DYE & DURHAM LTD (DND.CA) Stock Fundamental Analysis
TSX:DND - Toronto Stock Exchange - CA2674881040 - Common Stock - Currency: CAD
DND gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 66 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
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 (-6.79%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -47.35%, DND is in line with its industry, outperforming 46.27% of the companies in the same industry.
DND has a Return On Invested Capital of 4.02%. This is in the better half of the industry: DND outperforms 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 11.99%.
The 3 year average ROIC (2.65%) for DND is below the current ROIC(4.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.79% | ||
| ROE | -47.35% | ||
| ROIC | 4.02% |
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 better Operating Margin (21.00%) than 94.03% of its industry peers.
In the last couple of years the Operating Margin of DND has declined.
With an excellent Gross Margin value of 89.54%, DND belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
In the last couple of years the Gross Margin of DND has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 89.54% |
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.
DND has more shares outstanding than it did 1 year ago.
DND has more shares outstanding than it did 5 years ago.
DND has a worse debt/assets ratio than last year.
2.2 Solvency
DND has an Altman-Z score of 0.10. This is a bad value and indicates that DND is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.10, DND is in line with its industry, outperforming 44.78% of the companies in the same industry.
DND has a debt to FCF ratio of 13.08. This is a negative value and a sign of low solvency as DND would need 13.08 years to pay back of all of its debts.
DND has a Debt to FCF ratio of 13.08. This is comparable to the rest of the industry: DND outperforms 58.21% of its industry peers.
A Debt/Equity ratio of 3.96 is on the high side and indicates that DND has dependencies on debt financing.
DND has a worse Debt to Equity ratio (3.96) than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.96 | ||
| Debt/FCF | 13.08 | ||
| Altman-Z | 0.1 |
ROIC/WACC0.44
WACC9.2%
2.3 Liquidity
DND has a Current Ratio of 0.29. 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 Current ratio of 0.29 is on the low side compared to the rest of the industry. DND is outperformed by 79.10% of its industry peers.
DND has a Quick Ratio of 0.29. This is a bad value and indicates that DND is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.29, DND is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
DND shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.47%, which is quite impressive.
The Revenue has been growing slightly by 2.97% 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)35.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%56.73%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y29.88%
Revenue growth 5Y59.89%
Sales Q2Q%9.55%
3.2 Future
DND is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.19% yearly.
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 Y64.36%
EPS Next 2Y30.09%
EPS Next 3Y20.19%
EPS Next 5YN/A
Revenue Next Year6.61%
Revenue Next 2Y6.96%
Revenue Next 3Y6.08%
Revenue Next 5Y2.58%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DND reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Based on the Enterprise Value to EBITDA ratio, DND is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DND is valued cheaply inside the industry as 94.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DND's earnings are expected to grow with 20.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.09%
EPS Next 3Y20.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, DND is not a good candidate for dividend investing.
In the last 3 months the price of DND has falen by -35.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.99, DND pays a better dividend. On top of this DND pays more dividend than 91.04% of the companies listed in the same industry.
With a Dividend Yield of 0.57, DND pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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-3.4%
EPS Next 2Y30.09%
EPS Next 3Y20.19%
TSX:DND (3/7/2025, 7:00:00 PM)
13.16
+0.03 (+0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners47.53%
Inst Owner ChangeN/A
Ins Owners0.65%
Ins Owner ChangeN/A
Market Cap881.46M
Analysts76.36
Price Target21.25 (61.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP-3.4%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.82%
Min Revenue beat(4)-6.87%
Max Revenue beat(4)0.91%
Revenue beat(8)3
Avg Revenue beat(8)-1.6%
Revenue beat(12)4
Avg Revenue beat(12)-2.2%
Revenue beat(16)7
Avg Revenue beat(16)0.61%
PT rev (1m)-15.86%
PT rev (3m)-11.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-108.89%
EPS NY rev (3m)17.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.88 | ||
| P/FCF | 7 | ||
| P/OCF | 5.57 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.33 |
EPS(TTM)-1.11
EYN/A
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)1.88
FCFY14.29%
OCF(TTM)2.36
OCFY17.96%
SpS6.99
BVpS4.86
TBVpS-22.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.79% | ||
| ROE | -47.35% | ||
| ROCE | 5.58% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.09% | ||
| ROICexgc | N/A | ||
| OM | 21% | ||
| PM (TTM) | N/A | ||
| GM | 89.54% | ||
| FCFM | 26.92% |
ROA(3y)-5.16%
ROA(5y)-4.96%
ROE(3y)-28.09%
ROE(5y)N/A
ROIC(3y)2.65%
ROIC(5y)4.08%
ROICexc(3y)2.84%
ROICexc(5y)4.41%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.68%
ROCE(5y)5.67%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-13.82%
ROICexc growth 5Y-26.63%
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%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.96 | ||
| Debt/FCF | 13.08 | ||
| Debt/EBITDA | 4.82 | ||
| Cap/Depr | 19.12% | ||
| Cap/Sales | 6.91% | ||
| Interest Coverage | 0.93 | ||
| Cash Conversion | 59.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.1 |
F-Score4
WACC9.2%
ROIC/WACC0.44
Cap/Depr(3y)20.96%
Cap/Depr(5y)20.42%
Cap/Sales(3y)6.95%
Cap/Sales(5y)6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%56.73%
EPS Next Y64.36%
EPS Next 2Y30.09%
EPS Next 3Y20.19%
EPS Next 5YN/A
Revenue 1Y (TTM)2.97%
Revenue growth 3Y29.88%
Revenue growth 5Y59.89%
Sales Q2Q%9.55%
Revenue Next Year6.61%
Revenue Next 2Y6.96%
Revenue Next 3Y6.08%
Revenue Next 5Y2.58%
EBIT growth 1Y42%
EBIT growth 3Y7.48%
EBIT growth 5Y25.98%
EBIT Next Year240.68%
EBIT Next 3Y60.06%
EBIT Next 5Y28.13%
FCF growth 1Y-16.13%
FCF growth 3Y26.63%
FCF growth 5Y100.32%
OCF growth 1Y-8.53%
OCF growth 3Y31.58%
OCF growth 5Y77.73%