ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
TSX:DRX - Toronto Stock Exchange - CA00089N1033 - Common Stock - Currency: CAD
Taking everything into account, DRX scores 8 out of 10 in our fundamental rating. DRX was compared to 811 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, DRX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year DRX was profitable.
DRX had a positive operating cash flow in the past year.
DRX had positive earnings in each of the past 5 years.
DRX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DRX has a Return On Assets of 18.44%. This is amongst the best in the industry. DRX outperforms 97.13% of its industry peers.
DRX has a Return On Equity of 33.54%. This is amongst the best in the industry. DRX outperforms 97.75% of its industry peers.
The Return On Invested Capital of DRX (28.72%) is better than 99.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRX is significantly below the industry average of 24.67%.
The last Return On Invested Capital (28.72%) for DRX is above the 3 year average (18.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 33.54% | ||
| ROIC | 28.72% |
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 Profit Margin of 16.72%. This is amongst the best in the industry. DRX outperforms 94.63% of its industry peers.
In the last couple of years the Profit Margin of DRX has grown nicely.
With an excellent Operating Margin value of 25.07%, DRX belongs to the best of the industry, outperforming 94.38% of the companies in the same industry.
DRX's Operating Margin has improved in the last couple of years.
The Gross Margin of DRX (31.58%) is better than 92.01% of its industry peers.
DRX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.07% | ||
| PM (TTM) | 16.72% | ||
| GM | 31.58% |
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.
The number of shares outstanding for DRX has been reduced compared to 1 year ago.
Compared to 5 years ago, DRX has less shares outstanding
DRX has a better debt/assets ratio than last year.
2.2 Solvency
DRX has an Altman-Z score of 3.29. This indicates that DRX is financially healthy and has little risk of bankruptcy at the moment.
DRX has a Altman-Z score of 3.29. This is in the better half of the industry: DRX outperforms 62.17% of its industry peers.
The Debt to FCF ratio of DRX is 0.99, which is an excellent value as it means it would take DRX, only 0.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, DRX belongs to the top of the industry, outperforming 94.63% of the companies in the same industry.
DRX has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, DRX is doing worse than 67.67% 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 | 0.99 | ||
| Altman-Z | 3.29 |
ROIC/WACC3.21
WACC8.95%
2.3 Liquidity
DRX has a Current Ratio of 2.36. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.36, DRX perfoms like the industry average, outperforming 58.43% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that DRX has no problem at all paying its short term obligations.
With a Quick ratio value of 2.19, DRX perfoms like the industry average, outperforming 58.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
DRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.32%, which is quite impressive.
DRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.52% yearly.
DRX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
The Revenue has been growing by 13.58% on average over the past years. This is quite good.
EPS 1Y (TTM)59.32%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-3.13%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-12.44%
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
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
A Price/Earnings ratio of 3.42 indicates a rather cheap valuation of DRX.
DRX's Price/Earnings ratio is rather cheap when compared to the industry. DRX is cheaper than 97.88% of the companies in the same industry.
DRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.78.
With a Price/Forward Earnings ratio of 6.24, 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 96.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DRX to the average of the S&P500 Index (21.32), we can say DRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.42 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
DRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DRX is cheaper than 99.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRX is valued cheaper than 99.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.28 | ||
| EV/EBITDA | 0.99 |
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 -16.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DRX has a yearly dividend return of 0.64%, which is pretty low.
The stock price of DRX dropped by -32.26% 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.
Compared to an average industry Dividend Yield of 2.89, DRX pays a better dividend. On top of this DRX pays more dividend than 95.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, DRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of DRX is nicely growing with an annual growth rate of 8.26%!
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)8.26%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
1.63% of the earnings are spent on dividend by DRX. This is a low number and sustainable payout ratio.
DP1.63%
EPS Next 2Y-16.18%
EPS Next 3YN/A
TSX:DRX (4/25/2025, 7:00:00 PM)
6.3
+0.07 (+1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners5.76%
Inst Owner ChangeN/A
Ins Owners3.46%
Ins Owner ChangeN/A
Market Cap104.89M
Analysts84
Price Target9.18 (45.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.03
Dividend Growth(5Y)8.26%
DP1.63%
Div Incr Years1
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.5%
Min EPS beat(2)-28.62%
Max EPS beat(2)39.63%
EPS beat(4)3
Avg EPS beat(4)19.34%
Min EPS beat(4)-28.62%
Max EPS beat(4)39.63%
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)-2.88%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-19.94%
Max Revenue beat(4)18.02%
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)-60.87%
PT rev (3m)-60.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-45.65%
EPS NY rev (3m)-45.95%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-20.91%
Revenue NY rev (3m)-20.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.42 | ||
| Fwd PE | 6.24 | ||
| P/S | 0.31 | ||
| P/FCF | 2.28 | ||
| P/OCF | 1.91 | ||
| P/B | 0.62 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 0.99 |
EPS(TTM)1.84
EY29.21%
EPS(NY)1.01
Fwd EY16.03%
FCF(TTM)2.76
FCFY43.82%
OCF(TTM)3.31
OCFY52.49%
SpS20.4
BVpS10.17
TBVpS9.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 33.54% | ||
| ROCE | 37.41% | ||
| ROIC | 28.72% | ||
| ROICexc | 39% | ||
| ROICexgc | 40.03% | ||
| OM | 25.07% | ||
| PM (TTM) | 16.72% | ||
| GM | 31.58% | ||
| FCFM | 13.53% |
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-Score8
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 147.61% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 30.46 | ||
| Cash Conversion | 60.31% | ||
| Profit Quality | 80.94% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 3.29 |
F-Score8
WACC8.95%
ROIC/WACC3.21
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)59.32%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-3.13%
EPS Next Y-45.11%
EPS Next 2Y-16.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-12.44%
Revenue Next Year-19.84%
Revenue Next 2Y-8.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y69.79%
EBIT growth 3Y88.52%
EBIT growth 5Y179.4%
EBIT Next Year107.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.29%
OCF growth 3Y174.25%
OCF growth 5YN/A