ADF GROUP INC (DRX.CA) Stock Fundamental Analysis
Canada - TSX:DRX - CA00089N1033 - Common Stock
8.36 CAD
+0.18 (+2.2%)
Taking everything into account, DRX scores 7 out of 10 in our fundamental rating. DRX was compared to 807 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 could make DRX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
DRX had positive earnings in the past year.
In the past year DRX had a positive cash flow from operations.
In the past 5 years DRX has always been profitable.
Of the past 5 years DRX 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.78%, DRX belongs to the top of the industry, outperforming 96.90% of the companies in the same industry.
The Return On Equity of DRX (30.02%) is better than 96.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.58%, DRX belongs to the top of the industry, outperforming 98.88% of the companies in the same industry.
DRX had an Average Return On Invested Capital over the past 3 years of 18.23%. This is significantly above the industry average of 11.74%.
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 93.68% of the companies in the same industry.
In the last couple of years the Profit Margin of DRX has grown nicely.
DRX's Operating Margin of 25.00% is amongst the best of the industry. DRX outperforms 93.31% of its industry peers.
In the last couple of years the Operating Margin of DRX has grown nicely.
DRX has a better Gross Margin (30.62%) than 91.08% of its industry peers.
In the last couple of years the Gross Margin of DRX has grown nicely.
| 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
DRX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DRX has less shares outstanding than it did 1 year ago.
DRX has less shares outstanding than it did 5 years ago.
DRX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that DRX is not in any danger for bankruptcy at the moment.
DRX has a Altman-Z score (3.21) which is in line with its industry peers.
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 has a better Debt to FCF ratio (0.48) than 95.42% 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 69.14% 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 | 3.21 |
ROIC/WACC2.77
WACC8.87%
2.3 Liquidity
DRX has a Current Ratio of 2.45. This indicates that DRX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.45, DRX is in line with its industry, outperforming 58.98% of the companies in the same industry.
A Quick Ratio of 2.26 indicates that DRX has no problem at all paying its short term obligations.
DRX has a Quick ratio (2.26) which is comparable to the rest of the 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 59.70%, which is quite impressive.
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.
Looking at the last year, DRX shows a small growth in Revenue. The Revenue has grown by 2.60% in the last year.
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)59.7%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-94.12%
Revenue 1Y (TTM)2.6%
Revenue growth 3Y6.55%
Revenue growth 5Y13.58%
Sales Q2Q%-29.21%
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 -3.62% yearly.
EPS Next Y-34.68%
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
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 4.54, the valuation of DRX can be described as very cheap.
Based on the Price/Earnings ratio, DRX is valued cheaper than 98.39% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. DRX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.87, 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 96.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. DRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 5.87 |
4.2 Price Multiples
99.63% of the companies in the same industry are more expensive than DRX, based on the Enterprise Value to EBITDA ratio.
DRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DRX is cheaper than 99.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.44 | ||
| EV/EBITDA | 1.28 |
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
DRX has a yearly dividend return of 0.47%, which is pretty low.
DRX's Dividend Yield is rather good when compared to the industry average which is at 13.98. DRX pays more dividend than 95.04% of the companies in the same industry.
With a Dividend Yield of 0.47, DRX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
On average, the dividend of DRX grows each year by 8.48%, which is quite nice.
DRX has been paying a dividend for at least 10 years, so it has 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 (9/19/2025, 7:00:00 PM)
8.36
+0.18 (+2.2%)
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 Cap134.01M
Analysts84
Price Target12.24 (46.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)0%
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)-10.84%
Revenue NY rev (3m)-9.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.54 | ||
| Fwd PE | 5.87 | ||
| P/S | 0.47 | ||
| P/FCF | 1.44 | ||
| P/OCF | 1.31 | ||
| P/B | 0.8 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 1.28 |
EPS(TTM)1.84
EY22.01%
EPS(NY)1.42
Fwd EY17.03%
FCF(TTM)5.81
FCFY69.46%
OCF(TTM)6.39
OCFY76.38%
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 | 3.21 |
F-Score7
WACC8.87%
ROIC/WACC2.77
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)59.7%
EPS 3Y84.52%
EPS 5YN/A
EPS Q2Q%-94.12%
EPS Next Y-34.68%
EPS Next 2Y-12.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.6%
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 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