Doman Building Materials Group (TSE:DBM)
TSX:DBM
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Doman Building Materials Group
(TSX:DBM)
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Rating:64Neutral
Price Target:
C$10.50
▲(9.38% Upside)
Action:DowngradedDate:03/07/26
The score is driven primarily by moderate financial strength (good cash flow but thin margins and high leverage) and an attractive valuation (low P/E and high dividend yield). Technicals are neutral, and the latest earnings call was constructive on operational progress and strategic initiatives, tempered by lack of formal guidance and ongoing macro/commodity and financing-cost headwinds.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow, with a notable step-up in 2025, supports durable earnings quality. This cash generation funds dividends, modest capex guidance (<1% revenue), debt paydown and integration costs, giving the company financial flexibility to execute strategic initiatives over the next 2–6 months.
Negative Factors
Elevated leverage
Debt has risen sharply since 2023 and remains well above equity, increasing financial risk in a cyclical construction sector. Elevated leverage raises interest burden and reduces flexibility to withstand demand softness or commodity swings, making covenant compliance and liquidity management ongoing structural priorities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow, with a notable step-up in 2025, supports durable earnings quality. This cash generation funds dividends, modest capex guidance (<1% revenue), debt paydown and integration costs, giving the company financial flexibility to execute strategic initiatives over the next 2–6 months.
Read all positive factors
Doman Building Materials Group (DBM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$842.53M
Dividend Yield5.85%
Average Volume (3M)128.30K
Price to Earnings (P/E)10.2
Beta (1Y)1.28
Revenue Growth28.20%
EPS Growth36.95%
CountryCA
Employees2,463
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.13
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$11.50Price Target Upside19.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.75
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
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 special...
Doman Building Materials Group Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 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
60
Neutral
Balance Sheet
52
Neutral
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.12B | 2.66B | 2.49B | 3.04B | 2.54B |
| Gross Profit | 405.42M | 424.79M | 402.72M | 408.80M | 391.00M |
| EBITDA | 256.40M | 192.07M | 193.48M | 200.82M | 218.57M |
| Net Income | 80.30M | 54.19M | 75.79M | 78.74M | 106.51M |
Balance Sheet | |||||
| Total Assets | 1.84B | 2.02B | 1.43B | 1.45B | 1.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.93M | 13.50M | 40.21M | 1.40M | 2.33M |
| Total Debt | 1.00B | 1.17B | 698.92M | 706.11M | 841.90M |
| Total Liabilities | 1.20B | 1.36B | 844.23M | 876.71M | 1.04B |
| Stockholders Equity | 633.97M | 655.67M | 581.34M | 568.49M | 497.71M |
Cash Flow | |||||
| Free Cash Flow | 155.30M | 93.26M | 120.89M | 215.41M | 42.43M |
| Operating Cash Flow | 184.33M | 107.46M | 135.34M | 222.20M | 49.29M |
| Investing Cash Flow | 45.59M | -474.26M | -14.14M | -4.49M | -503.29M |
| Financing Cash Flow | -235.73M | 345.55M | -85.83M | -224.78M | 454.48M |
Doman Building Materials Group Technical Analysis
Negative
9.60
Price Trends
10.02
Negative
9.66
Negative
9.30
Positive
Market Momentum
-0.12
Positive
42.42
Neutral
52.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DBM, the sentiment is Negative. The current price of 9.6 is below the 20-day moving average (MA) of 9.82, below the 50-day MA of 10.02, and above the 200-day MA of 9.30, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 52.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$65.96M | 13.33 | 10.61% | ― | -3.69% | 85.59% | |
65 Neutral | C$388.60M | 13.49 | 8.32% | ― | 2.99% | -12.14% | |
64 Neutral | C$815.13M | 8.76 | 11.37% | 1.74% | 7.18% | -9.38% | |
64 Neutral | C$842.53M | 10.20 | 12.47% | 5.85% | 28.20% | 36.95% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | C$39.34M | 7.34 | -1.10% | ― | 9.30% | -151.79% |
* Industrials Sector Average
TSE:DBM
Doman Building Materials Group
9.60
2.97
44.80%
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Doman Building Materials Group Corporate Events
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...
Financial Disclosures
Doman Building Materials to Release 2025 Year-End Results on March 5, 2026
Neutral
Feb 5, 2026
Doman Building Materials Group Ltd. announced it will release its fourth-quarter and full-year 2025 financial results after markets close on March 5, 2026, covering the period ended December 31, 2025. The company will follow the release with an an...
Executive/Board Changes
Doman Building Materials Names New CFO as Longtime Finance Chief Retires
Positive
Feb 2, 2026
Doman Building Materials Group announced that longtime Chief Financial Officer James Code will retire effective April 7, 2026, after more than a decade in the role, during which he helped drive the company’s growth, acquisitions, capital rai...
Business Operations and StrategyPrivate Placements and Financing
Doman Building Materials Completes Early Redemption of Senior Unsecured Notes
Positive
Dec 17, 2025
Doman Building Materials Group Ltd. has successfully completed the early redemption of $272.2 million worth of its senior unsecured notes due in 2026, reflecting its commitment to fiscal responsibility and strategic debt management. The move stren...
Dividends
Doman Building Materials Group Declares 63rd Consecutive Quarterly Dividend
Positive
Dec 15, 2025
Doman Building Materials Group Ltd. announced a quarterly dividend of $0.14 per share, marking its 63rd consecutive quarter of dividend payments. This decision underscores the company’s stable financial performance and commitment to returnin...
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.