DYE & DURHAM LTD (DND.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DND - CA2674881040 - Common Stock
4.17 CAD
-0.47 (-10.13%)
Overall DND gets a fundamental rating of 3 out of 10. We evaluated DND against 68 industry peers in the Software industry. While DND is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, DND is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- DND had negative earnings in the past year.
- DND had a positive operating cash flow in the past year.
- DND had negative earnings in 4 of the past 5 years.
- In the past 5 years DND always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DND (-6.83%) is comparable to the rest of the industry.
- DND has a Return On Equity of -50.62%. This is in the lower half of the industry: DND underperforms 62.69% of its industry peers.
- DND has a better Return On Invested Capital (4.06%) than 68.66% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DND is significantly below the industry average of 12.48%.
- The 3 year average ROIC (2.65%) for DND is below the current ROIC(4.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.83% | ||
| ROE | -50.62% | ||
| ROIC | 4.06% |
ROA(3y)-5.16%
ROA(5y)-4.96%
ROE(3y)-28.09%
ROE(5y)N/A
ROIC(3y)2.65%
ROIC(5y)4.08%
1.3 Margins
- DND has a Operating Margin of 20.81%. This is amongst the best in the industry. DND outperforms 91.04% of its industry peers.
- DND's Operating Margin has declined in the last couple of years.
- DND's Gross Margin of 88.72% is amongst the best of the industry. DND outperforms 92.54% of its industry peers.
- DND's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | N/A | ||
| GM | 88.72% |
OM growth 3Y-17.25%
OM growth 5Y-21.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.77%
GM growth 5Y-0.64%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DND is destroying value.
- DND has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DND has more shares outstanding
- Compared to 1 year ago, DND has a worse debt to assets ratio.
2.2 Solvency
- DND has an Altman-Z score of -0.01. This is a bad value and indicates that DND is not financially healthy and even has some risk of bankruptcy.
- DND has a Altman-Z score (-0.01) which is comparable to the rest of the industry.
- The Debt to FCF ratio of DND is 13.57, which is on the high side as it means it would take DND, 13.57 years of fcf income to pay off all of its debts.
- DND has a better Debt to FCF ratio (13.57) than 64.18% of its industry peers.
- A Debt/Equity ratio of 4.25 is on the high side and indicates that DND has dependencies on debt financing.
- DND's Debt to Equity ratio of 4.25 is on the low side compared to the rest of the industry. DND is outperformed by 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.25 | ||
| Debt/FCF | 13.57 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.56
WACC7.2%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that DND may have some problems paying its short term obligations.
- The Current ratio of DND (0.66) is worse than 70.15% of its industry peers.
- DND has a Quick Ratio of 0.66. This is a bad value and indicates that DND is not financially healthy enough and could expect problems in meeting its short term obligations.
- DND's Quick ratio of 0.66 is on the low side compared to the rest of the industry. DND is outperformed by 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 84.66% over the past year.
- DND shows a small growth in Revenue. In the last year, the Revenue has grown by 2.46%.
- Measured over the past years, DND shows a very strong growth in Revenue. The Revenue has been growing by 59.89% on average per year.
EPS 1Y (TTM)84.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.71%
Revenue 1Y (TTM)2.46%
Revenue growth 3Y29.88%
Revenue growth 5Y59.89%
Sales Q2Q%0.94%
3.2 Future
- Based on estimates for the next years, DND will show a very strong growth in Earnings Per Share. The EPS will grow by 31.98% on average per year.
- DND is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
EPS Next Y0.21%
EPS Next 2Y12.58%
EPS Next 3Y11.98%
EPS Next 5Y31.98%
Revenue Next Year-2.1%
Revenue Next 2Y-2.39%
Revenue Next 3Y0.26%
Revenue Next 5Y2.58%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for DND. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for DND. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DND is valued cheaply inside the industry as 82.09% of the companies are valued more expensively.
- 94.03% of the companies in the same industry are more expensive than DND, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.28 | ||
| EV/EBITDA | 7.14 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.58%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
- DND has a Yearly Dividend Yield of 1.90%.
- In the last 3 months the price of DND has falen by -53.15%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- DND's Dividend Yield is rather good when compared to the industry average which is at 0.23. DND pays more dividend than 97.01% of the companies in the same industry.
- DND's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
- DND has been paying a dividend for over 5 years, so it has already some track record.
- DND has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- DND has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-3.41%
EPS Next 2Y12.58%
EPS Next 3Y11.98%
DYE & DURHAM LTD / DND.CA FAQ
What is the fundamental rating for DND stock?
ChartMill assigns a fundamental rating of 3 / 10 to DND.CA.
What is the valuation status for DND stock?
ChartMill assigns a valuation rating of 2 / 10 to DYE & DURHAM LTD (DND.CA). This can be considered as Overvalued.
How profitable is DYE & DURHAM LTD (DND.CA) stock?
DYE & DURHAM LTD (DND.CA) has a profitability rating of 4 / 10.
How financially healthy is DYE & DURHAM LTD?
The financial health rating of DYE & DURHAM LTD (DND.CA) is 1 / 10.
Can you provide the expected EPS growth for DND stock?
The Earnings per Share (EPS) of DYE & DURHAM LTD (DND.CA) is expected to grow by 0.21% in the next year.