DREAM Un Cl A (DRM) AI Stock Analysis

• Market Cap: C$854.12M
• Dividend Yield: 3.21%
• Average Volume (3M): 20.55K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.60
• Revenue Growth: 13.04%
• EPS Growth: N/A
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): -0.35
• Shares Outstanding: 40,621,605
• 10 Day Avg. Volume: 21,042
• 30 Day Avg. Volume: 20,548
• PEG Ratio: 0.12
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.88
• 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$33.50
• Price Target Upside: 65.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: C$22.00 ▲(8.64%Upside)

The stock score reflects a strong valuation with significant undervaluation potential and positive corporate activities. While financial performance shows profitability, concerns about revenue decline and cash flow constraints are notable. Technical analysis indicates stable positive momentum.

Positive Factors

Cash Flow Growth

Recurring income should continue to grow and drive cash flow growth, driven by rising asset management fees related to the growth of Dream’s public and private investment vehicles.

Dividend Growth

The company announced an 8% increase to its dividend, and it is now up 170% from 2020.

Financial Performance

FFO per share jumps on higher land sales, with diluted FFO per share up 101% from 2023.

Negative Factors

Valuation

Our NAV per share estimate for Dream is now at a 53.5% discount to the current share price.

DREAM Un Cl A Business Overview & Revenue Model

Company Description

DREAM Unlimited Corp. Class A (DRM) is a Canadian-based real estate company focused on asset management and real estate development. The company operates in several sectors, including residential and commercial real estate, renewable energy infrastructure, and urban development. DREAM Unlimited is known for its commitment to sustainable development practices and innovative community designs, providing integrated services across its diverse portfolio.

How the Company Makes Money

DREAM Unlimited makes money primarily through its real estate development and asset management activities. The company generates revenue from the sale of residential and commercial properties, as well as leasing and managing properties within its portfolio. Additionally, DREAM Unlimited earns fees from asset management services provided to third-party clients. The company also invests in renewable energy projects, which can offer long-term income streams from energy sales or government incentives. Significant partnerships with other real estate firms and investment entities can enhance DREAM Unlimited's revenue-generating capabilities through joint ventures and co-development projects.

DREAM Un Cl A Financial Statement Overview

Summary

DREAM Un Cl A exhibits strong profit margins and operational efficiency. However, declining revenue and high leverage raise potential risks. Cash flow constraints further indicate liquidity challenges. The company must address revenue growth and improve cash management to enhance financial stability.

Income Statement

The income statement reveals a solid gross profit margin of 35.2% TTM, with a net profit margin of 31.8%. However, the revenue growth rate has declined by 14.38% TTM, indicating a potential slowdown in top-line growth. The EBIT margin remains healthy at 23.3%, and EBITDA margin is robust at 48.6%, showcasing operational efficiency. Despite these strengths, the revenue drop is a concern.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.26, which may pose risks considering industry standards. However, a return on equity of 11.5% TTM indicates decent profitability for shareholders. The equity ratio stands at 38.6%, suggesting a balanced capital structure. The high leverage warrants cautious monitoring.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate TTM, highlighting cash management challenges. The operating cash flow to net income ratio of 0.03 reflects weaker cash generation relative to net income. Free cash flow to net income ratio is negative, aligning with cash flow constraints. Overall, liquidity and cash generation are areas of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	534.68M	624.51M	386.95M	343.77M	325.92M	347.62M
Gross Profit	188.24M	201.66M	125.19M	113.61M	91.14M	105.15M
EBITDA	260.10M	304.89M	68.31M	106.88M	140.34M	152.62M
Net Income	170.24M	187.86M	-117.08M	164.44M	110.03M	159.22M
Balance Sheet
Total Assets	3.85B	3.92B	3.88B	3.96B	3.49B	2.84B
Cash, Cash Equivalents and Short-Term Investments	67.12M	83.88M	60.20M	47.63M	52.56M	185.12M
Total Debt	1.87B	1.88B	1.82B	1.64B	1.32B	768.62M
Total Liabilities	2.36B	2.42B	2.47B	2.40B	2.07B	1.44B
Stockholders Equity	1.49B	1.50B	1.40B	1.55B	1.42B	1.39B
Cash Flow
Free Cash Flow	-7.07M	-39.93M	-82.00M	-84.08M	-371.22M	-3.97M
Operating Cash Flow	5.39M	-39.93M	-82.00M	-66.35M	67.02M	-82.50M
Investing Cash Flow	129.72M	132.37M	-66.82M	-137.05M	-477.17M	30.78M
Financing Cash Flow	-127.07M	-68.76M	161.39M	198.47M	277.59M	-151.67M

DREAM Un Cl A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRM, the sentiment is Positive. The current price of 20.25 is above the 20-day moving average (MA) of 19.78, above the 50-day MA of 18.82, and below the 200-day MA of 22.23, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 60.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DRM.

DREAM Un Cl A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXR.UN	78 Outperform	$709.58M	8.79	7.47%	11.58%	9.21%	-61.37%
MRG.UN	75 Outperform	C$960.69M	8.65	5.83%	4.14%	3.85%	-31.81%
DRM	72 Outperform	C$854.12M	4.99	11.76%	3.21%	13.04%	―
HOM.UN	66 Neutral	C$968.90M	―	-11.97%	4.31%	4.39%	56.33%
Sector *	59 Neutral	C$1.23B	0.76	-8.20%	5.62%	9.89%	-25.14%
AX.UN	57 Neutral	C$742.56M	―	-1.80%	7.89%	-13.42%	86.55%

DREAM Un Cl A Corporate Events

Dream Unlimited Corp. Declares Quarterly Dividend for Class A and B Shares

Dream Unlimited Corp. has announced a quarterly cash dividend of $0.1625 per Class A Subordinate Voting Share and Class B Common Share, payable on June 30, 2025, to shareholders of record on June 23, 2025. This announcement underscores Dream’s commitment to providing value to its shareholders and reflects its strong financial position and successful asset management operations.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Dream Unlimited Corp. Announces Key Decisions from Annual Shareholder Meeting

Dream Unlimited Corp. announced the successful election of all nominated directors at its annual shareholder meeting. Additionally, PricewaterhouseCoopers LLP was appointed as the auditor, and an amendment to the deferred share incentive plan was approved, increasing the number of units by 300,000. These decisions reflect Dream’s ongoing commitment to robust governance and strategic growth, potentially enhancing its market position and stakeholder value.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Dream Unlimited Corp. Highlights Growth Strategies at AGM

At its Annual General Meeting, Dream Unlimited Corp. provided an investor update, highlighting key business segments, strategies, and growth drivers aimed at enhancing returns and income quality. The company reported an updated net asset value per share of $51.64, compared to a standalone book equity per share of $30.53 as of March 31, 2025. This update reflects Dream’s strategic focus on improving financial performance and market positioning, potentially impacting stakeholders positively by showcasing the company’s robust asset management capabilities and growth potential.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.

Dream Unlimited Corp. Reports First-Quarter Results Amid Strategic Shifts

Dream Unlimited Corp. reported its first-quarter results, highlighting a shift in earnings due to the sale of Arapahoe Basin, which traditionally contributed significantly to first-quarter profits. Despite this, the company’s results aligned with expectations, driven by growth in asset management and successful pre-sales in Western Canada. The company is advancing large-scale affordable housing projects, such as the redevelopment at 49 Ontario St., showcasing its execution capability in a challenging market.

The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.