Doman Building Materials Group (TSX:DBM) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Doman Building Materials Group Cash Conversion Cycle Related Terms
Doman Building Materials Group Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Doman Building Materials Group Cash Conversion Cycle Chart
TSX:DBM vs GWW, FAST, FERG: Cash Conversion Cycle Comparison
For the Industrial Distribution subindustry, Doman Building Materials Group's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Doman Building Materials Group Cash Conversion Cycle vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Doman Building Materials Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Doman Building Materials Group's Cash Conversion Cycle falls into.
Doman Building Materials Group Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Doman Building Materials Group (TSX:DBM) has a Cash Conversion Cycle of 73.96 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Doman Building Materials Group and its competitors.
Is Doman Building Materials Group's Cash Conversion Cycle too high?
Doman Building Materials Group's current Cash Conversion Cycle is 73.96. The Industrial Distribution industry median Cash Conversion Cycle is 99.15. Doman Building Materials Group's value of 73.96 is 25.4% below this industry median. Overall, Doman Building Materials Group has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Doman Building Materials Group's Cash Conversion Cycle compare to GWW and FAST?
Doman Building Materials Group's Cash Conversion Cycle of 73.96 can be compared against companies in the Industrial Distribution industry. The industry median Cash Conversion Cycle is 99.15. Doman Building Materials Group's value of 73.96 is 25.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Industrial Distribution company?
The median Cash Conversion Cycle among Industrial Distribution companies is 99.15, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Doman Building Materials Group's current Cash Conversion Cycle of 73.96 is 25.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Doman Building Materials Group and its competitors. For the Industrial Distribution industry, the median Cash Conversion Cycle is 99.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Doman Building Materials Group's current Cash Conversion Cycle is 73.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Doman Building Materials Group stock overvalued right now?
Based on GuruFocus' analysis, Doman Building Materials Group (TSX:DBM) is currently considered Modestly Overvalued. The stock's GF Value™ is C$9.37, compared to a current price of C$11.48 — trading 22.5% above its estimated fair value. The current Cash Conversion Cycle is 73.96 and 25.4% below the Industrial Distribution industry median of 99.15. Doman Building Materials Group's overall GF Score™ is 72/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Doman Building Materials Group (TSX:DBM), the current Cash Conversion Cycle is 73.96 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Doman Building Materials Group (TSX:DBM) Overvalued in 2026?
Based on GuruFocus' analysis, Doman Building Materials Group stock appears to be overvalued.
The current stock price of C$11.48 is trading 22.5% above its estimated GF Value™ of C$9.37.
GuruFocus considers Doman Building Materials Group to be Modestly Overvalued.
Key valuation signals for TSX:DBM:
Cash Conversion Cycle: 73.96
GF Value™: C$9.37 vs. price of C$11.48 (22.5% above fair value)
Industry Position: 25.4% below the Industrial Distribution median
No single metric tells the full story. See the TSX:DBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Doman Building Materials Group Business Description
Doman Building Materials Group Ltd operates through its wholly owned subsidiaries, producing and treating lumber and providing other value-add services, as well as distributing various building materials across Canada and in the United States. The company is a national distributor of building materials and related products in Canada, operating multiple divisions with treating plants, planing and specialty facilities, and distribution centers across various cities in Canada and the United States. Geographically, it derives the majority of revenue from the United States.
72GF Score
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