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

• Market Cap: C$765.59M
• Dividend Yield: 1.51%
• Average Volume (3M): 87.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 36.52%
• EPS Growth: -1243.96%
• Country: CA
• Employees: 158
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.11
• Shares Outstanding: 77,736,890
• 10 Day Avg. Volume: 26,802
• 30 Day Avg. Volume: 87,954
• PEG Ratio: <0.01
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 5.02
• P/FCF Ratio: 12.66
• 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$11.50
• Price Target Upside: 16.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$10.00 ▲(1.21% Upside)

Dominion Lending Centres, Inc. faces significant challenges with profitability and valuation, as indicated by negative net income and a negative P/E ratio. While the balance sheet is stable with low leverage, the company needs to improve its return on equity and cash flow management. Technical indicators show mixed momentum, with potential overbought conditions. The modest dividend yield provides some income but does not offset the valuation concerns.

Positive Factors

Revenue Growth

Positive revenue growth indicates expanding market presence and potential for increased market share, supporting long-term business sustainability.

Gross Profit Margin

A strong gross profit margin suggests efficient cost management and pricing power, contributing to potential profitability improvements over time.

Low Leverage

Low leverage enhances financial flexibility, reducing risk and enabling the company to invest in growth opportunities without excessive debt burden.

Negative Factors

Negative Net Income

Negative net income reflects ongoing profitability challenges, which may hinder reinvestment in business growth and shareholder value creation.

Declining Cash Flow

Declining cash flow limits the company's ability to fund operations and strategic initiatives, potentially impacting long-term growth and stability.

Negative Return on Equity

Negative return on equity indicates inefficiencies in generating returns for shareholders, which could affect investor confidence and capital raising ability.

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

Company Description

Dominion Lending Centres Inc. provides mortgage brokerage franchising and data connectivity services in Canada. The company operates in two segments, Core Business Operations and Non-Core Business Asset Management. As of December 31, 2021, it operated through 207 franchisees. The company was formerly known as Founders Advantage Capital Corp. Dominion Lending Centres Inc. was founded in 2006 and is headquartered in Calgary, Canada.

How the Company Makes Money

Dominion Lending Centres generates revenue primarily through commissions earned from lenders on mortgage transactions facilitated by its network of brokers. The company charges a fee to lenders for each mortgage successfully closed through its platform, which forms a significant portion of its revenue. Additionally, DLCG may earn income through ancillary services such as insurance products, financial planning, and marketing support for its brokers. Strategic partnerships with financial institutions and increased market penetration also contribute to the company's earnings, while its ongoing investment in technology and training enhances broker efficiency, further driving business growth.

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

Summary

Dominion Lending Centres exhibits a mixed financial performance. Strong operational efficiency and a solid equity base are offset by challenges with profitability and cash flow growth. The negative net profit margin and return on equity are significant concerns, but low leverage and strong cash flow ratios provide some stability.

Income Statement

Dominion Lending Centres shows a mixed performance in its income statement. The company has a strong gross profit margin of 86.83% in TTM, indicating efficient cost management. However, the net profit margin is negative at -136.43%, reflecting significant losses. Revenue growth is positive at 7.11% in TTM, but the company has struggled with profitability, as evidenced by the negative net income. The EBIT and EBITDA margins are relatively healthy at 43.54% and 52.71% respectively, suggesting operational efficiency despite the net losses.

Balance Sheet

The balance sheet reveals a stable financial structure with a low debt-to-equity ratio of 0.18 in TTM, indicating conservative leverage. However, the return on equity is negative at -109.01%, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio stands at 63.56%, suggesting a strong equity base relative to total assets, which is a positive sign of financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -107.5% in TTM, which is concerning. However, the operating cash flow to net income ratio is strong at 1.11, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is also healthy at 0.89, suggesting that the company is able to convert a significant portion of its net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.98M	76.75M	62.52M	70.72M	78.82M	52.41M
Gross Profit	80.60M	65.93M	52.09M	60.02M	68.97M	45.80M
EBITDA	49.81M	41.36M	25.75M	30.84M	43.44M	34.33M
Net Income	-116.03M	-126.77M	64.00K	12.06M	-5.51M	20.04M
Balance Sheet
Total Assets	222.18M	218.89M	218.11M	223.94M	253.93M	260.19M
Cash, Cash Equivalents and Short-Term Investments	3.50M	4.73M	5.61M	9.21M	20.89M	10.32M
Total Debt	30.49M	32.19M	35.76M	34.27M	37.53M	36.08M
Total Liabilities	84.15M	85.19M	192.16M	191.75M	220.10M	209.30M
Stockholders Equity	136.43M	132.14M	25.70M	31.96M	31.74M	49.47M
Cash Flow
Free Cash Flow	31.59M	30.40M	5.18M	8.63M	34.03M	24.45M
Operating Cash Flow	38.14M	37.20M	16.99M	15.87M	39.06M	33.19M
Investing Cash Flow	-7.79M	-4.20M	-11.41M	9.10M	-4.76M	-13.78M
Financing Cash Flow	-36.73M	-33.89M	-9.18M	-36.64M	-23.75M	-14.46M

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

• Technical Analysis Sentiment: Positive
• Last Price: 9.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 9.88 is above the 20-day moving average (MA) of 9.77, below the 50-day MA of 9.98, and above the 200-day MA of 9.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.61 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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	69 Neutral	C$898.39M	13.46	10.50%	7.33%	7.74%	-31.96%
AI	68 Neutral	C$557.97M	11.14	9.72%	7.95%	-13.69%	-1.60%
TF	68 Neutral	C$571.00M	15.06	5.52%	10.00%	-9.00%	-35.22%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FC	67 Neutral	C$433.87M	11.45	8.90%	8.38%	-6.64%	4.43%
VBNK	67 Neutral	$656.80M	22.76	6.08%	0.49%	3.31%	-39.12%
DLCG	50 Neutral	C$765.59M	-4.22	-137.87%	1.51%	36.52%	-1243.96%

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

Dominion Lending Centres Inc. Declares Quarterly Dividend

Dominion Lending Centres Inc. announced a quarterly cash dividend of $0.04 per class ‘A’ common share, payable on December 15, 2025, to shareholders of record as of December 1, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its attractiveness in the financial market.

Dominion Lending Centres Reports Robust Q3 2025 Results with Increased Mortgage Volumes

Dominion Lending Centres Inc. reported a strong third quarter in 2025, with a 19% increase in funded mortgage volumes, reaching $23.5 billion. The company also saw a 20% rise in revenue and a 70% increase in net income compared to the same period last year. The adoption of their Velocity platform by brokers increased to 85%, positioning the company to enhance its market share and broker network productivity. Despite a slow start to the year in the Canadian housing market, improved activity levels and a focus on growth have contributed to the company’s robust performance.

Dominion Lending Centres to Announce Q3 2025 Results

Dominion Lending Centres Inc. announced it will release its third quarter 2025 financial results on November 6, 2025, after market close. The company will hold a conference call and webcast on the same day to discuss the results, which could provide insights into the company’s operational performance and market positioning.

Dominion Lending Centres Enhances Shareholder Value with Strategic Share Repurchase

Dominion Lending Centres Inc. has repurchased 709,247 class ‘A’ common shares for $6,205,911, aligning with its capital allocation strategy to enhance shareholder value. This move reflects the company’s commitment to growth while returning capital to shareholders through dividends and share buybacks.