ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
Canada - TSX:DRX - CA00089N1033 - Common Stock
8.18 CAD
-0.03 (-0.37%)
Overall DRX gets a fundamental rating of 7 out of 10. We evaluated DRX against 807 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making DRX a very profitable company, without any liquidiy or solvency issues. DRX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make DRX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
DRX had positive earnings in the past year.
DRX had a positive operating cash flow in the past year.
Each year in the past 5 years DRX has been profitable.
DRX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of DRX (16.78%) is better than 96.90% of its industry peers.
DRX's Return On Equity of 30.02% is amongst the best of the industry. DRX outperforms 96.90% of its industry peers.
With an excellent Return On Invested Capital value of 24.58%, DRX belongs to the best of the industry, outperforming 98.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DRX is significantly above the industry average of 11.74%.
The 3 year average ROIC (18.23%) for DRX is below the current ROIC(24.58%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 17.47%, DRX belongs to the top of the industry, outperforming 93.68% of the companies in the same industry.
In the last couple of years the Profit Margin of DRX has grown nicely.
Looking at the Operating Margin, with a value of 25.00%, DRX belongs to the top of the industry, outperforming 93.31% of the companies in the same industry.
DRX's Operating Margin has improved in the last couple of years.
DRX's Gross Margin of 30.62% is amongst the best of the industry. DRX outperforms 91.08% 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
DRX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DRX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DRX has less shares outstanding
The debt/assets ratio for DRX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.21 indicates that DRX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, DRX is in line with its industry, outperforming 56.88% of the companies in the same industry.
DRX has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
The Debt to FCF ratio of DRX (0.48) is better than 95.42% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that DRX is not too dependend on debt financing.
DRX has a worse Debt to Equity ratio (0.24) than 69.14% of its industry peers.
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 | 3.21 |
ROIC/WACC2.77
WACC8.87%
2.3 Liquidity
A Current Ratio of 2.45 indicates that DRX has no problem at all paying its short term obligations.
The Current ratio of DRX (2.45) is comparable to the rest of the industry.
DRX has a Quick Ratio of 2.26. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
DRX's Quick ratio of 2.26 is in line compared to the rest of the industry. DRX outperforms 58.86% of 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 59.70%, which is quite impressive.
Measured over the past years, DRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 84.52% on average per year.
Looking at the last year, DRX shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
DRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.58% yearly.
EPS 1Y (TTM)59.7%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-94.12%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-29.21%
3.2 Future
DRX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.02% yearly.
The Revenue is expected to decrease by -3.62% on average over the next years.
EPS Next Y-34.68%
EPS Next 2Y-12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-27.12%
Revenue Next 2Y-3.62%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
DRX is valuated cheaply with a Price/Earnings ratio of 4.45.
Compared to the rest of the industry, the Price/Earnings ratio of DRX indicates a rather cheap valuation: DRX is cheaper than 98.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. DRX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.74, 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 96.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. DRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.45 | ||
| Fwd PE | 5.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRX is valued cheaper than 99.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRX is valued cheaper than 99.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.41 | ||
| EV/EBITDA | 1.29 |
4.3 Compensation for Growth
DRX has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DRX's earnings are expected to decrease with -12.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DRX has a yearly dividend return of 0.47%, which is pretty low.
DRX's Dividend Yield is rather good when compared to the industry average which is at 13.98. DRX pays more dividend than 95.04% of the companies in the same industry.
With a Dividend Yield of 0.47, DRX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of DRX is nicely growing with an annual growth rate of 8.48%!
DRX has paid a dividend for at least 10 years, which is a reliable track record.
DRX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.48%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
1.84% of the earnings are spent on dividend by DRX. This is a low number and sustainable payout ratio.
DP1.84%
EPS Next 2Y-12.02%
EPS Next 3YN/A
TSX:DRX (9/18/2025, 7:00:00 PM)
8.18
-0.03 (-0.37%)
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 Cap131.13M
Analysts84
Price Target12.24 (49.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)0%
PT rev (3m)33.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)19%
EPS NY rev (3m)19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-10.84%
Revenue NY rev (3m)-9.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.45 | ||
| Fwd PE | 5.74 | ||
| P/S | 0.46 | ||
| P/FCF | 1.41 | ||
| P/OCF | 1.28 | ||
| P/B | 0.78 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 1.29 |
EPS(TTM)1.84
EY22.49%
EPS(NY)1.42
Fwd EY17.41%
FCF(TTM)5.81
FCFY70.99%
OCF(TTM)6.39
OCFY78.06%
SpS17.95
BVpS10.45
TBVpS10.15
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 | 3.21 |
F-Score7
WACC8.87%
ROIC/WACC2.77
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)59.7%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-94.12%
EPS Next Y-34.68%
EPS Next 2Y-12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-29.21%
Revenue Next Year-27.12%
Revenue Next 2Y-3.62%
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