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Diversified Royalty

TSX:DIV
Snowflake Description

Reasonable growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DIV
TSX
CA$340M
Market Cap
  1. Home
  2. CA
  3. Consumer Services
Company description

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. The last earnings update was 38 days ago. More info.


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DIV Share Price and Events
7 Day Returns
-0.3%
TSX:DIV
0.6%
CA Hospitality
0.1%
CA Market
1 Year Returns
-2.8%
TSX:DIV
-35.4%
CA Hospitality
-2.9%
CA Market
DIV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Diversified Royalty (DIV) -0.3% -3.4% 1.3% -2.8% 43.4% 73.5%
CA Hospitality 0.6% -2.1% -0.1% -35.4% 30.2% 35.1%
CA Market 0.1% -1.4% -0.6% -2.9% 11.5% 0.9%
1 Year Return vs Industry and Market
  • DIV outperformed the Hospitality industry which returned -35.4% over the past year.
Price Volatility
DIV
Industry
5yr Volatility vs Market

Value

 Is Diversified Royalty undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Diversified Royalty to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Diversified Royalty.

TSX:DIV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:DIV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.92 (1 + (1- 26.5%) (34.61%))
1.103
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.103 * 5.96%)
8.52%

Discounted Cash Flow Calculation for TSX:DIV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Diversified Royalty is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:DIV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.52%)
2019 19.30 Analyst x1 17.78
2020 25.70 Analyst x1 21.82
2021 26.20 Analyst x1 20.50
2022 26.80 Analyst x1 19.32
2023 27.30 Analyst x1 18.14
2024 27.81 Est @ 1.88% 17.03
2025 28.34 Est @ 1.9% 15.99
2026 28.88 Est @ 1.91% 15.01
2027 29.44 Est @ 1.92% 14.10
2028 30.01 Est @ 1.93% 13.24
Present value of next 10 years cash flows CA$172.94
TSX:DIV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$30.01 × (1 + 1.95%) ÷ (8.52% – 1.95%)
CA$465.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$465.24 ÷ (1 + 8.52%)10
CA$205.34
TSX:DIV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$172.94 + CA$205.34
CA$378.28
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$378.28 / 108.39
CA$3.49
TSX:DIV Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$3.49
Current discount Discount to share price of CA$3.14
= -1 x (CA$3.14 - CA$3.49) / CA$3.49
10%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Diversified Royalty is available for.
Intrinsic value
10%
Share price is CA$3.14 vs Future cash flow value of CA$3.49
Current Discount Checks
For Diversified Royalty to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Diversified Royalty's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Diversified Royalty's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Diversified Royalty's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Diversified Royalty's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:DIV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.09
TSX:DIV Share Price ** TSX (2019-06-14) in CAD CA$3.14
Canada Hospitality Industry PE Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 16.98x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 15.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Diversified Royalty.

TSX:DIV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:DIV Share Price ÷ EPS (both in CAD)

= 3.14 ÷ 0.09

33.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diversified Royalty is overvalued based on earnings compared to the CA Hospitality industry average.
  • Diversified Royalty is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Diversified Royalty's expected growth come at a high price?
Raw Data
TSX:DIV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
41.3%per year
North America Hospitality Industry PEG Ratio Median Figure of 59 Publicly-Listed Hospitality Companies 1.8x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

TSX:DIV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.85x ÷ 41.3%

0.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diversified Royalty is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Diversified Royalty's assets?
Raw Data
TSX:DIV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$1.76
TSX:DIV Share Price * TSX (2019-06-14) in CAD CA$3.14
Canada Hospitality Industry PB Ratio Median Figure of 21 Publicly-Listed Hospitality Companies 1.49x
Canada Market PB Ratio Median Figure of 2,417 Publicly-Listed Companies 1.4x
TSX:DIV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:DIV Share Price ÷ Book Value per Share (both in CAD)

= 3.14 ÷ 1.76

1.78x

* Primary Listing of Diversified Royalty.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diversified Royalty is overvalued based on assets compared to the CA Hospitality industry average.
X
Value checks
We assess Diversified Royalty's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Diversified Royalty has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Diversified Royalty expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
41.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Diversified Royalty expected to grow at an attractive rate?
  • Diversified Royalty's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Diversified Royalty's earnings growth is expected to exceed the Canada market average.
  • Diversified Royalty's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:DIV Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:DIV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 41.3%
TSX:DIV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 8.5%
Canada Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 32.2%
Canada Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:DIV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:DIV Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 41 1
2022-12-31 41 1
2021-12-31 40 1
2020-12-31 38 33 23 6
2019-12-31 31 25 17 6
TSX:DIV Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 27 17 10
2018-12-31 27 17 10
2018-09-30 26 18 13
2018-06-30 25 16 12
2018-03-31 23 17 12
2017-12-31 21 14 12
2017-09-30 20 9 13
2017-06-30 22 13 10
2017-03-31 25 14 11
2016-12-31 28 15 11
2016-09-30 29 23 7
2016-06-30 28 18 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Diversified Royalty's earnings are expected to grow significantly at over 20% yearly.
  • Diversified Royalty's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:DIV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Diversified Royalty Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DIV Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.20 0.26 0.17 6.00
2019-12-31 0.16 0.18 0.14 6.00
TSX:DIV Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 0.09
2018-12-31 0.09
2018-09-30 0.12
2018-06-30 0.11
2018-03-31 0.11
2017-12-31 0.11
2017-09-30 0.12
2017-06-30 0.09
2017-03-31 0.10
2016-12-31 0.09
2016-09-30 0.06
2016-06-30 0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Diversified Royalty will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Diversified Royalty's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Diversified Royalty has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Diversified Royalty performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Diversified Royalty's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Diversified Royalty has delivered over 20% year on year earnings growth in the past 5 years.
  • Diversified Royalty's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Diversified Royalty's 1-year earnings growth is negative, it can't be compared to the CA Hospitality industry average.
Earnings and Revenue History
Diversified Royalty's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Diversified Royalty Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DIV Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 27.10 9.97 2.28
2018-12-31 26.71 10.12 2.18
2018-09-30 26.40 12.54 2.19
2018-06-30 25.03 12.23 2.03
2018-03-31 22.79 11.88 1.86
2017-12-31 20.92 11.56 1.75
2017-09-30 20.43 13.38 1.63
2017-06-30 22.37 9.95 1.59
2017-03-31 25.33 10.95 1.59
2016-12-31 28.17 10.69 1.52
2016-09-30 29.22 7.08 1.37
2016-06-30 27.62 9.84 1.26
2016-03-31 23.66 6.83 1.21
2015-12-31 19.59 5.97 1.19
2015-09-30 15.25 5.73 1.37
2015-06-30 9.70 11.73 1.76
2015-03-31 6.16 9.00 2.48
2014-12-31 3.25 7.42 2.53
2014-09-30 0.17 5.47 0.85
2014-06-30 -3.83 0.88
2014-03-31 -3.08 0.88
2013-12-31 -3.59 1.53
2013-09-30 7.83 -2.46 3.95
2013-06-30 20.07 4.96 4.41
2013-03-31 28.30 9.62 4.10
2012-12-31 28.30 9.30 4.80
2012-09-30 20.47 7.12 4.80
2012-06-30 8.23 -1.10 4.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Diversified Royalty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Diversified Royalty used its assets less efficiently than the CA Hospitality industry average last year based on Return on Assets.
  • Diversified Royalty has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Diversified Royalty's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Diversified Royalty has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Diversified Royalty's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Diversified Royalty's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Diversified Royalty is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Diversified Royalty's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Diversified Royalty's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Diversified Royalty Company Filings, last reported 2 months ago.

TSX:DIV Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 190.46 117.80 78.92
2018-12-31 192.72 116.93 78.34
2018-09-30 196.65 116.47 81.56
2018-06-30 198.39 116.14 81.13
2018-03-31 200.07 108.86 86.11
2017-12-31 202.13 108.54 85.82
2017-09-30 200.71 57.74 32.57
2017-06-30 202.86 40.70 70.95
2017-03-31 205.41 40.80 72.77
2016-12-31 208.44 40.76 74.97
2016-09-30 230.59 40.85 7.95
2016-06-30 235.46 55.76 5.38
2016-03-31 237.63 55.74 6.45
2015-12-31 241.52 55.69 8.89
2015-09-30 245.85 62.29 7.95
2015-06-30 138.07 22.58 6.72
2015-03-31 135.60 14.82 33.09
2014-12-31 137.64 14.81 34.51
2014-09-30 105.42 19.95 4.41
2014-06-30 65.55 0.00 68.07
2014-03-31 67.51 0.00 68.84
2013-12-31 67.81 0.00 69.00
2013-09-30 68.24 0.00 69.99
2013-06-30 68.84 0.00 70.94
2013-03-31 70.12 0.00 63.42
2012-12-31 70.96 0.03 63.86
2012-09-30 70.20 0.05 54.98
2012-06-30 63.43 0.06 55.01
  • Diversified Royalty's level of debt (61.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 61.9% today).
  • Debt is not well covered by operating cash flow (14.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
X
Financial health checks
We assess Diversified Royalty's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Diversified Royalty has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Diversified Royalty's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.09%
Current annual income from Diversified Royalty dividends. Estimated to be 7.24% next year.
If you bought CA$2,000 of Diversified Royalty shares you are expected to receive CA$142 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Diversified Royalty's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.14%).
  • Diversified Royalty's dividend is above the markets top 25% of dividend payers in Canada (5.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:DIV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:DIV Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.23 1.00
2022-12-31 0.23 1.00
2021-12-31 0.23 1.00
2020-12-31 0.23 4.00
2019-12-31 0.22 4.00
TSX:DIV Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-06-04 0.222 7.093
2019-05-02 0.222 6.905
2019-04-04 0.222 6.926
2019-03-04 0.222 7.077
2019-02-04 0.222 7.171
2019-01-04 0.222 7.492
2018-12-04 0.222 7.945
2018-11-05 0.222 8.215
2018-10-03 0.222 7.625
2018-08-03 0.222 6.959
2018-07-04 0.222 7.161
2018-06-05 0.222 7.000
2018-05-02 0.222 6.774
2018-04-05 0.222 6.802
2018-03-05 0.222 6.845
2018-02-02 0.222 6.785
2018-01-04 0.222 6.309
2017-12-04 0.222 6.421
2017-11-03 0.222 6.341
2017-10-03 0.222 6.689
2017-09-06 0.222 7.471
2017-08-03 0.222 9.203
2017-06-06 0.222 8.794
2017-05-04 0.222 8.374
2017-04-04 0.222 8.439
2017-03-06 0.222 8.573
2017-02-02 0.222 8.654
2017-01-05 0.222 8.526
2016-12-05 0.222 8.916
2016-11-03 0.222 9.085
2016-10-04 0.222 8.940
2016-09-01 0.222 9.350
2016-08-04 0.222 9.566
2016-07-04 0.222 9.977
2016-06-03 0.222 10.062
2016-05-04 0.222 9.819
2016-04-05 0.222 9.840
2016-03-03 0.222 9.778
2016-02-02 0.222 10.547
2016-01-04 0.222 10.227
2015-12-07 0.222 9.327
2015-11-09 0.222 8.991
2015-10-08 0.222 8.324
2015-09-08 0.200 7.707
2015-08-10 0.200 7.404
2015-07-08 0.188 6.671
2015-06-08 0.188 6.285
2015-05-11 0.188 6.512
2015-04-08 0.188 6.756
2015-03-06 0.188 7.031
2015-02-06 0.188 7.155
2015-01-08 0.188 6.979
2014-12-10 0.188 6.874
2014-10-20 0.188 6.945

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Diversified Royalty has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Diversified Royalty only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Diversified Royalty's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Diversified Royalty's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Diversified Royalty afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Diversified Royalty has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Diversified Royalty's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sean Morrison
COMPENSATION CA$1,165,103
AGE 48
TENURE AS CEO 5.8 years
CEO Bio

Mr. Sean Morrison, CA has been the Chief Executive Officer and President at Diversified Royalty Corp. since August 06, 2013. Mr. Morrison has been the Chief Executive Officer and President of BENEV Capital Inc. since August 6, 2013. He is Co-Founder and a Managing Partner of Maxam Capital Corp. Earlier, he was a Managing Partner at Maxam Capital Corp. Prior to Maxam, he was a Partner of Capital West Partners. For over 12 years at Capital West, he advised companies across Canada with respect to capital raising (senior debt, subordinated debt and private equity), IPOs, debt restructurings, asset sales, acquisitions, valuations and fairness opinions. He has been an Independent Director of goeasy Ltd. since January 10, 2012. He serves as a Corporate Director of Maxam Capital Management Ltd. Mr. Morrison currently serves on the Board of Easyhome Ltd. In 2007, he was selected by Business In Vancouver as one of Vancouver's Top 40 Under 40. He is a Chartered Accountant. Mr. Morrison holds a Degree in Commerce from the University of British Columbia and is a Chartered Accountant.

CEO Compensation
  • Sean's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sean's remuneration is about average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Diversified Royalty management team in years:

5.8
Average Tenure
  • The average tenure for the Diversified Royalty management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Sean Morrison

TITLE
President & CEO
COMPENSATION
CA$1M
AGE
48
TENURE
5.8 yrs

Greg Gutmanis

TITLE
CFO, VP of Acquisitions & Corporate Secretary
COMPENSATION
CA$986K
TENURE
3.8 yrs

Bryan Maskell

TITLE
Vice President of Sales & Marketing
COMPENSATION
CA$163K
TENURE
14.4 yrs

Abigail Meana

TITLE
Corporate Controller
Board of Directors Tenure

Average tenure and age of the Diversified Royalty board of directors in years:

2.6
Average Tenure
49
Average Age
  • The average tenure for the Diversified Royalty board of directors is less than 3 years, this suggests a new board.
Board of Directors

Lorie Haber

TITLE
Chairman of the Board
COMPENSATION
CA$86K
AGE
61
TENURE
8 yrs

Paula Rogers

TITLE
Director
COMPENSATION
CA$74K
TENURE
4.3 yrs

Garry Herdler

TITLE
Director
COMPENSATION
CA$33K
AGE
49
TENURE
1 yrs

Anita Anand

TITLE
Director
COMPENSATION
CA$32K
TENURE
1 yrs

Johnny Ciampi

TITLE
Director
COMPENSATION
CA$58K
AGE
47
TENURE
4.6 yrs

Lorraine McLachlan

TITLE
Director
COMPENSATION
CA$30K
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Diversified Royalty insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
31. May 19 Buy George Melville Individual 30. May 19 30. May 19 4,000 CA$3.17 CA$12,680
21. Feb 19 Buy Lance Tracey Individual 05. Feb 19 05. Feb 19 100,000 CA$3.10 CA$310,000
07. Sep 18 Buy Johnny Ciampi Individual 07. Sep 18 07. Sep 18 20,000 CA$3.22 CA$64,400
06. Sep 18 Buy Lorraine McLachlan Individual 06. Sep 18 06. Sep 18 3,500 CA$3.20 CA$11,200
29. Jun 18 Buy Johnny Ciampi Individual 28. Jun 18 28. Jun 18 25,000 CA$3.02 CA$75,423
X
Management checks
We assess Diversified Royalty's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Diversified Royalty has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Good Is Diversified Royalty Corp. (TSE:DIV) At Creating Shareholder Value?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Diversified Royalty: 0.073 = CA$23m ÷ (CA$319m - CA$1.5m) (Based on the trailing twelve months to March 2019.) So, Diversified Royalty has an ROCE of 7.3%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … With low levels of current liabilities, at least Diversified Royalty's mediocre ROCE is not unduly boosted.

Simply Wall St -

Have Insiders Been Buying Diversified Royalty Corp. (TSE:DIV) Shares?

View our latest analysis for Diversified Royalty The Last 12 Months Of Insider Transactions At Diversified Royalty The Chairman of the Board, Lawrence Haber, made the biggest insider sale in the last 12 months. … TSX:DIV Recent Insider Trading, May 24th 2019 There are plenty of other companies that have insiders buying up shares. … Insiders own 2.1% of Diversified Royalty shares, worth about CA$7.4m, according to our data.

Simply Wall St -

Do Institutions Own Diversified Royalty Corp. (TSE:DIV) Shares?

Insider Ownership Of Diversified Royalty The definition of company insiders can be subjective, and does vary between jurisdictions. … General Public Ownership The general public, who are mostly retail investors, collectively hold 77% of Diversified Royalty shares. … Next Steps: It's always worth thinking about the different groups who own shares in a company.

Simply Wall St -

How Should Investors React To Diversified Royalty Corp.'s (TSE:DIV) CEO Pay?

Sean Morrison became the CEO of Diversified Royalty Corp. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Sean Morrison's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Calculating The Fair Value Of Diversified Royalty Corp. (TSE:DIV)

This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

You Might Like Diversified Royalty Corp. (TSE:DIV) But Do You Like Its Debt?

(TSE:DIV) is a small-cap stock with a market capitalization of CA$337m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is.

Simply Wall St -

Diversified Royalty (TSE:DIV) Shareholders Booked A 95% Gain In The Last Five Years

(TSE:DIV) share price is up 95% in the last 5 years, clearly besting than the market return of around 4.9% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Indeed, the Diversified Royalty share price has gained 40% in three years.

Simply Wall St -

Don't Sell Diversified Royalty Corp. (TSE:DIV) Before You Read This

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Diversified Royalty has a price to earnings ratio of 26.51, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Be Worried About Diversified Royalty Corp.'s (TSE:DIV) 6.4% Return On Equity?

Our data shows Diversified Royalty has a return on equity of 6.4% for the last year. … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.064 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Diversified Royalty Corp. (TSE:DIV) Overpaying Its CEO?

In 2013 Sean Morrison was appointed CEO of Diversified Royalty Corp. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sean Morrison's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Company Info

Description

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It primarily holds the Canadian and United States trademarks and other intellectual property rights related to the Original Joe’s, Elephant & Castle, and State & Main restaurant businesses. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in October 2014. Diversified Royalty Corp. was founded in 1992 and is headquartered in Vancouver, Canada.

Details
Name: Diversified Royalty Corp.
DIV
Exchange: TSX
Founded: 1992
CA$340,347,457
108,390,910
Website: http://diversifiedroyaltycorp.com
Address: Diversified Royalty Corp.
510 Burrard Street,
Suite 902,
Vancouver,
British Columbia, V6C 3A8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX DIV Common Shares The Toronto Stock Exchange CA CAD 12. Sep 1996
OTCPK BEVF.F Common Shares Pink Sheets LLC US USD 12. Sep 1996
DB BEW Common Shares Deutsche Boerse AG DE EUR 12. Sep 1996
Number of employees
Current staff
Staff numbers
0
Diversified Royalty employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:32
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.