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Doman Building Materials Group (DBM) Fair Value & Analysis

Industrials · CA · Market cap C$1.0B

DB Doman Building Materials Group DBM · TO
PriceC$11.33
Fair ValueC$18.02
Upside+59.1%
Quality61/100
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Healthy Growth
Thin margins · 2.6% net margin
Moderate debt · generates free cash flow
4.87% dividend yield
Ranks above peers (10/14)
Narrow moat 41/100
Evidence: High Range C$7.30 – C$24.02 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Share price −1.5% over the past month.

A solid business, screening 59% undervalued on our models.

What matters now

  • The model range is unusually wide (C$7.30 to C$24.02). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

C$11.86 C$4.09 Fair Value C$18.02 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range C$4.09 – C$11.86 · fair‑value band C$7.30 – C$24.02 · the C$11.33 price screens below the C$18.02 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Doman Building Materials Group (DBM) currently trades at C$11.33, while our model-based Fair Value estimate is C$18.02, implying the stock looks roughly 59.1% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Doman Building Materials Group generated revenue of C$3.1B at a net margin of 2.6%. Revenue declined 3.9% year over year. It earns a return on equity of 12.1%. Net debt stands at C$996M. Fundamentals as of Aug 13, 2026

Our scenario range runs from C$7.30 (bear case) to C$24.02 (bull case); at C$11.33, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 43% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -42% fair-value upside, at 59%, DBM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$9.15 C$19.94 C$35.37 80
Residual Income C$6.44 C$7.28 C$11.03 76
Rev-Margin DCF C$7.64 C$19.14 C$33.92 74
All 26 models by family
DCF Models
FCF DCF C$9.42 C$21.68 C$40.33 38
Owner Earnings C$8.95 C$20.89 C$39.06 31
5Y Revenue Exit C$7.64 C$19.34 C$35.02 39
5Y EBITDA Exit C$13.99 C$32.36 C$55.35 41
5Y P/E Exit C$5.95 C$15.87 C$26.99 38
10Y Revenue Exit C$7.62 C$18.32 C$34.32 36
10Y EBITDA Exit C$11.93 C$27.01 C$49.80 37
10Y P/E Exit C$7.06 C$16.00 C$28.21 35
Earnings-Based
Graham-Dodd C$6.22 C$28.50 C$39.12 54
Lynch FV C$7.48 C$10.69 C$13.89 50
PEG = 1.0 C$7.48 C$10.69 C$13.89 46
EPV C$3.61 C$5.36 C$6.81 59
Dividend Discount
Gordon GGM C$4.34 C$7.81 C$10.75 70
DDM Multi-Stage C$4.34 C$7.14 C$8.35 61
Multiples
P/E Multiple C$14.41 C$19.21 C$24.02 63
P/S Multiple C$11.67 C$15.55 C$19.44 58
P/B Multiple C$11.67 C$15.55 C$19.44 55
EV/EBIT C$13.49 C$21.07 C$28.64 53
EV/EBITDA C$19.27 C$28.76 C$38.25 54
EV/Revenue C$6.99 C$13.94 C$20.89 43
Asset-Based
NCAV (Graham) C$3.61 C$4.84 C$7.22 50
Growth DCF
Growth DCF C$9.15 C$19.94 C$35.37 80
Rev-Margin DCF C$7.64 C$19.14 C$33.92 74
Economic Profit
Residual Income C$6.44 C$7.28 C$11.03 76
ROIC Compounder C$3.61 C$5.36 C$6.81 72
Growth Earnings
Growth-Adj P/E C$12.02 C$17.18 C$22.33 68

Widest divergence: DCF Models (C$19.34) versus Asset-Based (C$4.84). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) C$3.1B
Revenue growth (YoY) -3.9%
Net margin 2.6%
Return on equity 12.1%
Free cash flow C$155M FY2025
P/E ratio 12.3
More key figures
Operating margin 5.8%
EPS (TTM) C$0.9200
Dividend yield 4.9%
EPS growth (YoY) +1.1%
Net debt C$996M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 59 · Market factors (momentum, volatility) 61

Profitability 50
Margins and returns on capital today
Quality Growth 64
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Doman Building Materials Group Ltd., through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada.

Full company description

Doman Building Materials Group Ltd., through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada. The company offers treated wood; siding and trim; decking and railing; engineered wood products; underlayment; caulking, adhesive & fasteners; Interior Finishing; Specialty Industrial Products; roofing products; insulation and wrap products; and lumber and plywood products. It is also involved in pressure treating activities, as well as timber ownership and management of private timberlands and forest licenses; and provides other value-add services. In addition, the company distributes lumber products. It sells its products to small independent lumber yards, regional building material dealers, home improvement chains, and retailers. The company serves its products to new home construction, home renovation, and industrial markets. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Doman Building Materials Group reported revenue of C$3.1B in FY2025 versus C$2.5B in FY2021, a compound +5.2%/yr. Reported net income was C$80.3M in FY2025, compounding −6.8%/yr from FY2021.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
C$3.1B
Latest YoY
+17.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.1%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.4%
Revenue +5.2%/yr
FY21 C$2.5B
FY22 C$3.0B
FY23 C$2.5B
FY24 C$2.7B
FY25 C$3.1B
Net income −6.8%/yr
FY21 C$107M
FY22 C$78.7M
FY23 C$75.8M
FY24 C$54.2M
FY25 C$80.3M
Character of growth · EPS growth decomposed (2014-2025) +2.5 % p.a.
Revenue per share +4.0 pp

of which total revenue +13.9 pp · buybacks/dilution −9.9 pp

EBIT margin +4.3 pp
Tax rate +1.2 pp
Residual (interest, one-offs) −7.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Doman Building Materials Group Fair Value". https://www.fairvalue-calculator.com/stock/DBM

Peer Group

Industrial Distribution · 107 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside +59% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth -4% · Bottom 25%
Dividend yield (TTM) 4.9% · Top 25%
Debt / equity 1.28× · Higher than 75% of peers

Valuation Multiples vs Industrial Distribution median · lower = cheaper

P/E (TTM) 12.3× · Cheaper than median
P/B 1.18× · Cheaper than median
P/S (TTM) 0.24× · Cheaper than 75% of peers
P/FCF 4.8× · Pricier than median
EV/EBITDA 7.1× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 22
FUTURE 0 · sector 19
PAST 48 · sector 35
HEALTH 36 · sector 91
DIVIDEND 97 · sector 31

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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W.W. Grainger, Inc GWW $1,305 $613.88 -53%
Fastenal Company FAST $52.22 $20.64 -60%
Ferguson Enterprises Inc FERG $245.18 $148.98 -39%
WESCO International, Inc WCC $364.60 $213.01 -42%
Watsco, Inc WSO $309.41 $268.10 -13%
Toromont Industries Ltd TIH C$218.77 C$127.90 -42%
Applied Industrial Technologies, Inc AIT $352.29 $191.65 -46%
Finning International Inc FTT C$93.86 C$76.38 -19%
Addtech AB ADDTB kr 344.00 kr 156.35 -55%
Core & Main, Inc CNM $46.63 $49.47 +6%

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Frequently asked questions

Is Doman Building Materials Group (DBM) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of C$18.02 versus a price of C$11.33, about +59% (undervalued).
What is the fair value of DBM?
Our model-based fair value for Doman Building Materials Group is C$18.02 (as of Aug 13, 2026), built from audited fundamentals. The current price is C$11.33.
What is the quality score of DBM?
Doman Building Materials Group has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Doman Building Materials Group (DBM)?
Doman Building Materials Group reported trailing-twelve-month revenue of about C$3.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of DBM?
The net profit margin of Doman Building Materials Group is about 2.6%, meaning it keeps roughly 2.6% of revenue as net income. Based on the latest reported figures.
Does Doman Building Materials Group pay a dividend?
Doman Building Materials Group currently shows a dividend yield of about 5.33% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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