Diversified Royalty Corp (DIV) AI Stock Analysis

• Market Cap: C$540.07M
• Dividend Yield: 7.49%
• Average Volume (3M): 316.19K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.79
• Revenue Growth: 7.68%
• EPS Growth: -20.47%
• Country: CA
• Employees: 43
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.05
• Shares Outstanding: 155,639,500
• 10 Day Avg. Volume: 329,600
• 30 Day Avg. Volume: 316,190
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.90
• Price Target Upside: 13.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: C$3.50 ▲(1.45% Upside)

Diversified Royalty Corp has a solid financial foundation with strong revenue growth and profitability. However, technical indicators suggest bearish momentum, which could impact short-term performance. The stock's valuation is reasonable, with an attractive dividend yield for income investors.

Diversified Royalty Corp Business Overview & Revenue Model

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 company owns the Mr. Lube, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, and Oxford Learning Centres trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was incorporated in 1992 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Diversified Royalty Corp generates revenue primarily through royalty payments derived from its franchise agreements. The company typically acquires a percentage of the gross sales from its partner brands, which include well-known franchises in the food and retail sectors. Key revenue streams include fixed royalties, which provide a stable income base, and additional performance-based royalties that increase as franchise sales grow. Significant partnerships with established brands allow DIV to benefit from their market presence and operational success, further enhancing its earnings potential. Additionally, the company may explore new acquisitions to expand its portfolio, contributing to long-term revenue growth.

Diversified Royalty Corp Financial Statement Overview

Summary

Diversified Royalty Corp demonstrates strong financial performance with consistent revenue growth and high margins. The company maintains a solid cash flow position, although the high debt-to-equity ratio presents a potential risk.

Income Statement

Diversified Royalty Corp has shown strong revenue growth with a 15% increase from 2023 to 2024. The company maintains high gross and EBIT margins at 100% and 77% respectively, indicating efficient cost management. However, the net profit margin decreased slightly to 41%, suggesting increased operational costs or taxes.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 0.90, which may indicate higher financial leverage. The return on equity remains strong at 9.22%, and the equity ratio improved to 49.87%, reflecting good asset management and financial stability.

Cash Flow

The cash flow analysis shows a positive turnaround with a significant free cash flow of $46.5 million in 2024, signaling improved cash management. The operating cash flow to net income ratio of 1.75 suggests robust cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.62M	64.99M	56.49M	45.18M	37.28M	30.50M
Gross Profit	66.56M	64.89M	56.40M	42.91M	35.31M	29.00M
EBITDA	55.98M	55.21M	58.77M	40.44M	41.99M	-4.76M
Net Income	27.91M	26.62M	31.72M	15.56M	23.52M	-8.88M
Balance Sheet
Total Assets	613.47M	578.98M	567.35M	458.45M	380.76M	358.40M
Cash, Cash Equivalents and Short-Term Investments	3.81M	19.69M	4.03M	7.41M	8.94M	9.22M
Total Debt	293.57M	260.47M	305.16M	199.78M	169.66M	156.20M
Total Liabilities	324.81M	290.18M	329.95M	224.56M	189.24M	168.72M
Stockholders Equity	288.66M	288.80M	237.40M	233.89M	191.53M	189.67M
Cash Flow
Free Cash Flow	-5.36M	46.48M	-46.41M	-50.93M	10.86M	-22.22M
Operating Cash Flow	44.06M	46.49M	30.82M	28.38M	27.82M	22.10M
Investing Cash Flow	-49.42M	-8.00K	-77.22M	-79.31M	-16.96M	-44.32M
Financing Cash Flow	-3.17M	-30.77M	43.05M	49.37M	-11.14M	28.47M

Diversified Royalty Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DIV, the sentiment is Neutral. The current price of 3.45 is below the 20-day moving average (MA) of 3.52, below the 50-day MA of 3.56, and above the 200-day MA of 3.03, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.93 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DIV.

Diversified Royalty Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WJX	―	C$498.64M	13.75	6.93%	5.63%	2.19%	-48.80%
DIV	―	C$540.07M	20.77	9.64%	7.49%	7.68%	-20.47%
DE	―	C$157.11M	26.47	10.36%	7.10%	10.56%	25.19%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KBL	―	C$490.85M	21.79	8.27%	3.19%	17.75%	7.68%
CHR	―	C$587.25M	―	2.81%	0.35%	-16.92%	77.04%

Diversified Royalty Corp Corporate Events

Diversified Royalty Corp. Declares October 2025 Cash Dividend

Diversified Royalty Corp. announced a cash dividend of $0.02292 per common share for October 2025, reflecting an annualized dividend of $0.275 per share. This decision underscores DIV’s commitment to providing predictable and stable monthly dividends to its shareholders, aligning with its corporate objectives of enhancing cash flow per share through strategic royalty acquisitions. The announcement is expected to reinforce the company’s market position and offer reassurance to stakeholders regarding its financial stability and growth prospects.

The most recent analyst rating on (TSE:DIV) stock is a Buy with a C$3.80 price target. To see the full list of analyst forecasts on Diversified Royalty Corp stock, see the TSE:DIV Stock Forecast page.

Diversified Royalty Corp. Declares September 2025 Dividend

Diversified Royalty Corp. announced a cash dividend of $0.02292 per common share for September 2025, reflecting an annualized dividend of $0.275 per share. This move underscores DIV’s commitment to providing stable and predictable monthly dividends to its shareholders, aligning with its strategy to enhance cash flow per share through strategic royalty acquisitions and growth. The announcement is indicative of DIV’s robust financial health and its ability to deliver consistent returns to stakeholders.

The most recent analyst rating on (TSE:DIV) stock is a Buy with a C$3.80 price target. To see the full list of analyst forecasts on Diversified Royalty Corp stock, see the TSE:DIV Stock Forecast page.

Diversified Royalty Corp. Achieves Record Revenue in Q2 2025

Diversified Royalty Corp. reported its strongest adjusted revenue quarter in its history for Q2 2025, with a 5.5% weighted average organic royalty growth and a 6.4% increase in revenue compared to the previous year. The company expanded its portfolio by adding a new royalty stream from Cheba Hut Franchising, enhancing its diversification and presence in the US market, while also celebrating the milestone of Mr. Mikes opening its 50th location.

The most recent analyst rating on (TSE:DIV) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Diversified Royalty Corp stock, see the TSE:DIV Stock Forecast page.

Diversified Royalty Corp. Declares August Dividend and Sets Q2 Earnings Release Date

Diversified Royalty Corp. announced a cash dividend of $0.02292 per common share for August 2025 and plans to release its Q2 2025 earnings on August 6, 2025. This announcement reflects the company’s commitment to providing predictable and stable dividends to shareholders, aiming to increase cash flow per share through strategic royalty acquisitions and growth. The dividend decision and earnings release are significant for stakeholders as they highlight DIV’s ongoing efforts to enhance shareholder value and maintain its position in the market.

The most recent analyst rating on (TSE:DIV) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Diversified Royalty Corp stock, see the TSE:DIV Stock Forecast page.