Doman Building Materials Group (DBM) AI Stock Analysis

• Market Cap: C$733.28M
• Dividend Yield: 6.82%
• Average Volume (3M): 214.00K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.88
• Revenue Growth: 14.87%
• EPS Growth: -16.06%
• Country: CA
• Employees: 2,057
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction Materials
• EPS (TTM): 0.27
• Shares Outstanding: 87,399,445
• 10 Day Avg. Volume: 305,874
• 30 Day Avg. Volume: 214,003
• PEG Ratio: 0.65
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.09
• 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$9.42
• Price Target Upside: 14.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: C$9.50 ▲( 15.71% Upside)

Doman Building Materials Group scores well due to strong revenue growth, strategic acquisitions, and attractive valuation. However, high leverage and macroeconomic headwinds pose potential risks. The technical analysis indicates potential for price corrections, warranting cautious optimism.

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, though profitability could be improved. The balance sheet reflects high leverage, which poses potential risks, but strong cash flow offers financial flexibility for future investments and debt servicing.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.85B	2.66B	2.49B	3.04B	2.54B	1.61B
	Gross Profit
456.89M	424.79M	402.72M	408.80M	391.00M	256.17M
	EBIT
135.77M	118.31M	127.98M	136.22M	171.87M	98.36M
	EBITDA
216.60M	192.07M	195.94M	203.06M	220.52M	142.28M
	Net Income Common Stockholders
63.37M	54.19M	75.79M	78.74M	106.51M	59.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.21M	13.50M	40.21M	1.40M	2.33M	1.97M
	Total Assets
1.43B	2.02B	1.43B	1.45B	1.54B	867.22M
	Total Debt
685.50M	1.17B	698.92M	706.11M	841.90M	366.51M
	Net Debt
645.28M	1.16B	658.71M	704.71M	839.57M	364.54M
	Total Liabilities
844.23M	1.36B	844.23M	876.71M	1.04B	526.64M
	Stockholders Equity
581.34M	655.67M	581.34M	568.49M	497.71M	340.58M
Cash Flow		Free Cash Flow
145.91M	93.26M	120.89M	215.41M	42.43M	161.37M
	Operating Cash Flow
111.14M	107.46M	135.34M	222.20M	49.29M	164.17M
	Investing Cash Flow
-399.47M	-474.26M	-14.14M	-4.49M	-503.29M	-2.95M
	Financing Cash Flow
313.05M	345.55M	-85.83M	-224.78M	454.48M	-157.71M

Doman Building Materials Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.21
• 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 8.21 is above the 20-day moving average (MA) of 7.58, above the 50-day MA of 7.08, and above the 200-day MA of 7.64, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 67.70 is Neutral, neither overbought nor oversold. The STOCH value of 76.76 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
WJX	73 Outperform	C$516.70M	12.58	8.09%	5.87%	-2.65%	-47.65%
DBM	71 Outperform	C$733.28M	11.55	10.01%	6.82%	14.87%	-16.06%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
HDIUF		$454.77M	11.07	6.81%	2.23%	―	―
TBL	69 Neutral	C$412.35M	9.23	10.18%	―	-1.45%	-26.19%
AFN	68 Neutral	C$712.10M	26.96	-12.61%	1.60%	-7.86%	-171.51%
FBF	68 Neutral	C$11.47M	16.30	13.04%	―	-0.82%	-25.68%

Doman Building Materials Group Corporate Events

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.

Doman Building Materials to Announce Q1 2025 Financial Results

Doman Building Materials Group Ltd. announced it will release its first quarter 2025 financial results on May 8, 2025, followed by an analyst call on May 9, 2025, to discuss the company’s financial performance. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Doman Building Materials Declares 60th Consecutive Quarterly Dividend

Doman Building Materials Group Ltd. has announced a quarterly dividend of $0.14 per share, marking the 60th consecutive quarter of dividend payments. This consistent dividend declaration reflects the company’s stable financial performance and commitment to returning value to its shareholders, reinforcing its strong position in the building materials industry.

Doman Building Materials Group Reports Strong 2024 Financial Results Amid Strategic Growth

Doman Building Materials Group Ltd. reported its financial results for 2024, showing an increase in consolidated revenues to $2.7 billion, largely driven by acquisitions despite a slowing construction materials market. The company maintained a gross margin of 16% and declared dividends of $0.56 per share for the year. The fourth quarter saw revenues of $707.8 million and a gross margin increase to 16%, reflecting strategic growth and operational excellence. However, net earnings were impacted by non-recurring acquisition-related costs.