ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
Canada - TSX:DRX - CA00089N1033 - Common Stock
7.46 CAD
-0.03 (-0.4%)
Taking everything into account, DRX scores 6 out of 10 in our fundamental rating. DRX was compared to 805 industry peers in the Metals & Mining industry. While DRX has a great profitability rating, 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.
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's Return On Assets of 11.46% is amongst the best of the industry. DRX outperforms 93.42% of its industry peers.
The Return On Equity of DRX (21.18%) is better than 95.78% of its industry peers.
The Return On Invested Capital of DRX (17.70%) is better than 97.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRX is significantly above the industry average of 12.09%.
| 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 92.80% of its industry peers.
In the last couple of years the Profit Margin of DRX has grown nicely.
DRX's Operating Margin of 19.21% is amongst the best of the industry. DRX outperforms 92.17% of its industry peers.
In the last couple of years the Operating Margin of DRX has grown nicely.
With an excellent Gross Margin value of 26.87%, DRX belongs to the best of the industry, outperforming 90.19% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DRX is creating value.
DRX has less shares outstanding than it did 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
DRX has an Altman-Z score of 2.77. This is not the best score and indicates that DRX is in the grey zone with still only limited risk for bankruptcy at the moment.
DRX has a Altman-Z score (2.77) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.23 indicates that DRX is not too dependend on debt financing.
DRX has a worse Debt to Equity ratio (0.23) than 69.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.77 |
ROIC/WACC2.16
WACC8.21%
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 (2.24) which is comparable to the rest of the industry.
DRX has a Quick Ratio of 2.02. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of DRX (2.02) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 84.52% on average over the past years. This is a very strong growth
The Revenue for DRX has decreased by -24.64% in the past year. This is quite bad
DRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.58% yearly.
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 very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.02% yearly.
Based on estimates for the next years, DRX will show a decrease in Revenue. The Revenue will decrease by -3.62% on average per year.
EPS Next Y-50.05%
EPS Next 2Y-12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-27.12%
Revenue Next 2Y-3.62%
Revenue Next 3YN/A
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 decreasing.
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 4.05, the valuation of DRX can be described as very cheap.
98.51% of the companies in the same industry are more expensive than DRX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.57. DRX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.24 indicates a rather cheap valuation of DRX.
97.14% of the companies in the same industry are more expensive than DRX, based on the Price/Forward Earnings ratio.
DRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.05 | ||
| Fwd PE | 5.24 |
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 99.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.02 |
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 -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
DRX has a yearly dividend return of 0.53%, which is pretty low.
The stock price of DRX dropped by -25.03% 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.
Compared to an average industry Dividend Yield of 12.79, DRX pays a better dividend. On top of this DRX pays more dividend than 95.90% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, DRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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 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-12.02%
EPS Next 3YN/A
TSX:DRX (10/22/2025, 7:00:00 PM)
7.46
-0.03 (-0.4%)
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 Cap122.94M
Revenue(TTM)265.88M
Net Income(TTM)35.17M
Analysts84
Price Target12.24 (64.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)-23.53%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.05 | ||
| Fwd PE | 5.24 | ||
| P/S | 0.46 | ||
| P/FCF | N/A | ||
| P/OCF | 50.86 | ||
| P/B | 0.74 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 2.02 |
EPS(TTM)1.84
EY24.66%
EPS(NY)1.42
Fwd EY19.09%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.15
OCFY1.97%
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
WACC8.21%
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-50.05%
EPS Next 2Y-12.02%
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-27.12%
Revenue Next 2Y-3.62%
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