OTCPK:DRMM.F

Stock Analysis Report

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Executive Summary

Dream International Limited, an investment holding company, designs, develops, manufactures, and sells toys in North America, Japan, Europe, the People’s Republic of China, Vietnam, Korea, and internationally. More Details


Snowflake Analysis

Undervalued with solid track record and pays a dividend.

Share Price & News

How has Dream International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRMM.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

DRMM.F

7.4%

US Leisure

3.9%

US Market


1 Year Return

n/a

DRMM.F

58.4%

US Leisure

18.5%

US Market

Return vs Industry: Insufficient data to determine how DRMM.F performed against the US Leisure industry.

Return vs Market: Insufficient data to determine how DRMM.F performed against the US Market.


Shareholder returns

DRMM.FIndustryMarket
7 Day0%7.4%3.9%
30 Day0%4.4%-4.3%
90 Dayn/a22.4%8.1%
1 Yearn/a61.9%58.4%21.2%18.5%
3 Yearn/a3.9%-2.7%38.2%29.0%
5 Yearn/a16.2%4.8%84.3%63.4%

Price Volatility Vs. Market

How volatile is Dream International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dream International undervalued compared to its fair value and its price relative to the market?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRMM.F ($0.3) is trading below our estimate of fair value ($0.41)

Significantly Below Fair Value: DRMM.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DRMM.F is good value based on its PE Ratio (4.4x) compared to the US Leisure industry average (27.1x).

PE vs Market: DRMM.F is good value based on its PE Ratio (4.4x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRMM.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRMM.F is good value based on its PB Ratio (0.8x) compared to the US Leisure industry average (3.8x).


Next Steps

Future Growth

How is Dream International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DRMM.F's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if DRMM.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DRMM.F's revenue (10.1% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: DRMM.F's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRMM.F's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has Dream International performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRMM.F has high quality earnings.

Growing Profit Margin: DRMM.F's current net profit margins (11.3%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: DRMM.F's earnings have grown significantly by 20.4% per year over the past 5 years.

Accelerating Growth: DRMM.F's earnings growth over the past year (25.7%) exceeds its 5-year average (20.4% per year).

Earnings vs Industry: DRMM.F earnings growth over the past year (25.7%) exceeded the Leisure industry 8.7%.


Return on Equity

High ROE: DRMM.F's Return on Equity (19.2%) is considered low.


Next Steps

Financial Health

How is Dream International's financial position?


Financial Position Analysis

Short Term Liabilities: DRMM.F's short term assets (HK$1.9B) exceed its short term liabilities (HK$882.2M).

Long Term Liabilities: DRMM.F's short term assets (HK$1.9B) exceed its long term liabilities (HK$25.1M).


Debt to Equity History and Analysis

Debt Level: DRMM.F's debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: DRMM.F's debt to equity ratio has increased from 2% to 10.4% over the past 5 years.

Debt Coverage: DRMM.F's debt is well covered by operating cash flow (206.8%).

Interest Coverage: DRMM.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Dream International current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRMM.F's dividend (4.38%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: DRMM.F's dividend (4.38%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: DRMM.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: DRMM.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18%), DRMM.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DRMM.F's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Kyoo Choi (71 yo)

7.92yrs

Tenure

HK$7,413,000

Compensation

Mr. Kyoo Yoon Choi is the Founder of Dream International Limited and serves as its Chairman and has been its Chief Executive Officer since October 4, 2012. Mr. Choi is responsible for the strategic plannin ...


CEO Compensation Analysis

Compensation vs Market: Kyoo's total compensation ($USD956.51K) is about average for companies of similar size in the US market ($USD1.29M).

Compensation vs Earnings: Kyoo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kyoo Choi
Founder7.92yrsHK$7.41m57.11%
HK$ 148.1m
Young Lee
Presidentno dataHK$2.59m0.37%
HK$ 958.1k
Hyun Kim
Head of Accounting & Administration Department and Executive Director13.33yrsHK$2.18m0.022%
HK$ 57.5k
Sung Kim
Executive Director3.33yrsHK$2.82m0.52%
HK$ 1.3m
Dong Cha
President of Hanoi management office of the Groupno datano datano data
Chuan Wang
President of Dream International USAno dataHK$2.85mno data
Sau Ping Wong
Company Secretary0.67yrno datano data

3.3yrs

Average Tenure

61.5yo

Average Age

Experienced Management: DRMM.F's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kyoo Choi
Founder7.92yrsHK$7.41m57.11%
HK$ 148.1m
Young Lee
Presidentno dataHK$2.59m0.37%
HK$ 958.1k
Hyun Kim
Head of Accounting & Administration Department and Executive Director13.33yrsHK$2.18m0.022%
HK$ 57.5k
Sung Kim
Executive Director3.33yrsHK$2.82m0.52%
HK$ 1.3m
Chan Yoo
Independent Non-Executive Director4.33yrsHK$139.00kno data
Cheong Yi
Independent Non-Executive Director16.83yrsHK$163.00kno data
Shin Cha
Vice Chairman of Dream Inko Co Ltdno dataHK$693.00kno data
Tae Kang
Independent Non-Executive Director10.08yrsHK$151.00kno data

10.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: DRMM.F's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dream International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dream International Limited
  • Ticker: DRMM.F
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$2.010b
  • Listing Market Cap: HK$259.390m
  • Shares outstanding: 676.87m
  • Website: https://www.dream-i.com.hk

Number of Employees


Location

  • Dream International Limited
  • Tower 1
  • 6th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1126SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2002
DRMM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2002

Biography

Dream International Limited, an investment holding company, designs, develops, manufactures, and sells toys in North America, Japan, Europe, the People’s Republic of China, Vietnam, Korea, and internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/02 06:07
End of Day Share Price2020/06/05 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.