Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 17 Mar, 26 | DBM | Buy | CAD 9.88 | CAD 10.5 | CAD 10.85 | 84 days | Closed |
12.15%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
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.
Lower Debt to Equity Ratio: 1.58x in Q4 2025 vs 1.74x in Q4 2024
Higher ROE: 1.7% in Q4 2025 vs 1.3% in Q4 2024
Lower Pretax Margin: 0.5% in Q4 2025 vs 1.2% in Q4 2024
Lower EBITDA Margin: 6.9% in Q4 2025 vs 7.3% in Q4 2024
Regulatory risks, Trade tariffs, Inflationary pressures, Lower cash flows, etc.
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 9.88 | 9.3 | 10.5 | 10.85 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Decent Revenue Growth Driven by Acquisitions: Doman delivered 17.1% YoY revenue growth to CAD 3.1 bn, largely supported by recent acquisitions like Tucker Lumber. This highlights management’s ability to scale the platform through inorganic expansion. While pricing was weak, volume and acquisition-led growth offset pressures. This creates a more diversified and resilient revenue base
Margin Stability Despite Pricing Headwinds: Gross margin improved slightly to 16.2% from 16.0%, even as construction material prices declined. This reflects effective margin management strategies and better product mix. The ability to hold margins in a weak pricing environment shows operational discipline. It also suggests pricing downside may already be absorbed.
Decent EBITDA Expansion Signals Operating Leverage: Adjusted EBITDA grew 31.1% YoY to CAD 256.4 mn, significantly outpacing revenue growth. This indicates decent operating leverage from acquisitions and scale benefits. Cost efficiencies and improved contribution from acquired assets played a key role. This trend supports higher profitability potential going forward.
Stock might trade at premium to its peers considering acquisition-led growth, decent EBITDA expansion, improving margins, diversified product mix, North American scale, resilient dividend, cost discipline, integration synergies, earnings growth, operating leverage, margin strategy execution, etc
Considering the expected valuation upside, stable cash flows, distribution network strength, exposure to housing recovery, pricing recovery upside, specialty product contribution, efficient logistics, scalable business model, experienced management, long-term consolidation opportunity and key business risks, a 'Buy’ recommendation has been given on the stock at the last current price of CAD 9.88, as on March 17, 2026 at 7:37 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Industrial Distribution
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| DBM Doman Building Materials Group Ltd |
0.05 0.44% | 11.38 | 10.96 | 13.21 | 0.28 | 1.40 | 0.61 | 7.40 |
| TIH Toromont Industries Ltd. |
-1.96 0.81% | 239.00 | 33.78 | 29.59 | 3.22 | 5.13 | 3.15 | 15.86 |
| FTT Finning International Inc. |
-0.37 0.37% | 100.97 | 24.47 | 20.58 | 1.20 | 4.50 | 1.36 | 11.85 |
| RUS Russel Metals Inc. |
-0.11 0.17% | 63.37 | 16.74 | 13.26 | 0.60 | 1.74 | 0.67 | 9.18 |
| ADEN ADENTRA Inc. |
0.10 0.28% | 35.19 | 8.60 | 8.80 | 0.36 | 0.86 | 0.51 | 5.85 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 17, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia