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

• Market Cap: C$822.72M
• Dividend Yield: 1.56%
• Average Volume (3M): 87.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• 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: 78,602,840
• 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: 19.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$10.50 ▲(9.38% Upside)

Dominion Lending Centres' overall stock score reflects a balance between its mixed financial performance and positive technical indicators. The company's operational efficiency and strong equity base are offset by profitability challenges and a negative P/E ratio. The stock's bullish technical trend provides some optimism, but the valuation concerns and lack of earnings call data limit the score.

Positive Factors

Operational Efficiency

High gross profit margins indicate efficient cost management, which can sustain operational efficiency and support long-term profitability.

Revenue Growth

Positive revenue growth suggests expanding market presence and product adoption, which are crucial for long-term business sustainability.

Balance Sheet Strength

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to navigate market fluctuations.

Negative Factors

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which can hinder long-term growth and investor confidence.

Return on Equity

Negative return on equity indicates inefficiencies in generating profits from shareholders' equity, impacting overall financial health.

Free Cash Flow Decline

A decline in free cash flow growth can strain liquidity and limit the company's ability to invest in growth opportunities or return capital to shareholders.

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. While the company demonstrates strong operational efficiency and a solid equity base, it faces challenges with profitability and cash flow growth. The negative net profit margin and return on equity are significant concerns, but the low leverage and strong cash flow ratios provide some stability. The company needs to focus on improving profitability to enhance its overall financial health.

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	87.67M	76.75M	62.52M	70.72M	78.82M	52.41M
Gross Profit	76.13M	65.93M	52.09M	60.02M	68.97M	45.80M
EBITDA	47.79M	41.36M	25.75M	30.84M	43.44M	34.33M
Net Income	-119.69M	-126.77M	64.00K	12.06M	-5.51M	20.04M
Balance Sheet
Total Assets	218.53M	218.89M	218.11M	223.94M	253.93M	260.19M
Cash, Cash Equivalents and Short-Term Investments	3.81M	4.73M	5.61M	9.21M	20.89M	10.32M
Total Debt	24.97M	32.19M	35.76M	34.27M	37.53M	36.08M
Total Liabilities	78.15M	85.19M	192.16M	191.75M	220.10M	209.30M
Stockholders Equity	138.90M	132.14M	25.70M	31.96M	31.74M	49.47M
Cash Flow
Free Cash Flow	35.70M	30.40M	5.18M	8.63M	34.03M	24.45M
Operating Cash Flow	40.08M	37.20M	16.99M	15.87M	39.06M	33.19M
Investing Cash Flow	-6.15M	-4.20M	-11.41M	9.10M	-4.76M	-13.78M
Financing Cash Flow	-35.50M	-33.89M	-9.18M	-36.64M	-23.75M	-14.46M

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

• Technical Analysis Sentiment: Negative
• Last Price: 9.60
• 50DMA: Negative
• 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 Negative. The current price of 9.6 is below the 20-day moving average (MA) of 9.99, below the 50-day MA of 10.17, and above the 200-day MA of 8.90, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 35.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	73 Outperform	C$850.65M	11.48	10.50%	7.37%	7.74%	-31.96%
AI	68 Neutral	C$526.75M	10.44	9.72%	8.16%	-13.69%	-1.60%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FC	67 Neutral	C$430.92M	11.34	8.90%	8.74%	-6.64%	4.43%
VBNK	63 Neutral	$532.05M	17.44	6.07%	0.60%	4.19%	-46.14%
TF	60 Neutral	C$564.38M	14.88	5.52%	10.12%	-9.00%	-35.22%
DLCG	55 Neutral	C$822.72M	-4.48	-137.87%	1.56%	36.52%	-1243.96%

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

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.

The most recent analyst rating on (TSE:DLCG) stock is a Buy with a C$11.50 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 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.

The most recent analyst rating on (TSE:DLCG) stock is a Hold with a C$9.00 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 Appoints New COO to Drive Growth

Dominion Lending Centres Inc. has appointed Dave Teixeira as Chief Operating Officer. Teixeira, who has been with the company since 2015 and previously served as Executive Vice President of Operations, has played a crucial role in enhancing operational processes and integrating teams. His new role is expected to further drive operational excellence and support the company’s growth and success.

The most recent analyst rating on (TSE:DLCG) stock is a Hold with a C$8.50 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. Declares Quarterly Dividend

Dominion Lending Centres Inc. announced a quarterly cash dividend of $0.04 per class ‘A’ common share, payable on September 15, 2025, to shareholders of record as of September 2, 2025. This announcement underscores the company’s commitment to providing value to its shareholders and reflects its stable financial position within the mortgage industry.

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 Reports Strong Q2 2025 Results with Revenue Growth and Strategic Expansion

Dominion Lending Centres Inc. reported strong financial results for Q2 2025, with a 31% increase in revenue and a doubling of adjusted earnings per share. Despite challenges in the housing market, the company benefited from a strong Canadian residential mortgage origination market, growth in its broker network, and increased adoption of its Velocity platform. Additionally, the launch of Heartwood Financial Group, in which DLC holds a 40% equity interest, marks an expansion into an underserved segment of the market, promising future profitability and shareholder value.

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.