ADF Group Inc. SV (DRX) AI Stock Analysis

• Market Cap: C$289.46M
• Dividend Yield: 0.39%
• Average Volume (3M): 49.26K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.01
• Revenue Growth: -19.66%
• EPS Growth: 15.33%
• Country: CA
• Employees: 561
• Sector: Industrials
• Sector Strength: 94
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.30
• Shares Outstanding: 16,026,392
• 10 Day Avg. Volume: 34,585
• 30 Day Avg. Volume: 49,261
• PEG Ratio: -0.48
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.34
• 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$12.00
• Price Target Upside: 16.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: C$11.50 ▲(11.65%Upside)

ADF Group Inc.'s overall stock score reflects strong financial health and undervaluation, but is tempered by technical overbought signals and revenue challenges due to U.S. tariffs. The company's strategic contract wins and stable leadership are positive but may not fully offset the tariff impacts in the short term.

Positive Factors

Financial Performance

ADF Group reported financial results that largely beat estimates, with revenue of $107.4M and EBITDA of $23.1M surpassing expectations.

Shareholder Returns

ADF announced a cash utilization strategy including the intention to repurchase up to 3.0M shares and doubling its semi-annual dividend to $0.02/share.

Negative Factors

Market Conditions

U.S. non-residential construction spending growth has slowed, although figures are still reaching new all-time highs.

ADF Group Inc. SV Business Overview & Revenue Model

Company Description

ADF Group Inc. SV (DRX) is a leading North American company specializing in the design and engineering of complex steel structures. Operating primarily in the construction and infrastructure sectors, the company offers a range of services including fabrication, installation, and engineering of large-scale projects. ADF Group Inc. serves a diverse clientele, which includes commercial, industrial, and institutional clients, providing them with high-quality, customized steel solutions.

How the Company Makes Money

ADF Group Inc. generates revenue through its comprehensive service offerings in the steel construction industry. The company's primary revenue streams include contracts for the fabrication and installation of steel structures, engineering services for complex steel projects, and maintenance and refurbishment of existing structures. ADF Group's earnings are significantly influenced by its ability to secure large-scale construction and infrastructure projects, often through competitive bidding processes. Strategic partnerships with construction firms and project developers, as well as long-term contracts with governmental and private sector clients, also play a crucial role in the company's financial performance. The company's expertise in handling complex, high-value projects helps it maintain a strong position in the market and ensures a steady flow of revenue.

ADF Group Inc. SV Financial Statement Overview

Summary

ADF Group Inc. exhibits strong financial health with impressive growth in revenue and profitability, efficient capital structure, and robust cash flow management. The company is well-positioned in the metal fabrication industry with a solid balance between leveraging and equity financing, ensuring stability and growth potential.

Income Statement

ADF Group Inc. demonstrates robust profitability with a high Gross Profit Margin of 30.6% and a strong Net Profit Margin of 17.5% in TTM, indicating efficient cost management. The Revenue Growth Rate from the previous annual period to TTM is 15.1%, reflecting a healthy upward trajectory. EBIT and EBITDA margins at 25.1% and 26.4% respectively, further confirm operational efficiency and profitability.

Balance Sheet

The company's Balance Sheet is stable with a Debt-to-Equity Ratio of 0.24, indicating conservative leverage. ROE stands at 30.0% in TTM, showcasing efficient use of equity capital. However, the Equity Ratio is 55.9%, suggesting moderate reliance on equity financing, which is typical for the industry.

Cash Flow

ADF Group Inc.'s cash flow is strong, with a Free Cash Flow Growth Rate of 112.1% from the previous annual period, highlighting significant improvement. The Operating Cash Flow to Net Income Ratio of 2.04 in TTM indicates highly efficient cash generation relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	339.63M	331.02M	250.89M	280.74M	172.59M
Gross Profit	107.24M	71.65M	35.57M	24.69M	26.20M
EBITDA	85.68M	55.82M	24.18M	17.29M	15.60M
Net Income	56.79M	37.62M	14.94M	9.56M	6.87M
Balance Sheet
Total Assets	307.90M	328.61M	271.62M	201.05M	189.95M
Cash, Cash Equivalents and Short-Term Investments	59.98M	72.38M	7.19M	7.13M	17.81M
Total Debt	45.63M	48.84M	51.52M	36.67M	25.58M
Total Liabilities	138.59M	166.47M	146.63M	92.60M	90.39M
Stockholders Equity	169.31M	162.13M	124.98M	108.45M	99.56M
Cash Flow
Free Cash Flow	43.98M	71.37M	-14.77M	-19.40M	27.02M
Operating Cash Flow	52.26M	77.86M	-2.61M	2.67M	28.84M
Investing Cash Flow	-8.71M	-6.27M	-12.08M	-21.99M	-1.75M
Financing Cash Flow	-62.07M	-6.69M	14.16M	9.20M	-12.44M

ADF Group Inc. SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRX, the sentiment is Positive. The current price of 10.3 is above the 20-day moving average (MA) of 8.02, above the 50-day MA of 7.70, and above the 200-day MA of 8.26, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 78.20 is Negative, neither overbought nor oversold. The STOCH value of 67.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DRX.

ADF Group Inc. SV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE	74 Outperform	C$157.78M	56.18	4.86%	7.57%	3.23%	-60.49%
DRX	70 Outperform	C$289.46M	6.13	29.02%	0.39%	-19.66%	15.33%
DRT	65 Neutral	C$170.40M	13.66	31.34%	―	-3.13%	―
Sector *	61 Neutral	C$6.52B	7.74	3.45%	2.56%	6.46%	-23.06%
ACT	53 Neutral	C$429.67M	―	-111.61%	―	-9.70%	-9.53%
IB	46 Neutral	C$6.29M	―	34.86%	―	―	―

ADF Group Inc. SV Corporate Events

ADF Group Inc. Secures Major Contract in Quebec’s Energy Sector

ADF Group Inc. has secured a significant five-year contract in Quebec’s energy sector, valued between $35 million and $40 million annually, with a potential total of $400 million. This contract will enhance ADF’s operations by necessitating new equipment investments and hiring additional personnel, reinforcing its market position and contributing to Quebec’s global reputation.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$24.00 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.

ADF Group Inc. Announces Successful Director Elections

ADF Group Inc. announced the results of its director elections, with all nominees proposed in the management proxy circular being elected by a majority of shareholders. The election saw a high representation of voting rights, with approximately 90.17% of the total voting rights being exercised. This outcome reflects strong shareholder confidence in the company’s leadership, potentially reinforcing its strategic direction and operational stability.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.

ADF Group Inc. Faces Revenue Decline Amid U.S. Tariff Challenges

ADF Group Inc. reported a decline in revenues to $55.5 million for the first quarter ended April 30, 2025, compared to $107.4 million in the same period last year, primarily due to the impacts of U.S. tariffs. Despite a robust order backlog of $330.4 million, the tariffs have led to reduced fabrication hours and a work-sharing program at its Terrebonne plant, affecting the company’s margins and overall financial performance. The company’s net income also decreased to $8.7 million from $15.3 million a year ago, highlighting the ongoing challenges posed by the tariffs on its operations.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.

ADF Group Inc. to Announce Q1 2026 Results and Host Annual Shareholders Meeting

ADF Group Inc. announced it will release its Q1 2026 financial results on June 10, 2025, followed by a conference call hosted by CFO Jean-François Boursier to discuss the results and future outlook. The company will also hold its Annual Meeting of Shareholders on the same day, providing an opportunity for stakeholders to engage with the company’s leadership.

The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.