(DIV) Diversified Royalty - Ratings and Ratios

Diversified Royalty Corp. (DIV) operates as a multi-royalty corporation specializing in acquiring royalties from established multi-location businesses and franchisors across North America. Its portfolio includes trademarks such as Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito. These brands span various industries, including automotive services, retail, healthcare, education, and fast-casual dining. The companys business model focuses on generating predictable, recurring revenue through royalty streams, which are tied to the sales performance of its partner brands. Diversified Royalty Corp. was established in 1960 and rebranded from BENEV Capital Inc. in September 2014. Headquartered in Vancouver, Canada, it is listed on the Toronto Stock Exchange under the ticker symbol DIV.

From a financial perspective, Diversified Royalty Corp. has a market capitalization of $467.95M CAD, with a price-to-earnings (P/E) ratio of 14.10 and a forward P/E of 14.99, indicating moderate valuation relative to its earnings. The price-to-book (P/B) ratio of 1.64 suggests that the stock is trading at a premium to its book value. The companys price-to-sales (P/S) ratio of 7.27 reflects its revenue generation capabilities. With a return on equity (RoE) of 11.01%, Diversified Royalty Corp. demonstrates reasonable profitability. Its average 20-day trading volume is 257,582 shares, with a last price of $2.81 CAD, aligning closely with its 20-day and 50-day simple moving averages (SMA) of $2.81 and $2.83, respectively. The 200-day SMA of $2.77 indicates stability in its share price over the longer term, with an average true range (ATR) of 0.04, highlighting low volatility in its trading activity.

3-Month Forecast: - Technical Outlook: The stock is trading in a narrow range, with the SMA 20 and SMA 50 closely aligned at $2.81 and $2.83, respectively. Support is likely at $2.77 (SMA 200), while resistance may emerge near $2.83. The low ATR of 0.04 suggests minimal price fluctuations, indicating a stable trading environment. - Fundamental Outlook: The forward P/E of 14.99 signals expectations of steady earnings growth. The companys diversified royalty portfolio, spanning multiple industries, provides resilience against sector-specific downturns. With a P/S ratio of 7.27, the market reflects confidence in its revenue streams. The RoE of 11.01% underscores its ability to generate profits from shareholders equity, supporting a stable dividend payout. Overall, Diversified Royalty Corp. is expected to maintain its current valuation with potential for modest upside, driven by consistent royalty income and operational stability.