Added to YB: 2024-09-13
Pitch date: 2024-09-12
DRX.TO [bullish]
ADF Group Inc.
-22.2%
current return
Author Info
Wolf of Oakville takes a magnifying glass to Canadian small cap stocks. Sign up for the newsletter.
Company Info
ADF Group Inc. engages in the design and engineering of connections including industrial coatings in Canada and the United States.
Market Cap
CAD 231.9M
Pitch Price
CAD 10.58
Price Target
N/A
Dividend
0.48%
EV/EBITDA
3.91
P/E
6.83
EV/Sales
0.84
Sector
Metals and Mining
Category
value
ADF Group $DRX.TO FINS Review
DRX.TO (3.75/5): Strong Q2 with 36.9% GM (+1470bps YoY), $60M OCF YTD. Rev -6.6% Q/Q but +13.6% YTD. $48M buybacks. Concerns: 82% rev from 3 clients, margin sustainability unclear. Lumpy revenue risk. EV/EBITDA 5.2x TTM. Volatile stock (down 36% since June peak). Strong BS with 2.1x current ratio.
Read full article (4 min)