ADENTRA (ADEN) AI Stock Analysis

• Market Cap: $831.01M
• Dividend Yield: 1.73%
• Average Volume (3M): 41.87K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.17
• Revenue Growth: 6.80%
• EPS Growth: -6.80%
• Country: CA
• Employees: 3,006
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.97
• Shares Outstanding: 24,333,988
• 10 Day Avg. Volume: 38,121
• 30 Day Avg. Volume: 41,865
• PEG Ratio: 0.63
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 4.61
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 9.03
• 1Y Price Target: $43.50
• Price Target Upside: 25.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$35.00 ▲(1.19% Upside)

ADENTRA's overall stock score reflects moderate financial performance with stable revenue growth and cash flow improvements. The valuation is reasonable, and the company is well-positioned for future growth despite operational challenges. Technical indicators suggest caution due to bearish momentum, but the earnings call provides a positive outlook with strategic growth initiatives.

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 through the sale of its building products, which include windows, doors, and other related materials. The company's revenue model is primarily based on direct sales to contractors, builders, and distributors in the construction industry. Key revenue streams include bulk sales to large construction projects, retail sales through partnerships with home improvement stores, and custom orders for specialized building products. Additionally, ADENTRA benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. The company also invests in innovation and product development to capture new market segments and increase its competitive advantage.

ADENTRA Financial Statement Overview

Summary

ADENTRA shows moderate financial health with stable revenue growth and cash flow improvements. However, declining profit margins and high leverage are concerning, posing risks to financial stability. Continued focus on improving profitability and managing debt levels will be crucial for future growth.

Income Statement

ADENTRA's income statement shows moderate performance with stable gross profit margins around 21% and a slight improvement in revenue growth at 2.17% TTM. However, net profit margins have decreased to 1.82% TTM from 2.13% in the previous year, indicating pressure on profitability. EBIT and EBITDA margins have also slightly declined, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.06 TTM, indicating significant leverage. Return on equity has decreased to 6.33% TTM, suggesting reduced profitability for shareholders. The equity ratio remains stable, but the high leverage poses potential risks if earnings do not improve.

Cash Flow

Cash flow analysis shows a positive trend with a 6.35% growth in free cash flow TTM, indicating improved cash generation. The operating cash flow to net income ratio is at 0.23 TTM, reflecting adequate cash flow coverage. However, the free cash flow to net income ratio has slightly decreased, suggesting some pressure on cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24B	2.18B	2.24B	2.58B	1.62B	976.59M
Gross Profit	483.68M	474.06M	466.10M	556.75M	372.91M	187.81M
EBITDA	181.31M	169.82M	161.86M	343.35M	184.79M	90.02M
Net Income	45.02M	46.48M	36.05M	128.67M	103.14M	28.03M
Balance Sheet
Total Assets	1.50B	1.40B	1.23B	1.43B	1.11B	459.52M
Cash, Cash Equivalents and Short-Term Investments	11.57M	33.74M	13.00M	65.07M	7.76M	457.98K
Total Debt	680.43M	623.07M	564.03M	789.86M	570.59M	166.61M
Total Liabilities	850.97M	763.08M	705.25M	922.00M	700.89M	220.06M
Stockholders Equity	648.22M	634.57M	526.87M	506.97M	414.03M	239.46M
Cash Flow
Free Cash Flow	99.04M	133.54M	226.30M	199.88M	-72.88M	61.75M
Operating Cash Flow	110.42M	142.75M	238.08M	210.69M	-65.42M	64.19M
Investing Cash Flow	-138.51M	-147.46M	-13.48M	-279.47M	-306.63M	―
Financing Cash Flow	22.10M	30.00M	-285.99M	128.61M	378.85M	―

ADENTRA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 34.59 is above the 20-day moving average (MA) of 34.17, above the 50-day MA of 34.51, and above the 200-day MA of 30.71, indicating a bullish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 29.95 is Neutral, 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
RUS	76 Outperform	$2.34B	14.48	10.04%	4.25%	8.15%	-3.57%
WJX	73 Outperform	C$541.89M	11.76	8.84%	5.17%	3.71%	-12.70%
DBM	71 Outperform	C$773.77M	10.42	12.33%	6.34%	28.20%	36.95%
ALC	68 Neutral	C$710.75M	7.04	11.43%	4.50%	8.54%	33.89%
ADEN	65 Neutral	$831.01M	13.64	6.99%	1.73%	6.80%	-6.80%
ARE	64 Neutral	C$1.83B	222.05	0.92%	2.61%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ADENTRA Corporate Events

Adentra Inc. Reports Strong Q3 2025 Financial Results

Adentra Inc. is a leading distributor of architectural building products across North America, serving residential, repair and remodel, and commercial construction markets through its extensive network of facilities in the United States and Canada.

ADENTRA Reports Strong Q3 2025 Results with Strategic Growth and Tariff Clarity

ADENTRA Inc. announced strong financial results for the third quarter of 2025, with sales reaching $592.1 million, marking a 4.1% increase from the previous year. The company reported a slight increase in gross margin and a stable basic earnings per share. ADENTRA’s strategic acquisitions, such as the Woolf transaction, have contributed to its growth, and the company has effectively managed its capital to reduce debt and return value to shareholders. The announcement also highlighted the impact of US tariffs, which are now limited to country-specific rates, and the company’s preparedness to handle these tariffs without significant impact on margins. Looking ahead, ADENTRA plans to focus on reducing leverage and pursuing strategic acquisitions in 2026.

The most recent analyst rating on (TSE:ADEN) stock is a Hold with a C$37.00 price target. To see the full list of analyst forecasts on ADENTRA stock, see the TSE:ADEN Stock Forecast page.

ADENTRA to Release Q3 2025 Financial Results and Host Conference Call

ADENTRA Inc. announced it will release its third quarter 2025 financial results on November 10, 2025, before the market opens. The company will also host a conference call on the same day to discuss its financial performance, featuring CEO Rob Brown and CFO Faiz Karmally. This announcement is significant as it provides stakeholders an opportunity to gain insights into ADENTRA’s financial health and operational strategies, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:ADEN) stock is a Hold with a C$35.00 price target. To see the full list of analyst forecasts on ADENTRA stock, see the TSE:ADEN Stock Forecast page.

ADENTRA Inc. Reports Resilient Q2 Earnings Amid Challenges

ADENTRA Inc. recently held its earnings call, showcasing a resilient financial performance amidst a challenging market environment. The company demonstrated strong financial management and effective integration of acquisitions, although it faces hurdles such as a soft residential construction market, increased leverage, and a decline in July sales.