# D2L Inc. (DTOL.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Technology / Software. Price C$10.93, market value C$574 million.

## Valuation
- **P/E (trailing): 364.3×** (5-yr avg 54.5×, 3-yr avg 54.5×). D2L Inc. trades at 364.3× trailing earnings, well above its own five-year average of 54.5×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 12.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.6×**. Each dollar of revenue is priced at 2.6×.
- **Price / book: 5.9×**. The shares trade at 5.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 37.1×**. Enterprise value is 37.1× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 7.1%** (5-yr avg 2.8%). Free cash flow equals 7.1% of the market value, above its five-year average of 2.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 0.3%**. The inverse of the P/E: 0.3% of the price is earned each year.

## Profitability
- **Gross margin: 68.3%**. D2L Inc. keeps 68.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 5.2%**. 5.2% of revenue is left after running the business.
- **Net margin: 4.1%**. 4.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.5%**. 10.5% on shareholders' equity is solid.
- **Return on invested capital: -25.8%**. Return on all capital, debt included, is -25.8%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.6%**. Each dollar of assets produces 0.6% of profit.

## Growth
- **Revenue growth (1 yr): 5.9%** (3-yr 8.9%/yr). Revenue grew 5.9% over the last year.
- **EPS growth (1 yr): -65.2%**. Earnings per share fell 65.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 633.2%/yr**. Free cash flow has compounded at 633.2% a year over three years.

## Financial health
- **Debt to equity: 0.14**. Debt is 0.14 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. D2L Inc. holds more cash than debt.
- **Interest coverage: 10.0×**. Operating profit covers interest 10.0× over, a safe margin.
- **Current ratio: 1.07** (quick 1.07). Current assets cover the next year's liabilities 1.07 times.
- **Altman Z-score: 3.58**. A Z-score of 3.58 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. D2L Inc. does not currently pay a dividend, but it returned 4.4% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: buy** (9 analysts). 9 analysts cover D2L Inc.; the consensus is buy, with an average price target of C$12.99 (+19% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -39.7%** (YTD -20.4%, 3-mo 15.7%). The shares are down 39.7% over twelve months including dividends.
- **From 52-week high: -39.9%** (52.9% above the low). Trading 40% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.50** (volatility 46%). Beta of 0.50 against the S&P/TSX Composite: the shares move much less than the market.

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

Not investment advice.