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Doman Building Materials Group Ltd T.DBM

Alternate Symbol(s):  CWXZF

Doman Building Materials Group Ltd. is an integrated national distributor in the building materials and related products sector. The Company operates various distinct divisions with multiple treating plants, planing and specialty facilities and distribution centers coast-to-coast in various cities across Canada and select locations across the United States. The Company operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building materials servicing the central United States; it serves the United States west coast with multiple locations in California and Oregon; and in the state of Hawaii the Honsador Building Products Group services 15 locations across all the islands. The Company’s Canadian operations also include ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through its Doman Timber operations.


TSX:DBM - Post by User

Post by TheBridgeon Jun 06, 2022 10:17am
242 Views
Post# 34733854

Stifel Analysis

Stifel AnalysisSo Stifel analyst Ian Gillies downgraded DBM to hold from buy today. He writes that spot lumber prices have declined 40% in the last month and 46% year to date. He views lumber price as a proxy for future unit pricing but acknowledges the 25-30% of product sales are from allied products and that DBM does strategically manage their inventory. He expects Doman's 2nd. Q result to be strong due to lead lag benefits. He reduced his 2022 revenue projection by 4.4% and his EBITDA forecast by 3.8%. Likely his analysis has triggered a drop in share price this morning but as we head into the fall season his estimates could be out to lunch, but time will tell. "Risk" it's out there all the time trying to grab you so be careful. I think it may be another opportunity to add at some excellent prices, but each of us has to do what we are comfortable with. Good luck.
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