Added to YB: 2026-06-11
Pitch date: 2026-06-09
DRX.TO [bullish]
ADF Group Inc.
+3.71%
current return
Author Info
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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 382.0M
Pitch Price
CAD 13.48
Price Target
20.00 (+49%)
Dividend
N/A
EV/EBITDA
6.98
P/E
12.83
EV/Sales
1.19
Sector
Metals and Mining
Category
growth
ADF Group Inc. ($DRX.TO) FINS Review
DRX.TO (upgrade): Steel fabricator Q1 FY26 rev $99.3M (+78% YoY), best in 8 quarters despite steel/aluminum tariffs. GM up 220bps to 24.2%, net income $12M (+37%). Backlog +95% YoY, now 74% Canadian (vs 13% rev yr ago) post-LAR deal. Got $12.5M fed funding (half grant). TTM rev $303M, NI $30M. Trades sub-1x P/S, 9.9x P/E, 5.5x EV/EBITDA. ~50% upside in 12mo. Upgraded to 3.75 stars. Risk: lumpy revenue, S&A costs +125%.
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