Is Dominion Lending (DLCG) a new TSX financial stock to buy?

Follow us on Google News:
 Is Dominion Lending (DLCG) a new TSX financial stock to buy?
Image source: © 2022 Kalkine Media Inc

Highlights

  • Dominion Lending Centres Inc (TSX: DLCG) is a British Columbia-based mortgage firm that recently graduated to the Toronto Stock Exchange (TSX) and commenced trading its Class A shares on February 3.
  • Founded in 2006, the financial service company is said to have an extensive network of more than 7,500 agents across Canada.
  • DLCG stock surged by about 13 per cent in the past six months.

Dominion Lending Centres Inc (TSX: DLCG) is a British Columbia-based mortgage firm that recently graduated to the Toronto Stock Exchange (TSX). Previously listed on the Toronto Stock Exchange Venture (TSXV), it commenced trading its Class A shares on the TSX on February 3.

Founded in 2006, the financial service company is said to have an extensive network of more than 7,500 agents across Canada.

Today, let us talk about Dominion Lending Centres.

Financial overview of Dominion Lending Centres (TSX: DLCG)

The C$ 164-million market cap said that its annual funded mortgage volumes were more than C$ 78.5 billion in 2021, representing a year-over-year (YoY) rise of 52 per cent. 

In addition, Dominion Lending Centres also provided preliminary results for fiscal 2021 on February 7.

The mortgage company projected its 2021 revenue to range between C$ 78 million to C$ 80 million, up from C$ 52.4 million in 2020. 

Also read: RCI.B and NA: 2 TSX blue-chip stocks that can help amid stagflation

Dominion Lending said that it expects its adjusted EBITDA from Core Business Operations to be between C$ 46 and C$ 48 million in FY2021, while that from Non-Core Business Asset Management stands at a loss of about C$ 3 to C$ 3.5 million.

Consequently, it expects a consolidated adjusted EBITDA of about C$ 43 to C$ 44.5 million in 2021, up from C$ 52.4 recorded a year ago.

Dominion Lending Centres’ stock performance

DLCG stock surged by about 13 per cent in the past six months and closed at C$ 3.55 apiece on Friday, March 25. It is currently up by over 26 per cent from a 52-week low of C$ 2.81 (November 9, 2021).

Also read: Sigma (SGML) & Standard (SLI): Are these 2 TSXV lithium stocks a buy?

Bottomline

Gary Mauris, the executive Chairperson and CEO of the company, commented that with its 2021 funded mortgage volume growing by 52 per cent YoY and 88 per cent up from 2019, DLCG became the “largest” mortgage broker in the country.

However, investors should be careful about market dynamics and factors that could impact the financial service industry before diving into any investment decisions.

Also read: Why is BRP (TSX: DOO) stock surging?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK