ADENTRA (ADEN) AI Stock Analysis

• Market Cap: C$824.74M
• Dividend Yield: 1.74%
• Average Volume (3M): 41.87K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.07
• Revenue Growth: 7.18%
• EPS Growth: -9.38%
• Country: CA
• Employees: 3,006
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.95
• Shares Outstanding: 24,242,887
• 10 Day Avg. Volume: 38,121
• 30 Day Avg. Volume: 41,865
• PEG Ratio: 0.90
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 6.64
• 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$44.00
• Price Target Upside: 29.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$35.00 ▲(2.88% Upside)

ADENTRA's overall stock score reflects stable financial performance and strong earnings call results, offset by technical weakness and financial risks due to high leverage. The stock appears undervalued with potential for growth, but faces challenges in profitability and cash flow.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Geographic and Product Diversification

Diversification reduces dependency on single markets, mitigating risks and fostering stable long-term growth.

Negative Factors

High Leverage

Significant leverage can limit financial flexibility and increase risk if earnings do not improve, impacting long-term stability.

Operating Expense Increase

Rising operating expenses can pressure margins and profitability, necessitating improved cost management for sustainable growth.

Challenges in Residential Construction

Softness in the residential construction market may limit growth opportunities, affecting revenue and profitability in the sector.

ADENTRA Business Overview & Revenue Model

Company Description

ADENTRA (ADEN) is a leading North American distributor of building products, primarily serving the residential and commercial construction markets. The company operates in the building materials sector, offering a wide range of products such as windows, doors, and millwork, along with value-added services like logistics and supply chain management. ADENTRA aims to enhance the construction process by providing high-quality materials and innovative solutions to its customers.

How the Company Makes Money

ADENTRA generates revenue primarily through the distribution of building products to contractors, builders, and retailers in the construction industry. The company makes money by selling a diverse range of products, including windows, doors, and related hardware, while also offering installation and logistical support services. Key revenue streams include direct sales to construction companies and partnerships with manufacturers that enable ADENTRA to provide exclusive products. Additionally, the company benefits from economies of scale in procurement and distribution, allowing it to maintain competitive pricing while maximizing margins. Significant partnerships with leading manufacturers in the building materials industry further bolster ADENTRA's revenue by ensuring a steady supply of high-demand products and enhancing its market reach.

ADENTRA Financial Statement Overview

Summary

ADENTRA demonstrates 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	2.26B	2.18B	2.24B	2.58B	1.62B	976.59M
Gross Profit	488.72M	474.06M	466.10M	556.75M	372.91M	187.81M
EBITDA	185.81M	169.82M	161.86M	343.35M	184.79M	90.02M
Net Income	44.76M	46.48M	36.05M	128.67M	103.14M	28.03M
Balance Sheet
Total Assets	1.48B	1.40B	1.23B	1.43B	1.11B	459.52M
Cash, Cash Equivalents and Short-Term Investments	23.33M	33.74M	13.00M	65.07M	7.76M	457.98K
Total Debt	654.96M	623.07M	564.03M	789.86M	570.59M	166.61M
Total Liabilities	834.01M	763.08M	705.25M	922.00M	700.89M	220.06M
Stockholders Equity	650.84M	634.57M	526.87M	506.97M	414.03M	239.46M
Cash Flow
Free Cash Flow	94.19M	133.54M	226.30M	199.88M	-72.88M	61.75M
Operating Cash Flow	104.97M	142.75M	238.08M	210.69M	-65.42M	64.19M
Investing Cash Flow	-9.30M	-147.46M	-13.48M	-279.47M	-306.63M	―
Financing Cash Flow	-84.48M	30.00M	-285.99M	128.61M	378.85M	―

ADENTRA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 34.02 is above the 20-day moving average (MA) of 33.01, above the 50-day MA of 33.40, and above the 200-day MA of 30.64, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 85.24 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	76 Outperform	C$832.49M	10.79	12.33%	5.85%	28.20%	36.95%
WJX	73 Outperform	C$593.57M	12.92	8.84%	5.09%	3.71%	-12.70%
RUS	73 Outperform	C$2.47B	15.09	10.04%	3.88%	8.15%	-3.57%
ALC	72 Outperform	C$767.14M	7.56	11.43%	4.27%	8.54%	33.89%
ADEN	66 Neutral	C$824.74M	13.74	6.99%	1.74%	7.18%	-9.38%
TBL	64 Neutral	C$377.81M	8.41	11.85%	―	2.99%	-12.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ADENTRA Corporate Events

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.

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.