DEXTERRA GROUP INC (DXT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DXT - CA2523711091 - Common Stock
13.01 CAD
-0.05 (-0.38%)
DXT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While DXT has a great profitability rating, there are some minor concerns on its financial health. DXT may be a bit undervalued, certainly considering the very reasonable score on growth This makes DXT very considerable for value investing!
1. Profitability
1.1 Basic Checks
- DXT had positive earnings in the past year.
- DXT had a positive operating cash flow in the past year.
- Each year in the past 5 years DXT has been profitable.
- DXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DXT has a better Return On Assets (5.32%) than 87.50% of its industry peers.
- With a decent Return On Equity value of 14.08%, DXT is doing good in the industry, outperforming 79.17% of the companies in the same industry.
- DXT has a better Return On Invested Capital (8.88%) than 91.67% of its industry peers.
- DXT had an Average Return On Invested Capital over the past 3 years of 9.40%. This is above the industry average of 5.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 14.08% | ||
| ROIC | 8.88% |
ROA(3y)2.91%
ROA(5y)5.15%
ROE(3y)5.86%
ROE(5y)9.4%
ROIC(3y)9.4%
ROIC(5y)7.02%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.93%, DXT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- DXT's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 6.66%, DXT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of DXT has grown nicely.
- Looking at the Gross Margin, with a value of 17.58%, DXT is doing worse than 70.83% of the companies in the same industry.
- DXT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.66% | ||
| PM (TTM) | 3.93% | ||
| GM | 17.58% |
OM growth 3Y22.68%
OM growth 5YN/A
PM growth 3Y-15.82%
PM growth 5YN/A
GM growth 3Y4.8%
GM growth 5Y53.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DXT is still creating some value.
- Compared to 1 year ago, DXT has less shares outstanding
- Compared to 5 years ago, DXT has more shares outstanding
- Compared to 1 year ago, DXT has an improved debt to assets ratio.
2.2 Solvency
- DXT has an Altman-Z score of 2.88. This is not the best score and indicates that DXT is in the grey zone with still only limited risk for bankruptcy at the moment.
- DXT has a better Altman-Z score (2.88) than 75.00% of its industry peers.
- DXT has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as DXT would need 2.44 years to pay back of all of its debts.
- DXT's Debt to FCF ratio of 2.44 is amongst the best of the industry. DXT outperforms 91.67% of its industry peers.
- A Debt/Equity ratio of 0.77 indicates that DXT is somewhat dependend on debt financing.
- DXT has a Debt to Equity ratio of 0.77. This is in the better half of the industry: DXT outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.09
WACC8.11%
2.3 Liquidity
- DXT has a Current Ratio of 1.25. This is a normal value and indicates that DXT is financially healthy and should not expect problems in meeting its short term obligations.
- DXT has a Current ratio (1.25) which is in line with its industry peers.
- DXT has a Quick Ratio of 1.15. This is a normal value and indicates that DXT is financially healthy and should not expect problems in meeting its short term obligations.
- DXT has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- DXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 96.97%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 5.01% on average over the past years.
- Looking at the last year, DXT shows a decrease in Revenue. The Revenue has decreased by -0.73% in the last year.
- DXT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.97% yearly.
EPS 1Y (TTM)96.97%
EPS 3Y5.01%
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)-0.73%
Revenue growth 3Y11%
Revenue growth 5Y16.97%
Sales Q2Q%4.26%
3.2 Future
- DXT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.79% yearly.
- The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y63.9%
EPS Next 2Y41.15%
EPS Next 3Y32.79%
EPS Next 5YN/A
Revenue Next Year3.24%
Revenue Next 2Y6.46%
Revenue Next 3Y5.95%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.02, the valuation of DXT can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of DXT indicates a rather cheap valuation: DXT is cheaper than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DXT is valued a bit cheaper.
- DXT is valuated correctly with a Price/Forward Earnings ratio of 14.84.
- DXT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DXT is cheaper than 79.17% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. DXT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DXT is valued a bit cheaper than 75.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DXT indicates a rather cheap valuation: DXT is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.63 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
- DXT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- DXT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DXT's earnings are expected to grow with 32.79% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y41.15%
EPS Next 3Y32.79%
5. Dividend
5.1 Amount
- DXT has a Yearly Dividend Yield of 3.10%.
- Compared to an average industry Dividend Yield of 0.99, DXT pays a better dividend. On top of this DXT pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DXT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
- The dividend of DXT decreases each year by -2.83%.
- DXT has been paying a dividend for at least 10 years, so it has a reliable track record.
- DXT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.83%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- DXT pays out 55.11% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP55.11%
EPS Next 2Y41.15%
EPS Next 3Y32.79%
DEXTERRA GROUP INC / DXT.CA FAQ
What is the fundamental rating for DXT stock?
ChartMill assigns a fundamental rating of 6 / 10 to DXT.CA.
What is the valuation status of DEXTERRA GROUP INC (DXT.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to DEXTERRA GROUP INC (DXT.CA). This can be considered as Undervalued.
How profitable is DEXTERRA GROUP INC (DXT.CA) stock?
DEXTERRA GROUP INC (DXT.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for DXT stock?
The Price/Earnings (PE) ratio for DEXTERRA GROUP INC (DXT.CA) is 20.02 and the Price/Book (PB) ratio is 2.85.
How sustainable is the dividend of DEXTERRA GROUP INC (DXT.CA) stock?
The dividend rating of DEXTERRA GROUP INC (DXT.CA) is 5 / 10 and the dividend payout ratio is 55.11%.