Dye & Durham (DND) AI Stock Analysis

• Market Cap: C$714.03M
• Dividend Yield: 0.69%
• Average Volume (3M): 187.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: 2.47%
• EPS Growth: 19.37%
• Country: CA
• Employees: 1,200
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): -0.33
• Shares Outstanding: 67,170,980
• 10 Day Avg. Volume: 169,963
• 30 Day Avg. Volume: 187,210
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$15.38
• Price Target Upside: 44.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: C$12.00 ▲(12.89% Upside)

Dye & Durham's overall score reflects financial challenges, including high leverage and net losses, which are the most significant concerns. However, strategic initiatives in corporate governance and operations, along with improved customer metrics, provide some optimism. Technical indicators and valuation also suggest caution in the short term.

Positive Factors

Leadership Changes

The addition of experienced leaders in key roles is expected to drive operational improvements and strategic execution, enhancing the company's ability to optimize core products and expand its market presence.

Customer Retention

High customer retention rates indicate strong customer loyalty and satisfaction, which are crucial for sustaining revenue streams and supporting long-term growth.

Strategic Review

The strategic review could lead to significant structural changes, such as asset sales or mergers, potentially enhancing shareholder value and improving financial stability.

Negative Factors

High Leverage

High leverage poses financial risks by increasing the burden of debt servicing, which can limit financial flexibility and impact long-term sustainability.

Organic Revenue Decline

A decline in organic revenue growth suggests challenges in expanding the customer base and increasing sales, which could hinder long-term growth prospects.

Net Losses

Persistent net losses undermine profitability and can erode shareholder value, making it difficult to invest in growth initiatives and maintain competitive positioning.

Dye & Durham Business Overview & Revenue Model

Company Description

Dye & Durham Limited is a leading provider of cloud-based software and technology solutions designed to improve efficiency and streamline workflows for legal and business professionals. The company serves clients in various sectors, including legal, financial, and government organizations, offering a comprehensive suite of products that enhance productivity and compliance management.

How the Company Makes Money

Dye & Durham generates revenue primarily through the sale of its software solutions, which are offered on a subscription or transactional basis. Key revenue streams include licensing fees for its cloud-based applications, transaction fees from its workflow solutions, and professional services. The company also benefits from strategic partnerships and acquisitions, which help expand its product offerings and customer base, contributing to its overall earnings.

Dye & Durham Financial Statement Overview

Summary

Dye & Durham faces significant financial challenges, including persistent net losses and high leverage. While there is moderate operational efficiency and solid cash management, the high debt levels and negative profitability metrics are concerning.

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	469.07M	457.70M	451.11M	474.81M	208.94M	65.51M
Gross Profit	315.57M	312.90M	304.78M	417.25M	181.02M	58.68M
EBITDA	130.78M	104.83M	79.05M	232.35M	46.06M	21.53M
Net Income	-153.91M	-174.98M	-170.64M	7.67M	-40.85M	-11.24M
Balance Sheet
Total Assets	2.25B	2.24B	2.12B	2.25B	1.56B	166.96M
Cash, Cash Equivalents and Short-Term Investments	37.05M	80.32M	36.27M	223.62M	429.33M	2.57M
Total Debt	1.67B	1.55B	1.35B	1.17B	599.94M	195.56M
Total Liabilities	1.95B	1.85B	1.70B	1.49B	807.45M	2.00M
Stockholders Equity	304.02M	389.34M	423.08M	763.42M	750.92M	-2.00M
Cash Flow
Free Cash Flow	123.10M	141.92M	108.30M	161.63M	69.83M	30.14M
Operating Cash Flow	152.81M	180.87M	141.40M	185.44M	79.35M	33.17M
Investing Cash Flow	-276.47M	-40.28M	-158.27M	-923.58M	-790.67M	-11.17M
Financing Cash Flow	60.03M	90.16M	-164.87M	535.30M	1.14B	-22.98M

Dye & Durham Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DND, the sentiment is Neutral. The current price of 10.63 is above the 20-day moving average (MA) of 10.62, above the 50-day MA of 10.25, and below the 200-day MA of 12.31, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 33.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DND.

Dye & Durham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVO	69 Neutral	C$874.20M	―	-17.77%	―	10.09%	-8.79%
HAI	64 Neutral	C$141.31M	58.17	-1.32%	―	-5.56%	-124.69%
Sector *	61 Neutral	$36.69B	12.42	-10.22%	1.85%	8.50%	-7.32%
STC	60 Neutral	C$254.98M	―	-2.67%	―	-1.72%	76.81%
DND	55 Neutral	C$714.03M	―	-39.72%	0.69%	2.47%	19.37%
TIXT	―	$1.23B	30.46	-20.44%	―	―	―
NOW	38 Underperform	C$29.19M	12.93	-10.10%	―	-13.50%	96.77%

Dye & Durham Corporate Events

Dye & Durham Explores Strategic Alternatives to Maximize Shareholder Value

Dye & Durham Limited has initiated a strategic review to maximize shareholder value, which may include a sale of the company, asset sales, recapitalizations, or mergers. The company has entered a Cooperation Agreement with Plantro Ltd., appointing David Danziger to the Board and as Chair of a Special Committee to lead the review. This move aims to enhance shareholder value and reflects constructive engagement with stakeholders.

The most recent analyst rating on (TSE:DND) stock is a Buy with a C$30.00 price target. To see the full list of analyst forecasts on Dye & Durham stock, see the TSE:DND Stock Forecast page.

Dye & Durham Strengthens Leadership Team to Enhance Operations

Dye & Durham Limited has announced key appointments to its executive leadership team, with Chris Louie joining as Chief Marketing Officer and Corey Banks as Chief Legal Officer. Sandra Bell has been appointed interim Chief Financial Officer following the departure of Avjit Kamboj. These strategic additions are aimed at driving operational improvements and optimizing core products, as the company seeks to unlock the value of its software assets and enhance its position as a leading provider of legal practice management solutions globally. The changes come amid a strategic review by the Board, highlighting the company’s focus on enhancing operational execution and supporting customer growth.

The most recent analyst rating on (TSE:DND) stock is a Buy with a C$30.00 price target. To see the full list of analyst forecasts on Dye & Durham stock, see the TSE:DND Stock Forecast page.

Dye & Durham Addresses Whistleblower Allegations Amid Turnaround Efforts

Dye & Durham Limited responded to whistleblower allegations made by Plantro Ltd., associated with former CEO Matt Proud, emphasizing their commitment to thoroughly investigate such complaints. The company views these allegations as an attempt to disrupt its turnaround efforts and remains focused on creating value for shareholders, employees, and customers.

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’s New Leadership Drives Turnaround and Value Maximization

Dye & Durham has announced its new leadership’s commitment to advancing turnaround initiatives and maximizing shareholder value. The company is focusing on stabilizing operations, improving customer experience, and driving a sustainable go-to-market strategy under the guidance of CEO George Tsivin and a refreshed management team. Significant improvements have been made, including an 85% enhancement in customer service response times and over 200 product improvements. The Board believes that allowing the new management to execute its strategy will best serve shareholders, employees, and customers.

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 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.