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Doman Building Materials Group (TSX:DBM) Net-Net Working Capital : C$-5.95 (As of Sep. 2024)


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What is Doman Building Materials Group Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Doman Building Materials Group's Net-Net Working Capital for the quarter that ended in Sep. 2024 was C$-5.95.

The industry rank for Doman Building Materials Group's Net-Net Working Capital or its related term are showing as below:

TSX:DBM's Price-to-Net-Net-Working-Capital is not ranked *
in the Industrial Distribution industry.
Industry Median: 6.35
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Doman Building Materials Group Net-Net Working Capital Historical Data

The historical data trend for Doman Building Materials Group's Net-Net Working Capital can be seen below:

* 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.

* Premium members only.

Doman Building Materials Group Net-Net Working Capital Chart

Doman Building Materials Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.57 -3.97 -7.89 -6.62 -5.83

Doman Building Materials Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.82 -5.83 -7.02 -6.61 -5.95

Competitive Comparison of Doman Building Materials Group's Net-Net Working Capital

For the Industrial Distribution subindustry, Doman Building Materials Group's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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's Price-to-Net-Net-Working-Capital Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Doman Building Materials Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Doman Building Materials Group's Price-to-Net-Net-Working-Capital falls into.



Doman Building Materials Group Net-Net Working Capital Calculation

Doman Building Materials Group's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(40.213+0.75 * 154.938+0.5 * 360.644-844.23
-0-0)/87.0413
=-5.83

Doman Building Materials Group's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2024 is calculated as

Net-Net Working Capital(Q: Sep. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(32.058+0.75 * 222.444+0.5 * 333.006-884.798
-0-0)/87.2854
=-5.95

* 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.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Doman Building Materials Group  (TSX:DBM) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Doman Building Materials Group Net-Net Working Capital Related Terms

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Doman Building Materials Group Business Description

Traded in Other Exchanges
Address
1100 Melville Street, Suite 1600, PO Box 39, Vancouver, BC, CAN, V6E 4A6
Doman Building Materials Group Ltd is a wholesale distributor of building materials and home renovation products. The company services the new home construction, home renovation and industrial markets by supplying the retail and wholesale lumber and building materials industry, hardware stores, industrial and furniture manufacturers and similar concerns. Its operations also include timber ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through CanWel Fibre Corp. Its operating segments are Building Materials and Other. Geographically the group has a business presence in Canada and the U.S.
Executives
Amar Doman Director
Siegfried Josef Thoma Director
Marc Seguin Director
James Salter Code Senior Officer

Doman Building Materials Group Headlines

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