Diversified Royalty Corp (TSE:DIV)
TSX:DIV
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Diversified Royalty Corp
(TSX:DIV)
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Rating:71Outperform
Price Target:
C$5.50
â–²(27.02% Upside)
Action:Upgraded
Date:05/16/26
The score is driven primarily by strong underlying profitability, but moderated by leverage and uneven free-cash-flow consistency. Technicals add support with an uptrend and positive MACD, while valuation is balanced between a high dividend yield and a mid-to-high P/E.
Positive Factors
High Profitability
Sustained, very high net margins (~52% TTM) indicate the royalty model captures disproportionate profit relative to revenue, supporting durable earnings generation. High margins provide a buffer versus cyclical sales swings and help fund distributions or debt service over time.
Negative Factors
Elevated Leverage
Meaningful reliance on debt (D/E ~0.89) reduces financial flexibility and raises refinancing risk if royalties or partner sales weaken. Leverage constrains capital allocation and heightens the impact of sustained cash flow deterioration on solvency and distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained, very high net margins (~52% TTM) indicate the royalty model captures disproportionate profit relative to revenue, supporting durable earnings generation. High margins provide a buffer versus cyclical sales swings and help fund distributions or debt service over time.
Read all positive factors
Diversified Royalty Corp (DIV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$822.56M
Dividend Yield7.14%
Average Volume (3M)316.19K
Price to Earnings (P/E)23.2
Beta (1Y)0.79
Revenue Growth10.83%
EPS Growth30.66%
CountryCA
Employees43
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.21
Shares Outstanding171,009,490
10 Day Avg. Volume329,600
30 Day Avg. Volume316,190
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)2.18
Price to Sales (P/S)8.88
P/FCF Ratio13.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.70Price Target Upside8.55% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)C$102.31M
Diversified Royalty Corp Business Overview & Revenue Model
Company Description
Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. The company owns the Mr. Lube, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, and Oxfo...
How the Company Makes Money
DIV makes money primarily by receiving royalty revenue calculated as a contractually defined percentage of the system-wide sales (or other defined revenue base) generated by the underlying brand(s) in which it holds royalty interests. These royalt...
Diversified Royalty Corp Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.65M | 70.79M | 64.99M | 56.49M | 45.18M | 37.28M |
| Gross Profit | 72.60M | 70.69M | 64.89M | 56.40M | 42.91M | 35.31M |
| EBITDA | 64.32M | 64.86M | 55.21M | 58.77M | 33.36M | 41.16M |
| Net Income | 36.26M | 36.67M | 26.62M | 31.72M | 15.56M | 23.52M |
Balance Sheet | ||||||
| Total Assets | 656.70M | 612.25M | 578.98M | 567.35M | 458.45M | 380.76M |
| Cash, Cash Equivalents and Short-Term Investments | 46.49M | 4.61M | 19.69M | 4.03M | 7.41M | 8.94M |
| Total Debt | 298.45M | 256.15M | 260.47M | 305.16M | 199.78M | 169.66M |
| Total Liabilities | 367.10M | 323.66M | 290.18M | 329.95M | 224.56M | 189.24M |
| Stockholders Equity | 289.61M | 288.59M | 288.80M | 237.40M | 233.89M | 191.53M |
Cash Flow | ||||||
| Free Cash Flow | -6.54M | 45.41M | 46.48M | -46.41M | -50.93M | 10.86M |
| Operating Cash Flow | 42.98M | 45.42M | 46.49M | 30.82M | 28.38M | 27.82M |
| Investing Cash Flow | -49.52M | -49.51M | -8.00K | -77.22M | -79.31M | -16.96M |
| Financing Cash Flow | 38.17M | -10.53M | -30.77M | 43.05M | 49.37M | -11.14M |
Diversified Royalty Corp Technical Analysis
Positive
4.33
Price Trends
4.28
Positive
4.10
Positive
3.77
Positive
Market Momentum
0.17
Negative
76.28
Negative
87.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DIV, the sentiment is Positive. The current price of 4.33 is below the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.28, and above the 200-day MA of 3.77, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 76.28 is Negative, neither overbought nor oversold. The STOCH value of 87.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DIV.
Diversified Royalty Corp Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$833.87M | 14.01 | 16.00% | 3.02% | 6.54% | 44.56% | |
71 Outperform | C$822.56M | 23.19 | 12.54% | 7.14% | 10.83% | 30.66% | |
68 Neutral | C$994.62M | 31.13 | 10.35% | 1.98% | 11.71% | 76473.68% | |
65 Neutral | C$627.27M | 9.90 | 11.63% | 5.09% | -3.59% | 50.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$541.19M | 47.87 | 7.12% | 3.43% | 44.38% | -7.06% | |
52 Neutral | C$185.39M | 46.65 | 9.17% | 7.88% | 9.61% | 81.06% |
* Industrials Sector Average
TSE:DIV
Diversified Royalty Corp
4.84
2.09
76.26%
TSE:CGY
Calian Group
86.66
47.80
123.00%
TSE:DE
Decisive Dividend
9.28
2.25
32.02%
TSE:DXT
Dexterra Group
13.50
5.23
63.16%
TSE:KBL
K-Bro Linen
41.34
7.69
22.86%
TSE:WJX
Wajax Corporation
29.09
7.83
36.82%
Diversified Royalty Corp Corporate Events
Business Operations and StrategyDividends
Diversified Royalty Corp. Declares April 2026 Monthly Dividend
Positive
Apr 2, 2026
Diversified Royalty Corp. has declared a cash dividend of $0.02375 per common share for April 2026, equivalent to $0.285 on an annualized basis, payable on April 30 to shareholders of record as of April 15. The announcement underlines the company&...
Business Operations and StrategyDividends
Diversified Royalty Boosts Cheba Hut Royalty Stream in US$7.2 Million Deal
Positive
Apr 1, 2026
Diversified Royalty Corp. has expanded its royalty exposure to Cheba Hut Franchising Inc. by purchasing an additional US$0.9 million in annualized royalty for US$7.2 million, effective April 1, 2026. The new US$75,000 monthly royalty will be layer...
Business Operations and StrategyDividendsFinancial Disclosures
Diversified Royalty Lifts 2025 Cash Flow as New AIR MILES Deal Bolsters Stability
Positive
Mar 20, 2026
Diversified Royalty Corp. reported 2025 revenue of $70.8 million and adjusted revenue of $76.1 million, reflecting high single-digit growth, while distributable cash rose 12.7% to $50.5 million and the annual payout ratio improved slightly to 88.1...
DividendsFinancial Disclosures
Diversified Royalty Corp. Declares March Dividend and Sets Q4 2025 Earnings Date
Positive
Mar 5, 2026
Diversified Royalty Corp., a North American multi-royalty company that owns trademarks across automotive services, real estate, restaurants, home care, education, commercial cleaning, quick-service Mexican food, sandwich franchises and loyalty pro...
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.