ADF GROUP INC (DRX.CA) Fundamental Analysis & Valuation
TSX:DRX • CA00089N1033
Current stock price
9.66 CAD
+0.19 (+2.01%)
Last:
This DRX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DRX.CA Profitability Analysis
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
- Looking at the Return On Assets, with a value of 9.14%, DRX belongs to the top of the industry, outperforming 91.53% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 16.03%, DRX belongs to the top of the industry, outperforming 93.40% of the companies in the same industry.
- DRX has a better Return On Invested Capital (14.59%) than 95.77% of its industry peers.
- DRX had an Average Return On Invested Capital over the past 3 years of 18.23%. This is above the industry average of 13.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 16.03% | ||
| ROIC | 14.59% |
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
- The Profit Margin of DRX (11.29%) is better than 91.41% of its industry peers.
- DRX's Profit Margin has improved in the last couple of years.
- The Operating Margin of DRX (17.56%) is better than 91.03% of its industry peers.
- DRX's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 25.97%, DRX belongs to the best of the industry, outperforming 89.17% of the companies in the same industry.
- DRX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.56% | ||
| PM (TTM) | 11.29% | ||
| GM | 25.97% |
OM growth 3Y76.93%
OM growth 5Y146%
PM growth 3Y69.95%
PM growth 5YN/A
GM growth 3Y53.12%
GM growth 5Y28.02%
2. DRX.CA Health Analysis
2.1 Basic Checks
- DRX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- DRX has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DRX has been reduced compared to 5 years ago.
- Compared to 1 year ago, DRX has an improved debt to assets ratio.
2.2 Solvency
- DRX has an Altman-Z score of 2.80. This is not the best score and indicates that DRX is in the grey zone with still only limited risk for bankruptcy at the moment.
- DRX's Altman-Z score of 2.80 is in line compared to the rest of the industry. DRX outperforms 47.70% of its industry peers.
- DRX has a debt to FCF ratio of 8.57. This is a slightly negative value and a sign of low solvency as DRX would need 8.57 years to pay back of all of its debts.
- DRX has a better Debt to FCF ratio (8.57) than 89.66% of its industry peers.
- A Debt/Equity ratio of 0.21 indicates that DRX is not too dependend on debt financing.
- The Debt to Equity ratio of DRX (0.21) is worse than 68.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.23
WACC11.88%
2.3 Liquidity
- DRX has a Current Ratio of 2.27. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
- DRX has a Current ratio (2.27) which is comparable to the rest of the industry.
- DRX has a Quick Ratio of 2.03. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
- DRX has a Quick ratio (2.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.03 |
3. DRX.CA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 59.70% over the past year.
- The Earnings Per Share has been growing by 84.52% on average over the past years. This is a very strong growth
- DRX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.60%.
- 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%-29.03%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%1.8%
3.2 Future
- Based on estimates for the next years, DRX will show a small growth in Earnings Per Share. The EPS will grow by 0.23% on average per year.
- The Revenue is expected to grow by 8.59% on average over the next years. This is quite good.
EPS Next Y-40.72%
EPS Next 2Y0.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-24.78%
Revenue Next 2Y5.67%
Revenue Next 3Y8.59%
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. DRX.CA Valuation Analysis
4.1 Price/Earnings Ratio
- DRX is valuated cheaply with a Price/Earnings ratio of 5.25.
- Based on the Price/Earnings ratio, DRX is valued cheaply inside the industry as 97.63% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of DRX to the average of the S&P500 Index (27.42), we can say DRX is valued rather cheaply.
- DRX is valuated cheaply with a Price/Forward Earnings ratio of 5.23.
- DRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRX is cheaper than 97.38% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DRX to the average of the S&P500 Index (22.29), we can say DRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.25 | ||
| Fwd PE | 5.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRX is valued cheaper than 98.75% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DRX is valued cheaper than 93.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.91 | ||
| EV/EBITDA | 3.27 |
4.3 Compensation for Growth
- DRX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.23%
EPS Next 3YN/A
5. DRX.CA Dividend Analysis
5.1 Amount
- DRX has a yearly dividend return of 0.42%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.85, DRX pays a better dividend. On top of this DRX pays more dividend than 95.27% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, DRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
- On average, the dividend of DRX grows each year by 8.48%, which is quite nice.
- DRX has been paying a dividend for at least 10 years, so it has 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 Years2
Div Non Decr Years14
5.3 Sustainability
- DRX pays out 3.95% of its income as dividend. This is a sustainable payout ratio.
- The dividend of DRX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP3.95%
EPS Next 2Y0.23%
EPS Next 3YN/A
DRX.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:DRX (4/24/2026, 7:00:00 PM)
9.66
+0.19 (+2.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)04-16 2026-04-16/bmo
Earnings (Next)06-08 2026-06-08
Inst Owners3.2%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap159.20M
Revenue(TTM)339.63M
Net Income(TTM)29.05M
Analysts84
Price Target13.26 (37.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.03
Dividend Growth(5Y)8.48%
DP3.95%
Div Incr Years2
Div Non Decr Years14
Ex-Date04-27 2026-04-27 (0.02)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.92%
Min EPS beat(2)-85.86%
Max EPS beat(2)62.02%
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)1
Avg Revenue beat(2)-3.23%
Min Revenue beat(2)-9.83%
Max Revenue beat(2)3.37%
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)8.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.25 | ||
| Fwd PE | 5.23 | ||
| P/S | 0.62 | ||
| P/FCF | 31.91 | ||
| P/OCF | 10.5 | ||
| P/B | 0.88 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 3.27 |
EPS(TTM)1.84
EY19.05%
EPS(NY)1.85
Fwd EY19.13%
FCF(TTM)0.3
FCFY3.13%
OCF(TTM)0.92
OCFY9.52%
SpS15.62
BVpS10.99
TBVpS10.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.3349 (120.86%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.14% | ||
| ROE | 16.03% | ||
| ROCE | 19% | ||
| ROIC | 14.59% | ||
| ROICexc | 16.91% | ||
| ROICexgc | 17.53% | ||
| OM | 17.56% | ||
| PM (TTM) | 11.29% | ||
| GM | 25.97% | ||
| FCFM | 1.94% |
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%
ROICexgc growth 3Y78.34%
ROICexgc 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-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 8.57 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 156.46% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 23.59 | ||
| Cash Conversion | 29.32% | ||
| Profit Quality | 17.18% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 2.8 |
F-Score5
WACC11.88%
ROIC/WACC1.23
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%-29.03%
EPS Next Y-40.72%
EPS Next 2Y0.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%1.8%
Revenue Next Year-24.78%
Revenue Next 2Y5.67%
Revenue Next 3Y8.59%
Revenue Next 5YN/A
EBIT growth 1Y-44.56%
EBIT growth 3Y88.52%
EBIT growth 5Y179.4%
EBIT Next Year31.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-82.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-57.23%
OCF growth 3Y174.25%
OCF growth 5YN/A
ADF GROUP INC / DRX.CA Fundamental Analysis FAQ
What is the fundamental rating for DRX stock?
ChartMill assigns a fundamental rating of 7 / 10 to DRX.CA.
What is the valuation status of ADF GROUP INC (DRX.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to ADF GROUP INC (DRX.CA). This can be considered as Undervalued.
Can you provide the profitability details for ADF GROUP INC?
ADF GROUP INC (DRX.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for DRX stock?
The Price/Earnings (PE) ratio for ADF GROUP INC (DRX.CA) is 5.25 and the Price/Book (PB) ratio is 0.88.
Can you provide the dividend sustainability for DRX stock?
The dividend rating of ADF GROUP INC (DRX.CA) is 6 / 10 and the dividend payout ratio is 3.95%.