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. DND is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DND has reported negative net income.
- 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
- Looking at the Return On Assets, with a value of -6.83%, DND is in line with its industry, outperforming 50.75% of the companies in the same industry.
- The Return On Equity of DND (-50.62%) is worse than 62.69% of its industry peers.
- With a decent Return On Invested Capital value of 4.06%, DND is doing good in the industry, outperforming 68.66% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DND is significantly below the industry average of 12.48%.
- The last Return On Invested Capital (4.06%) for DND is above the 3 year average (2.65%), which is a sign of increasing profitability.
| 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.
- In the last couple of years the Operating Margin of DND has declined.
- DND has a better Gross Margin (88.72%) than 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
- DND has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for DND has been increased compared to 1 year ago.
- The number of shares outstanding for DND has been increased compared to 5 years ago.
- The debt/assets ratio for DND is higher compared to a year ago.
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.
- With a Altman-Z score value of -0.01, DND perfoms like the industry average, outperforming 40.30% of the companies in the same industry.
- DND has a debt to FCF ratio of 13.57. This is a negative value and a sign of low solvency as DND would need 13.57 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 13.57, DND is doing good in the industry, outperforming 64.18% of the companies in the same industry.
- DND has a Debt/Equity ratio of 4.25. This is a high value indicating a heavy dependency on external 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
- DND has a Current 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.
- Looking at the Current ratio, with a value of 0.66, DND is doing worse than 70.15% of the companies in the same industry.
- A Quick Ratio of 0.66 indicates that DND may have some problems paying its short term obligations.
- With a Quick ratio value of 0.66, DND is not doing good in the industry: 70.15% of the companies in the same industry are doing better.
| 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.
- The Revenue has been growing slightly by 2.46% in the past year.
- The Revenue has been growing by 59.89% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 31.98% on average over the next years. This is a very strong growth
- Based on estimates for the next years, DND will show a small growth in Revenue. The Revenue will grow by 2.58% on average per year.
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.
- Also next year DND is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- DND's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DND is cheaper than 82.09% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DND indicates a rather cheap valuation: DND is cheaper than 94.03% of the companies listed in the same industry.
| 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
- With a Yearly Dividend Yield of 1.90%, DND has a reasonable but not impressive dividend return.
- The stock price of DND dropped by -53.15% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, DND has a dividend comparable with the average S&P500 company.
| 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
- The earnings of DND are negative and hence is the payout ratio. DND will probably not be able to sustain this dividend level.
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.