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Possibleidiot01 wrote: Doman Building Materials (DBM:TSX) provides wholesale distribution of building materials and home renovation products in the United States and Canada (majority of sales from Canada). The company offers an array of products including treated wood; siding and trim; decking and aluminum railing; engineered wood products; roofing products; and lumber and plywood products – all which could experience an increase in demand under a robust residential construction market. Doman offers investors an attractive dividend yield of just under 8% with a payout ratio of approximately 90% and trades at just 12 times earnings. We view the company more as an “income investment” as it has lacked long term EPS growth and maintains a levered balance sheet with a trailing net debt-to-EBITDA multiple of approximately 5x – keeping us on the sidelines – but Carney’s increased spending could lead to tailwinds for the business.
Doman Building Materials (DBM:TSX) provides wholesale distribution of building materials and home renovation products in the United States and Canada (majority of sales from Canada). The company offers an array of products including treated wood; siding and trim; decking and aluminum railing; engineered wood products; roofing products; and lumber and plywood products – all which could experience an increase in demand under a robust residential construction market.
Doman offers investors an attractive dividend yield of just under 8% with a payout ratio of approximately 90% and trades at just 12 times earnings. We view the company more as an “income investment” as it has lacked long term EPS growth and maintains a levered balance sheet with a trailing net debt-to-EBITDA multiple of approximately 5x – keeping us on the sidelines – but Carney’s increased spending could lead to tailwinds for the business.
Doman Building Materials, a Canadian company, operates 37 treating plants across the United States. This includes plants across the central US (through Hixson Lumber), the US west coast (through California Cascade), and in the state of Hawaii (through Honsador Lumber). The company also has specialty sawmills and planing mills in the US.
That’s the reason I own it. It will get only better.
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