ADENTRA (ADEN) AI Stock Analysis

• Market Cap: $715.78M
• Dividend Yield: 2.08%
• Average Volume (3M): 65.80K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.94
• Revenue Growth: 3.01%
• EPS Growth: 2.15%
• Country: CA
• Employees: 3,006
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Distribution
• EPS (TTM): 0.57
• Shares Outstanding: 24,810,398
• 10 Day Avg. Volume: 42,537
• 30 Day Avg. Volume: 65,802
• PEG Ratio: 0.14
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.26
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.09
• Enterprise Value/Ebitda: 0.77
• 1Y Price Target: $35.51
• Price Target Upside: 19.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Neutral
• Price Target: C$29.00 ▼(-2.68%Downside)

ADENTRA's overall score reflects a stable but cautious outlook. The company's solid cash flow and attractive valuation are positive factors, but challenges in revenue growth and operational efficiency, as highlighted in the earnings call, temper the outlook. The technical indicators suggest stability, adding to the mixed but steady view.

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 architectural building products to a wide array of customers across North America. The company sources materials from a global network of suppliers and sells them to industrial manufacturers, builders, and retailers. Key revenue streams include direct sales to manufacturers who use these materials for production, as well as to builders and contractors working on construction and renovation projects. ADENTRA also benefits from strategic partnerships with suppliers and customers, which help expand its market reach and enhance its product offerings. The company's earnings are influenced by factors such as construction market trends, economic conditions, and fluctuations in material costs.

ADENTRA Financial Statement Overview

Summary

ADENTRA presents a stable financial position with moderate profitability. The income statement shows a slight revenue decline and tight net profit margins, while the balance sheet indicates effective debt management despite slow equity growth. Strong operating cash flow is offset by fluctuating free cash flow growth, necessitating strategic improvements in operational efficiency.

Income Statement

ADENTRA's income statement shows a mixed performance. The company experienced a slight revenue decline in the TTM period compared to the previous year, but maintained a stable gross profit margin. Net profit margins are relatively low, indicating tight cost management. The decline in EBIT and EBITDA margins suggests pressure on operational efficiency, potentially due to increased costs or pricing pressures.

Balance Sheet

The balance sheet reflects a stable financial position with moderate leverage. The debt-to-equity ratio has improved slightly over the years, indicating effective debt management. However, equity growth has been slow, and the equity ratio remains moderate. Return on equity has shown volatility, which may pose a risk to consistent shareholder returns.

Cash Flow

Cash flow analysis indicates strong operating cash flow, despite a declining free cash flow growth rate. The company has managed to maintain a healthy operating cash flow to net income ratio, suggesting efficient cash conversion from profits. However, the free cash flow to net income ratio has shown fluctuations, which could impact future investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.19B	2.18B	2.24B	2.58B	1.62B	976.59M
Gross Profit	472.81M	474.06M	466.10M	556.75M	372.91M	187.81M
EBITDA	165.08M	169.82M	161.86M	343.35M	184.79M	90.02M
Net Income	39.93M	46.48M	36.05M	128.67M	103.14M	28.03M
Balance Sheet
Total Assets	1.47B	1.40B	1.23B	1.43B	1.11B	459.52M
Cash, Cash Equivalents and Short-Term Investments	24.43M	33.74M	13.00M	65.07M	7.76M	457.98K
Total Debt	673.53M	623.07M	564.03M	789.86M	570.59M	166.61M
Total Liabilities	839.89M	763.08M	705.25M	922.00M	700.89M	220.06M
Stockholders Equity	633.78M	634.57M	526.87M	506.97M	414.03M	239.46M
Cash Flow
Free Cash Flow	93.13M	133.54M	226.30M	199.88M	-72.88M	61.75M
Operating Cash Flow	103.28M	142.75M	238.08M	210.69M	-65.42M	64.19M
Investing Cash Flow	-159.07M	-147.46M	-13.48M	-279.47M	-306.63M	―
Financing Cash Flow	59.80M	30.00M	-285.99M	128.61M	378.85M	―

ADENTRA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADEN, the sentiment is Positive. The current price of 29.8 is above the 20-day moving average (MA) of 27.27, above the 50-day MA of 26.70, and below the 200-day MA of 33.38, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 87.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ADEN.

ADENTRA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBM	77 Outperform	C$762.52M	12.01	10.01%	6.42%	14.87%	-16.06%
WJX	73 Outperform	C$493.53M	12.04	8.09%	6.14%	-2.65%	-47.65%
Sector *	71 Outperform	¥255.26B	12.94	8.49%	3.09%	6.34%	12.95%
ADEN	70 Neutral	$715.78M	12.63	6.81%	2.08%	3.01%	2.15%
ALC	69 Neutral	C$655.17M	7.63	10.37%	4.95%	-2.42%	-4.60%
ARE	55 Neutral	C$1.30B	―	-9.26%	3.69%	1.70%	-154.73%
RUSMF		$1.82B	16.69	9.30%	3.91%	―	―

ADENTRA Corporate Events

ADENTRA Reports Stable Q1 2025 Amid Market Challenges

ADENTRA Inc. reported first quarter 2025 sales of $542.5 million, marking a 1.4% increase from the previous year, despite challenges such as adverse weather and a softer residential construction market. The company maintained a stable gross margin of 21.6% and managed to offset a decline in organic sales with acquisition-based growth. ADENTRA is preparing for ongoing trade uncertainties by taking precautionary inventory measures and remains focused on maintaining its financial stability and shareholder returns.