- Doman Building Materials reported second-quarter revenue of C$886.7 million.
- The revenue represents a 29% increase year-over-year.
- The revenue exceeded market estimates, which were C$863 million.
- Net income for the quarter stood at C$27.7 million.
- The company achieved an EBITDA of C$80.0 million, reflecting a 59% increase year-over-year.
- Chairman Amar S. Doman highlighted the resilience of the business amidst challenges such as cooling housing demand and high mortgage rates.
- The company remains focused on long-term value creation and balance sheet optimization despite macroeconomic challenges.
- Investment analysts’ ratings for the company include 6 ‘buy’ recommendations and 1 ‘hold’ recommendation, with no ‘sell’ recommendations.
A look at Doman Building Materials Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Overall, the long-term outlook for Doman Building Materials Group is positive, based on an analysis of its Smartkarma Smart Scores. With a solid Dividend score of 5, investors can expect strong returns in the form of dividends. Additionally, the company scores well in terms of Value and Momentum, with scores of 4 each, indicating a good potential for growth and a reasonable valuation. While the Growth and Resilience scores are slightly lower at 3, Doman Building Materials Group still shows promise in these areas. The company’s focus on wholesaling and distributing building materials, hardware, lumber, and renovation products in Canada positions it well for continued success in the market.
In summary, Doman Building Materials Group Ltd. is a Canadian company that specializes in the wholesale and distribution of a variety of building materials. With strong scores in Dividend, Value, and Momentum, the company demonstrates its ability to provide returns to investors while maintaining a good valuation and growth potential. Although Growth and Resilience scores are not as high, Doman Building Materials Group‘s core business and market focus indicate a stable outlook for the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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