Added to YB: 2024-07-08
Pitch date: 2024-07-05
DRX.TO [bullish]
ADF Group Inc.
-41.18%
current return
Author Info
H Capital is an M&A Consultant who writes about cheap, high potential 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 13.99
Price Target
N/A
Dividend
0.48%
EV/EBITDA
3.91
P/E
6.83
EV/Sales
0.84
Sector
Metals and Mining
Category
growth
Why I believe my portfolio will outperform over the next 5 years: ADF Group Inc.
DRX.TO: ADF Group up 305% in 12mo on revenue/margin growth. Q2 blockbuster, huge backlog, 9% buyback. Trading at <6x FY24 EV/EBITDA, 15% FCF yield post-selloff by 9% holder. Continued growth expected. Rerating to peer 10-15x EBITDA implies 80-150% upside. Simple thesis: wait for more strong quarters & multiple expansion.
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