DYE & DURHAM LTD (DND.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:DND • CA2674881040
4.17 CAD
-0.47 (-10.13%)
Last: Dec 15, 2025, 07:00 PM
Taking everything into account, DND scores 3 out of 10 in our fundamental rating. DND was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years DND reported 4 times negative net income.
- In the past 5 years DND always reported a positive cash flow from operatings.
1.2 Ratios
- DND has a Return On Assets of -6.83%. This is comparable to the rest of the industry: DND outperforms 50.75% of its industry peers.
- 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's Return On Invested Capital of 4.06% is fine compared to the rest of the industry. DND outperforms 68.66% of its industry peers.
- DND had an Average Return On Invested Capital over the past 3 years of 2.65%. This is significantly below the industry average of 12.50%.
- 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
- Looking at the Operating Margin, with a value of 20.81%, DND belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
- DND's Operating Margin has declined in the last couple of years.
- DND has a Gross Margin of 88.72%. This is amongst the best in 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.
- Compared to 1 year ago, DND has more shares outstanding
- The number of shares outstanding for DND has been increased compared to 5 years ago.
- DND has a worse debt/assets ratio than last year.
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.
- DND has a Altman-Z score (-0.01) which is in line with its industry peers.
- 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.
- 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.
- Looking at the Debt to Equity ratio, with a value of 4.25, DND is doing worse than 74.63% of the companies in the same industry.
| 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.
- DND has a worse Current ratio (0.66) than 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 worse Quick ratio (0.66) than 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.
- DND shows a small growth in Revenue. In the last year, the Revenue has grown by 2.46%.
- 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
- 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
- DND reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- 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.
- Based on the Price/Free Cash Flow ratio, DND is valued 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
- With a Yearly Dividend Yield of 1.90%, DND has a reasonable but not impressive dividend return.
- 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 0.24. DND pays more dividend than 97.01% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, 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
- 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.