ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DRX - CA00089N1033 - Common Stock
8.23 CAD
-0.31 (-3.63%)
We assign a fundamental rating of 6 out of 10 to DRX. DRX was compared to 803 industry peers in the Metals & Mining industry. While DRX has a great profitability rating, there are some minor concerns on its financial health. DRX has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
With an excellent Return On Assets value of 11.46%, DRX belongs to the best of the industry, outperforming 92.78% of the companies in the same industry.
DRX has a Return On Equity of 21.18%. This is amongst the best in the industry. DRX outperforms 95.39% of its industry peers.
DRX has a Return On Invested Capital of 17.70%. This is amongst the best in the industry. DRX outperforms 97.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRX is significantly above the industry average of 12.71%.
| 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
Looking at the Profit Margin, with a value of 13.23%, DRX belongs to the top of the industry, outperforming 92.53% of the companies in the same industry.
In the last couple of years the Profit Margin of DRX has grown nicely.
With an excellent Operating Margin value of 19.21%, DRX belongs to the best of the industry, outperforming 92.28% of the companies in the same industry.
In the last couple of years the Operating Margin of DRX has grown nicely.
DRX has a better Gross Margin (26.87%) than 90.04% of its industry peers.
DRX's Gross Margin has improved in the last couple of years.
| 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.
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 2.78 indicates that DRX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DRX (2.78) is comparable to the rest of the 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 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.78 |
ROIC/WACC1.89
WACC9.35%
2.3 Liquidity
A Current Ratio of 2.24 indicates that DRX has no problem at all paying its short term obligations.
With a Current ratio value of 2.24, DRX perfoms like the industry average, outperforming 52.18% of the companies in the same 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.
Looking at the Quick ratio, with a value of 2.02, DRX is in line with its industry, outperforming 52.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
DRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.56%.
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 -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
Based on estimates for the next years, DRX will show a decrease in Earnings Per Share. The EPS will decrease by -6.28% on average per year.
The Revenue is expected to grow by 5.43% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.47, the valuation of DRX can be described as very cheap.
97.76% of the companies in the same industry are more expensive than DRX, based on the Price/Earnings ratio.
DRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 5.09, the valuation of DRX can be described as very cheap.
DRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DRX is cheaper than 97.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. DRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.47 | ||
| Fwd PE | 5.09 |
4.2 Price Multiples
99.25% of the companies in the same industry are more expensive than DRX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.07 |
4.3 Compensation for Growth
DRX has an outstanding profitability rating, which may justify a higher PE ratio.
DRX's earnings are expected to decrease with -6.28% in the coming years. This may justify a cheaper valuation.
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 0.53%, DRX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.79, DRX pays a better dividend. On top of this DRX pays more dividend than 95.64% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, 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 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
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 (12/12/2025, 7:00:00 PM)
8.23
-0.31 (-3.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners3.33%
Inst Owner ChangeN/A
Ins Owners0.61%
Ins Owner ChangeN/A
Market Cap135.63M
Revenue(TTM)265.88M
Net Income(TTM)35.17M
Analysts84
Price Target12.24 (48.72%)
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.47 | ||
| Fwd PE | 5.09 | ||
| P/S | 0.51 | ||
| P/FCF | N/A | ||
| P/OCF | 56.12 | ||
| P/B | 0.82 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 2.07 |
EPS(TTM)1.84
EY22.36%
EPS(NY)1.62
Fwd EY19.64%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.15
OCFY1.78%
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 | 2.78 |
F-Score5
WACC9.35%
ROIC/WACC1.89
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 Year6.33%
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 4.47 and the Price/Book (PB) ratio is 0.82.
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%.