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Highlights

  • Doman Building’s (TSX: DBM) total sales in Q1 2024 declined marginally by 1.1% to CAD 602.4mn
  • The company’s net earnings decreased by 4% to CAD 14.3 million in Q1 2024
  • As of July 15, 2024, the company’s annual dividend yield stands at a notable 8.24%
  • On July 12, 2024, the company's board of directors paid a dividend for the 57th consecutive quarter, amounting to CAD 0.14 per share

Doman Building Materials Group Ltd (TSX: DBM) is a vertically integrated global building materials group that supplies a wide range of high-quality products to customers across North America. As of July 15, 2024, it has a market capitalization of CAD 590.94 million and the company’s annual dividend yield stands at a notable 8.24%.

In Q1 2024, the company’s total sales declined marginally by 1.1% to CAD 602.4mn, compared to CAD 609.1mn in pcp. The decline was due to lower sales from the building materials segment. The company posted slightly higher operating earnings on the back of lower cost of sales. Similarly, earnings before income taxes also declined by around 4% due to higher costs related to finance and acquisition. Overall, the company’s net earnings declined by 4% and stood at CAD 14.3 million.

On a positive note, the company's financials demonstrated successive growth in Q1 2024, compared to Q4 2023, where sales, EBITDA, and net earnings improved somewhat. Furthermore, it improved its operational margins in Q1 2024 compared to Q4 2023.

Recent business update

On July 12, 2024, Doman’s board of directors paid a dividend for the 57th consecutive quarter. An amount of CAD 0.14 per share was paid to shareholders of record as of June 28, 2024.

Company outlook

The company's management predicts that aging housing stock and ongoing trends of working from home will help counterbalance the immediate effects of higher interest rates. This is expected to stimulate spending on repairs and renovations, which will benefit the company's products and services.

Top 10 shareholders

The top 10 shareholders of DBM collectively own about 23.44% of the company's shares. Amardeip Singh Doman holds the largest stake at approximately 19.40%, followed by Dimensional Fund Advisors, L.P., which owns about 2.17% of the shares.

Stock performance

The stock price of DBM has declined by approximately 0.58% in the past week and by about 5.17% over the last month. Additionally, it is currently trading below its average 52-week high of CAD 8.64 and above its 52-week low of CAD 6.12.

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 July 15, 2024. The reference data in this report has been partly sourced from EODHD/Others.