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Market Cap

CA$3.0b

Last Updated

2021/04/10 23:08 UTC

Data Sources

Company Financials +

Executive Summary

Dye & Durham Limited, through its subsidiary, Dye & Durham Corporation, provides cloud-based software and technology solutions for legal firms, financial service institutions, and government organizations in Canada and the United Kingdom. More Details

Rewards

Trading at 13.1% below our estimate of its fair value

Earnings are forecast to grow 115.28% per year

Risk Analysis

No risks detected for DND from our risk checks.


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

How has Dye & Durham's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DND is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: DND's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

9.7%

DND

5.1%

CA Software

1.0%

CA Market


1 Year Return

n/a

DND

85.5%

CA Software

39.2%

CA Market

Return vs Industry: Insufficient data to determine how DND performed against the Canadian Software industry.

Return vs Market: Insufficient data to determine how DND performed against the Canadian Market.


Shareholder returns

DNDIndustryMarket
7 Day9.7%5.1%1.0%
30 Day2.9%5.3%1.4%
90 Day4.4%9.9%7.5%
1 Yearn/a94.4%85.5%44.0%39.2%
3 Yearn/a102.0%90.7%32.2%19.6%
5 Yearn/a206.4%186.5%59.4%35.3%

Long-Term Price Volatility Vs. Market

How volatile is Dye & Durham's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dye & Durham undervalued compared to its fair value and its price relative to the market?

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DND (CA$44.72) is trading below our estimate of fair value (CA$51.46)

Significantly Below Fair Value: DND is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DND is unprofitable, so we can't compare its PE Ratio to the CA Software industry average.

PE vs Market: DND 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 DND's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DND is good value based on its PB Ratio (5.1x) compared to the CA Software industry average (10.6x).


Future Growth

How is Dye & Durham forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

115.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DND is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: DND is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DND's is expected to become profitable in the next 3 years.

Revenue vs Market: DND's revenue (53% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: DND's revenue (53% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DND's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Dye & Durham performed over the past 5 years?

-64.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DND is currently unprofitable.

Growing Profit Margin: DND is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DND is unprofitable, and losses have increased over the past 5 years at a rate of 64.4% per year.

Accelerating Growth: Unable to compare DND's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DND is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (38.8%).


Return on Equity

High ROE: DND has a negative Return on Equity (-7.46%), as it is currently unprofitable.


Financial Health

How is Dye & Durham's financial position?


Financial Position Analysis

Short Term Liabilities: DND's short term assets (CA$284.9M) exceed its short term liabilities (CA$74.4M).

Long Term Liabilities: DND's short term assets (CA$284.9M) do not cover its long term liabilities (CA$500.6M).


Debt to Equity History and Analysis

Debt Level: DND's debt to equity ratio (73.8%) is considered high.

Reducing Debt: Insufficient data to determine if DND's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: Whilst unprofitable DND has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DND is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 41% per year.


Dividend

What is Dye & Durham current dividend yield, its reliability and sustainability?

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DND's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.49%).

High Dividend: DND's dividend (0.17%) is low compared to the top 25% of dividend payers in the Canadian market (4.81%).


Stability and Growth of Payments

Stable Dividend: DND is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: DND is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: DND is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DND's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Matthew Proud

7.08yrs

Tenure

Mr. Matthew Proud has been Chief Executive Officer of Dye & Durham Limited since March 2014 and has been Director since March 2013. Mr. Proud is an Entrepreneur, who independently manages and invests a lar...


Leadership Team

Experienced Management: DND's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: DND's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: DND only recently listed within the past 12 months.


Top Shareholders

Company Information

Dye & Durham Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dye & Durham Limited
  • Ticker: DND
  • Exchange: TSX
  • Founded: 1874
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$3.042b
  • Shares outstanding: 68.01m
  • Website: https://www.dyedurham.com

Number of Employees


Location

  • Dye & Durham Limited
  • 199 Bay Street
  • Suite 4610
  • Toronto
  • Ontario
  • M5L 1E9
  • Canada

Listings


Biography

Dye & Durham Limited, through its subsidiary, Dye & Durham Corporation, provides cloud-based software and technology solutions for legal firms, financial service institutions, and government organizations ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 23:08
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.