Diversified Royalty Corp (TSE:DIV)
TSX:DIV
Want to see TSE:DIV full AI Analyst Report?
Top Page
Diversified Royalty Corp
(TSX:DIV)
Select Model
Select Model
Rating:60Neutral
Price Target:
C$4.50
â–²(3.93% Upside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by a generally solid operating and earnings profile, tempered by meaningful leverage and uneven free cash flow. Near-term technicals are weak and weigh on the result, while the high dividend yield provides partial support despite a mid-range P/E.
Positive Factors
Recurring royalty model
Diversified Royalty's core model converts capital into contracted, sales‑linked royalty streams that produce recurring revenue without operating the underlying businesses. This asset-light structure can generate durable cash flows and scale with partners' system sales, supporting distributions and capital recycling over time.
Negative Factors
Meaningful leverage
Elevated debt levels reduce balance sheet flexibility and increase sensitivity to any cash‑flow weakness from underlying brands. With debt sizable relative to equity, interest and principal obligations constrain capital allocation, raising long‑term risk to distributions and limiting room for opportunistic investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring royalty model
Diversified Royalty's core model converts capital into contracted, sales‑linked royalty streams that produce recurring revenue without operating the underlying businesses. This asset-light structure can generate durable cash flows and scale with partners' system sales, supporting distributions and capital recycling over time.
Read all positive factors
Diversified Royalty Corp (DIV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$709.48M
Dividend Yield7.14%
Average Volume (3M)316.19K
Price to Earnings (P/E)14.4
Beta (1Y)0.74
Revenue Growth8.95%
EPS Growth31.66%
CountryCA
Employees43
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.21
Shares Outstanding167,726,780
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$4.50Price Target Upside3.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.22
Revenue Forecast (FY)C$85.00M
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 collecting royalties from its portfolio of royalty interests. Under its model, DIV invests capital (often alongside related parties or operating partners) and, in return, receives a defined royalty stream that is typic...
Diversified Royalty Corp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 70.79M | 64.99M | 56.49M | 45.18M | 37.28M |
| Gross Profit | 70.69M | 64.89M | 56.40M | 42.91M | 35.31M |
| EBITDA | 64.86M | 55.21M | 58.77M | 33.36M | 41.16M |
| Net Income | 36.67M | 26.62M | 31.72M | 15.56M | 23.52M |
Balance Sheet | |||||
| Total Assets | 612.25M | 578.98M | 567.35M | 458.45M | 380.76M |
| Cash, Cash Equivalents and Short-Term Investments | 4.61M | 19.69M | 4.03M | 7.41M | 8.94M |
| Total Debt | 256.15M | 260.47M | 305.16M | 199.78M | 169.66M |
| Total Liabilities | 323.66M | 290.18M | 329.95M | 224.56M | 189.24M |
| Stockholders Equity | 288.59M | 288.80M | 237.40M | 233.89M | 191.53M |
Cash Flow | |||||
| Free Cash Flow | 45.41M | 46.48M | -46.41M | -50.93M | 10.86M |
| Operating Cash Flow | 45.42M | 46.49M | 30.82M | 28.38M | 27.82M |
| Investing Cash Flow | -49.51M | -8.00K | -77.22M | -79.31M | -16.96M |
| Financing Cash Flow | -10.53M | -30.77M | 43.05M | 49.37M | -11.14M |
Diversified Royalty Corp Technical Analysis
Positive
4.33
Price Trends
4.11
Positive
3.91
Positive
3.62
Positive
Market Momentum
0.08
Negative
63.07
Neutral
51.82
Neutral
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 above the 20-day moving average (MA) of 4.17, above the 50-day MA of 4.11, and above the 200-day MA of 3.62, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 51.82 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | C$810.31M | 30.99 | 8.41% | 1.98% | 5.93% | 495.69% | |
66 Neutral | C$503.61M | 39.10 | 7.09% | 3.43% | 35.64% | -17.54% | |
66 Neutral | C$741.54M | 12.22 | 10.91% | 5.09% | 2.27% | 33.87% | |
64 Neutral | C$742.09M | 24.77 | 14.45% | 3.02% | 3.84% | 108.08% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$179.75M | 25.36 | 9.25% | 7.88% | 19.05% | 156.32% | |
60 Neutral | C$709.48M | 14.38 | 12.71% | 7.14% | 8.95% | 31.66% |
* Industrials Sector Average
TSE:DIV
Diversified Royalty Corp
4.23
1.55
58.01%
TSE:CGY
Calian Group
70.52
23.09
48.69%
TSE:DE
Decisive Dividend
8.92
2.93
48.96%
TSE:DXT
Dexterra Group
11.89
3.77
46.43%
TSE:KBL
K-Bro Linen
39.00
4.75
13.88%
TSE:WJX
Wajax Corporation
33.94
14.32
72.97%
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...
Business Operations and StrategyPrivate Placements and Financing
Diversified Royalty Lifts Debenture Offering to $69 Million After Over-Allotment Close
Positive
Feb 12, 2026
Diversified Royalty Corp. has closed the over-allotment option tied to its recent bought deal public offering of 5.75% convertible unsecured subordinated debentures, issuing an additional $9 million and lifting total gross proceeds from the financ...
Business Operations and StrategyPrivate Placements and Financing
Diversified Royalty boosts debenture deal to $69 million to fund growth
Positive
Feb 10, 2026
Diversified Royalty Corp., a Canadian multi-royalty company focused on acquiring predictable top-line royalties from a diverse mix of franchise and multi-location businesses in North America, holds trademarks across sectors such as quick lube serv...
Business Operations and StrategyPrivate Placements and Financing
Diversified Royalty Closes $60 Million Convertible Debenture Offering
Positive
Feb 9, 2026
Diversified Royalty Corp. has completed a $60 million bought deal public offering of 5.75% convertible unsecured subordinated debentures, priced at $1,000 each and now trading on the TSX under the symbol DIV.DB.B. The debentures, which mature on M...
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.