Doman Building Materials Group (TSE:DBM)
TSX:DBM
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Doman Building Materials Group
(TSX:DBM)
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Rating:60Neutral
Price Target:
C$11.00
▲(6.28% Upside)
Action:Reiterated
Date:05/10/26
The score reflects a mixed fundamental profile: stable earnings and positive free cash flow are outweighed by high leverage and a thin-margin structure that increases cyclicality risk. Technicals are moderately positive and the dividend supports valuation, while the latest call was constructive on execution initiatives but tempered by uncertainty and higher finance costs.
Positive Factors
Value-added product ramp (fencing)
Management is investing in fencing and sawmill capacity with fencing at ~5–10% of mix and a targeted production ramp in mid‑2026. If executed, this shifts sales mix toward higher‑margin, specialized products, lowering commodity exposure and supporting steadier margins and customer stickiness over the medium term.
Negative Factors
Elevated leverage
High leverage constrains financial flexibility in a cyclical construction market by increasing refinancing and covenant risks, limiting the firm's capacity to absorb downturns or opportunistically invest. Sustained high debt magnifies earnings volatility and raises long‑term funding costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Value-added product ramp (fencing)
Management is investing in fencing and sawmill capacity with fencing at ~5–10% of mix and a targeted production ramp in mid‑2026. If executed, this shifts sales mix toward higher‑margin, specialized products, lowering commodity exposure and supporting steadier margins and customer stickiness over the medium term.
Read all positive factors
Doman Building Materials Group (DBM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$903.96M
Dividend Yield5.85%
Average Volume (3M)128.30K
Price to Earnings (P/E)8.8
Beta (1Y)1.29
Revenue Growth8.20%
EPS Growth26.81%
CountryCA
Employees2,463
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.93
Shares Outstanding87,763,145
10 Day Avg. Volume169,549
30 Day Avg. Volume128,299
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.29
Price to Sales (P/S)0.26
P/FCF Ratio5.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.04Price Target Upside16.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.74
Revenue Forecast (FY)C$3.21B
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 approximat...
How the Company Makes Money
DBM primarily makes money by selling building materials and wood-based products to contractors, builders, retailers, and other professional customers. Its core revenue stream is product sales through its distribution platform, where it purchases b...
Doman Building Materials Group Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong year-over-year financial improvements—17.1% revenue growth, 33.4% EBITDA growth, and a significant rise in net earnings—driven primarily by full-year contributions from 2024 acquisitions and margin initiatives (lumber buying discipline, freight optimization). Management maintained a dividend, strengthened the balance sheet, generated positive operating cash flow, and highlighted clear strategic investments in value-added products (fencing) with expected revenue contributions in mid-2026. Offsetting these positives are persistent macro and industry headwinds: volatile lumber pricing, elevated finance costs related to acquisition financing, higher depreciation and absolute expense growth, and weather/seasonality risks. Overall, highlights outweigh the lowlights given the substantial profitability and cash-flow gains and successful integration of acquisitions.Positive Updates
Revenue Growth Driven by Acquisitions
Full-year revenues of $3.12 billion in 2025, up $456 million or 17.1% versus 2024, largely due to the full-year contribution of 2024 acquisitions (Doman Tucker Lumber and Southeast Forest Products).
Negative Updates
Pressure from Weak and Volatile Commodity Pricing
Company faced falling lumber pricing and weaker pricing in certain construction material categories during 2025, creating near-term pressure on results despite overall year-on-year improvement.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth Driven by Acquisitions
Full-year revenues of $3.12 billion in 2025, up $456 million or 17.1% versus 2024, largely due to the full-year contribution of 2024 acquisitions (Doman Tucker Lumber and Southeast Forest Products).
Read all positive updates
Company Guidance
Management explicitly said the company will not provide forward-looking earnings guidance and does not expect to resume issuing earnings guidance in future quarterly or interim communications; instead the call offered directional commentary for 2026 alongside a range of reported 2025 and Q4 metrics. For context, 2025 revenues were $3.12 billion with gross margin $505.5 million (16.2%), EBITDA $256.4 million, net earnings $80.3 million (Q4: revenue $644 million, gross margin 16.6% / $107.2 million, EBITDA $44.3 million, Q4 net earnings $11 million), operating cash flow before noncash working capital $163.6 million, dividends declared $0.14 per quarter ($0.56/year) and $49 million paid in 2025, finance costs $72.9 million, PP&E spend $29 million (company expects PP&E below 1% of revenue going forward), lease payments $32.3 million, financing activities consumed $235.7 million, investing activities generated $45.6 million including $75.2 million from timber loan sales, and the company remained in compliance with lending covenants. Directionally, management said 2026 is off to a “decent start,” first‑two‑month bookings for treated lumber are strong, fencing/value‑added volumes and efficiency gains (fencing contribution currently ~5–10% of sales) should ramp in Q2–Q3 with a target to be the #1 U.S. fence producer in two years, freight optimization is in the early innings (rolled out in two divisions), and DS&A inflation ran about in line with CPI (~3%).Doman Building Materials Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.09B | 3.12B | 2.66B | 2.49B | 3.04B | 2.54B |
| Gross Profit | 427.94M | 405.42M | 424.79M | 402.72M | 408.80M | 391.00M |
| EBITDA | 254.40M | 256.40M | 192.07M | 193.48M | 200.82M | 218.57M |
| Net Income | 80.67M | 80.30M | 54.19M | 75.79M | 78.74M | 106.51M |
Balance Sheet | ||||||
| Total Assets | 2.05B | 1.84B | 2.02B | 1.43B | 1.45B | 1.54B |
| Cash, Cash Equivalents and Short-Term Investments | 2.35M | 4.93M | 13.50M | 40.21M | 1.40M | 2.33M |
| Total Debt | 1.17B | 1.00B | 1.17B | 698.92M | 706.11M | 841.90M |
| Total Liabilities | 1.39B | 1.20B | 1.36B | 844.23M | 876.71M | 1.04B |
| Stockholders Equity | 666.73M | 633.97M | 655.67M | 581.34M | 568.49M | 497.71M |
Cash Flow | ||||||
| Free Cash Flow | 131.29M | 155.30M | 93.26M | 120.89M | 215.41M | 42.43M |
| Operating Cash Flow | 173.03M | 184.33M | 107.46M | 135.34M | 222.20M | 49.29M |
| Investing Cash Flow | 24.05M | 45.59M | -474.26M | -14.14M | -4.49M | -503.29M |
| Financing Cash Flow | -210.65M | -235.73M | 345.55M | -85.83M | -224.78M | 454.48M |
Doman Building Materials Group Technical Analysis
Positive
10.35
Price Trends
9.82
Positive
9.62
Positive
9.18
Positive
Market Momentum
0.07
Negative
69.01
Neutral
81.14
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 10.35 is above the 20-day moving average (MA) of 9.65, above the 50-day MA of 9.82, and above the 200-day MA of 9.18, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 81.14 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$77.95M | -14.86 | 9.74% | ― | 36.34% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$903.96M | 8.79 | 12.52% | 5.85% | 8.20% | 26.81% | |
58 Neutral | C$804.47M | 101.47 | 10.13% | 1.74% | 2.87% | 64.68% | |
55 Neutral | C$44.26M | -16.89 | -1.10% | ― | 12.20% | -1.92% | |
54 Neutral | C$394.00M | 11.22 | 8.32% | ― | -3.64% | -37.97% |
* Industrials Sector Average
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Doman Building Materials Group Corporate Events
Business Operations and StrategyDividends
Doman Building Materials Extends 64-Quarter Dividend Streak With $0.14 Payout
Positive
Mar 13, 2026
Doman Building Materials Group Ltd. has declared a quarterly dividend of $0.14 per share, payable on April 15, 2026, to shareholders of record as of March 31, marking the company’s 64th consecutive quarterly dividend. The continued dividend ...
Business Operations and StrategyDividendsFinancial Disclosures
Doman Building Materials Grows 2025 Earnings on Acquisitions Despite Pricing Headwinds
Positive
Mar 5, 2026
Doman Building Materials Group reported 2025 revenues of $3.1 billion, up 17.1% from 2024, with gross margin improving to 16.2% and EBITDA rising to $256.4 million, driven largely by the full-year impact of recent acquisitions despite pricing pres...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.