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

• Market Cap: C$704.41M
• Dividend Yield: 1.56%
• Average Volume (3M): 74.06K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 0.76
• Revenue Growth: 35.22%
• EPS Growth: -1246.65%
• Country: CA
• Employees: 158
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.10
• Shares Outstanding: 78,602,840
• 10 Day Avg. Volume: 90,036
• 30 Day Avg. Volume: 74,062
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$10.00
• Price Target Upside: 11.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: C$9.00 ▲(0.11% Upside)

Dominion Lending Centres' overall stock score reflects a mixed financial performance with strong operational efficiency but significant profitability challenges. The technical analysis suggests stability, though valuation metrics highlight ongoing financial difficulties. The absence of earnings call data and corporate events limits additional insights.

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, Inc. generates revenue primarily through commissions earned on mortgage originations and other financial services facilitated by its network of mortgage professionals. The company works with a variety of lenders to provide mortgage solutions to clients, earning fees and commissions for successfully placing loans. Additionally, the company may have partnerships with various financial institutions, which can provide additional revenue streams through preferred lender arrangements and volume bonuses. Franchise fees from its network of mortgage brokerage franchises also contribute to its earnings, as the company supports franchisees with marketing, training, and operational support, thus sharing in the financial success of its franchise partners.

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

Summary

Dominion Lending Centres exhibits a mixed financial performance. The company shows strong operational efficiency with high gross profit and EBITDA margins, and a solid equity base. However, significant challenges include a negative net profit margin and return on equity, indicating profitability issues. The cash flow analysis reveals a decline in free cash flow growth, though operating cash flow remains strong.

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	46.21M	41.36M	25.75M	30.84M	43.44M	34.33M
Net Income	-119.61M	-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	156.10M	38.93M	38.76M	43.49M
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	5.60M	8.63M	34.03M	24.45M
Operating Cash Flow	40.08M	37.20M	17.09M	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	-9.27M	-36.64M	-23.75M	-14.46M

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

• Technical Analysis Sentiment: Positive
• Last Price: 8.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 8.99 is above the 20-day moving average (MA) of 8.92, above the 50-day MA of 8.84, and above the 200-day MA of 8.33, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 71.51 is Negative, neither overbought nor oversold. The STOCH value of 60.78 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
VBNK	73 Outperform	566.80M	18.38	9.96%	0.57%	4.19%	-46.14%
MKP	73 Outperform	867.24M	11.82	11.50%	7.43%	12.10%	-18.24%
TF	70 Neutral	638.85M	14.69	6.37%	8.94%	-10.69%	-28.58%
AI	68 Neutral	562.00M	11.14	0.00%	7.82%	-11.04%	0.44%
FC	67 Neutral	454.43M	11.96	0.00%	8.25%	-0.92%	4.84%
DLCG	52 Neutral	C$704.41M	37.65	-143.13%	1.56%	35.22%	-1246.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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

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.

Dominion Lending Centres to Announce Q2 2025 Financial Results

Dominion Lending Centres Inc. announced that it will release its second quarter 2025 financial results on August 7, 2025, after the market closes. The company will hold a conference call and webcast on the same day to discuss these results, which could provide insights into its operational performance and market positioning.

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. 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.