(DIV) Diversified Royalty - Ratings and Ratios

Diversified Royalty Corp. is a multi-royalty corporation that acquires and manages royalties from a diverse portfolio of businesses and franchisors across North America, leveraging its expertise to drive growth and profitability.

The companys royalty portfolio comprises a range of well-established brands, including Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito, providing a stable source of revenue through contractual royalties.

With a history dating back to 1992, Diversified Royalty Corp. has evolved from its origins as BENEV Capital Inc. to its current form, with a rebranding in 2014 reflecting its expanded focus on royalty acquisition and management. Headquartered in Vancouver, Canada, the company is well-positioned to capitalize on opportunities in the North American market.

Analyzing the companys , we observe a stable price trend, with the stock trading near its 52-week high. The SMA20, SMA50, and SMA200 are all in close proximity, indicating a lack of strong trend direction. However, the ATR suggests relatively low volatility, which may appeal to income-focused investors. Using the and , a forecast for DIV could be constructed by considering the P/E ratio, RoE, and market capitalization. With a P/E of 17.94 and a forward P/E of 15.27, the company appears reasonably valued. The RoE of 9.20% indicates a decent return on equity. Given the stable revenue stream from its royalty portfolio and a market capitalization of $480.44M CAD, a potential price target could be estimated. Assuming a stable growth trajectory and maintaining its current valuation multiples, a 6-8% annual growth rate could be expected, potentially driving the stock price to $3.10-$3.25 in the next 12-18 months.

Considering the , the companys market capitalization and P/E ratio suggest a relatively stable and mature business. The forward P/E indicates expectations of moderate growth. With a diversified portfolio of brands and a proven business model, Diversified Royalty Corp. is well-positioned to continue generating stable cash flows, supporting its dividend payments and potentially driving long-term capital appreciation.