ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
TSX:DRX - Toronto Stock Exchange - CA00089N1033 - Common Stock - Currency: CAD
Taking everything into account, DRX scores 8 out of 10 in our fundamental rating. DRX was compared to 811 industry peers in the Metals & Mining industry. DRX gets an excellent profitability rating and is at the same time showing great financial health properties. DRX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make DRX suitable for value investing!
1. Profitability
1.1 Basic Checks
DRX had positive earnings in the past year.
DRX had a positive operating cash flow in the past year.
Each year in the past 5 years DRX has 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 18.44% is amongst the best of the industry. DRX outperforms 97.16% of its industry peers.
DRX has a Return On Equity of 33.54%. This is amongst the best in the industry. DRX outperforms 97.90% of its industry peers.
DRX's Return On Invested Capital of 28.72% is amongst the best of the industry. DRX outperforms 99.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRX is significantly below the industry average of 24.67%.
The last Return On Invested Capital (28.72%) for DRX is above the 3 year average (18.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 33.54% | ||
| ROIC | 28.72% |
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's Profit Margin of 16.72% is amongst the best of the industry. DRX outperforms 94.70% of its industry peers.
In the last couple of years the Profit Margin of DRX has grown nicely.
DRX's Operating Margin of 25.07% is amongst the best of the industry. DRX outperforms 94.45% of its industry peers.
DRX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.58%, DRX belongs to the top of the industry, outperforming 91.99% 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 | 25.07% | ||
| PM (TTM) | 16.72% | ||
| GM | 31.58% |
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
DRX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DRX has less shares outstanding
DRX has less shares outstanding than it did 5 years ago.
DRX has a better debt/assets ratio than last year.
2.2 Solvency
DRX has an Altman-Z score of 3.27. This indicates that DRX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.27, DRX is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
DRX has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, DRX belongs to the top of the industry, outperforming 94.70% of the companies in the same industry.
DRX has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DRX (0.24) is worse than 66.83% 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 | 0.99 | ||
| Altman-Z | 3.27 |
ROIC/WACC3.22
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.36 indicates that DRX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, DRX is in line with its industry, outperforming 58.82% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that DRX has no problem at all paying its short term obligations.
DRX's Quick ratio of 2.19 is in line compared to the rest of the industry. DRX outperforms 58.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.32% over the past year.
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 has been growing slightly by 2.60% in the past year.
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)59.32%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-3.13%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-12.44%
3.2 Future
The Earnings Per Share is expected to decrease by -16.18% on average over the next years. This is quite bad
Based on estimates for the next years, DRX will show a decrease in Revenue. The Revenue will decrease by -8.15% on average per year.
EPS Next Y-45.11%
EPS Next 2Y-16.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.84%
Revenue Next 2Y-8.15%
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
A Price/Earnings ratio of 3.30 indicates a rather cheap valuation of DRX.
DRX's Price/Earnings ratio is rather cheap when compared to the industry. DRX is cheaper than 98.40% of the companies in the same industry.
DRX is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
DRX is valuated cheaply with a Price/Forward Earnings ratio of 6.02.
Based on the Price/Forward Earnings ratio, DRX is valued cheaply inside the industry as 96.42% of the companies are valued more expensively.
DRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.3 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRX is valued cheaper than 99.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DRX is valued cheaper than 99.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.2 | ||
| EV/EBITDA | 0.95 |
4.3 Compensation for Growth
The excellent profitability rating of DRX may justify a higher PE ratio.
DRX's earnings are expected to decrease with -16.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, DRX is not a good candidate for dividend investing.
In the last 3 months the price of DRX has falen by -24.28%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
DRX's Dividend Yield is rather good when compared to the industry average which is at 2.89. DRX pays more dividend than 95.19% of the companies in the same industry.
With a Dividend Yield of 0.64, DRX pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
On average, the dividend of DRX grows each year by 8.26%, 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)8.26%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
DRX pays out 1.63% of its income as dividend. This is a sustainable payout ratio.
DP1.63%
EPS Next 2Y-16.18%
EPS Next 3YN/A
TSX:DRX (4/30/2025, 7:00:00 PM)
6.08
-0.13 (-2.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners5.76%
Inst Owner ChangeN/A
Ins Owners3.46%
Ins Owner ChangeN/A
Market Cap101.23M
Analysts84
Price Target9.18 (50.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.03
Dividend Growth(5Y)8.26%
DP1.63%
Div Incr Years1
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.5%
Min EPS beat(2)-28.62%
Max EPS beat(2)39.63%
EPS beat(4)3
Avg EPS beat(4)19.34%
Min EPS beat(4)-28.62%
Max EPS beat(4)39.63%
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)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.21%
Max Revenue beat(2)-1.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-19.94%
Max Revenue beat(4)18.02%
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)-60.87%
PT rev (3m)-60.87%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-45.65%
EPS NY rev (3m)-45.95%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-20.91%
Revenue NY rev (3m)-20.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.3 | ||
| Fwd PE | 6.02 | ||
| P/S | 0.3 | ||
| P/FCF | 2.2 | ||
| P/OCF | 1.84 | ||
| P/B | 0.6 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 0.95 |
EPS(TTM)1.84
EY30.26%
EPS(NY)1.01
Fwd EY16.61%
FCF(TTM)2.76
FCFY45.4%
OCF(TTM)3.31
OCFY54.39%
SpS20.4
BVpS10.17
TBVpS9.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 33.54% | ||
| ROCE | 37.41% | ||
| ROIC | 28.72% | ||
| ROICexc | 39% | ||
| ROICexgc | 40.03% | ||
| OM | 25.07% | ||
| PM (TTM) | 16.72% | ||
| GM | 31.58% | ||
| FCFM | 13.53% |
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-Score8
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 147.61% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 30.46 | ||
| Cash Conversion | 60.31% | ||
| Profit Quality | 80.94% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 3.27 |
F-Score8
WACC8.93%
ROIC/WACC3.22
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)59.32%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-3.13%
EPS Next Y-45.11%
EPS Next 2Y-16.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-12.44%
Revenue Next Year-19.84%
Revenue Next 2Y-8.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y69.79%
EBIT growth 3Y88.52%
EBIT growth 5Y179.4%
EBIT Next Year107.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-35.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.29%
OCF growth 3Y174.25%
OCF growth 5YN/A