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1. Company Snapshot

1.a. Company Description

Doman Building Materials Group Ltd.distributes building materials and related products in Canada, the United States, and Hawai.It distributes a range of building materials, lumber, renovation, and electrical products.


The company owns approximately 117,000 acres of private timberlands, and strategic licenses and tenures.It is also involved in log harvesting and trucking, and post and pole peeling activities; and provision of pressure-treating services for specialty wood production plants.The company was formerly known as CanWel Building Materials Group Ltd.


and changed its name to Doman Building Materials Group Ltd.in May 2021.Doman Building Materials Group Ltd.


was founded in 1989 and is headquartered in Vancouver, Canada.

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1.b. Last Insights on DBM

Doman Building Materials Group's recent performance was driven by an EPS miss in its Full Year 2024 earnings, despite a 6.9% revenue increase to CA$2.66b. The company's gross margin remained steady at 16%, but its adjusted EBITDA of CA$195.5m fell short of expectations. Additionally, the company's dividend of CA$0.14 per share, affirmed in December 2024, does not seem to have provided significant support to the stock.

1.c. Company Highlights

2. Doman Building Materials Group's Q3 2025 Earnings: A Strong Performance Amidst Macroeconomic Headwinds

Doman Building Materials Group reported a robust financial performance in the third quarter of 2025, with sales reaching $795 million, a 19.9% increase from the same period last year. Gross margin for the quarter was $123.1 million, up $20.1 million, and EBITDA was $62 million, a 34% increase. Earnings per share (EPS) came in at $0.21, significantly beating estimates of $0.09921. The company's ability to navigate a challenging pricing environment and macroeconomic headwinds is a testament to its operational and financial management.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth:: Q3 2025 sales reached $795 million, up 19.9% ($132 million) from Q3 2024.
  • EBITDA Expansion:: EBITDA rose 34% to $62 million, driven by $15.7 million year-over-year growth.
  • Dividend Consistency:: Paid $0.14 per share quarterly dividend, marking the 62nd consecutive quarter of dividends.
  • Operational Cash Flow:: Cash from operating activities (9M 2025) hit $131.6 million, up from $108.9 million in 9M 2024.
  • Debt Reduction:: Leverage ratio fell to 3.8x by Q3 2025, with plans to further reduce debt through 2026.

Operational Highlights

The company's focus on maximizing margins and free cash flow generation is evident in its operational performance. Amar Doman, the CEO, mentioned that despite pricing pressures, the company remains pleased with the strength of its business model. The sale of the remaining portion of its timberlands during the quarter further strengthened the company's balance sheet, with net proceeds contributing to its financial stability.

Cash Flow and Balance Sheet

Operating activities generated $131.6 million in cash in the first nine months of 2025, compared to $108.9 million for the same period last year. Financing activities reflected significant reductions in debt, with leverage coming down to 3.8x at the end of September. James Code, the CFO, expects leverage to continue to drop through to the end of 2026, given market conditions.

Valuation and Outlook

With a P/E Ratio of 10.53 and a Dividend Yield of 6.28%, the company's valuation appears reasonable. Analysts estimate revenue growth at 3.8% for next year, indicating a stable outlook. The company's efforts to upgrade its production line and fencing, as well as its strategic acquisitions, such as Temecula Electric, are expected to drive growth and improve margins. As Amar Doman noted, "the margin stabilization should start to trend a little bit better as we go into the fourth and first quarter," indicating a positive outlook for the coming quarters.

Strategic Initiatives

The company's strategic initiatives, including the acquisition of Temecula Electric, are aimed at driving growth and improving its market presence. The consolidation of SG&A in the US into its Plano, Texas office is expected to bring operating leverage and cost savings. With a strong business model and a focus on maximizing margins and free cash flow, Doman Building Materials Group is well-positioned to navigate the challenges in the market and achieve its growth objectives.

3. NewsRoom

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TSX Closer: Up More Than 500 Pts As Gold and Silver Shine, and Desjardins Plays Down Impact of Latest Targeted U.S. Tariffs

Oct -14

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Doman Building Materials Group (TSE:DBM) Has Announced A Dividend Of CA$0.14

Sep -18

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Doman Building Materials Group Maintained at Buy at Stifel Canada; Price Target Kept at C$12.00

Sep -16

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Doman Building Materials Group Second Quarter 2025 Earnings: EPS: CA$0.32 (vs CA$0.20 in 2Q 2024)

Aug -09

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Doman Building Materials Group Second-quarter Adjusted Earnings, Revenue, Advance

Aug -06

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Doman Building Materials Group Ltd. Announces Second Quarter 2025 Financial Results

Aug -06

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Is There Now An Opportunity In Doman Building Materials Group Ltd. (TSE:DBM)?

Jun -30

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Is Doman Building Materials Group Ltd. (TSE:DBM) Trading At A 36% Discount?

May -27

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Building Materials

Expected Growth: 4.65%

Doman Building Materials Group Ltd.'s 4.65% growth in Building Materials is driven by increasing demand for renovation and new construction projects, fueled by low interest rates and government incentives. Additionally, the company's strategic expansion into new markets, product diversification, and operational efficiencies have contributed to its growth momentum.

Other

Expected Growth: 4.83%

The 4.83% growth of Other from Doman Building Materials Group Ltd. is driven by increasing demand for specialty building products, expansion into new geographic markets, and strategic acquisitions. Additionally, the company's focus on sustainable and eco-friendly products has resonated with environmentally conscious consumers, contributing to its growth momentum.

7. Detailed Products

Lumber

Doman Building Materials Group Ltd. offers a wide range of lumber products, including dimensional lumber, engineered wood products, and specialty lumber for various construction and renovation projects.

Building Envelope

The company provides a variety of building envelope products, including roofing, siding, and exterior finishing materials for weather-tight and energy-efficient building solutions.

Engineered Wood Products

Doman Building Materials Group Ltd. offers engineered wood products, such as glue-laminated timber, laminated veneer lumber, and oriented strand board, for structural and non-structural applications.

Millwork

The company provides a range of millwork products, including doors, windows, mouldings, and staircases, for interior and exterior applications.

Roofing and Insulation

Doman Building Materials Group Ltd. offers a variety of roofing and insulation products, including shingles, underlayment, and insulation materials, for energy-efficient and weather-tight roofing solutions.

Drywall and Ceiling

The company provides drywall and ceiling products, including gypsum boards, joint compounds, and ceiling tiles, for interior finishing applications.

Exterior Finishing

Doman Building Materials Group Ltd. offers exterior finishing products, including siding, trim, and exterior mouldings, for exterior design and weather protection.

8. Doman Building Materials Group Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Doman Building Materials Group Ltd. is medium due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Doman Building Materials Group Ltd. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Doman Building Materials Group Ltd. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Doman Building Materials Group Ltd. is high due to the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Doman Building Materials Group Ltd. is high due to the competitive nature of the industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.11%
Debt Cost 6.39%
Equity Weight 45.89%
Equity Cost 11.85%
WACC 8.89%
Leverage 117.92%

11. Quality Control: Doman Building Materials Group Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Westlake Chemical Partners

A-Score: 7.3/10

Value: 9.2

Growth: 3.1

Quality: 7.5

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Vicat

A-Score: 7.1/10

Value: 7.9

Growth: 6.1

Quality: 4.8

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Doman

A-Score: 6.9/10

Value: 8.1

Growth: 5.7

Quality: 4.5

Yield: 10.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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US Lime & Minerals

A-Score: 5.3/10

Value: 1.6

Growth: 8.2

Quality: 8.5

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Boise Cascade

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Smith-Midland

A-Score: 4.3/10

Value: 3.1

Growth: 6.8

Quality: 7.1

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.33$

Current Price

9.33$

Potential

-0.00%

Expected Cash-Flows