ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
TSX:DRX - Toronto Stock Exchange - CA00089N1033 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to DRX. DRX was compared to 808 industry peers in the Metals & Mining industry. DRX gets an excellent profitability rating and is at the same time showing great financial health properties. DRX has a bad growth rate and is valued cheaply. These ratings would make DRX suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year DRX was profitable.
In the past year DRX had a positive cash flow from operations.
In the past 5 years DRX has always been profitable.
Of the past 5 years DRX 4 years had a positive operating cash flow.
1.2 Ratios
DRX has a Return On Assets of 16.78%. This is amongst the best in the industry. DRX outperforms 96.04% of its industry peers.
DRX has a better Return On Equity (30.02%) than 97.15% of its industry peers.
DRX has a Return On Invested Capital of 24.58%. This is amongst the best in the industry. DRX outperforms 98.89% of its industry peers.
DRX had an Average Return On Invested Capital over the past 3 years of 18.23%. This is significantly above the industry average of 12.36%.
The last Return On Invested Capital (24.58%) for DRX is above the 3 year average (18.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.78% | ||
| ROE | 30.02% | ||
| ROIC | 24.58% |
ROA(3y)11.8%
ROA(5y)8.76%
ROE(3y)22.9%
ROE(5y)16.89%
ROIC(3y)18.23%
ROIC(5y)13.62%
1.3 Margins
DRX has a better Profit Margin (17.47%) than 94.31% of its industry peers.
DRX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.00%, DRX belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
DRX's Operating Margin has improved in the last couple of years.
The Gross Margin of DRX (30.62%) is better than 91.58% of its industry peers.
In the last couple of years the Gross Margin of DRX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25% | ||
| PM (TTM) | 17.47% | ||
| GM | 30.62% |
OM growth 3Y76.93%
OM growth 5Y146%
PM growth 3Y69.95%
PM growth 5YN/A
GM growth 3Y53.12%
GM growth 5Y28.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DRX is creating value.
DRX has less shares outstanding than it did 1 year ago.
DRX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DRX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.20 indicates that DRX is not in any danger for bankruptcy at the moment.
DRX has a better Altman-Z score (3.20) than 61.26% of its industry peers.
The Debt to FCF ratio of DRX is 0.48, which is an excellent value as it means it would take DRX, only 0.48 years of fcf income to pay off all of its debts.
DRX has a Debt to FCF ratio of 0.48. This is amongst the best in the industry. DRX outperforms 95.54% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that DRX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, DRX is doing worse than 68.19% of the companies in the same industry.
Although DRX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 3.2 |
ROIC/WACC3.11
WACC7.9%
2.3 Liquidity
A Current Ratio of 2.45 indicates that DRX has no problem at all paying its short term obligations.
With a Current ratio value of 2.45, DRX perfoms like the industry average, outperforming 59.28% of the companies in the same industry.
A Quick Ratio of 2.26 indicates that DRX has no problem at all paying its short term obligations.
DRX has a Quick ratio (2.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
DRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.54%, which is quite good.
The Earnings Per Share has been growing by 84.52% on average over the past years. This is a very strong growth
Looking at the last year, DRX shows a very negative growth in Revenue. The Revenue has decreased by -19.66% in the last year.
Measured over the past years, DRX shows a quite strong growth in Revenue. The Revenue has been growing by 13.58% on average per year.
EPS 1Y (TTM)14.54%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-35.28%
Revenue 1Y (TTM)-19.66%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-48.3%
3.2 Future
The Earnings Per Share is expected to decrease by -16.18% on average over the next years. This is quite bad
Based on estimates for the next years, DRX will show a decrease in Revenue. The Revenue will decrease by -8.15% on average per year.
EPS Next Y-45.11%
EPS Next 2Y-16.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.84%
Revenue Next 2Y-8.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 4.30 indicates a rather cheap valuation of DRX.
Compared to the rest of the industry, the Price/Earnings ratio of DRX indicates a rather cheap valuation: DRX is cheaper than 97.77% of the companies listed in the same industry.
DRX is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.13, the valuation of DRX can be described as very cheap.
DRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRX is cheaper than 95.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, DRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.3 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRX is valued cheaper than 99.50% of the companies in the same industry.
DRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRX is cheaper than 99.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.39 | ||
| EV/EBITDA | 1.27 |
4.3 Compensation for Growth
DRX has an outstanding profitability rating, which may justify a higher PE ratio.
DRX's earnings are expected to decrease with -16.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, DRX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, DRX pays a better dividend. On top of this DRX pays more dividend than 95.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
On average, the dividend of DRX grows each year by 8.48%, which is quite nice.
DRX has paid a dividend for at least 10 years, which is a reliable track record.
DRX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.48%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
DRX pays out 1.84% of its income as dividend. This is a sustainable payout ratio.
DP1.84%
EPS Next 2Y-16.18%
EPS Next 3YN/A
TSX:DRX (6/30/2025, 7:00:00 PM)
7.92
+0.07 (+0.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners3.51%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap129.73M
Analysts84
Price Target10.2 (28.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.03
Dividend Growth(5Y)8.48%
DP1.84%
Div Incr Years1
Div Non Decr Years13
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)11.11%
PT rev (3m)-56.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-45.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-20.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.3 | ||
| Fwd PE | 6.13 | ||
| P/S | 0.45 | ||
| P/FCF | 1.39 | ||
| P/OCF | 1.27 | ||
| P/B | 0.77 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 1.27 |
EPS(TTM)1.84
EY23.23%
EPS(NY)1.29
Fwd EY16.32%
FCF(TTM)5.68
FCFY71.75%
OCF(TTM)6.25
OCFY78.9%
SpS17.57
BVpS10.22
TBVpS9.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.78% | ||
| ROE | 30.02% | ||
| ROCE | 32.03% | ||
| ROIC | 24.58% | ||
| ROICexc | 36.97% | ||
| ROICexgc | 38.17% | ||
| OM | 25% | ||
| PM (TTM) | 17.47% | ||
| GM | 30.62% | ||
| FCFM | 32.35% |
ROA(3y)11.8%
ROA(5y)8.76%
ROE(3y)22.9%
ROE(5y)16.89%
ROIC(3y)18.23%
ROIC(5y)13.62%
ROICexc(3y)24.54%
ROICexc(5y)17.69%
ROICexgc(3y)25.17%
ROICexgc(5y)18.15%
ROCE(3y)23.75%
ROCE(5y)17.74%
ROICexcg growth 3Y78.34%
ROICexcg growth 5Y166.39%
ROICexc growth 3Y78.21%
ROICexc growth 5Y166.39%
OM growth 3Y76.93%
OM growth 5Y146%
PM growth 3Y69.95%
PM growth 5YN/A
GM growth 3Y53.12%
GM growth 5Y28.02%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 148.16% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 28.21 | ||
| Cash Conversion | 130.9% | ||
| Profit Quality | 185.17% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 3.2 |
F-Score7
WACC7.9%
ROIC/WACC3.11
Cap/Depr(3y)162.65%
Cap/Depr(5y)192.31%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.54%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-35.28%
EPS Next Y-45.11%
EPS Next 2Y-16.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.66%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-48.3%
Revenue Next Year-19.84%
Revenue Next 2Y-8.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.2%
EBIT growth 3Y88.52%
EBIT growth 5Y179.4%
EBIT Next Year22.53%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y174.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.12%
OCF growth 3Y174.25%
OCF growth 5YN/A