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Doman Building Materials Group
(TSX:DBM)
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Rating:65Neutral
Price Target:
C$12.50
▲(7.76% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid financial performance (strong recent revenue growth and positive free cash flow) tempered by elevated leverage and thin net margins. Technicals add support with a clear uptrend and healthy momentum, while valuation is favorable with a moderate P/E and a high dividend yield. Earnings-call commentary was constructive but balanced by cash-flow/working-capital pressures, higher expenses, and limited forward visibility due to no guidance.
Positive Factors
Strong cash generation
Consistent, material operating cash flow and a rising FCF profile provide durable internal funding for capex, dividends and debt service. Over the next 2–6 months this strengthens financial flexibility, supports strategic investments (sawmills) and reduces reliance on external capital.
Negative Factors
Elevated leverage
Higher leverage reduces financial flexibility and raises sensitivity to interest-rate moves and cyclical construction demand. Over 2–6 months elevated debt levels constrain capacity to absorb shocks, increase refinancing and covenant risk, and limit strategic optionality for M&A or higher capex.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, material operating cash flow and a rising FCF profile provide durable internal funding for capex, dividends and debt service. Over the next 2–6 months this strengthens financial flexibility, supports strategic investments (sawmills) and reduces reliance on external capital.
Read all positive factors
Doman Building Materials Group (DBM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.02B
Dividend Yield4.89%
Average Volume (3M)128.30K
Price to Earnings (P/E)11.8
Beta (1Y)1.34
Revenue Growth1.80%
EPS Growth13.21%
CountryCA
Employees2,463
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.97
Shares Outstanding87,762,890
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$12.88Price Target Upside10.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.89
Revenue Forecast (FY)C$3.22B
Doman Building Materials Group Business Overview & Revenue Model
Company Description
Doman Building Materials Group Ltd., headquartered in Vancouver, Canada, functions as a widespread distributor of construction materials, including lumber, renovation items, and electrical products, serving markets across Canada, the United States...
How the Company Makes Money
DBM makes money primarily by selling building materials and related products to customers in the construction and renovation markets. Revenue is generated through (1) product sales where DBM earns a gross margin between its procurement cost from m...
Doman Building Materials Group Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and financial picture: record quarterly revenue, higher net earnings, stable gross margin percentage and continued shareholder returns (dividend). Management highlighted strategic progress on domestic fencing production and benefits from import tariffs. Offsetting items include a small decline in EBITDA, rising operating expenses (inflation and earn‑out costs), weakened operating cash flow for the six‑month period, increased use of the revolving facility to fund working capital, and higher investing/CAPEX cash consumption. On balance, the positive items (record revenue, stronger net earnings, margin stability, strategic growth initiatives and maintained dividend) outweigh the headwinds related to cash flow and expense inflation.Positive Updates
Record Quarterly Revenue
Revenue for Q2 2026 reached a record $904.5 million, up $17.8 million or +2.0% versus $886.7 million in Q2 2025, driven primarily by higher year‑over‑year pricing in several construction material categories.
Negative Updates
Slight Decline in EBITDA
Adjusted EBITDA for the quarter was approximately $78.8 million versus $80.0 million a year ago, a decline of about $1.3–$1.5 million (≈‑1.8%), indicating modest softness in operating profitability versus prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue for Q2 2026 reached a record $904.5 million, up $17.8 million or +2.0% versus $886.7 million in Q2 2025, driven primarily by higher year‑over‑year pricing in several construction material categories.
Read all positive updates
Company Guidance
Management reiterated that the company will not provide forward‑looking earnings guidance — and does not anticipate offering guidance in future quarterly or interim communications — but gave a cautious, qualitative near‑term view: July was "similar" to Q2 and Q3 is expected to be "steady" with "nothing crazy" up or down. They noted operational tailwinds (tariffs on Brazil/Canada are a net benefit for fencing demand, Gilmer sawmill ramping toward full capacity and Estill starting production in Q3/Q4) and pointed to strong recent financials underpinning the outlook: Q2 record revenue $904.5M (+$17.8M, +2% YoY), gross margin $145.8M (16.1%), adjusted EBITDA ~ $78.8M, net earnings $31.2M; six‑month revenue $1.67B, adjusted EBITDA $147M, gross margin 16.5% and net earnings $55.1M. They also highlighted balance‑sheet and cash metrics — $84.9M net advances on the revolving facility YTD, $35.9M cash from financing, $21M invested in PP&E YTD, $24.6M returned to shareholders through dividends paid and a declared quarterly dividend of $0.14 per share — and confirmed the company remains in compliance with lending covenants.Doman Building Materials Group Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
54
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.11B | 3.12B | 2.66B | 2.49B | 3.04B | 2.54B |
| Gross Profit | 407.12M | 405.42M | 424.79M | 402.72M | 408.80M | 391.00M |
| EBITDA | 253.22M | 258.36M | 192.07M | 193.48M | 200.82M | 218.57M |
| Net Income | 84.18M | 80.30M | 54.19M | 75.79M | 78.74M | 106.51M |
Balance Sheet | ||||||
| Total Assets | 2.04B | 1.84B | 2.02B | 1.43B | 1.45B | 1.54B |
| Cash, Cash Equivalents and Short-Term Investments | 7.94M | 4.93M | 13.50M | 40.21M | 1.40M | 2.33M |
| Total Debt | 1.09B | 1.00B | 1.17B | 698.92M | 706.11M | 841.90M |
| Total Liabilities | 1.33B | 1.20B | 1.36B | 844.23M | 876.71M | 1.04B |
| Stockholders Equity | 709.58M | 633.97M | 655.67M | 581.34M | 568.49M | 497.71M |
Cash Flow | ||||||
| Free Cash Flow | 131.81M | 155.30M | 93.26M | 120.89M | 215.41M | 42.43M |
| Operating Cash Flow | 175.68M | 184.33M | 107.46M | 135.34M | 222.20M | 49.29M |
| Investing Cash Flow | 21.70M | 45.59M | -474.26M | -14.14M | -4.49M | -503.29M |
| Financing Cash Flow | -206.72M | -235.73M | 345.55M | -85.83M | -224.78M | 454.48M |
Doman Building Materials Group Technical Analysis
Positive
11.60
Price Trends
11.20
Positive
10.54
Positive
9.91
Positive
Market Momentum
0.10
Positive
54.62
Neutral
68.86
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 11.6 is above the 20-day moving average (MA) of 11.55, above the 50-day MA of 11.20, and above the 200-day MA of 9.91, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$72.62M | 12.44 | 14.58% | ― | 42.65% | 210.94% | |
68 Neutral | C$958.42M | 9.89 | 10.14% | 1.73% | 0.83% | 54.74% | |
65 Neutral | C$1.02B | 11.80 | 12.52% | 4.83% | 1.80% | 13.21% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | C$392.92M | 13.23 | 9.04% | ― | -5.27% | -37.28% | |
52 Neutral | C$49.35M | -40.78 | -2.63% | ― | 5.56% | -4375.00% |
* Industrials Sector Average
TSE:DBM
Doman Building Materials Group
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2.20
23.80%
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Doman Building Materials Group Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Doman Building Materials Posts Record Q2 Revenue on Firm Pricing
Positive
Aug 5, 2026
Doman Building Materials Group reported record second-quarter 2026 revenues of $904.5 million, driven primarily by higher pricing in key construction materials categories, with construction materials accounting for 84% of sales. Gross margin held ...
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.