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Diversified Royalty has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Diversified Royalty Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Diversified Royalty's Interest Coverage for the quarter that ended in Jun. 2026 was 3.34.
Diversified Royalty's debt to revenue ratio for the quarter that ended in Jun. 2026 was 7.66.
As of today, Diversified Royalty's Altman Z-Score is 0.68.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Diversified Royalty has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Diversified Royalty Financial Strength Related Terms
TSX:DIV vs CTAS, CPRT, GPN: Financial Strength Comparison
For the Specialty Business Services subindustry, Diversified Royalty's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Diversified Royalty Financial Strength vs Business Services Industry
For the Business Services industry and Industrials sector, Diversified Royalty's Financial Strength distribution charts can be found below:
* The bar in red indicates where Diversified Royalty's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Diversified Royalty has a Z-score of 0.68, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.68 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Diversified Royalty (TSX:DIV) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Diversified Royalty and its competitors. This is 25% below median its historical median of 4.00. Over the past decade, Diversified Royalty's Financial Strength has ranged from 3.00 to 8.00.
Is Diversified Royalty's Financial Strength too high?
Diversified Royalty's current Financial Strength of 3 is 25% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 8.00. Overall, Diversified Royalty has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Diversified Royalty's Financial Strength compare to CTAS and CPRT?
Diversified Royalty's Financial Strength of 3 can be compared against companies in the Business Services industry. Historically, Diversified Royalty's own Financial Strength has ranged from 3.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Business Services company?
A good Financial Strength depends on the Business Services industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Diversified Royalty and its competitors. Diversified Royalty's current Financial Strength is 3, which is 25% below median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Royalty stock overvalued right now?
Based on GuruFocus' analysis, Diversified Royalty (TSX:DIV) is currently considered Fairly Valued. The stock's GF Value™ is C$3.77, compared to a current price of C$4.14 — trading 9.8% above its estimated fair value. The current Financial Strength is 3, which is 25% below median its 10-year median of 4.00. Diversified Royalty's overall GF Score™ is 82/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Diversified Royalty (TSX:DIV), the current Financial Strength is 3 as of Jun. 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 Diversified Royalty (TSX:DIV) Overvalued in 2026?
Based on GuruFocus' analysis, Diversified Royalty stock appears to be overvalued.
The current stock price of C$4.14 is trading 9.8% above its estimated GF Value™ of C$3.77.
GuruFocus considers Diversified Royalty to be Fairly Valued.
Key valuation signals for TSX:DIV:
Financial Strength: 3 (25% below median its 10-year median of 4.00)
GF Value™: C$3.77 vs. price of C$4.14 (9.8% above fair value)
No single metric tells the full story. See the TSX:DIV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The firm purchases trademarks of the companies it is going to acquire. Its objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. All of the company's operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.
82GF Score
Get the complete analysis for TSX:DIV
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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