ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
Canada - TSX:DRX - CA00089N1033 - Common Stock
7.61 CAD
+0.09 (+1.2%)
Taking everything into account, DRX scores 6 out of 10 in our fundamental rating. DRX was compared to 803 industry peers in the Metals & Mining industry. DRX has an excellent profitability rating, but there are some minor concerns on its financial health. DRX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DRX was profitable.
In the past year DRX had a positive cash flow from operations.
Each year in the past 5 years DRX has been profitable.
Of the past 5 years DRX 4 years had a positive operating cash flow.
1.2 Ratios
DRX has a better Return On Assets (11.46%) than 93.40% of its industry peers.
DRX's Return On Equity of 21.18% is amongst the best of the industry. DRX outperforms 95.77% of its industry peers.
The Return On Invested Capital of DRX (17.70%) is better than 97.76% of its industry peers.
DRX had an Average Return On Invested Capital over the past 3 years of 18.23%. This is significantly above the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 21.18% | ||
| ROIC | 17.7% |
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 better Profit Margin (13.23%) than 92.65% of its industry peers.
DRX's Profit Margin has improved in the last couple of years.
DRX has a better Operating Margin (19.21%) than 92.40% of its industry peers.
DRX's Operating Margin has improved in the last couple of years.
DRX has a better Gross Margin (26.87%) than 90.41% of its industry peers.
In the last couple of years the Gross Margin of DRX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.21% | ||
| PM (TTM) | 13.23% | ||
| GM | 26.87% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DRX is creating value.
The number of shares outstanding for DRX has been reduced compared to 1 year ago.
DRX has less shares outstanding than it did 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 2.77 indicates that DRX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.77, DRX is in line with its industry, outperforming 51.18% of the companies in the same industry.
DRX has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
DRX has a Debt to Equity ratio of 0.23. This is in the lower half of the industry: DRX underperforms 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.77 |
ROIC/WACC2.16
WACC8.2%
2.3 Liquidity
A Current Ratio of 2.24 indicates that DRX has no problem at all paying its short term obligations.
DRX has a Current ratio of 2.24. This is comparable to the rest of the industry: DRX outperforms 53.30% of its industry peers.
A Quick Ratio of 2.02 indicates that DRX has no problem at all paying its short term obligations.
DRX's Quick ratio of 2.02 is in line compared to the rest of the industry. DRX outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The earnings per share for DRX have decreased strongly by -27.56% in the last year.
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 -24.64%.
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)-27.56%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-94.12%
Revenue 1Y (TTM)-24.64%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-29.21%
3.2 Future
DRX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.28% yearly.
DRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.43% yearly.
EPS Next Y-53.34%
EPS Next 2Y-6.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-24.96%
Revenue Next 2Y5.43%
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
With a Price/Earnings ratio of 4.14, 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 98.63% of the companies in the same industry.
DRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 4.71, which indicates a rather cheap valuation of DRX.
Based on the Price/Forward Earnings ratio, DRX is valued cheaper than 97.14% of the companies in the same industry.
DRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.14 | ||
| Fwd PE | 4.71 |
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 99.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.03 |
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 -6.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, DRX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.16, 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 0.57, DRX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of DRX grows each year by 8.48%, which is quite nice.
DRX has paid a dividend for at least 10 years, which is 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 3.32% of its income as dividend. This is a sustainable payout ratio.
DP3.32%
EPS Next 2Y-6.28%
EPS Next 3YN/A
TSX:DRX (11/12/2025, 7:00:00 PM)
7.61
+0.09 (+1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners3.57%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap125.41M
Revenue(TTM)265.88M
Net Income(TTM)35.17M
Analysts84
Price Target12.24 (60.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.03
Dividend Growth(5Y)8.48%
DP3.32%
Div Incr Years1
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)0%
EPS NQ rev (1m)-31.25%
EPS NQ rev (3m)-37.14%
EPS NY rev (1m)-6.59%
EPS NY rev (3m)-15%
Revenue NQ rev (1m)-3.39%
Revenue NQ rev (3m)-13.64%
Revenue NY rev (1m)2.97%
Revenue NY rev (3m)-8.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.14 | ||
| Fwd PE | 4.71 | ||
| P/S | 0.47 | ||
| P/FCF | N/A | ||
| P/OCF | 51.89 | ||
| P/B | 0.76 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 2.03 |
EPS(TTM)1.84
EY24.18%
EPS(NY)1.62
Fwd EY21.24%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.15
OCFY1.93%
SpS16.13
BVpS10.07
TBVpS9.74
PEG (NY)N/A
PEG (5Y)N/A
Graham Number20.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.46% | ||
| ROE | 21.18% | ||
| ROCE | 23.07% | ||
| ROIC | 17.7% | ||
| ROICexc | 22.99% | ||
| ROICexgc | 23.75% | ||
| OM | 19.21% | ||
| PM (TTM) | 13.23% | ||
| GM | 26.87% | ||
| FCFM | N/A |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 97.39% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 23.34 | ||
| Cash Conversion | 4.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 2.77 |
F-Score5
WACC8.2%
ROIC/WACC2.16
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)-27.56%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-94.12%
EPS Next Y-53.34%
EPS Next 2Y-6.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-24.64%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-29.21%
Revenue Next Year-24.96%
Revenue Next 2Y5.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.21%
EBIT growth 3Y88.52%
EBIT growth 5Y179.4%
EBIT Next Year13.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-107.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-95.57%
OCF growth 3Y174.25%
OCF growth 5YN/A
ADF GROUP INC / DRX.CA FAQ
What is the fundamental rating for DRX stock?
ChartMill assigns a fundamental rating of 6 / 10 to DRX.CA.
Can you provide the valuation status for ADF GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to ADF GROUP INC (DRX.CA). This can be considered as Fairly Valued.
How profitable is ADF GROUP INC (DRX.CA) stock?
ADF GROUP INC (DRX.CA) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for DRX stock?
The Price/Earnings (PE) ratio for ADF GROUP INC (DRX.CA) is 4.14 and the Price/Book (PB) ratio is 0.76.
How sustainable is the dividend of ADF GROUP INC (DRX.CA) stock?
The dividend rating of ADF GROUP INC (DRX.CA) is 6 / 10 and the dividend payout ratio is 3.32%.