ADENTRA (TSE:ADEN)
TSX:ADEN
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ADENTRA
(TSX:ADEN)
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Rating:64Neutral
Price Target:
C$39.00
▲(7.08% Upside)
Action:ReiteratedDate:04/10/26
The score is driven primarily by improving financial performance—strong 2025 revenue growth and sharply better free cash flow—tempered by structurally lower margins and reduced ROE. Technicals are a notable headwind given the price trading below key moving averages with bearish momentum indicators, while a moderate P/E and modest dividend yield provide valuation support.
Positive Factors
Revenue Re-acceleration
A ~39% revenue re-acceleration in 2025 indicates durable demand recovery and stronger market penetration in ADENTRA's distribution network. Sustained top-line expansion can improve branch utilization, purchasing scale, and long-term fixed-cost absorption, supporting earnings stability across cycles.
Negative Factors
Structural Margin Pressure
Gross margin erosion to ~18% and net margin near 3% reflect persistent low-margin dynamics in distribution and recent compression versus prior years. Thin margins limit the firm's ability to absorb cost inflation, reduce incremental profitability from revenue growth, and constrain reinvestment or buffer against downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Re-acceleration
A ~39% revenue re-acceleration in 2025 indicates durable demand recovery and stronger market penetration in ADENTRA's distribution network. Sustained top-line expansion can improve branch utilization, purchasing scale, and long-term fixed-cost absorption, supporting earnings stability across cycles.
Read all positive factors
ADENTRA (ADEN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$827.01M
Dividend Yield1.74%
Average Volume (3M)41.87K
Price to Earnings (P/E)12.0
Beta (1Y)1.10
Revenue Growth5.04%
EPS Growth44.31%
CountryCA
Employees3,006
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.88
Shares Outstanding24,245,497
10 Day Avg. Volume38,121
30 Day Avg. Volume41,865
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.25
Price to Sales (P/S)0.37
P/FCF Ratio5.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.75Price Target Upside36.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.62
Revenue Forecast (FY)C$2.27B
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 ...
How the Company Makes Money
ADENTRA makes money primarily by purchasing building products from manufacturers and other suppliers and reselling them to professional customers at a markup, generating revenue from product sales through its distribution network. Key revenue stre...
ADENTRA Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted steady sales growth, strong cash flow, and effective cost management, but also noted challenges with rising operating expenses and a flat EPS. While the company is well-positioned for future growth and M&A activities, it faces headwinds in the residential construction market.Positive Updates
Sales and Revenue Growth
ADENTRA generated sales of $592 million, up 4% year-over-year. Organic sales grew 1.7% due to product price appreciation.
Negative Updates
Operating Expense Increase
Operating expenses rose by 5% year-over-year, driven by inflationary pressures on premises, wages, and long-term incentive adjustments.
Read all updates
Q3-2025 Updates
Positive
Negative
Sales and Revenue Growth
ADENTRA generated sales of $592 million, up 4% year-over-year. Organic sales grew 1.7% due to product price appreciation.
Read all positive updates
Company Guidance
During the ADENTRA Third Quarter 2025 Results Conference Call, the company reported strong financial performance despite a challenging market environment. Sales increased by 4% to $592 million, with adjusted EBITDA reaching $49.9 million and adjusted EPS at $0.70. Organic sales grew by 1.7%, supported by firming product prices and contributions from the Woolf Distributing acquisition. The gross margin rose to 21.4%, while operating expenses increased by 5% due to inflationary pressures. ADENTRA generated $60.6 million in operating cash flow and reduced its leverage ratio to 2.7x, positioning the company well for potential M&A activities in 2026. The company also announced a dividend increase to CAD 0.64 per share, reflecting confidence in its cash generation and long-term outlook. Looking ahead, ADENTRA expects fourth-quarter adjusted EBITDA to align with first-quarter performance, with a continued focus on operational efficiency and strategic growth initiatives.ADENTRA Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.29B | 2.18B | 2.24B | 2.58B | 1.62B |
| Gross Profit | 419.14M | 474.06M | 466.10M | 556.75M | 372.91M |
| EBITDA | 191.30M | 169.82M | 161.86M | 343.35M | 184.79M |
| Net Income | 69.63M | 46.48M | 36.05M | 128.67M | 103.14M |
Balance Sheet | |||||
| Total Assets | 1.37B | 1.40B | 1.23B | 1.43B | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 12.99M | 33.74M | 13.00M | 65.07M | 7.76M |
| Total Debt | 573.89M | 623.07M | 564.03M | 789.86M | 570.59M |
| Total Liabilities | 701.68M | 763.08M | 705.25M | 922.00M | 700.89M |
| Stockholders Equity | 668.80M | 634.57M | 526.87M | 506.97M | 414.03M |
Cash Flow | |||||
| Free Cash Flow | 149.86M | 133.54M | 226.30M | 199.88M | -72.88M |
| Operating Cash Flow | 163.45M | 142.75M | 238.08M | 210.69M | -65.42M |
| Investing Cash Flow | -6.70M | -147.46M | -13.48M | -279.47M | -306.63M |
| Financing Cash Flow | -176.72M | 30.00M | -285.99M | 128.61M | 378.85M |
ADENTRA Technical Analysis
Positive
36.42
Price Trends
35.86
Positive
35.35
Positive
34.08
Positive
Market Momentum
-0.27
Negative
63.60
Neutral
91.09
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 36.42 is above the 20-day moving average (MA) of 33.72, above the 50-day MA of 35.86, and above the 200-day MA of 34.08, indicating a bullish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 91.09 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$895.74M | 5.36 | 15.49% | 4.27% | 8.19% | 56.62% | |
66 Neutral | C$738.92M | 10.32 | 10.91% | 5.09% | 2.27% | 33.87% | |
66 Neutral | C$2.91B | 14.57 | 10.44% | 3.88% | 8.92% | 10.21% | |
65 Neutral | C$399.39M | 13.49 | 8.32% | ― | -0.16% | -40.01% | |
64 Neutral | C$827.01M | 12.03 | 10.60% | 1.74% | 5.04% | 44.31% | |
64 Neutral | C$903.96M | 10.20 | 12.47% | 5.85% | 17.12% | 47.67% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:ADEN
ADENTRA
34.11
7.32
27.33%
TSE:ALC
Algoma Central
22.08
7.35
49.94%
TSE:DBM
Doman Building Materials Group
10.30
3.73
56.80%
TSE:TBL
Taiga Building Prod
3.70
1.17
46.42%
TSE:WJX
Wajax Corporation
33.82
16.93
100.21%
TSE:RUS
Russel Metals
52.87
14.13
36.46%
ADENTRA Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
ADENTRA Lifts 2025 Earnings and Cash Flow Despite Soft Housing Market
Positive
Mar 12, 2026
ADENTRA reported full-year 2025 sales of US$2.25 billion, up 3% from 2024, driven partly by acquisition-based growth from Woolf Distributing and supported by resilient gross margins of 21.7%. Fourth-quarter sales edged down 2.5% to US$517.5 millio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.