# Diversified Royalty Corp. (DIV.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Industrial Conglomerates. Price C$4.18, market value C$789 million.

## Valuation
- **P/E (trailing): 24.6×** (5-yr avg 14.6×, 3-yr avg 14.4×). Diversified Royalty Corp. trades at 24.6× trailing earnings, well above its own five-year average of 14.6×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 17.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.55**. A PEG of 0.55 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 10.3×**. Each dollar of revenue is priced at 10.3×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 2.4×**. The shares trade at 2.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 17.6×**. Enterprise value is 17.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.6%** (5-yr avg -2.0%). Free cash flow equals 3.6% of the market value, above its five-year average of -2.0%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Operating margin: 85.5%**. 85.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 51.8%**. 51.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.7%**. 12.7% on shareholders' equity is solid.
- **Return on invested capital: 8.5%**. Return on all capital, debt included, is 8.5%.
- **Return on assets: 5.0%**. Each dollar of assets produces 5.0% of profit.

## Growth
- **Revenue growth (1 yr): 8.9%** (3-yr 16.1%/yr, 5-yr 18.3%/yr). Revenue grew 8.9% over the last year, against 18.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 31.3%** (3-yr 20.5%/yr). Earnings per share rose 31.3%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.89**. Debt is 0.89 times equity, moderate leverage.
- **Net debt / EBITDA: 4.2×**. It would take 4.2 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 4.0×**. Operating profit covers interest 4.0× over, a safe margin.
- **Current ratio: 0.68** (quick 0.68). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.58**. A Z-score of 2.58 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 6.82%** (C$0.28 per share, trailing). Diversified Royalty Corp. yields 6.82%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 106%** (144% of free cash flow). The dividend exceeds earnings (106% payout), which is rarely sustainable outside REITs and one-off years.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 4.7%/yr** (1-yr 6.0%). The dividend has grown 4.7% a year over five years.

## Price and momentum
- **Total return (1 yr): 24.3%** (YTD 16.9%, 3-mo -9.9%). The shares are up 24.3% over twelve months including dividends.
- **From 52-week high: -16.1%** (22.6% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 46**. An RSI of 46 is neutral.
- **Beta (1 yr): 0.48** (volatility 24%). Beta of 0.48 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DIV.TO · Page: https://foliofundamentals.com/stocks/div.to

Not investment advice.