Dye & Durham (DND) AI Stock Analysis

• Market Cap: C$657.22M
• Dividend Yield: 0.77%
• Average Volume (3M): 319.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: 2.47%
• EPS Growth: 19.37%
• Country: CA
• Employees: 1,200
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Infrastructure
• EPS (TTM): -0.33
• Shares Outstanding: 67,200,000
• 10 Day Avg. Volume: 244,198
• 30 Day Avg. Volume: 319,728
• PEG Ratio: <0.01
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.36
• 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$17.60
• Price Target Upside: 79.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 52 Neutral
• Price Target: C$10.00 ▲(2.25%Upside)

Dye & Durham's overall stock score is impacted by financial challenges, including high leverage and net losses. While earnings call insights provide a positive outlook with strategic initiatives and improved customer retention, negative valuation metrics and mixed technical indicators temper the score. Investors should consider the company's strategic shifts and potential for operational improvement.

Positive Factors

Governance

Blacksheep has agreed to customary standstill and voting support terms, gaining the right to appoint a new board member, which is seen as positive governance development.

Revenue Growth

DND's banking technology business has been notably strong, with over 20% revenue growth in FY2024.

Negative Factors

Activist Pressure

Activist pressure from Engine Capital is pushing Dye & Durham to optimize return on invested capital and focus on organic growth and disciplined acquisitions.

Dye & Durham Business Overview & Revenue Model

Company Description

Dye & Durham Limited, through its subsidiary, Dye & Durham Corporation, provides cloud-based software and technology solutions for legal firms, financial service institutions, and government organizations in Canada, Australia, Ireland, and the United Kingdom. It offers legal software solutions, such as due diligence, incorporation and business organization, PPSA and securities filings, litigation, and practice management solutions that automates workflow and streamlines access to public records to support end-to-end legal transactions. The company also provides investigative and compliance service, personal property security act (PPSA) service, court filing, and process serving solutions to Government. In addition, it offers a range of technology-enabled risk mitigation solutions comprising AML and KYC, lien management, financial risk management, payout exchange, and mortgage discharge solutions. The company was founded in 1874 and is headquartered in Toronto, Canada.

How the Company Makes Money

Dye & Durham generates revenue through the sale of its software solutions and services, which are offered on a subscription basis. The company charges fees for access to its cloud-based platforms and for transactional services that facilitate legal and business processes. Key revenue streams include subscription fees for document management and workflow automation tools, as well as transactional fees for services such as title searches, corporate registrations, and due diligence activities. Additionally, Dye & Durham has established significant partnerships with legal and financial institutions, enhancing its market presence and expanding its customer base. The company's focus on providing essential services to professionals in regulated industries ensures a steady demand for its offerings, contributing to its overall earnings.

Dye & Durham Financial Statement Overview

Summary

Dye & Durham faces financial challenges characterized by consistent net losses and high leverage. While operational efficiency is moderate and cash management is adept, the company's high debt levels and negative profitability metrics are concerning. Stabilizing revenue growth and improving profit margins will be crucial for enhancing financial health.

Income Statement

Dye & Durham's income statement reflects a challenging environment with persistent net losses. The TTM (Trailing-Twelve-Months) shows a negative net income of -$154 million. The gross profit margin stands at 59.8%, indicating healthy cost management. Revenue growth appears stagnant with minimal increase from the previous year. EBIT and EBITDA margins are at 5.2% and 28.3%, respectively, showing moderate operational efficiency. However, the substantial net loss impacts the overall income statement score.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.06, indicating significant leverage. The company's equity ratio is 14.3%, reflecting a low proportion of equity financing. Return on equity is negative due to net losses, highlighting profitability challenges. While total assets increased, the high liabilities and low equity position pose financial risks. Overall, the balance sheet indicates financial leverage concerns and equity instability.

Cash Flow

Dye & Durham reports positive free cash flow of $92.6 million in the TTM, though lower than previous periods. Operating cash flow is strong at $125 million, showing good cash generation relative to net income. However, free cash flow growth has declined, and the free cash flow to net income ratio is negative due to net losses. The cash flow statement reflects solid cash management but is affected by the company's profitability issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
468.06M	457.70M	451.11M	474.81M	208.94M	65.51M
	Gross Profit
279.83M	312.90M	304.78M	417.25M	181.02M	58.68M
	EBIT
96.95M	61.64M	63.88M	110.04M	40.85M	19.57M
	EBITDA
132.29M	104.83M	79.05M	232.35M	46.06M	21.53M
	Net Income Common Stockholders
-154.04M	-174.98M	-170.64M	7.67M	-40.85M	-11.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.33M	80.32M	36.27M	223.62M	429.33M	2.57M
	Total Assets
2.27B	2.24B	2.12B	2.25B	1.56B	166.96M
	Total Debt
1.65B	1.55B	1.35B	1.17B	599.94M	195.56M
	Net Debt
1.62B	1.47B	1.31B	943.67M	170.60M	192.99M
	Total Liabilities
1.94B	1.85B	1.70B	1.49B	807.45M	2.00M
	Stockholders Equity
325.31M	389.34M	423.08M	763.42M	750.92M	-2.00M
Cash Flow		Free Cash Flow
92.59M	141.92M	108.30M	161.63M	69.83M	30.14M
	Operating Cash Flow
124.96M	180.87M	141.40M	185.44M	79.35M	33.17M
	Investing Cash Flow
-269.74M	-40.28M	-158.27M	-923.58M	-790.67M	-11.17M
	Financing Cash Flow
140.51M	90.16M	-164.87M	535.30M	1.14B	-22.98M

Dye & Durham Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DND, the sentiment is Negative. The current price of 9.78 is below the 20-day moving average (MA) of 10.01, above the 50-day MA of 9.29, and below the 200-day MA of 14.19, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.32 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DND.

Dye & Durham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAI	64 Neutral	C$121.72M	58.17	-1.05%	―	-11.61%	-126.61%
STC	63 Neutral	C$266.37M	―	-2.67%	―	-1.72%	76.81%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CVO	61 Neutral	C$721.36M	―	-9.00%	―	8.86%	56.67%
DND	52 Neutral	C$657.22M	―	-39.72%	0.77%	2.47%	19.37%
TIXT		$995.59M	30.46	-5.70%	―	―	―
NOW	54 Neutral	C$46.14M	11.95	679.89%	―	-10.35%	―

Dye & Durham Corporate Events

Dye & Durham Announces New Executive Leadership Team

Dye & Durham Limited has announced significant changes in its executive leadership, appointing George Tsivin as CEO, Avjit Kamboj as CFO, and Nikesh Patel as Chief Product Officer. These appointments are part of the company’s strategic focus on strengthening business offerings and refining its strategy to deliver greater value to customers. With a track record of driving growth and transformation in previous roles, the new leadership team is expected to guide Dye & Durham through its next phase of development, potentially enhancing its market positioning and operational efficiency.

The most recent analyst rating on (TSE:DND) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Dye & Durham stock, see the TSE:DND Stock Forecast page.

Dye & Durham Reports Q3 FY2025 Results and Launches New Customer-Focused Strategy

Dye & Durham reported a slight increase in revenue to $108.3 million for Q3 FY2025, alongside a significant rise in leveraged free cash flow. Under new leadership, the company has introduced a customer-focused strategy centered on enhancing customer experience, product transformation, and portfolio optimization. This strategic shift aims to build customer trust and ensure sustainable growth, with a focus on organic growth and operational optimization.

The most recent analyst rating on (TSE:DND) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Dye & Durham stock, see the TSE:DND Stock Forecast page.

Dye & Durham Charts New Strategic Path for Sustainable Growth

Dye & Durham’s new Board and management have outlined a strategic plan to enhance long-term sustainable growth and shareholder value by focusing on customer satisfaction, product transformation, and portfolio optimization. The company is prioritizing organic growth and operational excellence, with early successes in customer retention and service improvements, while also exploring the sale of non-core assets to strengthen its financial position.

The most recent analyst rating on (TSE:DND) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Dye & Durham stock, see the TSE:DND Stock Forecast page.

Dye & Durham Revolutionizes Bill Payment with Automated Error Correction

Dye & Durham has launched an automated error correction feature for its CANACT BillPay platform, addressing inefficiencies in Canada’s bill payment services. This innovation reduces resolution times from weeks to days, enhancing operational efficiency and customer trust while aligning with regulatory standards.