DREAM Un Cl A (DRM) AI Stock Analysis

• Market Cap: C$828.68M
• Dividend Yield: 3.3%
• Average Volume (3M): 38.20K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.62
• Revenue Growth: -17.89%
• EPS Growth: N/A
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.65
• Shares Outstanding: 40,465,110
• 10 Day Avg. Volume: 47,582
• 30 Day Avg. Volume: 38,196
• PEG Ratio: -0.02
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.49
• P/FCF Ratio: -23.25
• 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$38.00
• Price Target Upside: 92.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: C$20.00 ▲(1.42% Upside)

DREAM Un Cl A's overall stock score is primarily influenced by its financial performance challenges, particularly in cash flow management and increasing leverage. While the valuation suggests the stock is undervalued, technical indicators warn of potential overbought conditions. The earnings call provided a mixed outlook with strong business performance but economic concerns.

Positive Factors

Asset Management Growth

The growth in the Asset Management division, with expectations to exceed $30 billion in assets under management by 2026, indicates a strong competitive position and potential for sustained revenue streams.

Liquidity Position

A strong liquidity position with $328 million and manageable debt maturities supports financial flexibility and the ability to invest in growth opportunities.

Western Canada Development Progress

Progress in Western Canada development with significant sales commitments enhances long-term revenue potential and market presence in a key region.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests increased costs or financial pressures, which could impact profitability and shareholder returns over time.

Rising Debt Levels

Higher leverage with an increased debt-to-equity ratio may strain financial resources and limit the company's ability to invest in growth or weather economic downturns.

Cash Flow Management Challenges

Challenges in cash flow management, with negative cash flows, could affect liquidity and financial flexibility, impacting the company's ability to fund operations and growth.

DREAM Un Cl A Business Overview & Revenue Model

Company Description

DREAM Un Cl A (DRM) is a publicly traded real estate investment trust (REIT) that focuses on acquiring, owning, and managing a diversified portfolio of high-quality income-producing properties. The company primarily operates in the residential and commercial real estate sectors, with its core products and services including property management, leasing, and development of residential communities and commercial spaces. DREAM aims to deliver sustainable long-term value through strategic acquisitions and active asset management.

How the Company Makes Money

DREAM Un Cl A generates revenue primarily through rental income derived from its portfolio of residential and commercial properties. The company leases its properties to tenants, which provides a steady stream of cash flow. Additionally, it may earn revenue from property management fees and development projects, where it develops new properties for leasing or sale. Significant partnerships with local governments and other real estate developers can also contribute to its earnings, allowing DREAM to expand its portfolio and enhance property value through collaborative development projects and initiatives.

DREAM Un Cl A Financial Statement Overview

Summary

DREAM Un Cl A shows strong profitability with high margins, but faces challenges with declining revenues and negative cash flows. The balance sheet indicates moderate leverage, requiring careful management to avoid financial strain.

Income Statement

The income statement shows mixed results. The TTM data indicates a significant revenue decline of 20.59%, which is concerning. However, the company maintains strong profitability with a high net profit margin of 31.84% and a gross profit margin of 35.21%. The EBIT and EBITDA margins are also robust at 47.67% and 48.65%, respectively. Despite the revenue drop, the company has managed to maintain healthy margins, indicating good cost control.

Balance Sheet

The balance sheet reflects a moderate level of financial leverage with a debt-to-equity ratio of 1.26. The return on equity (ROE) is 11.63%, which is reasonable but shows a decline from previous periods. The equity ratio stands at 37.39%, indicating a balanced capital structure. However, the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is exceptionally high at 1184.53%, but this is due to a low base effect. The operating cash flow to net income ratio is very low at 0.02, and the free cash flow to net income ratio is negative, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	443.46M	624.51M	386.95M	343.77M	325.92M	347.62M
Gross Profit	150.18M	201.66M	125.19M	113.61M	91.14M	105.15M
EBITDA	192.96M	304.89M	68.31M	106.88M	140.34M	152.62M
Net Income	81.31M	187.86M	-117.08M	164.44M	110.03M	159.22M
Balance Sheet
Total Assets	3.92B	3.92B	3.88B	3.96B	3.49B	2.84B
Cash, Cash Equivalents and Short-Term Investments	80.18M	83.88M	60.20M	47.63M	52.56M	185.12M
Total Debt	1.96B	1.88B	1.82B	1.64B	1.32B	768.62M
Total Liabilities	2.49B	2.42B	2.47B	2.40B	2.07B	1.44B
Stockholders Equity	1.43B	1.50B	1.40B	1.55B	1.42B	1.39B
Cash Flow
Free Cash Flow	-11.71M	-39.93M	-82.00M	-84.08M	-371.22M	-3.97M
Operating Cash Flow	-11.71M	-39.93M	-82.00M	-66.35M	67.02M	-82.50M
Investing Cash Flow	97.17M	132.37M	-66.82M	-137.05M	-477.17M	30.78M
Financing Cash Flow	-77.98M	-68.76M	161.39M	198.47M	277.59M	-151.67M

DREAM Un Cl A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 19.72 is above the 20-day moving average (MA) of 17.56, above the 50-day MA of 17.94, and above the 200-day MA of 19.25, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 75.25 is Negative, neither overbought nor oversold. The STOCH value of 93.03 is Negative, 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
DIR.UN	72 Outperform	C$3.61B	14.72	5.27%	5.55%	7.31%	74.70%
NXR.UN	67 Neutral	C$777.15M	9.60	7.32%	7.99%	0.41%	78.32%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	63 Neutral	C$768.69M	-9.01	-4.93%	7.49%	-20.06%	19.27%
DRM	58 Neutral	C$828.68M	10.12	5.70%	3.30%	-17.89%	―
HOM.UN	54 Neutral	C$675.80M	-26.24	-3.64%	4.54%	-6.91%	82.31%
D.UN	53 Neutral	C$329.40M	-2.17	-14.98%	5.76%	-1.06%	-20.07%

DREAM Un Cl A Corporate Events

Dream Unlimited Corp. Increases Stake in Dream Impact Trust

Dream Unlimited Corp.’s asset management arm, Dream Asset Management Corporation, has increased its stake in Dream Impact Trust by acquiring 450,000 units as part of asset management fees, raising its ownership to approximately 40.2%. This strategic move, approved by unitholders and the Toronto Stock Exchange, aligns with Dream’s ongoing evaluation of its investments, potentially impacting its market positioning and stakeholder interests.

Dream Unlimited Corp. Declares Quarterly Dividend for Shareholders

Dream Unlimited Corp. announced a quarterly cash dividend of $0.1625 per Class A Subordinate Voting Share and Class B Common Share, payable on December 31, 2025, to shareholders of record on December 15, 2025. This announcement reflects Dream’s ongoing commitment to shareholder returns and its strategic focus on expanding its portfolio of income-generating properties, which is expected to enhance its long-term growth and market positioning.

Dream Unlimited Corp. Reports Solid Q3 Results and Strategic Progress

Dream Unlimited Corp. reported solid third-quarter results, with significant progress across its major businesses. The company broke ground on the Cooperstown development in Regina, marking a milestone in its Western Canada operations. Dream’s asset management division continues to see positive growth, with $28 billion in assets under management. The Dream Residential REIT’s strategic review resulted in an agreement to be acquired, expected to bolster Dream’s liquidity. Despite challenges in the Toronto development market, Dream is advancing key projects like 49 Ontario and Quayside, which are crucial for its clients and communities.

Dream Unlimited Corp. to Announce Q3 2025 Financial Results

Dream Unlimited Corp. announced that it will release its third-quarter financial results for 2025 on November 11, with a conference call scheduled for November 12 to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial health and future prospects, especially given its focus on expanding its portfolio of income-generating properties.