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 820 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 This makes DRX very considerable for value and quality 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 4 of the past 5 years.
In multiple years DRX reported negative operating cash flow during the last 5 years.
1.2 Ratios
DRX has a Return On Assets of 18.92%. This is amongst the best in the industry. DRX outperforms 97.03% of its industry peers.
DRX's Return On Equity of 35.77% is amongst the best of the industry. DRX outperforms 97.57% of its industry peers.
DRX has a better Return On Invested Capital (31.21%) than 99.59% of its industry peers.
DRX had an Average Return On Invested Capital over the past 3 years of 11.99%. This is in line with the industry average of 11.94%.
The 3 year average ROIC (11.99%) for DRX is below the current ROIC(31.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 35.77% | ||
| ROIC | 31.21% |
ROA(3y)7.23%
ROA(5y)4.83%
ROE(3y)14.66%
ROE(5y)9.74%
ROIC(3y)11.99%
ROIC(5y)8.77%
1.3 Margins
The Profit Margin of DRX (16.60%) is better than 95.14% of its industry peers.
In the last couple of years the Profit Margin of DRX has grown nicely.
The Operating Margin of DRX (23.25%) is better than 94.19% of its industry peers.
DRX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 29.91%, DRX belongs to the top of the industry, outperforming 91.35% of the companies in the same industry.
In the last couple of years the Gross Margin of DRX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.25% | ||
| PM (TTM) | 16.6% | ||
| GM | 29.91% |
OM growth 3Y31.87%
OM growth 5YN/A
PM growth 3Y41.66%
PM growth 5YN/A
GM growth 3Y13.22%
GM growth 5Y25.39%
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 remains at a similar level compared to 1 year ago.
The number of shares outstanding for DRX remains at a similar level 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 3.35. This indicates that DRX is financially healthy and has little risk of bankruptcy at the moment.
DRX's Altman-Z score of 3.35 is fine compared to the rest of the industry. DRX outperforms 60.68% of its industry peers.
DRX has a debt to FCF ratio of 0.61. This is a very positive value and a sign of high solvency as it would only need 0.61 years to pay back of all of its debts.
DRX's Debt to FCF ratio of 0.61 is amongst the best of the industry. DRX outperforms 94.86% of its industry peers.
DRX has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
DRX has a Debt to Equity ratio of 0.26. This is in the lower half of the industry: DRX underperforms 74.59% 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 | 0.26 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 3.35 |
ROIC/WACC3.23
WACC9.66%
2.3 Liquidity
A Current Ratio of 2.22 indicates that DRX has no problem at all paying its short term obligations.
With a Current ratio value of 2.22, DRX perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
A Quick Ratio of 2.08 indicates that DRX has no problem at all paying its short term obligations.
With a Quick ratio value of 2.08, DRX perfoms like the industry average, outperforming 54.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.30% over the past year.
Measured over the past years, DRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.40% on average per year.
Looking at the last year, DRX shows a quite strong growth in Revenue. The Revenue has grown by 19.21% in the last year.
The Revenue has been growing by 19.63% on average over the past years. This is quite good.
EPS 1Y (TTM)105.3%
EPS 3Y76.4%
EPS 5YN/A
EPS Q2Q%61.76%
Revenue 1Y (TTM)19.21%
Revenue growth 3Y24.24%
Revenue growth 5Y19.63%
Sales Q2Q%-2.67%
3.2 Future
DRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.93% yearly.
DRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.15% yearly.
EPS Next Y86.24%
EPS Next 2Y29.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y4.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 4.21, the valuation of DRX can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of DRX indicates a rather cheap valuation: DRX is cheaper than 97.16% of the companies listed in the same industry.
DRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 4.19, 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 96.89% of the companies in the same industry.
DRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRX indicates a rather cheap valuation: DRX is cheaper than 99.73% of the companies listed in the same industry.
99.19% of the companies in the same industry are more expensive than DRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.74 | ||
| EV/EBITDA | 1.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DRX may justify a higher PE ratio.
A more expensive valuation may be justified as DRX's earnings are expected to grow with 29.93% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y29.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DRX has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 7.55, DRX pays a better dividend. On top of this DRX pays more dividend than 94.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, DRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of DRX has a limited annual growth rate of 0.10%.
DRX has been paying a dividend for at least 10 years, so it has 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)0.1%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
1.59% of the earnings are spent on dividend by DRX. This is a low number and sustainable payout ratio.
The dividend of DRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.59%
EPS Next 2Y29.93%
EPS Next 3YN/A
TSX:DRX (2/21/2025, 7:00:00 PM)
7.78
-0.32 (-3.95%)
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 Cap132.88M
Analysts84
Price Target23.46 (201.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.02
Dividend Growth(5Y)0.1%
DP1.59%
Div Incr Years1
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.55%
Min EPS beat(2)29.47%
Max EPS beat(2)39.63%
EPS beat(4)4
Avg EPS beat(4)31.96%
Min EPS beat(4)21.86%
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)-10.74%
Min Revenue beat(2)-19.94%
Max Revenue beat(2)-1.54%
Revenue beat(4)2
Avg Revenue beat(4)2.51%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)13.16%
EPS NQ rev (3m)34.38%
EPS NY rev (1m)14.04%
EPS NY rev (3m)13.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.19 | ||
| P/S | 0.38 | ||
| P/FCF | 1.74 | ||
| P/OCF | 1.56 | ||
| P/B | 0.82 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 1.3 |
EPS(TTM)1.85
EY23.78%
EPS(NY)1.86
Fwd EY23.89%
FCF(TTM)4.48
FCFY57.56%
OCF(TTM)5
OCFY64.28%
SpS20.53
BVpS9.53
TBVpS9.29
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.92% | ||
| ROE | 35.77% | ||
| ROCE | 36.79% | ||
| ROIC | 31.21% | ||
| ROICexc | 44.31% | ||
| ROICexgc | 45.51% | ||
| OM | 23.25% | ||
| PM (TTM) | 16.6% | ||
| GM | 29.91% | ||
| FCFM | 21.81% |
ROA(3y)7.23%
ROA(5y)4.83%
ROE(3y)14.66%
ROE(5y)9.74%
ROIC(3y)11.99%
ROIC(5y)8.77%
ROICexc(3y)15.29%
ROICexc(5y)11%
ROICexgc(3y)15.68%
ROICexgc(5y)11.28%
ROCE(3y)14.13%
ROCE(5y)10.34%
ROICexcg growth 3Y47.4%
ROICexcg growth 5YN/A
ROICexc growth 3Y47.59%
ROICexc growth 5YN/A
OM growth 3Y31.87%
OM growth 5YN/A
PM growth 3Y41.66%
PM growth 5YN/A
GM growth 3Y13.22%
GM growth 5Y25.39%
F-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 148.52% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 27.41 | ||
| Cash Conversion | 97.57% | ||
| Profit Quality | 131.4% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 3.35 |
F-Score8
WACC9.66%
ROIC/WACC3.23
Cap/Depr(3y)258.98%
Cap/Depr(5y)169.73%
Cap/Sales(3y)4.89%
Cap/Sales(5y)3.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.3%
EPS 3Y76.4%
EPS 5YN/A
EPS Q2Q%61.76%
EPS Next Y86.24%
EPS Next 2Y29.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.21%
Revenue growth 3Y24.24%
Revenue growth 5Y19.63%
Sales Q2Q%-2.67%
Revenue Next Year7.04%
Revenue Next 2Y4.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y101.39%
EBIT growth 3Y63.84%
EBIT growth 5YN/A
EBIT Next Year168.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y426.95%
FCF growth 3Y38.23%
FCF growth 5Y55.22%
OCF growth 1Y1607.23%
OCF growth 3Y39.24%
OCF growth 5Y46.14%