ADF Group Inc. SV (DRX) AI Stock Analysis

• Market Cap: C$212.55M
• Dividend Yield: 0.54%
• Average Volume (3M): 99.15K
• Price to Earnings (P/E): 3.8
• Beta (1Y): -0.04
• Revenue Growth: 2.60%
• EPS Growth: 59.86%
• Country: CA
• Employees: 561
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.84
• Shares Outstanding: 16,376,877
• 10 Day Avg. Volume: 69,484
• 30 Day Avg. Volume: 99,153
• PEG Ratio: -6.72
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.29
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: C$9.00 ▲( 22.78% Upside)

ADF Group Inc. receives a high score due to robust financial performance, strong valuation metrics, and positive corporate developments. The company's efficient cost management and strategic contract acquisitions further bolster its outlook. Technical analysis shows mixed signals, but overall, the company's fundamentals remain strong, enhancing its attractiveness in the market.

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. has demonstrated robust financial performance with strong revenue growth and improving profit margins. The company maintains a stable debt-to-equity ratio and efficient cash flow management, despite some concerns about increasing liabilities.

Income Statement

ADF Group Inc. has shown strong revenue growth over the years, particularly from 2021 to 2025. The gross profit margin improved significantly, reflecting efficient cost management. The net profit margin has also strengthened, indicating better profitability. The company has achieved a consistent increase in EBIT and EBITDA margins, signaling operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is stable, indicating a balanced approach to leveraging. Return on equity has improved in recent years, showing effective use of shareholder funds. The equity ratio is healthy, suggesting a robust capital structure. However, the total liabilities have increased over the years, which could pose potential risks if not managed properly.

Cash Flow

ADF Group Inc. has shown consistent improvement in free cash flow, which is a positive indicator of its financial health. The operating cash flow to net income ratio is strong, suggesting efficient cash generation from operations. The free cash flow to net income ratio is favorable, supporting the company's ability to generate cash relative to its earnings. However, fluctuations in capital expenditures and financing activities need careful monitoring.

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
	EBIT
85.13M	50.14M	20.80M	9.01M	11.43M
	EBITDA
85.68M	55.82M	24.18M	17.29M	15.60M
	Net Income Common Stockholders
56.79M	37.62M	14.94M	9.56M	6.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.98M	72.38M	7.19M	7.13M	17.81M
	Total Assets
307.90M	328.61M	271.62M	201.05M	189.95M
	Total Debt
45.63M	48.84M	51.52M	36.67M	25.58M
	Net Debt
-14.35M	-23.54M	44.33M	29.54M	7.78M
	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
-59.27M	-6.69M	14.16M	9.20M	-12.44M

ADF Group Inc. SV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRX, the sentiment is Neutral. The current price of 7.33 is above the 20-day moving average (MA) of 6.82, above the 50-day MA of 6.88, and below the 200-day MA of 9.27, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
DRX	82 Outperform	C$212.55M	3.83	34.27%	0.54%	2.60%	59.86%
DE	72 Outperform	C$144.99M	51.73	4.86%	7.38%	3.23%	-60.49%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%
DRT	62 Neutral	$176.31M	13.66	31.34%	―	-3.13%	―
ACT	49 Neutral	C$264.78M	―	-111.61%	―	-9.70%	-9.53%
IB	46 Neutral	C$7.39M	―	34.86%	―	―	―

ADF Group Inc. SV Corporate Events

ADF Group Inc. Reports Strong Fiscal Year Results and Implements Cost Management Strategies

ADF Group Inc. reported a significant increase in revenues and net income for the fiscal year ended January 31, 2025, with revenues reaching $339.6 million and net income rising by 50.9% to $56.8 million. The company has improved its gross margin due to enhanced internal efficiencies and investments in automation. Despite a decrease in order backlog, ADF has secured $120 million in new orders and is implementing a Work-Sharing program to manage costs amid U.S. tariff uncertainties, affecting approximately 200 employees.

ADF Group Inc. Announces Fiscal Year 2025 Results Release and Conference Call

ADF Group Inc., a company listed on the Toronto Stock Exchange, will release its financial results for the fiscal year ending January 31, 2025, on April 10, 2025. The company’s Chairman and CEO, Jean Paschini, along with CFO Jean-François Boursier, will host a conference call to discuss these results and the company’s outlook for the coming quarters, providing an opportunity for financial analysts to engage in a Q&A session.

ADF Group Secures $120 Million in New Contracts Across North America

ADF Group Inc. has announced the acquisition of new contracts in Quebec and the Western United States, totaling $120 million. These contracts include significant projects such as the renovation of a sports complex and various structural steel contracts in the recreational sector. The projects will be executed over approximately 15 months, involving ADF’s fabrication plants in Quebec and Montana. This development adds to ADF’s existing order backlog of $330.3 million, potentially enhancing its market position and operational capacity.