DYE & DURHAM LTD (DND.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DND - CA2674881040 - Common Stock
4.17 CAD
-0.47 (-10.13%)
DND gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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.
- In the past year DND had a positive cash flow from operations.
- 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
- DND has a Return On Assets (-6.83%) which is comparable to the rest of the industry.
- DND's Return On Equity of -50.62% is on the low side compared to the rest of the industry. DND is outperformed by 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's Operating Margin of 20.81% is amongst the best of the industry. DND outperforms 91.04% of its industry peers.
- In the last couple of years the Operating Margin of DND has declined.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DND 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.
- Compared to 1 year ago, DND has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.01, we must say that DND is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of DND (-0.01) is comparable to the rest of the 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.
- 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 has a worse Debt to Equity ratio (4.25) than 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.
- DND has a Current ratio of 0.66. This is in the lower half of the industry: DND underperforms 70.15% of its industry peers.
- A Quick Ratio of 0.66 indicates that DND may have some problems paying its short term obligations.
- DND has a Quick ratio of 0.66. This is in the lower half of the industry: DND underperforms 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- DND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 84.66%, which is quite impressive.
- The Revenue has been growing slightly by 2.46% in the past year.
- DND shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 59.89% yearly.
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.
- 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.
- DND's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DND is cheaper than 94.03% of the companies 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
- DND has a Yearly Dividend Yield of 1.90%.
- 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.
- Compared to an average industry Dividend Yield of 0.23, DND pays a better dividend. On top of this DND pays more dividend than 97.01% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.