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ADF GROUP INC (DRX.CA) Stock Fundamental Analysis

TSX:DRX - Toronto Stock Exchange - CA00089N1033 - Common Stock - Currency: CAD

8.08  +0.02 (+0.25%)

Fundamental Rating

8

DRX gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making DRX a very profitable company, without any liquidiy or solvency issues. DRX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make DRX a good candidate for value and quality investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year DRX was profitable.
DRX had a positive operating cash flow in the past year.
DRX had positive earnings in 4 of the past 5 years.
In multiple years DRX reported negative operating cash flow during the last 5 years.
DRX.CA Yearly Net Income VS EBIT VS OCF VS FCFDRX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M

1.2 Ratios

DRX's Return On Assets of 18.92% is amongst the best of the industry. DRX outperforms 97.03% of its industry peers.
DRX has a Return On Equity of 35.77%. This is amongst the best in the industry. DRX outperforms 97.57% of its industry peers.
The Return On Invested Capital of DRX (31.21%) is better than 99.59% of its industry peers.
DRX had an Average Return On Invested Capital over the past 3 years of 11.99%. This is in line with the industry average of 11.94%.
The 3 year average ROIC (11.99%) for DRX is below the current ROIC(31.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 18.92%
ROE 35.77%
ROIC 31.21%
ROA(3y)7.23%
ROA(5y)4.83%
ROE(3y)14.66%
ROE(5y)9.74%
ROIC(3y)11.99%
ROIC(5y)8.77%
DRX.CA Yearly ROA, ROE, ROICDRX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

The Profit Margin of DRX (16.60%) is better than 95.41% of its industry peers.
In the last couple of years the Profit Margin of DRX has grown nicely.
With an excellent Operating Margin value of 23.25%, DRX belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
DRX's Operating Margin has improved in the last couple of years.
DRX's Gross Margin of 29.91% is amongst the best of the industry. DRX outperforms 91.35% of its industry peers.
In the last couple of years the Gross Margin of DRX has grown nicely.
Industry RankSector Rank
OM 23.25%
PM (TTM) 16.6%
GM 29.91%
OM growth 3Y31.87%
OM growth 5YN/A
PM growth 3Y41.66%
PM growth 5YN/A
GM growth 3Y13.22%
GM growth 5Y25.39%
DRX.CA Yearly Profit, Operating, Gross MarginsDRX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

8

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 about the same amount of shares outstanding.
DRX has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for DRX has been reduced compared to a year ago.
DRX.CA Yearly Shares OutstandingDRX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
DRX.CA Yearly Total Debt VS Total AssetsDRX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

DRX has an Altman-Z score of 3.37. 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 3.37, DRX is in the better half of the industry, outperforming 60.41% of the companies in the same industry.
DRX has a debt to FCF ratio of 0.61. This is a very positive value and a sign of high solvency as it would only need 0.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.61, DRX belongs to the top of the industry, outperforming 94.86% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that DRX is not too dependend on debt financing.
DRX's Debt to Equity ratio of 0.26 is on the low side compared to the rest of the industry. DRX is outperformed by 74.59% 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 RankSector Rank
Debt/Equity 0.26
Debt/FCF 0.61
Altman-Z 3.37
ROIC/WACC3.24
WACC9.62%
DRX.CA Yearly LT Debt VS Equity VS FCFDRX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

2.3 Liquidity

DRX has a Current Ratio of 2.22. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.22, DRX perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
A Quick Ratio of 2.08 indicates that DRX has no problem at all paying its short term obligations.
With a Quick ratio value of 2.08, DRX perfoms like the industry average, outperforming 54.73% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.22
Quick Ratio 2.08
DRX.CA Yearly Current Assets VS Current LiabilitesDRX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 105.30% over the past year.
The Earnings Per Share has been growing by 76.40% on average over the past years. This is a very strong growth
The Revenue has grown by 19.21% in the past year. This is quite good.
DRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.63% yearly.
EPS 1Y (TTM)105.3%
EPS 3Y76.4%
EPS 5YN/A
EPS Q2Q%61.76%
Revenue 1Y (TTM)19.21%
Revenue growth 3Y24.24%
Revenue growth 5Y19.63%
Sales Q2Q%-2.67%

3.2 Future

The Earnings Per Share is expected to grow by 29.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.15% on average over the next years.
EPS Next Y86.24%
EPS Next 2Y29.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y4.15%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
DRX.CA Yearly Revenue VS EstimatesDRX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
DRX.CA Yearly EPS VS EstimatesDRX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5 2

10

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 4.37, the valuation of DRX can be described as very cheap.
Based on the Price/Earnings ratio, DRX is valued cheaper than 97.03% of the companies in the same industry.
When comparing the Price/Earnings ratio of DRX to the average of the S&P500 Index (30.19), we can say DRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.35, the valuation of DRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, DRX is valued cheaply inside the industry as 97.30% 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 23.58.
Industry RankSector Rank
PE 4.37
Fwd PE 4.35
DRX.CA Price Earnings VS Forward Price EarningsDRX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

99.73% of the companies in the same industry are more expensive than DRX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DRX is valued cheaply inside the industry as 99.19% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 1.8
EV/EBITDA 1.36
DRX.CA Per share dataDRX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DRX may justify a higher PE ratio.
DRX's earnings are expected to grow with 29.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y29.93%
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

DRX has a yearly dividend return of 0.50%, which is pretty low.
DRX's Dividend Yield is rather good when compared to the industry average which is at 7.52. DRX pays more dividend than 94.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, DRX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.5%

5.2 History

The dividend of DRX has a limited annual growth rate of 0.10%.
DRX has been paying a dividend for at least 10 years, so it has 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)0.1%
Div Incr Years1
Div Non Decr Years13
DRX.CA Yearly Dividends per shareDRX.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.01 0.01 0.02 0.02 0.03

5.3 Sustainability

DRX pays out 1.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of DRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP1.59%
EPS Next 2Y29.93%
EPS Next 3YN/A
DRX.CA Yearly Income VS Free CF VS DividendDRX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M
DRX.CA Dividend Payout.DRX.CA Dividend Payout, showing the Payout Ratio.DRX.CA Dividend Payout.PayoutRetained Earnings

ADF GROUP INC

TSX:DRX (2/14/2025, 7:00:00 PM)

8.08

+0.02 (+0.25%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)12-12 2024-12-12/bmo
Earnings (Next)04-09 2025-04-09
Inst Owners4.86%
Inst Owner ChangeN/A
Ins Owners3.32%
Ins Owner ChangeN/A
Market Cap138.01M
Analysts84
Price Target23.46 (190.35%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.5%
Yearly Dividend0.02
Dividend Growth(5Y)0.1%
DP1.59%
Div Incr Years1
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.55%
Min EPS beat(2)29.47%
Max EPS beat(2)39.63%
EPS beat(4)4
Avg EPS beat(4)31.96%
Min EPS beat(4)21.86%
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)-10.74%
Min Revenue beat(2)-19.94%
Max Revenue beat(2)-1.54%
Revenue beat(4)2
Avg Revenue beat(4)2.51%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)13.16%
EPS NQ rev (3m)34.38%
EPS NY rev (1m)14.04%
EPS NY rev (3m)13.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.6%
Valuation
Industry RankSector Rank
PE 4.37
Fwd PE 4.35
P/S 0.39
P/FCF 1.8
P/OCF 1.62
P/B 0.85
P/tB 0.87
EV/EBITDA 1.36
EPS(TTM)1.85
EY22.9%
EPS(NY)1.86
Fwd EY23%
FCF(TTM)4.48
FCFY55.42%
OCF(TTM)5
OCFY61.89%
SpS20.53
BVpS9.53
TBVpS9.29
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 18.92%
ROE 35.77%
ROCE 36.79%
ROIC 31.21%
ROICexc 44.31%
ROICexgc 45.51%
OM 23.25%
PM (TTM) 16.6%
GM 29.91%
FCFM 21.81%
ROA(3y)7.23%
ROA(5y)4.83%
ROE(3y)14.66%
ROE(5y)9.74%
ROIC(3y)11.99%
ROIC(5y)8.77%
ROICexc(3y)15.29%
ROICexc(5y)11%
ROICexgc(3y)15.68%
ROICexgc(5y)11.28%
ROCE(3y)14.13%
ROCE(5y)10.34%
ROICexcg growth 3Y47.4%
ROICexcg growth 5YN/A
ROICexc growth 3Y47.59%
ROICexc growth 5YN/A
OM growth 3Y31.87%
OM growth 5YN/A
PM growth 3Y41.66%
PM growth 5YN/A
GM growth 3Y13.22%
GM growth 5Y25.39%
F-Score8
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 0.61
Debt/EBITDA 0.48
Cap/Depr 148.52%
Cap/Sales 2.55%
Interest Coverage 27.41
Cash Conversion 97.57%
Profit Quality 131.4%
Current Ratio 2.22
Quick Ratio 2.08
Altman-Z 3.37
F-Score8
WACC9.62%
ROIC/WACC3.24
Cap/Depr(3y)258.98%
Cap/Depr(5y)169.73%
Cap/Sales(3y)4.89%
Cap/Sales(5y)3.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.3%
EPS 3Y76.4%
EPS 5YN/A
EPS Q2Q%61.76%
EPS Next Y86.24%
EPS Next 2Y29.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)19.21%
Revenue growth 3Y24.24%
Revenue growth 5Y19.63%
Sales Q2Q%-2.67%
Revenue Next Year7.04%
Revenue Next 2Y4.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y101.39%
EBIT growth 3Y63.84%
EBIT growth 5YN/A
EBIT Next Year168.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y426.95%
FCF growth 3Y38.23%
FCF growth 5Y55.22%
OCF growth 1Y1607.23%
OCF growth 3Y39.24%
OCF growth 5Y46.14%