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. There are concerns on the financial health of DND while its profitability can be described as average. 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 (-6.83%) which is in line with its industry peers.
- With a Return On Equity value of -50.62%, DND is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
- DND has a better Return On Invested Capital (4.06%) than 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 12.48%.
- 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.
- The number of shares outstanding for DND has been increased compared to 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
- 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's Altman-Z score of -0.01 is in line compared to the rest of the industry. DND outperforms 40.30% of 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.
- 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 Debt to Equity ratio of 4.25. This is in the lower half of the industry: DND underperforms 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.
- Looking at the last year, DND shows a small growth in Revenue. The Revenue has grown by 2.46% in the last 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
- DND is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.98% yearly.
- 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 cheaper than 82.09% of the companies in the same industry.
- 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%.
- 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 1.81, 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.