ADENTRA (ADEN) AI Stock Analysis

• Market Cap: $702.93M
• Dividend Yield: 2.18%
• Average Volume (3M): 83.62K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.01
• Revenue Growth: -1.00%
• EPS Growth: 23.89%
• Country: CA
• Employees: 3,006
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Distribution
• EPS (TTM): 2.69
• Shares Outstanding: 25,068,668
• 10 Day Avg. Volume: 73,565
• 30 Day Avg. Volume: 83,617
• PEG Ratio: 0.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.22
• Price to Cash Flow (P/CF): 2.80
• P/FCF Ratio: 3.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$45.60
• Price Target Upside: 69.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

ADENTRA's overall stock score of 64 reflects a balanced assessment of its financial performance, technical indicators, valuation, and earnings call insights. Strong cash flow and strategic initiatives highlight resilience, but technical indicators suggest caution with bearish trends. The low P/E ratio and dividend yield provide valuation support.

ADENTRA Business Overview & Revenue Model

Company Description

ADENTRA Inc. engages in the wholesale distribution of architectural building products to the residential, repair and remodel, and commercial construction markets. It offers a range of decorative surfaces, including architectural grade plywood and veneers, hardwood lumber, laminates, acrylics, and composites for use in commercial and residential applications; specialty plywood and composite panel products for residential and commercial cabinet, countertop, store fixture, and RV and furniture industries; and other products comprising moldings, cabinet hardware, doors, millwork, adhesives, solid surface products, and decorative laminates. The company also manufactures, imports, and distributes hardwood lumber, millwork, and architectural sheet goods. It serves small-to-mid-sized industrial manufacturers of cabinets, moldings, custom finishing, home furniture, home renovations, finishing millwork for office buildings, restaurant and bar interiors, hotel lobbies, retail point-of-purchase displays, schools, hospitals, custom motor coaches, yacht interiors, and other specialty areas. As of March 11, 2022, the company operated 86 distribution facilities in North America. The company was formerly known as Hardwoods Distribution Inc. and changed its name to ADENTRA Inc. in December 2022. ADENTRA Inc. was incorporated in 2012 and is headquartered in Langley, Canada.

How the Company Makes Money

ADENTRA generates revenue primarily through the sale of its manufactured goods and distribution services. The company has developed a robust network for delivering its products, which includes both direct sales to consumers and partnerships with other businesses to extend its market reach. Key revenue streams include direct product sales, long-term contracts with industrial clients, and strategic partnerships that enable expansion into new markets. Factors contributing to its earnings include its focus on innovation, efficient supply chain management, and maintaining strong relationships with its clientele to secure repeat business.

ADENTRA Financial Statement Overview

Summary

ADENTRA's financials show a mixed picture. Income statement reveals stable gross margins but declining net margins, indicating profitability pressure. The balance sheet shows moderate stability with high leverage, posing potential risks. Cash flow is strong, with solid liquidity and cash generation capabilities.

Income Statement

ADENTRA shows a mixed performance in terms of income statement metrics. The gross profit margin remains stable, indicating efficient cost management. However, the net profit margin has seen fluctuations, with a decline in recent years, suggesting pressures on profitability. Revenue growth has been inconsistent, with a significant drop in 2022, but stabilization thereafter. EBIT and EBITDA margins are healthy but have decreased from earlier levels, pointing to potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio indicates a reliance on debt financing, which could pose risks if not managed carefully. The return on equity has been declining, which is a concern for shareholder returns. However, the company maintains a reasonable equity ratio, suggesting a balanced asset structure. Overall, while there are strengths in asset management, the high leverage is a potential risk.

Cash Flow

ADENTRA's cash flow position is relatively strong. The company demonstrates robust operating cash flows, consistently covering net income, which is a positive sign of liquidity. Free cash flow growth has been volatile but remains positive, indicating the company's ability to generate cash beyond its capital expenditures. The ratios of operating and free cash flow to net income are healthy, reflecting good cash management practices.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.18B	2.24B	2.58B	1.62B	976.59M
	Gross Profit
474.06M	466.10M	556.75M	372.91M	187.81M
	EBIT
96.91M	92.31M	196.63M	148.33M	45.92M
	EBITDA
169.82M	161.86M	343.35M	184.79M	90.02M
	Net Income Common Stockholders
46.48M	36.05M	128.67M	103.14M	28.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.74M	13.00M	65.07M	7.76M	457.98K
	Total Assets
1.40B	1.23B	1.43B	1.11B	459.52M
	Total Debt
623.07M	564.03M	789.86M	570.59M	166.61M
	Net Debt
594.96M	560.39M	724.79M	562.83M	166.15M
	Total Liabilities
763.08M	705.25M	922.00M	700.89M	220.06M
	Stockholders Equity
634.57M	526.87M	506.97M	414.03M	239.46M
Cash Flow		Free Cash Flow
133.54M	226.30M	199.88M	-72.88M	61.75M
	Operating Cash Flow
142.75M	238.08M	210.69M	-65.42M	64.19M
	Investing Cash Flow
-147.46M	-13.48M	-279.47M	-306.63M	―
	Financing Cash Flow
30.00M	-285.99M	128.61M	378.85M	―

ADENTRA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADEN, the sentiment is Negative. The current price of 26.95 is below the 20-day moving average (MA) of 28.88, below the 50-day MA of 32.02, and below the 200-day MA of 37.27, indicating a bearish trend. The MACD of -1.36 indicates Negative momentum. The RSI at 34.04 is Neutral, neither overbought nor oversold. The STOCH value of 23.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ADEN.

ADENTRA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADEN	64 Neutral	$702.93M	10.51	8.00%	2.18%	-1.00%	23.89%
Sector *	62 Neutral	$8.08B	13.63	3.82%	3.13%	3.58%	-14.35%
RCH	61 Neutral	C$1.83B	21.60	9.36%	1.82%	2.49%	-22.94%

ADENTRA Corporate Events

ADENTRA Reports 2024 Financial Results Amid Market Challenges

ADENTRA Inc. reported its financial results for the fourth quarter and full year of 2024, highlighting a slight decline in annual sales to $2.18 billion, despite a 3.1% increase in Q4 sales. The company faced challenges such as affordability constraints and slower-than-expected mortgage interest rate reductions, yet managed to improve its gross margin and maintain strong cash flow. ADENTRA also completed the acquisition of Woolf Distributing Company, enhancing its market presence in the US Midwest, and increased its quarterly dividend by 7%.

ADENTRA to Announce Q4 2024 Financial Results and Host Conference Call

ADENTRA Inc. announced it will release its fourth quarter 2024 financial results on March 13, 2025, with a subsequent conference call scheduled for March 14, 2025. This announcement highlights the company’s transparency and commitment to keeping stakeholders informed about its financial performance, which could impact its market positioning and stakeholder confidence.

ADENTRA Extends Credit Facilities to Support Strategic Growth

ADENTRA Inc. has announced the extension of its credit facilities with Bank of America and a syndicate of lenders, securing $825 million in financing through a revolving credit facility and a term loan. This extension, which runs until 2030, provides financial flexibility for ADENTRA’s strategic initiatives, including its Destination 2028 plan aimed at achieving $3.5 billion in run-rate revenues and a 12% average ROIC, while maintaining stable financial terms.

ADENTRA Announces Leadership Changes to Propel Strategic Growth

ADENTRA has announced several leadership changes, highlighting the retirement of founding director Graham Wilson and the promotion of Drew Dickinson to COO. Additionally, the company has welcomed Marie Robinson and Richard Roy to its Board of Directors, aiming to support its strategic objectives such as the Destination 2028 plan. These leadership updates are expected to bolster ADENTRA’s growth ambitions, enhance its strategic direction, and strengthen its market positioning within the architectural building products industry.