Diversified Royalty Corp’s third-quarter EPS was C$0.0389, 35.2% below the C$0.06 estimate. But revenue, distributable cash and organic royalty growth all rose from a year earlier, so the headline miss doesn’t tell the whole story.
Diversified Royalty Corp (TSX: DIV) reported results for the quarter ended September 30, 2026, after markets closed on November 9. Revenue reached C$31.5 million, up 72.7% year over year, and distributable cash rose 21.9% to C$15.5 million.
Recent earnings trend
Diversified Royalty Corp
DIV.TO
DIV.TO
Diversified Royalty Corp
WealthAwesomeMarket cap
$768.24M
P/E
23.9x
Div. yield
6.82%
Div. / share
$0.28
52W high
$4.87
52W low
$3.24
1W change
-0.25%
Beta
0.98
Analyst Price Targets
Based on analyst covering DIV · as of Nov 9, 2026
Wall Street analysts forecast DIV stock price to rise 29.9% over the next 12 months.
Consensus
BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$5.29
+29.9% Upside
Previously C$5.33 on Sep 17, 2026
Current Price
C$4.07
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on DIV's historical volatility
30-Day Vol
14.5%
Annualized
90-Day Vol
27.3%
Annualized
Trend (90d)
-50.0%
Annualized drift
90d Mean
C$3.40
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$3.83 | C$3.65 – C$4.03 |
| 60 trading days | C$3.61 | C$3.37 – C$3.88 |
| 90 trading days | C$3.40 | C$3.12 – C$3.71 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 1 analyst(s) cover this name; upcoming EPS consensus is available.
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-09-30 | 2026-11-09 | 0.0389 | 0.0600 | -35.2% |
| 2026-06-30 | 2026-08-12 | 0.0400 | 0.0500 | -20.0% |
| 2026-03-31 | 2026-05-12 | 0.0393 | 0.0524 | -25.0% |
| 2025-12-31 | 2026-03-19 | 0.0600 | 0.0600 | +0.0% |
| 2025-09-30 | 2025-11-12 | 0.0500 | 0.0500 | +0.0% |
| 2025-06-30 | 2025-08-06 | 0.0500 | 0.0500 | +0.0% |
The results include DIV’s acquisition of the Mr. Lube + Tires franchisor business. Before the acquisition, DIV earned royalties tied to the brand’s same-store sales growth. It now has direct exposure to the business’s operating performance.
Investor takeaway: DIV has missed earnings estimates in three of its last four comparable quarters, with one result in line with consensus. Still, Q3 brought higher revenue and distributable cash, along with a lower quarterly payout ratio. Investors will also want to consider the 1.7% year-over-year decline in Mr. Lube + Tires system sales and DIV’s plan to use excess cash flow to pay down debt.
C$15.5 million in Q3 distributable cash
Distributable cash rose 21.9% from a year earlier, and the quarterly payout ratio fell to 86.9% from 91.9%. These figures provide some balance to the EPS miss, though the payout ratio and EPS measure different parts of the business.
Bull case
Revenue rose 72.7% year over year to C$31.5 million, while distributable cash increased 21.9% to C$15.5 million. Weighted average organic royalty growth across the portfolio reached 3.6%, up from 0.6% a year earlier. DIV’s quarterly payout ratio fell to 86.9% from 91.9% in Q3 2025. The company also says Mr. Lube + Tires remains on track to open 18 locations in 2026.
Bear case
EPS came in 35.2% below consensus, following misses in each of the previous two quarters. Mr. Lube + Tires system sales fell 1.7% year over year as higher fuel and vehicle costs led people to drive less and spend less on maintenance. DIV’s payout ratio for the first nine months was 93.3%, and the company plans to use excess cash flow to pay down debt from the acquisition. DIV.TO’s last closing price was below its 50-day and 200-day moving averages.
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