Executive Summary
ADF Group Inc. engages in the design and engineering of connections; and fabrication and installation of complex steel superstructures and heavy steel built-ups, as well as miscellaneous and architectural metalwork primarily in Canada and the United States.
Snowflake Analysis
Mediocre balance sheet and overvalued.
Share Price & News
How has ADF Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DRX has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.5%
DRX
3.5%
CA Metals and Mining
-1.5%
CA Market
1 Year Return
4.4%
DRX
6.8%
CA Metals and Mining
2.5%
CA Market
Return vs Industry: DRX matched the Canadian Metals and Mining industry which returned 5.4% over the past year.
Return vs Market: DRX matched the Canadian Market which returned 4.5% over the past year.
Shareholder returns
| DRX | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.5% | 3.5% | -1.5% |
| 30 Day | -12.5% | 5.0% | -0.7% |
| 90 Day | 6.3% | 14.3% | 1.8% |
| 1 Year | 6.2%4.4% | 7.5%6.8% | 5.7%2.5% |
| 3 Year | -55.6%-57.2% | 2.8%1.0% | 16.8%6.2% |
| 5 Year | -47.6%-50.2% | 29.1%25.4% | 32.0%12.8% |
Price Volatility Vs. Market
How volatile is ADF Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Much is ADF Group Inc.'s (TSE:DRX) CEO Getting Paid?1 month ago | Simply Wall St
Is ADF Group (TSE:DRX) A Risky Investment?1 month ago | Simply Wall St
If You Had Bought ADF Group (TSE:DRX) Stock Three Years Ago, You'd Be Sitting On A 55% Loss, TodayValuation
Is ADF Group undervalued compared to its fair value and its price relative to the market?
0.41x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: DRX (CA$1.2) is trading above our estimate of fair value (CA$0.26)
Significantly Below Fair Value: DRX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DRX is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: DRX is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate DRX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: DRX is good value based on its PB Ratio (0.4x) compared to the CA Metals and Mining industry average (1.6x).
Next Steps
Future Growth
How is ADF Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.0%
Forecasted Materials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ADF Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of DRX’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- ADF Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Materials industry.
Past Performance
How has ADF Group performed over the past 5 years?
-23.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DRX is currently unprofitable.
Growing Profit Margin: DRX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: DRX is unprofitable, and losses have increased over the past 5 years at a rate of -23.2% per year.
Accelerating Growth: Unable to compare DRX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: DRX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).
Return on Equity
High ROE: DRX has a negative Return on Equity (-3.03%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is ADF Group's financial position?
Financial Position Analysis
Short Term Liabilities: DRX's short term assets (CA$92.7M) exceed its short term liabilities (CA$62.7M).
Long Term Liabilities: DRX's short term assets (CA$92.7M) exceed its long term liabilities (CA$29.3M).
Debt to Equity History and Analysis
Debt Level: DRX's debt to equity ratio (36.5%) is considered satisfactory.
Reducing Debt: DRX's debt to equity ratio has increased from 4.5% to 36.5% over the past 5 years.
Balance Sheet
Inventory Level: DRX has a high level of physical assets or inventory.
Debt Coverage by Assets: DRX's debt is covered by short term assets (assets are 2.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: DRX has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: DRX has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is ADF Group's current dividend yield, its reliability and sustainability?
1.68%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: DRX's dividend (1.67%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: DRX's dividend (1.67%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, DRX has been paying a dividend for less than 10 years.
Growing Dividend: DRX has only been paying a dividend for 9 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: DRX is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average board tenure
CEO
Jean Paschini 0
CA$540,941
Compensation
Mr. Jean Paschini serves as the Chief Executive Officer of ADF Group Inc. and has been its Co-Chairman since September 2013. Mr. Paschini serves as the Chairman of LBL Skysystems Corporation. Mr. Paschini ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Chairman & CEO | 0yrs | CA$540.94k | 14.65% CA$5.7m | |
| President | 40.3yrs | CA$543.53k | 14.65% CA$5.7m | |
| Executive VP | 40.3yrs | CA$369.67k | no data | |
| Co-Chairman of the Board & Independent Board Leader | 6.4yrs | CA$152.13k | no data | |
| Independent Director | 19.7yrs | CA$66.77k | 0.065% CA$25.4k | |
| Independent Director | 4.8yrs | CA$52.31k | no data | |
| Independent Director | 4.8yrs | CA$67.71k | 0.031% CA$12.0k |
6.4yrs
Average Tenure
64yo
Average Age
Experienced Board: DRX's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DRX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ADF Group Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: ADF Group Inc.
- Ticker: DRX
- Exchange: TSX
- Founded: 1956
- Industry: Steel
- Sector: Materials
- Market Cap: CA$39.162m
- Shares outstanding: 32.64m
- Website: https://www.adfgroup.com
Number of Employees
Location
- ADF Group Inc.
- 300 Henry-Bessemer Street
- Terrebonne
- Quebec
- J6Y 1T3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DRX | TSX (The Toronto Stock Exchange) | Yes | Subordinate Voting Shares | CA | CAD | Jul 1999 |
| 4QM | DB (Deutsche Boerse AG) | Yes | Subordinate Voting Shares | DE | EUR | Jul 1999 |
| ADFJ.F | OTCPK (Pink Sheets LLC) | Yes | Subordinate Voting Shares | US | USD | Jul 1999 |
Biography
ADF Group Inc. engages in the design and engineering of connections; and fabrication and installation of complex steel superstructures and heavy steel built-ups, as well as miscellaneous and architectural metalwork primarily in Canada and the United States. The company offers products and services for various segments of the non-residential construction market, including office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes, and transport infrastructures. It serves general contractors, project owners, engineering firms and project architects, structural steel erectors, and other steel structure fabricators. The company was formerly known as Les Entreprises El Drago Ltée and changed its name to ADF Group Inc. in August 1998. ADF Group Inc. was founded in 1956 and is headquartered in Terrebonne, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 23:38 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.