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DREAM Unlimited Cl A (TSE:DRM)
TSX:DRM
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DREAM Un Cl A
(TSX:DRM)
68Neutral
Positive Factors
Dividend Growth
The company announced an 8% increase to its dividend, and it is now up 170% from 2020.
Financial Performance
FFO per share jumps on higher land sales, with diluted FFO per share up 101% from 2023.
Negative Factors
Profitability Concerns
Costs are increasing, which could impact profitability.
Valuation Discount
Our NAV per share estimate for Dream is now at a 53.5% discount to the current share price.
DREAM Un Cl A (DRM) vs. S&P 500 (SPY)
Market Cap
C$798.67M
Dividend Yield3.25%
Average Volume (3M)30.88K
Price to Earnings (P/E)4.6
Beta (1Y)1.55
Revenue Growth13.04%
EPS GrowthN/A
CountryCA
Employees500
SectorReal Estate
Sector Strength65
IndustryReal Estate - Development
Share Statistics
EPS (TTM)-0.35
Shares Outstanding40,857,292
10 Day Avg. Volume27,963
30 Day Avg. Volume30,884
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.53
Price to Sales (P/S)0.00
P/FCF Ratio-108.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$33.50Price Target Upside82.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
DREAM Un Cl A Business Overview & Revenue Model
Company DescriptionDREAM Unlimited Corp. Class A (DRM) is a Canadian-based real estate company focused on asset management and real estate development. The company operates in several sectors, including residential and commercial real estate, renewable energy infrastructure, and urban development. DREAM Unlimited is known for its commitment to sustainable development practices and innovative community designs, providing integrated services across its diverse portfolio.
How the Company Makes MoneyDREAM Unlimited makes money primarily through its real estate development and asset management activities. The company generates revenue from the sale of residential and commercial properties, as well as leasing and managing properties within its portfolio. Additionally, DREAM Unlimited earns fees from asset management services provided to third-party clients. The company also invests in renewable energy projects, which can offer long-term income streams from energy sales or government incentives. Significant partnerships with other real estate firms and investment entities can enhance DREAM Unlimited's revenue-generating capabilities through joint ventures and co-development projects.
DREAM Un Cl A Financial Statement Overview
Summary
DREAM Un Cl A exhibits strong profit margins and operational efficiency. However, declining revenue and high leverage raise potential risks. Cash flow constraints further indicate liquidity challenges. The company must address revenue growth and improve cash management to enhance financial stability.Income Statement
The income statement reveals a solid gross profit margin of 35.2% TTM, with a net profit margin of 31.8%. However, the revenue growth rate has declined by 14.38% TTM, indicating a potential slowdown in top-line growth. The EBIT margin remains healthy at 23.3%, and EBITDA margin is robust at 48.6%, showcasing operational efficiency. Despite these strengths, the revenue drop is a concern.72
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 1.26, which may pose risks considering industry standards. However, a return on equity of 11.5% TTM indicates decent profitability for shareholders. The equity ratio stands at 38.6%, suggesting a balanced capital structure. The high leverage warrants cautious monitoring.65
Positive
Cash Flow
Cash flow analysis indicates a negative free cash flow growth rate TTM, highlighting cash management challenges. The operating cash flow to net income ratio of 0.03 reflects weaker cash generation relative to net income. Free cash flow to net income ratio is negative, aligning with cash flow constraints. Overall, liquidity and cash generation are areas of concern.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 534.68M | 624.51M | 386.95M | 343.77M | 325.92M | 347.62M | Gross Profit |
| 188.24M | 201.66M | 125.19M | 113.61M | 91.14M | 105.15M | EBIT |
| 124.48M | 135.30M | 114.20M | 99.35M | 133.90M | 145.50M | EBITDA |
| 260.10M | 304.89M | 68.31M | 106.88M | 140.34M | 152.62M | Net Income Common Stockholders |
| 170.24M | 187.86M | -117.08M | 164.44M | 110.03M | 159.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 67.12M | 83.88M | 60.20M | 47.63M | 52.56M | 185.12M | Total Assets |
| 3.85B | 3.92B | 3.88B | 3.96B | 3.49B | 2.84B | Total Debt |
| 1.87B | 1.88B | 1.82B | 1.64B | 1.31B | 768.62M | Net Debt |
| 1.81B | 1.79B | 1.76B | 1.59B | 1.25B | 583.50M | Total Liabilities |
| 2.36B | 2.42B | 2.47B | 2.40B | 2.07B | 1.44B | Stockholders Equity |
| 1.49B | 1.50B | 1.40B | 1.55B | 1.42B | 1.39B |
| Cash Flow | Free Cash Flow | ||||
| -7.07M | -39.93M | -82.00M | -84.08M | -371.22M | -3.97M | Operating Cash Flow |
| 5.39M | -39.93M | -82.00M | -66.35M | 67.02M | -82.50M | Investing Cash Flow |
| 129.72M | 132.37M | -66.82M | -137.05M | -477.17M | 30.78M | Financing Cash Flow |
| -127.07M | -68.76M | 161.39M | 198.47M | 277.59M | -151.67M |
DREAM Un Cl A Technical Analysis
Positive
18.33
Price Trends
18.97
Negative
20.07
Negative
23.04
Negative
Market Momentum
-0.13
Negative
54.71
Neutral
64.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRM, the sentiment is Positive. The current price of 18.33 is below the 20-day moving average (MA) of 18.41, below the 50-day MA of 18.97, and below the 200-day MA of 23.04, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DRM.
DREAM Un Cl A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $695.25M | 8.62 | 7.47% | 8.60% | 9.21% | -61.37% | |
75 Outperform | C$935.16M | 8.26 | 5.83% | 4.27% | 3.85% | -31.81% | |
68 Neutral | C$798.67M | 4.64 | 11.76% | 3.25% | 13.04% | ― | |
66 Neutral | C$1.01B | ― | -11.97% | 4.10% | 4.39% | 56.33% | |
60 Neutral | $2.82B | 10.29 | 0.31% | 8508.26% | 5.91% | -17.42% | |
58 Neutral | C$712.53M | ― | -1.80% | 8.33% | -13.42% | 86.55% |
* Real Estate Sector Average
Performance Comparison
TSE:DRM
DREAM Un Cl A
18.33
-0.55
-2.91%
TSE:AX.UN
Artis Real Estate Investment
7.21
1.24
20.83%
TSE:NXR.UN
Nexus Real Estate Investment
7.18
0.65
9.90%
TSE:MRG.UN
Morguard NA REIT UN
17.34
2.32
15.45%
TSE:HOM.UN
BSR Real Estate Investment Trust
18.28
3.00
19.63%
DREAM Un Cl A Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q4-2024)
| % Change Since: -0.11%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong operational performance with record profits in key divisions and successful strategic initiatives. However, significant caution was expressed due to external uncertainties, impacting areas like asset management earnings and market conditions in Regina. Overall, the positive highlights are balanced by the cautious outlook and external challenges.Q4-2024 Updates
Positive Updates
Record Profits in Western Canada Land Division
The Western Canada land division achieved record profits since going public in 2013, generating substantial free cash flow and preselling $105 million in revenue for 2025, with expectations to secure an additional $60 million.
Growth in Asset Management
The asset management business closed a $1 billion joint venture in the Netherlands and announced plans for a $2 billion joint venture in Canada, with assets under management increasing by $3 billion in 2024 to reach $27 billion.
Expansion of Income Property Division
The income property division generated revenue growth, with $850 million of income properties owned. The company plans to start 500 rental units in Western Canada in 2025, projecting a development profit of $30 million with land at fair market value.
Strong Performance in Income Properties
The company's income properties, including those in the Distillery District and multifamily assets, performed well with high occupancy rates and the development of new rental units underway.
Increase in Dividend
Dream Unlimited increased its dividend, reflecting confidence in its cash flow and operational performance, with a preference to maintain a robust liquidity position.
Negative Updates
High Uncertainty in Operating Environment
The company's cautious approach to liquidity reflects concerns about global economic uncertainty, potential tariffs, and political changes affecting the Canadian economy.
Decreased Earnings in Asset Management
The asset management segment saw a decrease in revenue and net margin compared to the previous year, driven by lower development fees recognized in the current period.
Challenges in Regina Market
While the Regina market holds potential, the current demand dynamics have not yet translated into increased home prices or demand similar to Saskatoon.
Reduced Activity in Share Repurchases
Despite high liquidity, the company has been cautious with share repurchases due to market uncertainties, opting to maintain flexibility in its capital allocation strategy.
Company Guidance
During the Dream Unlimited Corp.'s fourth-quarter conference call for the fiscal year 2024, several key metrics and guidance were highlighted. The company achieved its second-highest profits in total dollars, with ordinary income at $2.86 per share, marking the highest on record when excluding extraordinary events. The Western Canada land division ended 2024 with record profits and presold $105 million in revenue for 2025, aiming for an additional $60 million in presales. The asset management segment closed a $1 billion joint venture in the Netherlands and announced a $2 billion Canadian multifamily apartment joint venture, growing assets under management to $27 billion. The income properties division, valued at $850 million, continued to expand, with plans to start 500 rental units and 70,000 square feet of retail in 2025. The fourth-quarter pretax earnings reached $168 million, including a $157 million gain from the sale of the A-Basin. The company emphasized its strong liquidity position, with $367 million available as of December 31, 2024.DREAM Un Cl A Corporate Events
Business Operations and StrategyFinancial Disclosures
Dream Unlimited Corp. Reports First-Quarter Results Amid Strategic Shifts
Neutral
May 13, 2025
Dream Unlimited Corp. reported its first-quarter results, highlighting a shift in earnings due to the sale of Arapahoe Basin, which traditionally contributed significantly to first-quarter profits. Despite this, the company’s results aligned with expectations, driven by growth in asset management and successful pre-sales in Western Canada. The company is advancing large-scale affordable housing projects, such as the redevelopment at 49 Ontario St., showcasing its execution capability in a challenging market.
The most recent analyst rating on (TSE:DRM) stock is a Buy with a C$40.00 price target. To see the full list of analyst forecasts on DREAM Un Cl A stock, see the TSE:DRM Stock Forecast page.
Spark’s Take on TSE:DRM Stock
According to Spark, TipRanks’ AI Analyst, TSE:DRM is a Neutral.
DREAM Unlimited Cl A demonstrates strong financial growth potential, supported by attractive valuations and strategic initiatives. However, operational and cash flow challenges, along with technical indicators suggesting caution, temper its prospects. The balance between positive earnings highlights and external uncertainties results in a moderate stock score.
To see Spark’s full report on TSE:DRM stock, click here.
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Dream Unlimited Reports Strong Q4 Results and Announces Dividend Increase
Positive
Feb 26, 2025
Dream Unlimited Corp. reported strong fourth-quarter results, highlighted by the sale of Arapahoe Basin, which generated a significant pre-tax gain. This sale, along with strategic acquisitions and expansions in their asset management and income properties divisions, positions Dream for continued growth. The company also announced a dividend increase, reflecting confidence in its financial stability and future prospects. Despite challenges in the office and GTA development markets, Dream has achieved its key objectives for 2024 and is focused on managing liquidity to navigate potential disruptions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.