ADF GROUP INC (DRX.CA) Fundamental Analysis & Valuation
TSX:DRX • CA00089N1033
Current stock price
8.78 CAD
-0.12 (-1.35%)
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.
- DRX had positive earnings in each of the past 5 years.
- Of the past 5 years DRX 4 years had a positive operating cash flow.
1.2 Ratios
- DRX has a better Return On Assets (9.14%) than 91.06% of its industry peers.
- DRX has a better Return On Equity (16.03%) than 93.24% of its industry peers.
- DRX's Return On Invested Capital of 14.59% is amongst the best of the industry. DRX outperforms 96.26% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DRX is significantly above the industry average of 12.79%.
| 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
- With an excellent Profit Margin value of 11.29%, DRX belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of DRX has grown nicely.
- DRX's Operating Margin of 17.56% is amongst the best of the industry. DRX outperforms 91.43% of its industry peers.
- In the last couple of years the Operating Margin of DRX has grown nicely.
- DRX's Gross Margin of 25.97% is amongst the best of the industry. DRX outperforms 89.61% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRX is creating some value.
- The number of shares outstanding for DRX has been reduced compared to 1 year ago.
- Compared to 5 years ago, DRX has less shares outstanding
- Compared to 1 year ago, DRX has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.74 indicates that DRX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DRX (2.74) is comparable to the rest of the industry.
- The Debt to FCF ratio of DRX is 8.57, which is on the high side as it means it would take DRX, 8.57 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.57, DRX belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
- DRX has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
- DRX has a Debt to Equity ratio of 0.21. This is in the lower half of the industry: DRX underperforms 66.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 8.57 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.35
WACC10.79%
2.3 Liquidity
- A Current Ratio of 2.27 indicates that DRX has no problem at all paying its short term obligations.
- With a Current ratio value of 2.27, DRX perfoms like the industry average, outperforming 53.26% of the companies in the same 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.
- With a Quick ratio value of 2.03, DRX perfoms like the industry average, outperforming 53.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.03 |
3. DRX.CA Growth Analysis
3.1 Past
- DRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.92%.
- DRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 84.52% yearly.
- DRX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.61%.
- 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)-45.92%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-34.55%
Revenue 1Y (TTM)-26.61%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-10.68%
3.2 Future
- The Earnings Per Share is expected to grow by 0.23% on average over the next years.
- DRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.28% yearly.
EPS Next Y-40.72%
EPS Next 2Y0.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-24.78%
Revenue Next 2Y13.28%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. DRX.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 4.77, which indicates a rather cheap valuation of DRX.
- Based on the Price/Earnings ratio, DRX is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
- DRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.23.
- The Price/Forward Earnings ratio is 4.75, which indicates a rather cheap valuation of DRX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DRX indicates a rather cheap valuation: DRX is cheaper than 96.98% of the companies listed in the same industry.
- DRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 4.75 |
4.2 Price Multiples
- 98.79% of the companies in the same industry are more expensive than DRX, based on the Enterprise Value to EBITDA ratio.
- DRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRX is cheaper than 93.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29 | ||
| EV/EBITDA | 2.99 |
4.3 Compensation for Growth
- The excellent profitability rating of DRX 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
- With a yearly dividend of 0.45%, DRX is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.47, DRX pays a better dividend. On top of this DRX pays more dividend than 95.77% of the companies listed in the same industry.
- With a Dividend Yield of 0.45, DRX pays less dividend than the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.48%
Div Incr Years1
Div Non Decr Years13
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 (3/20/2026, 7:00:00 PM)
8.78
-0.12 (-1.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)04-09 2026-04-09
Inst Owners3.21%
Inst Owner ChangeN/A
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap144.69M
Revenue(TTM)257.34M
Net Income(TTM)29.05M
Analysts84
Price Target13.26 (51.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.03
Dividend Growth(5Y)8.48%
DP3.95%
Div Incr Years1
Div Non Decr Years13
Ex-DateN/A
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)27.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 4.75 | ||
| P/S | 0.56 | ||
| P/FCF | 29 | ||
| P/OCF | 9.55 | ||
| P/B | 0.8 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 2.99 |
EPS(TTM)1.84
EY20.96%
EPS(NY)1.85
Fwd EY21.05%
FCF(TTM)0.3
FCFY3.45%
OCF(TTM)0.92
OCFY10.47%
SpS15.62
BVpS10.99
TBVpS10.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.33
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 | 2.74 |
F-Score5
WACC10.79%
ROIC/WACC1.35
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)-45.92%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-34.55%
EPS Next Y-40.72%
EPS Next 2Y0.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-26.61%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-10.68%
Revenue Next Year-24.78%
Revenue Next 2Y13.28%
Revenue Next 3YN/A
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.
What is the profitability of DRX stock?
ADF GROUP INC (DRX.CA) has a profitability rating of 9 / 10.
What is the valuation of ADF GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADF GROUP INC (DRX.CA) is 4.77 and the Price/Book (PB) ratio is 0.8.
What is the earnings growth outlook for ADF GROUP INC?
The Earnings per Share (EPS) of ADF GROUP INC (DRX.CA) is expected to decline by -40.72% in the next year.