ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
TSX:DRX - CA00089N1033 - Common Stock
8.65 CAD
-0.2 (-2.26%)
Taking everything into account, DRX scores 7 out of 10 in our fundamental rating. DRX was compared to 803 industry peers in the Metals & Mining industry. DRX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DRX is cheap, but on the other hand it scores bad on growth. 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.
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
With an excellent Return On Assets value of 16.78%, DRX belongs to the best of the industry, outperforming 96.89% of the companies in the same industry.
The Return On Equity of DRX (30.02%) is better than 96.89% of its industry peers.
DRX has a better Return On Invested Capital (24.58%) than 99.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRX is significantly above the industry average of 11.82%.
The 3 year average ROIC (18.23%) for DRX is below the current ROIC(24.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.78% | ||
| ROE | 30.02% | ||
| ROIC | 24.58% |
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
Looking at the Profit Margin, with a value of 17.47%, DRX belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
DRX's Profit Margin has improved in the last couple of years.
The Operating Margin of DRX (25.00%) is better than 93.03% of its industry peers.
In the last couple of years the Operating Margin of DRX has grown nicely.
The Gross Margin of DRX (30.62%) is better than 90.91% of its industry peers.
DRX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25% | ||
| PM (TTM) | 17.47% | ||
| GM | 30.62% |
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.
Compared to 1 year ago, DRX has less shares outstanding
Compared to 5 years ago, DRX has less shares outstanding
The debt/assets ratio for DRX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that DRX is not in any danger for bankruptcy at the moment.
DRX has a Altman-Z score (3.24) which is comparable to the rest of the industry.
The Debt to FCF ratio of DRX is 0.48, which is an excellent value as it means it would take DRX, only 0.48 years of fcf income to pay off all of its debts.
DRX's Debt to FCF ratio of 0.48 is amongst the best of the industry. DRX outperforms 95.64% 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.
DRX has a Debt to Equity ratio of 0.24. This is in the lower half of the industry: DRX underperforms 69.86% of its industry peers.
Although DRX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 3.24 |
ROIC/WACC2.63
WACC9.36%
2.3 Liquidity
A Current Ratio of 2.45 indicates that DRX has no problem at all paying its short term obligations.
With a Current ratio value of 2.45, DRX perfoms like the industry average, outperforming 58.28% of the companies in the same industry.
DRX has a Quick Ratio of 2.26. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.26, DRX is in line with its industry, outperforming 58.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
DRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.54%, which is quite good.
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.
The Revenue for DRX has decreased by -19.66% in the past year. This is quite bad
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)14.54%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-35.28%
Revenue 1Y (TTM)-19.66%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-48.3%
3.2 Future
The Earnings Per Share is expected to decrease by -12.02% on average over the next years. This is quite bad
DRX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.63% yearly.
EPS Next Y-34.68%
EPS Next 2Y-12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.26%
Revenue Next 2Y-3.63%
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 4.70, the valuation of DRX can be described as very cheap.
98.13% of the companies in the same industry are more expensive than DRX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DRX to the average of the S&P500 Index (27.13), we can say DRX is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.07, the valuation of DRX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRX indicates a rather cheap valuation: DRX is cheaper than 96.26% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DRX to the average of the S&P500 Index (22.76), we can say DRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.7 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
DRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DRX is cheaper than 99.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRX is valued cheaply inside the industry as 99.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.49 | ||
| EV/EBITDA | 1.38 |
4.3 Compensation for Growth
DRX has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DRX's earnings are expected to decrease with -12.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, DRX is not a good candidate for dividend investing.
DRX's Dividend Yield is rather good when compared to the industry average which is at 15.99. DRX pays more dividend than 94.77% of the companies in the same industry.
With a Dividend Yield of 0.45, DRX pays less dividend than the S&P500 average, which is at 2.32.
| 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 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
1.84% of the earnings are spent on dividend by DRX. This is a low number and sustainable payout ratio.
DP1.84%
EPS Next 2Y-12.02%
EPS Next 3YN/A
TSX:DRX (8/29/2025, 7:00:00 PM)
8.65
-0.2 (-2.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners3.51%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap138.66M
Analysts84
Price Target12.24 (41.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.03
Dividend Growth(5Y)8.48%
DP1.84%
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)20%
PT rev (3m)33.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)19%
EPS NY rev (3m)19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.7 | ||
| Fwd PE | 6.07 | ||
| P/S | 0.48 | ||
| P/FCF | 1.49 | ||
| P/OCF | 1.35 | ||
| P/B | 0.83 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 1.38 |
EPS(TTM)1.84
EY21.27%
EPS(NY)1.42
Fwd EY16.46%
FCF(TTM)5.81
FCFY67.13%
OCF(TTM)6.39
OCFY73.82%
SpS17.95
BVpS10.45
TBVpS10.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.78% | ||
| ROE | 30.02% | ||
| ROCE | 32.03% | ||
| ROIC | 24.58% | ||
| ROICexc | 36.97% | ||
| ROICexgc | 38.17% | ||
| OM | 25% | ||
| PM (TTM) | 17.47% | ||
| GM | 30.62% | ||
| FCFM | 32.35% |
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-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 148.16% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 28.21 | ||
| Cash Conversion | 130.9% | ||
| Profit Quality | 185.17% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 3.24 |
F-Score7
WACC9.36%
ROIC/WACC2.63
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)14.54%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-35.28%
EPS Next Y-34.68%
EPS Next 2Y-12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.66%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-48.3%
Revenue Next Year-18.26%
Revenue Next 2Y-3.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.2%
EBIT growth 3Y88.52%
EBIT growth 5Y179.4%
EBIT Next Year22.53%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y174.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y136.12%
OCF growth 3Y174.25%
OCF growth 5YN/A