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Highlights

  • Doman Building Materials Group registered total sales of CAD 643.9 million in Q3 2023.
  • Its moving rate for expenses on upgrades and repairs in the US grew by 9.5% year-on-year.
  • The Group registered a jump in its gross profit following reduced cost of sales.

Wholesale distributor of building materials and home renovation products, Doman Building Materials Group Ltd (TSX: DBM) serves home renovation as well as construction, along with industrial markets. It also supplies its building products to dealer/lumberyard and home improvement centers. The company believes that a major portion of its sales is driven by demands for repairs and renovation.

In the third quarter of 2023, the moving rate for expenses on upgrades and repairs in the United States experienced a 9.5% year-on-year (YoY) increase.

The company’s total sales in Q3 2023 was recorded at CAD 643.9 million, marking a drop of around 13.5% from CAD 744.1 million in the previous corresponding period. As per DBM, it was primarily because of a decrease in sales from the company’s Buildings Materials segment.

However, Doman Building Materials Group registered a jump in its gross profit following reduced cost of sales. Its earnings before income taxes for the quarter rose from CAD 13.3 million in Q3 2022 to CAD 25.0 million in Q3 2023, mainly due to elevated operating earnings. Overall, Doman’s net income was recorded at CAD 21.1 million, as compared to CAD 11.6 million in the previous corresponding period.

The company has announced to pay a dividend of CAD 0.14 per share for Q2 2023, later this month. Also, DBM stock posted a healthy dividend yield of 6.89%, at the last closing price of CAD 8.25 as on January 8, 2024.

It additionally performed better than the industry median in terms of Average Inventory Days and realized improvement in both its margin profile and current ratio, highlighting its resilience and adaptability.

 

Top 10 Shareholders:

Around 23.16% of the total shareholding in DBM is held by its top ten shareholders. While Doman (Amardeip Singh) owns maximum stake in the company at 19.26%, Dimensional Fund Advisors, L.P. holds approximately 1.98% shareholding in the firm.

Stock Price Performance

DBM stock price has increased by approximately 11.18% over the last one month. It has gained approximately 10.00% over the last three months. The stock’s 52-week high price and 52-week low price stand at CAD 8.455 and CAD 5.96, respectively.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 8, 2024. The reference data in this report has been partly sourced from EODHD/Others.