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

• Market Cap: C$651.35M
• Dividend Yield: 1.88%
• Average Volume (3M): 13.02K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.89
• Revenue Growth: 35.48%
• EPS Growth: -4412.25%
• Country: CA
• Employees: 158
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Mortgages
• EPS (TTM): 0.06
• Shares Outstanding: 78,724,440
• 10 Day Avg. Volume: 12,733
• 30 Day Avg. Volume: 13,016
• 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$9.75
• Price Target Upside: 14.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: C$8.50 ▼(-0.12%Downside)

Dominion Lending Centres, Inc. faces significant challenges with profitability and bearish technical signals. However, strong cash flow management and recent positive corporate actions offer some optimism. The company needs to address its profitability to improve its financial stability and overall attractiveness.

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
EBITDA	45.95M	41.36M	25.75M	30.84M	43.44M	34.33M
Net Income	-123.17M	-126.77M	64.00K	12.06M	-5.51M	20.04M
Balance Sheet
Total Assets	212.45M	218.89M	218.11M	223.94M	253.93M	260.19M
Cash, Cash Equivalents and Short-Term Investments	4.16M	4.73M	5.61M	9.21M	20.89M	10.32M
Total Debt	26.54M	32.19M	156.10M	38.93M	38.76M	43.49M
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: 8.51
• 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 8.51 is below the 20-day moving average (MA) of 8.97, below the 50-day MA of 8.81, and above the 200-day MA of 7.48, indicating a bullish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 40.71 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
MKP	74 Outperform	C$760.72M	10.47	11.99%	8.43%	19.71%	-15.59%
TF	73 Outperform	C$629.75M	13.62	6.74%	9.07%	-8.68%	-25.42%
VBNK	72 Outperform	$519.00M	14.39	6.79%	0.63%	7.83%	-37.41%
AI	68 Neutral	C$539.48M	10.97	9.47%	8.20%	-1.56%	-9.70%
FC	67 Neutral	C$452.59M	12.04	8.89%	7.60%	-4.56%	0.77%
DLCG	61 Neutral	C$651.35M	37.65	-151.96%	1.88%	35.48%	-4412.25%
Sector *	61 Neutral	C$14.65B	6.10	22.26%	5.60%	27.38%	-22.40%

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

Dominion Lending Centres Inc. Launches Heartwood Financial Group to Serve Underserved Mortgage Market

Dominion Lending Centres Inc. announced the commencement of operations for Heartwood Financial Group, a non-B20 residential mortgage lender targeting an underserved segment of the Canadian housing market. Heartwood, in which DLCG holds a 40% equity interest, will operate independently and provide mortgage solutions through DLCG’s network, focusing on borrowers who may not qualify under traditional bank lending. This strategic move is expected to benefit DLCG as Heartwood adopts a prudent growth approach for the rest of 2025, positioning itself for future success.

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. 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.