Doman Building Materials Group (DBM) AI Stock Analysis

• Market Cap: C$769.05M
• Dividend Yield: 6.44%
• Average Volume (3M): 98.28K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.94
• Revenue Growth: 14.87%
• EPS Growth: -16.06%
• Country: CA
• Employees: 2,463
• Sector: Industrials
• Sector Strength: 94
• Industry: Construction Materials
• EPS (TTM): 0.27
• Shares Outstanding: 87,490,906
• 10 Day Avg. Volume: 90,964
• 30 Day Avg. Volume: 98,278
• PEG Ratio: 0.66
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.21
• 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$10.31
• Price Target Upside: 18.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: C$10.00 ▲(14.94%Upside)

Doman Building Materials Group demonstrates solid financial performance with strong revenue growth and operational efficiency, yet faces challenges with a low net profit margin and high leverage. The stock exhibits bullish technical indicators, and the attractive valuation further supports its investment appeal. Continuous dividend payments and positive corporate events reinforce confidence in the company's stability and strategic direction.

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

DBM generates revenue primarily through the sale and distribution of building materials. The company operates a wide network of distribution centers and retail outlets, allowing it to efficiently supply products to both commercial and residential sectors. Key revenue streams include direct sales to contractors and builders, as well as retail sales to individual customers. Additionally, DBM benefits from strategic partnerships with manufacturers and suppliers, which enable competitive pricing and exclusive product offerings. The company's earnings are further bolstered by its ability to capitalize on trends in construction and home renovation markets, driving demand for its comprehensive product range.

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: 8.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 8.7 is above the 20-day moving average (MA) of 8.69, above the 50-day MA of 8.50, and above the 200-day MA of 7.89, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 65.49 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	77 Outperform	C$769.05M	12.11	10.01%	6.44%	14.87%	-16.06%
Sector *	58 Neutral	HK$14.94B	4.62	-2.78%	5.07%	3.80%	-54.55%
HDIUF	―	$547.35M	13.67	6.81%	0.08%	―	―
TBL	75 Outperform	C$361.61M	8.10	10.18%	―	-1.45%	-26.19%
WJX	73 Outperform	C$505.43M	12.33	8.09%	5.99%	-2.65%	-47.65%
AFN	70 Outperform	C$799.35M	26.96	-12.61%	1.41%	-7.86%	-171.51%
FBF	68 Neutral	C$11.74M	17.83	12.06%	―	-0.82%	-25.68%

Doman Building Materials Group Corporate Events

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.

Doman Building Materials Group Announces Director Election Results

Doman Building Materials Group Ltd. announced the results of its director elections following the annual and special meeting of shareholders. All proposed nominees were elected, with a significant portion of shares represented at the meeting. The election results reflect strong support for the company’s leadership, which may positively influence its strategic direction and stakeholder confidence.

Doman Building Materials Reports Record Q1 2025 Financial Results

Doman Building Materials Group Ltd. reported record financial results for the first quarter of 2025, with revenues reaching $793.2 million, a significant increase from the previous year. The company’s strong performance is attributed to acquisitions and robust demand in its core markets, despite market volatility. Doman’s strategic focus remains on managing costs and reducing debt through strong cash flow generation, positioning it well in the building materials industry.