Dominion Lending Centres, Inc. (Canada) Class A (DLCG) AI Stock Analysis

• Market Cap: C$737.67M
• Dividend Yield: 1.7%
• Average Volume (3M): 31.95K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.91
• Revenue Growth: 35.48%
• EPS Growth: -4412.25%
• Country: CA
• Employees: 158
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Mortgages
• EPS (TTM): 0.06
• Shares Outstanding: 78,724,440
• 10 Day Avg. Volume: 8,178
• 30 Day Avg. Volume: 31,955
• PEG Ratio: -0.18
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.07
• 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$9.50
• Price Target Upside: 1.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: C$10.00 ▲(6.38%Upside)

The overall score of 64 is primarily driven by strong corporate actions and positive technical momentum. While the company faces challenges with profitability, its strategic initiatives like share repurchases and dividend increases highlight confidence in future performance. Technical analysis supports a positive short-term outlook, though the valuation reflects current profitability concerns.

Dominion Lending Centres, Inc. (Canada) Class A Business Overview & Revenue Model

Company Description

Dominion Lending Centres, Inc. (Canada) Class A (DLCG) is a leading provider of mortgage brokerage services in Canada. The company operates in the financial services sector, offering a comprehensive range of mortgage products and services through its extensive network of mortgage professionals. Dominion Lending Centres, Inc. aims to simplify the mortgage process for consumers while providing competitive rates and personalized service.

How the Company Makes Money

Dominion Lending Centres, Inc. generates revenue primarily through commissions and fees earned on the origination of mortgages. As a mortgage brokerage, the company connects borrowers with lenders, facilitating the mortgage process. The company earns a commission from lenders for each mortgage that is successfully originated through its network of mortgage professionals. Additionally, Dominion Lending Centres may generate revenue from ancillary services related to the mortgage process, such as insurance and financial advisory services. The company's extensive network of brokers and strong relationships with financial institutions are significant factors contributing to its earnings.

Dominion Lending Centres, Inc. (Canada) Class A Financial Statement Overview

Summary

Dominion Lending Centres, Inc. exhibits strong cost management and cash flow efficiency, but struggles with profitability as indicated by consistent negative net incomes. The balance sheet suggests manageable financial leverage, although high debt levels could pose risks if profitability does not improve.

Income Statement

Dominion Lending Centres, Inc. has faced challenges in maintaining profitability, with a negative net income in recent periods. The gross profit margin remains strong, indicating efficient cost management relative to revenue. However, declining revenue trends and a negative net profit margin suggest significant financial pressures, possibly due to high expenses or market conditions affecting revenue streams.

Balance Sheet

The company's balance sheet reflects moderate financial leverage with a debt-to-equity ratio that indicates some reliance on debt financing. The equity ratio is stable, suggesting a reasonable proportion of assets financed by equity. There is a decent return on equity, though fluctuating net income impacts overall returns.

Cash Flow

Dominion Lending Centres, Inc. has demonstrated strong operating cash flow relative to net income, highlighting efficient cash management. While free cash flow growth is positive, it is offset by high capital expenditures and financing cash outflows. The company appears to manage cash resources effectively despite profitability challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
81.85M	76.75M	62.52M	70.72M	78.82M	52.41M
	Gross Profit
70.86M	62.57M	52.09M	60.02M	68.97M	45.80M
	EBIT
32.93M	29.52M	18.31M	26.39M	37.39M	18.25M
	EBITDA
45.95M	41.36M	25.75M	30.84M	43.44M	34.33M
	Net Income Common Stockholders
-123.17M	-126.77M	64.00K	12.06M	-5.51M	20.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.16M	4.73M	5.61M	9.21M	20.89M	10.32M
	Total Assets
212.45M	218.89M	218.11M	223.94M	253.93M	260.19M
	Total Debt
26.54M	32.19M	156.10M	38.93M	38.76M	43.49M
	Net Debt
22.38M	27.46M	150.49M	29.71M	17.88M	33.17M
	Total Liabilities
75.24M	85.19M	192.16M	191.75M	220.10M	209.30M
	Stockholders Equity
135.61M	132.14M	25.70M	31.96M	31.74M	49.47M
Cash Flow		Free Cash Flow
36.09M	30.40M	5.60M	8.63M	34.03M	24.45M
	Operating Cash Flow
39.96M	37.20M	17.09M	15.87M	39.06M	33.19M
	Investing Cash Flow
-247.00K	-4.20M	-11.41M	9.10M	-4.76M	-13.78M
	Financing Cash Flow
-37.66M	-33.89M	-9.27M	-36.64M	-23.75M	-14.46M

Dominion Lending Centres, Inc. (Canada) Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DLCG, the sentiment is Positive. The current price of 9.4 is above the 20-day moving average (MA) of 9.17, above the 50-day MA of 8.41, and above the 200-day MA of 7.01, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 67.35 is Neutral, neither overbought nor oversold. The STOCH value of 54.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DLCG.

Dominion Lending Centres, Inc. (Canada) Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TF	75 Outperform	C$616.51M	13.28	6.74%	9.26%	-8.68%	-25.42%
MKP	74 Outperform	C$749.35M	10.34	11.99%	8.57%	19.71%	-15.59%
VBNK	70 Outperform	$484.53M	13.43	6.79%	0.64%	7.83%	-37.41%
AI	68 Neutral	C$537.96M	10.85	9.47%	8.21%	-1.56%	-9.70%
FC	67 Neutral	C$454.43M	12.14	8.89%	7.57%	-4.56%	0.77%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
DLCG	64 Neutral	C$737.67M	37.65	-151.96%	1.70%	35.48%	-4412.25%

Dominion Lending Centres, Inc. (Canada) Class A Corporate Events

Dominion Lending Centres Inc. Initiates Share Repurchase Program

Dominion Lending Centres Inc. has announced the launch of a normal course issuer bid (NCIB) and an automatic share purchase plan (ASPP), approved by the Toronto Stock Exchange. The NCIB allows the company to repurchase up to 2.67% of its outstanding class ‘A’ common shares, aiming to enhance shareholder value and supplement its dividend program. This strategic move is intended to provide flexibility in capital allocation, allowing for opportunistic share repurchases while maintaining a strong balance sheet and considering alternative investment opportunities.

The most recent analyst rating on (TSE:DLCG) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Dominion Lending Centres, Inc. (Canada) Class A stock, see the TSE:DLCG Stock Forecast page.

Dominion Lending Centres Inc. Boosts Quarterly Dividend by 33%

Dominion Lending Centres Inc. has announced a 33% increase in its quarterly dividend to $0.04 per common share, reflecting the company’s commitment to delivering shareholder value. This increase is supported by a solid balance sheet, strong cash flow, and a positive long-term growth outlook, indicating robust financial health and confidence in future performance.

The most recent analyst rating on (TSE:DLCG) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Dominion Lending Centres, Inc. (Canada) Class A stock, see the TSE:DLCG Stock Forecast page.

Dominion Lending Centres Inc. Reports Shareholder Meeting Outcomes

Dominion Lending Centres Inc. announced the results of its annual general meeting, where all seven director nominees were successfully elected, showcasing strong shareholder support. Additionally, the re-appointment of Ernst & Young LLP as auditors and the approval of the unallocated options under the stock option plan reflect continued confidence in the company’s governance and strategic direction.

Dominion Lending Centres Reports Robust Q1 Growth Amid Economic Challenges

Dominion Lending Centres Inc. reported a strong first quarter in 2025, with a 46% increase in funded mortgage volumes to $16.4 billion and a 37% rise in revenue to $18.7 million. The company’s strategic focus on expanding its broker network and the adoption of its Velocity platform contributed to a 61% increase in adjusted EBITDA. Despite economic uncertainties, DLCG remains optimistic about growth prospects due to the active mortgage renewal market and declining interest rates, which are expected to bolster revenue and profitability.

Dominion Lending Centres Reports Strong Q1 2025 Results Amid Economic Challenges

Dominion Lending Centres Inc. reported a robust first quarter in 2025, with a 46% increase in funded mortgage volumes to $16.4 billion and a 37% rise in revenue to $18.7 million. The company attributes its success to the growing adoption of its Velocity platform and a strong mortgage renewal market, despite economic uncertainties and a sluggish Canadian housing market. The expansion of its broker network and focus on educating consumers about mortgage brokers are expected to further enhance revenue and profitability.

Dominion Lending Centres to Release Q1 2025 Results and Host Annual Meeting

Dominion Lending Centres Inc. announced the release of its Q1 2025 financial results on May 7, 2025, followed by a conference call to discuss these results. The company will also hold its annual general meeting on May 8, 2025, in a hybrid format, allowing both in-person and virtual attendance. These events are pivotal for stakeholders to gain insights into the company’s financial performance and strategic direction.

Dominion Lending Centres Reports Strong Growth in 2024 Despite Financial Challenges

Dominion Lending Centres Inc. reported a significant increase in its annual funded volumes, reaching $67.4 billion, a 19% rise from the previous year, which contributed to a 23% increase in revenues and a 47% boost in adjusted EBITDA. Despite these gains, the company faced a net loss primarily due to non-cash finance expenses related to the acquisition of preferred shares. The adoption of the ‘Velocity’ platform and the ‘Gold Rush’ campaign were key drivers of success, positioning the company well for future opportunities amid potential interest rate declines and upcoming mortgage renewals.