TSX:DRX

Stock Analysis Report

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

DRXIndustryMarket
7 Day-2.5%3.5%-1.5%
30 Day-12.5%5.0%-0.7%
90 Day6.3%14.3%1.8%
1 Year6.2%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

Valuation

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

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

company1.7%marketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Yearsn/a

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

NamePositionTenureCompensationOwnership
Jean Paschini
Co-Chairman & CEO0yrsCA$540.94k14.65% CA$5.7m
Pierre Paschini
President40.3yrsCA$543.53k14.65% CA$5.7m
Marise Paschini
Executive VP40.3yrsCA$369.67kno data
Antonio Meti
Co-Chairman of the Board & Independent Board Leader6.4yrsCA$152.13kno data
Marc Belcourt
Independent Director19.7yrsCA$66.77k0.065% CA$25.4k
Michèle Desjardins
Independent Director4.8yrsCA$52.31kno data
Frank Di Tomaso
Independent Director4.8yrsCA$67.71k0.031% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRXTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJul 1999
4QMDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJul 1999
ADFJ.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:38
End of Day Share Price2020/02/24 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.