ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
TSX:DRX - Toronto Stock Exchange - CA00089N1033 - Common Stock - Currency: CAD
We assign a fundamental rating of 8 out of 10 to DRX. DRX was compared to 796 industry peers in the Metals & Mining industry. DRX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on DRX. These ratings would make DRX suitable 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.
In the past 5 years DRX has always been profitable.
DRX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DRX has a better Return On Assets (18.44%) than 96.48% of its industry peers.
DRX has a Return On Equity of 33.54%. This is amongst the best in the industry. DRX outperforms 97.86% of its industry peers.
DRX has a Return On Invested Capital of 28.72%. This is amongst the best in the industry. DRX outperforms 99.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRX is significantly below the industry average of 24.80%.
The 3 year average ROIC (18.23%) for DRX is below the current ROIC(28.72%), indicating increased profibility in the last year.
| 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 94.10% of its industry peers.
In the last couple of years the Profit Margin of DRX has grown nicely.
DRX has a better Operating Margin (25.07%) than 93.84% of its industry peers.
DRX's Operating Margin has improved in the last couple of years.
The Gross Margin of DRX (31.58%) is better than 91.96% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DRX is creating value.
The number of shares outstanding for DRX has been reduced compared to 1 year ago.
The number of shares outstanding for DRX has been reduced compared to 5 years ago.
The debt/assets ratio for DRX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.31 indicates that DRX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.31, DRX is doing good in the industry, outperforming 61.68% of the companies in the same industry.
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.
DRX's Debt to FCF ratio of 0.99 is amongst the best of the industry. DRX outperforms 94.35% of its industry peers.
DRX has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.24, DRX is not doing good in the industry: 67.59% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for DRX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 3.31 |
ROIC/WACC3.29
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.36 indicates that DRX has no problem at all paying its short term obligations.
DRX's Current ratio of 2.36 is in line compared to the rest of the industry. DRX outperforms 57.29% of its industry peers.
A Quick Ratio of 2.19 indicates that DRX has no problem at all paying its short term obligations.
DRX has a Quick ratio (2.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.32% 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 84.52% on average per year.
Looking at the last year, DRX shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
Measured over the past years, DRX shows a quite strong growth in Revenue. The Revenue has been growing by 13.58% on average per year.
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
DRX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.18% yearly.
The Revenue is expected to decrease by -8.15% on average over the next years.
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
Based on the Price/Earnings ratio of 3.70, the valuation of DRX can be described as very cheap.
DRX's Price/Earnings ratio is rather cheap when compared to the industry. DRX is cheaper than 97.99% of the companies in the same industry.
DRX is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.74, the valuation of DRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, DRX is valued cheaper than 95.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. DRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRX is valued cheaply inside the industry as 99.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DRX is valued cheaply inside the industry as 99.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.43 | ||
| EV/EBITDA | 1.06 |
4.3 Compensation for Growth
The excellent profitability rating of DRX 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
With a yearly dividend of 0.55%, DRX is not a good candidate for dividend investing.
The stock price of DRX dropped by -20.07% 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.
DRX's Dividend Yield is rather good when compared to the industry average which is at 2.70. DRX pays more dividend than 95.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, DRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of DRX is nicely growing with an annual growth rate of 8.48%!
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)8.48%
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 (5/29/2025, 7:00:00 PM)
6.81
-0.16 (-2.3%)
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 Cap111.55M
Analysts84
Price Target9.18 (34.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.03
Dividend Growth(5Y)8.48%
DP1.63%
Div Incr Years1
Div Non Decr Years13
Ex-Date
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)0%
EPS NY rev (3m)-45.65%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-20.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | 6.74 | ||
| P/S | 0.33 | ||
| P/FCF | 2.43 | ||
| P/OCF | 2.03 | ||
| P/B | 0.66 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 1.06 |
EPS(TTM)1.84
EY27.02%
EPS(NY)1.01
Fwd EY14.83%
FCF(TTM)2.81
FCFY41.2%
OCF(TTM)3.36
OCFY49.36%
SpS20.73
BVpS10.34
TBVpS10.07
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 | 3.31 |
F-Score8
WACC8.72%
ROIC/WACC3.29
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 Year22.53%
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