2 2025 Financial Results

Doman Building Materials Group Ltd. reported a significant increase in its financial performance for the second quarter of 2025, with revenues reaching a record $886.7 million, up from $689.8 million in 2024. This growth is attributed to the impact of 2024 acquisitions and strong end-market demand. The company’s gross margin improved to 16.1%, and net earnings rose to $27.7 million. Despite challenges such as cooling housing demand and high mortgage rates, the company remains focused on long-term value creation and balance sheet optimization.

The most recent analyst rating on (TSE:DBM) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Doman Building Materials Group stock, see the TSE:DBM Stock Forecast page.

Doman Building Materials Declares 61st Consecutive Quarterly Dividend

Doman Building Materials Group Ltd. announced a quarterly dividend of $0.14 per share, marking the 61st consecutive quarter of dividend payments. This consistent dividend declaration underscores the company’s stable financial performance and commitment to returning value to shareholders, reinforcing its strong position in the building materials industry.

The most recent analyst rating on (TSE:DBM) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Doman Building Materials Group stock, see the TSE:DBM Stock Forecast page.