DEXTERRA GROUP INC (DXT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DXT - CA2523711091 - Common Stock
13.01 CAD
-0.05 (-0.38%)
We assign a fundamental rating of 6 out of 10 to DXT. DXT was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on DXT. These ratings could make DXT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year DXT was profitable.
- DXT had a positive operating cash flow in the past year.
- Each year in the past 5 years DXT has been profitable.
- Each year in the past 5 years DXT had a positive operating cash flow.
1.2 Ratios
- DXT has a better Return On Assets (5.32%) than 87.50% of its industry peers.
- DXT has a better Return On Equity (14.08%) than 79.17% of its industry peers.
- The Return On Invested Capital of DXT (8.88%) is better 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
- DXT has a Profit Margin of 3.93%. This is in the better half of the industry: DXT outperforms 66.67% of its industry peers.
- In the last couple of years the Profit Margin of DXT has declined.
- DXT has a better Operating Margin (6.66%) than 66.67% of its industry peers.
- DXT's Operating Margin has improved in the last couple of years.
- 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.
- In the last couple of years the Gross Margin of DXT has grown nicely.
| 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.
- DXT has less shares outstanding than it did 1 year ago.
- DXT has more shares outstanding than it did 5 years ago.
- 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.
- The Altman-Z score of DXT (2.88) is better 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 has a better Debt to FCF ratio (2.44) than 91.67% of its industry peers.
- DXT has a Debt/Equity ratio of 0.77. This is a neutral value indicating DXT is somewhat dependend on debt financing.
- The Debt to Equity ratio of DXT (0.77) is better than 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
- A Current Ratio of 1.25 indicates that DXT should not have too much problems paying its short term obligations.
- DXT has a Current ratio of 1.25. This is comparable to the rest of the industry: DXT outperforms 54.17% of its industry peers.
- A Quick Ratio of 1.15 indicates that DXT should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.15, DXT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 96.97% over the past year.
- Measured over the past 5 years, DXT shows a small growth in Earnings Per Share. The EPS has been growing by 5.01% on average per year.
- DXT shows a decrease in Revenue. In the last year, the revenue decreased by -0.73%.
- The Revenue has been growing by 16.97% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 32.79% on average over the next years. This is a very strong growth
- Based on estimates for the next years, DXT will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
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
- DXT is valuated rather expensively with a Price/Earnings ratio of 20.02.
- Based on the Price/Earnings ratio, DXT is valued cheaper than 87.50% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. DXT is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.84, DXT is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DXT indicates a somewhat cheap valuation: DXT is cheaper than 79.17% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DXT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
- DXT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DXT is cheaper than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DXT is valued cheaper than 87.50% of the companies 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.
- The decent profitability rating of DXT may justify a higher PE ratio.
- DXT's earnings are expected to grow with 32.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y41.15%
EPS Next 3Y32.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.10%, DXT has a reasonable but not impressive dividend return.
- 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.
- DXT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
- 55.11% of the earnings are spent on dividend by DXT. 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%.